Reliance Industries Ltd

 Reliance Industries Ltd

Addressing to the #shareholders in an annual meeting in 2019, #Reliance

Industries chairman, Mr. #Mukesh_Ambani expressed his intention to

clear financial debt on the company, which was around Rs 2.87 Lakh

crore then.

Subsequently on 15 th of July 2020, Ambani announced in the

shareholders’ meeting that the company has become debt free and has

no financial liabilities what so ever. Moreover, in the FY 20 the

company’s turnover has grown to Rs 6.59 lakh crore, which is 3.2% of

India’s total GDP.

Today Reliance has become ‘net debt free’ because Ambani was able to

pool in investment from some of the biggest players from around the

globe by selling the company’s 33% stake in Jio. Facebook, Google,

Intel, and KKR an American Global Investment Company among others

have invested around Rs 1, 52, 000 crore in last one year.

Company wise details of investment made is given below-

 Facebook – Rs 43, 574 crore

 Google - Rs 33, 737 crore

 Silver Lake Partners (American private equity firm) – 5, 655.75

crore

 Silver Lake Partners (additional investments) – Rs 4, 564.8 crore

 Vista Equity Partners – 11, 367 crore

 KKR – 11, 367 crore

 Mubadala Investment Company (UAE) – 9, 093.6 crore

 Abu Dhabi Investment Authority – 5, 683.5 crore

 TPG Capital (former-Texas Pacific Group) – 4, 546.8 crore

 L Catterton – 1894.5 crore

 Additional smaller investments from Intel, Qualcomm, General

Electric and other companies.

Indian government’s intention to prevent global companies from

siphoning off domestic data over internet has persuaded giants like

Facebook and Google to invest in Reliance Jio. They realize the big

potential of India’s consumer market with 388 million Jio users, around

328 million Facebook users and 400 million WhatsApp users.

Future Prospects

Reliance Group of Industries is all set to expand its business in arenas of

internet space and data through its telecom giant Reliance Jio, and with

the help of a friendly regulatory regime.

With announcements like having its own ‘Made in India’ 5G networks;

Jio Glass similar to the Google Glass, intended to be used in classrooms

or company meetings, etc. Reliance industries definitely will surge to

new heights in coming years.

In one of the largest foreign investment deals made by an Indian

company, Reliance industries has announced selling its 22% stakes in

the Saudi Arabian Oil company at $75 billion.

The company is also going to be the largest player in India’s retail

market having its monopoly on consumer goods. It is also calling in

investors to expand its retail business. Jio Mart, started in December

2019, already has 200 retail outlets across the country in all major

cities.

Currently Jio Mart supplies groceries online through its outlets but has

serious plans of venturing into fashion, phones and electronics as well.

Reliance has already become India’s number one retailer after it bought

Big Bazar for Rs 27, 000 crore in August 2020.