As the oil-to-telecom giant founded by billionaire Mukesh Ambani prepares for an IPO for its retail division, Reliance Industries Ltd. is moving all of its consumer products brands to a new wholly owned company.
According to a June 25 National Company Law Tribunal order, the brands—which include clothing, fashion, food, personal care, and beverages—that are presently owned by Reliance Retail Ltd. (RRL), Reliance Retail Ventures Ltd.(RRVL), and Reliance Consumer Products Ltd.(RCPL) will be transferred to the so-called New Reliance Consumer Products Ltd., or New RCPL.
In their application with the NCLT, the Reliance firms stated that, in contrast to retail, this is a major operation that requires specialised and concentrated attention, experience, and diverse skill sets.
According to the filing, the change will enable the capital-intensive consumer goods company to draw in a new group of investors. Additionally, it will help the retail company that is getting ready for an IPO focus more intently.
Operations of New RCPL
As per the agreement, New RCPL would produce, market, sell, and distribute consumer goods. According to the NCLT filing, it will also make investments in joint ventures and subsidiaries associated with this enterprise.
This development coincides with experts pointing to signs of improvement in Reliance’s retail division following a poor year-end performance on March 31 brought on by a slowdown in consumption and a reorganisation of its store network.
Just two years after its reintroduction in India, Reliance’s beverage brand Campa Cola acquired double-digit market share in strategic regions.
Its network of beauty care products, Tira, includes the Korean brand Sulwhasoo, the American brands Smashbox and Estee Lauder, and the domestic upstart Re’equil.
Reorganisation to be Concluded in Four Stages
There will be four main stages to the restructuring. Through slump sale, RRL’s FMCG brands will first go to parent RRVL. After that, RCPL and RRVL will merge.
The combined “consumer brands business undertaking” will thereafter depart from RRVL and relocate to Tira Beauty Ltd., which is now a dormant business.
As a continuing business, Tira Beauty will then be referred to as New Reliance Consumer Products (New RCPL). To have the proposed “composite scheme of arrangement” approved, the Mumbai NCLT bench directed RRVL to schedule meetings with its 14 equity owners and creditors.
Meetings for RRL, RCPL, and Tira Beauty shareholders were judged unnecessary based on the consent affidavits that were presented. According to the corporation, over 60% of the INR 11,500 crore in sales in FY25 came from kiranas and general trade.
Campa achieved double-digit market share in some regions, according to the company’s results call. Its goods are available in over one million retail locations through a distribution network that includes over 3,200 partners.
In addition, the NCLT division bench, which included technical member Prabhat Kumar and Justice VG Bisht, directed the firms to furnish information on their performance and corporate guarantees as well as any contingent liabilities that may be in place.
Samsung Electronics has started a legal process against a tax demand of INR 4,300 crore (approximately $520 million) from Indian tax authorities. The dispute centers on a particular piece of telecommunication equipment, the Remote Radio Head, a key component for 4G networks, that Samsung imported from South Korea and Vietnam between 2018 and 2021. According to the tax authorities, this component was not classified properly and was therefore brought into the country without paying the requisite import duties, which should have been at least 10% and might have been as much as 20%.
One of India’s biggest consumer electronics spaces is still manned by a South Korean firm that has long seemed to be on the right side of the customs authorities. For the longest time, in fact, Samsung seemed to be doing everything its competitors weren’t, in terms, at least, of avoiding a confrontation with the customs authorities. For the past several years, since 2017, Samsung’s customs practices have been under a microscope. Starting in January 2021, the customs authorities have been taking a very critical view of those practices, with Samsung ordered to pay a total penalty of $1.5 billion (Rs 11,000 crore) since then.
Reliance’s Role in the Argument
Strengthening its case, Samsung has invoked the import history of Reliance Jio itself. Filings with the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) in Mumbai show that Reliance had used a nearly identical method of classification for the very same type of equipment before 2017. Yet, according to reports, customs officials took no action against Reliance.
During its investigations, Samsung found out that Reliance had been warned as far back as 2017 by the authorities about the classification issue. But this red flag was never communicated to Samsung. The company now contends that the years of inaction by regulators effectively endorsed its classification method. So, Samsung believes, the current penalty lacks legal and procedural fairness.
Global Firms Push Back
Samsung’s case follows closely behind another high-profile tax dispute. The German car manufacturer Volkswagen recently contested a record-setting INR 11,600 crore ($1.4 billion) claim made by Indian tax authorities. At issue in both disputes are similar allegations of misclassified imports. These two prominent challenges by multinational corporations may signal bad publicity. They could be seen as indications of rising discontent among foreign investors over the certainty and consistency of India’s tax and regulatory regime.
Samsung’s 281-page appeal defends the legality of its classification and criticizes the process followed by the authorities. The company contends that the January 2025 tax order was issued hastily and without adequate opportunity to respond, despite the financial and operational stakes involved.
Apart from the INR 4,300 crore tax demand, Indian authorities have also slapped an INR 670 crore ($81 million) penalty on seven Samsung employees. This means the total liability is now at INR 5,000 crore ($601 million). As of now, there is no public indication that the individuals penalized intend to mount a challenge to the ruling on their own. The India arm of Samsung clocked a net profit of around INR 7,800 crore ($955 million) in the last fiscal. Therefore, the demand for current taxes represents a big financial risk, one that could color the company’s investment plans and its operational strategies in one of its most crucial markets.
Reliance Industries Limited (RIL) is an Indian organization headquartered in Mumbai, India. Founded by Dhirubhai Ambani, the present Reliance Industries CEO is his son Mukesh Ambani.
Reliance has its entities across domains like vitality, petrochemicals, materials, common assets, retail, and broadcast communications. Reliance is one of the most prominent businesses in India, the biggest “traded on an open market” organization in India by showcase capitalization, and the biggest organization in India as estimated by income after it outperformed Indian Oil Corporation sometime back. On 18 October 2007, Reliance Industries became the first Indian company to cross $100 billion market capitalization.
The organization is positioned 86th on the Fortune Global 500 rundown of the world’s greatest enterprises as of 2024. Fortune announced on its website that Reliance has been a part of the 500 list for 21 years, as it released the 2024 list. Reliance continues to be India’s biggest exporter, representing 8% of India’s all-out exports with an estimation of INR 147,755 crore and access to business sectors in 108 countries. Reliance is answerable for nearly 5% of the legislature of India’s complete income from traditions and extracts obligation. In 2019, Reliance Industries Limited became the first Indian business to cross INR 9 lakh crore valuation mark.
This post by StartupTalky is a Reliance case study, which will let you know about Reliance success story, Reliance Industries founder, Reliance Industries CEO, Reliance Company details, success story, Reliance services company, History of Reliance Industries, Marketing Strategy of RIL, Growth, Revenue, Profit of Reliance Industries Limited and more.
In 1966, Reliance Textiles Engineers Pvt. Ltd. was consolidated in Maharashtra. It built a manufactured textures plant around the same time at Naroda in Gujarat. On 8 May 1973, it moved towards becoming Reliance Textiles Industries Limited. In 1975, the organization extended its business into materials with “Vimal” forming its image in the later years.
Established in 1966, the organization held its initial open offering (IPO) in 1977. Sidhpur Mills, a materials organization, was amalgamated with Reliance Textiles in 1979. In 1980, the organization extended its polyester yarn business by setting up a Polyester Filament Yarn Plant in Patalganga (Maharashtra) with monetary and specialized coordinated efforts from E. I. duPont de Nemours and Co., U.S.
In 1985, the name of the organization was changed from Reliance Textiles Industries Ltd. to Reliance Industries Limited. Between 1985 and 1992, the organization extended its introduced limit with regards to delivering polyester yarn by more than 145,000 tons per year.
In 1993, Reliance went to the capital markets abroad for assets through a worldwide depository issue of Reliance Petroleum. In 1996, it turned into the first private division organization in quite a while to be appraised by worldwide FICO assessment offices. In 1995/96, the organization entered the telecom business through a joint endeavor between NYNEX, USA, and advanced Reliance Telecom Private Limited in India.
In 2001, Reliance Industries Limited and Reliance Petroleum Ltd. turned into India’s two biggest organizations as far as all major monetary parameters were considered. In 2001–02, Reliance Petroleum converged with Reliance Industries. In 2002, Reliance reported India’s greatest gas revelation (at the Krishna Godavari bowl) in almost three decades. The setup volume of gaseous petrol was more than 7 trillion cubic feet, proportionate to about 1.2 billion barrels of unrefined petroleum.
This was the first, historically speaking, disclosure by an Indian private company. In 2002–03, RIL bought a larger stake in Indian Petrochemicals Corporation Ltd. (IPCL), India’s second-biggest petrochemicals organization, from the administration of India. IPCL later converged with RIL in 2008.
In 2005 and 2006, the organization revamped its business by de-merging its interests in control age and appropriation, money-related administrations, and media transmission administrations into four separate entities. In 2006, Reliance entered the retail showcase in India with the dispatch of its retail location position under the brand name ‘Reliance Fresh’. By the end of 2008, Reliance Retail had nearly 600 stores crosswise over 57 urban communities in India.
In November 2009, Reliance Industries gave 1:1 extra offers to its investors. In 2010, Reliance entered the broadband administration showcase with the securing of Infotel Broadband Services Limited; the latter was the main effective bidder for the Skillet India fourth-age (4G) range sale held by the legislature of India.
Journey Of Reliance Industries Limited
Around the same time, Reliance and Bharat Petroleum declared an association in the oil and gas business. BP took a 30% stake in 23 oil and gas creation sharing agreements that Reliance works in India, including the KG-D6 hinder for $7.2 billion. Reliance likewise shaped a 50:50 joint endeavor with BP for sourcing and showcasing gas in India. In 2017, RIL set up a joint endeavor with Russian Company Sibur to set up a Butyl elastic plant in Jamnagar (Gujarat) that became operational in 2018.
In August 2019, Reliance acquired Fynd to strengthen its consumer businesses and mobile phone services in the e-commerce sector.
By December 2022, Reliance Industries’ market cap reached INR 17,59,017.23 crore.
In February 2024, Reliance Industries and The BharatGPT group announced plans to launch “Hanuman’s AI” in March 2024. This large language model will support 11 local languages and focus on health, governance, financial services, and education. In March 2024, Reliance Industries partnered with Disney to launch a new OTT platform. On October 24, 2024, Nvidia agreed to supply chips to Reliance and other Indian companies as part of an AI initiative.
Reliance Industries is currently one of the biggest Indian multinational conglomerates that has diversified into many verticals today. Reliance Industries headquarters is in Mumbai, Maharashtra, of which, Reliance is the largest publicly-traded company by market capitalisation. The business of Reliance Industries spans telecom, retail, oil & gas, petrochemicals, and digital services, making it one of India’s largest conglomerates.
The organization was established by Dhirubhai Ambani and Champaklal Damani in the 1960s as Reliance Commercial. The marketing mix of Reliance covers the 4Ps (product, price, place, and promotion) and explains Reliance Industries’ marketing strategy as follows:
Products
Reliance Industries Limited is perhaps the greatest aggregate in India. Its business is available in different segments which are concentrated to comprehend Reliance’s item system in its showcasing blend. The retail segment incorporates Reliance Fresh, Big Bazaar, Reliance Mart, Reliance Market, Reliance Home Kitchen, Reliance iStore, Reliance Solar, and more.
Reliance Life Sciences is associated with medicines, plants, and biotechnology as it has some expertise in marking, assembling, and promoting Reliance Enterprises items in biopharmaceuticals. Reliance’s coordination comprises transportation, dissemination, coordination, inventory network-related exercises, and telemetry arrangements. Reliance Jio Infocomm Ltd. is a broadband specialist co-op that gives 4G administrations. Relicord is claimed by Reliance Life Sciences and gives blood banking administrations. Reliance Industrial Infrastructure Limited deals with the development and activity of pipelines for moving oil-based commodities. Subsequently, this gives an outline of the contributions of Reliance Industries.
Price
Reliance Industries Limited pursues a distinctive valuing methodology for various segments. Thus, the advertising blend and evaluation technique of Reliance Industries is unique in light of rivalry and market administration in certain parts. It pursues entrance valuing for retail, media transmission, and well-being. At the point when the organization propelled Reliance Jio, it offered free Jio administrations to its clients during the dispatch time frame to build a piece of the pie. Be that as it may, the retail and media transmission parts are at misfortune; however, the organization is giving ideas to clients to build its client base.
The evaluating choices for its oil business relies upon the full-scale condition components and worldwide market situation to a great extent. Reliance Fresh outlets, for example, secure their items directly from the source, eliminating the middlemen in this way. This is advantageous to the shopper as the markdown price and value decrease. Reliance Industries performs exhaustive evaluations before valuing its choices, and this evaluation is a persuasive factor for its ascent in the aggressive market.
Reliance Industries has a solid nearness all over India. Reliance Retail is the biggest retailer that has more than 1500 stores crosswise over India. Here are the investors that make Reliance Retail, one of the largest retailers in India. Different brands like Reliance Fresh, Reliance Footprint, Reliance Digital, and Reliance Trends have arrived in Tier 1 and Tier 2 urban areas.
Reliance Jio sim administrations are accessible crosswise over significant areas and its network has improved significantly over the last years.
Reliance Industries’ dispersion system is so well-arranged that it has a strong grip across the country. Reliance gets crude materials directly from the source; consequently, it has pulled in an enormous number of clients because of the advertisements. Reliance clients can speak with the agents by calling administrations or online channels.
Reliance Industries meets with its shareholders in annual general meetings, which it holds every year. This Annual General Meeting (AGM) was held virtually on July 15, 2020, which became the first virtual AGM after TCS had done it on June 11, 2020. The Ministry of Corporate Affairs (MCA), owing to the current circumstances, permitted companies to hold their Annual General Meetingsthrough video conferencing or other Audio Visual means to avoid large public gatherings. The meeting with all the shareholders was held on 15th July at 2 PM through a video conferencing platform. This was the 43rd AGM for Reliance Industries Limited. Many big announcements were made during that AGM, where the most significant of them all was that Google announced it will invest $4.5 billion, which is approximately INR 33,737 crores in Reliance Jio at a stake of 7.7%. Google has joined Facebook in the big investors’ list of Jio, a subsidiary of Reliance Industries Limited. RIL announced in the AGM that Google along with Reliance Jio will work on developing low-cost, entry-level mobile devices with a customized version of Android to serve millions of new customers in India. Mukesh Ambani informed that these mobile phones will come with the support of the future of wireless networks – 5G, and the Google Play services.
Sundar Pichai also sent a video message regarding the partnership between Google and Jio Platforms. In the video message, he said, “Getting technology into the hands of more people is a big part of Google’s mission. Organizing the world’s information and make it universally accessible and useful is another part of the mission. Through this partnership with Jio Platforms, we see the chance to have an even greater impact than either company could have alone. ”
Everyone should have access to the internet. Proud to partner with @reliancejio to increase access for the hundreds of millions in India who don’t own a smartphone with our 1st investment of $4.5B from the #GoogleForIndia Digitization Fund.https://t.co/1fP8iBZQfm
He also added, “This partnership is a key part of Google’s next chapter of investments in India. Our investment of $4.5 billion in Jio is the first and biggest through the digitization fund of $10 billion. I am excited that the collaboration will focus on the increase in access for hundreds of millions of Indians who do not currently own a smartphone and the improved mobile experience for all.”
Mukesh Ambani informed the shareholders of RIL that the Jio Phone remains the most affordable 4G supporting phone. He informed that about 100 million Indians have upgraded their feature phones to Jio Phones, but 350 million Indians still own a 2G feature phone and are waiting to upgrade to an affordable and conventional smartphone. He said that Jio aims to develop affordable 5G phones at only a fraction of its cost and to achieve this they need an equally value-engineered smartphone Operating System which will be provided to them by Google under their new partnership.
Mukesh Ambani further said, “Putting a smartphone in the hands of every Indian is our aim. India is standing at the doorsteps of the 5G era. They should not be deprived of the benefits that the digital and the data revolution offers. Jio is determined to make India ‘2G Mukt’ ”. Mukesh Ambani also talked about the ‘Digital India’ movement.
Previously, the AGMs have been held by Reliance at many different venues including auditoriums, football stadiums, and other big grounds. For the last few years, however, Birla Matushri Sabhaghar has been the venue for the meetings. In 2020, however, owing to the Coronavirus (COVID-19) pandemic, companies are compelled to hold these meetings online through video conferencing.
In the pandemic-stricken year, like all the previous years, the meeting was held between the shareholders of the company. The annual report of the company was presented to them, which contained the performance and strategies of the company. The new plans and features for the next year were also included. Furthermore, the shareholders got to ask questions and vote on topics that were related to the functioning and betterment of the company.
It was during the Annual General Meeting of 2016, that Reliance Jio was commercially launched, which changed the face of the telecom industry and brought about an internet revolution in India. The previous meeting, which was the 42nd AGM, was held in The Birla Matushri Sabhaghar on 12th August 2019. The key points of the meeting were:
Announcement of the launch of Jio Fibre service.
Mukesh Ambani said that they have a clear roadmap for becoming a zero-net debt company by 31st March 2021. This feat was achieved much earlier than expected and RIL became a zero net debt company a few days ago after it raised around ₹1.69 lakh crore from global investors such as Facebook.
The announcement of the launch of the new 4K supported Jio Set Top Box.
Mukesh Ambani announced to the shareholders that the company’s turnover has crossed ₹130,000 crores, making it India’s largest retailer and 4 times larger than the 2nd retailer. The company became larger than all other major retailers in the country put together.
Reliance Logo
Promotion
Reliance Industries is vigorously working on publicizing and brand advancement. The special procedure in the advertising blend of Reliance Industries is engaged towards 360-degree marketing and forceful brand advancement. Reliance uses the slogan “Development is Life” and has typified its slants of taking individuals together. RIL proprietor Mr. Mukesh Ambani has now owned the Mumbai Indians franchise for a long time, and the purchase of a cricket team has been instrumental in bringing the Reliance brand under the spotlight.
Reliance Industries has roped in Bollywood celebrity Hrithik Roshan for underwriting Reliance Telecom. It declares limits and leads for different special exercises at various Reliance outlets. Because of its solid image mindfulness, Reliance Industries has pulled in clients at its stores. Customer happiness has led to its expanded client base. Consequently, this covers the promoting blend of Reliance Industries.
In FY24, Reliance Industries Limited recorded its highest revenue from the oil-to-chemical business, exceeding Rs 5.6 trillion. Retail was the second-largest revenue source, followed by digital services.
Reliance Industries reported a profit of Rs 19,323 crore for the September 2024 quarter, marking a 10.8% increase compared to the June quarter.
The gross revenue for the quarter remained steady at Rs 2,58,027 crore, up by 0.8% from Rs 2,55,996 crore in the same quarter of the previous fiscal. The revenue saw a slight sequential increase of 0.08%.
EBITDA for the second quarter of fiscal 2024 was Rs 43,934 crore, slightly down from Rs 44,809 crore in the same period last year, despite strong double-digit growth in Jio Platforms and oil & gas. However, EBITDA grew by 2.8% compared to the previous quarter.
Jio Platforms (JPL) reported a strong 23.4% year-on-year profit growth, reaching Rs 6,539 crore for the September quarter, driven by higher revenue and improved operating leverage.
The retail business posted a profit of Rs 2,836 crore for the September 2024 quarter, marking a 1.3% increase compared to the same period last year and an 11.3% rise over the June quarter.
The oil-to-chemical (O2C) business saw a 5.1% year-on-year growth, reaching Rs 1,55,580 crore for the quarter ending September 2024, driven mainly by higher volumes and increased domestic product placement.
Revenue from the oil & gas business in Q2FY25 decreased by 6% to Rs 6,222 crore, compared to Q2FY24, mainly due to lower price realizations. This was partially offset by higher gas and condensate volumes from the KGD6 and CBM fields.
The media business reported Q2FY25 revenue of Rs 2,118 crore, a 2.1% decline compared to the same period last year, mainly due to a significant drop in movie segment revenues, a project-based business. However, the operating performance remained strong.
The Indian economy remained the quickest-developing significant economy on the planet in 2018. In FY 2018-19, the evaluated Gross Domestic Product development rate was 6.8%, driven by solid private utilization development at 8.1%. The economy kept on seeing an expansion in speculations with gross fixed capital formation development at a six-year high of 10%.
For FY 2018-19, India’s oil request developed at about 3% y-o-y with utilization-driven request development in gas (+8.1%), Gasoil (+3.0%), and stream fuel (+9.1%). The interest was driven by powerful development in business vehicle deals and solid air traffic development during the year. On the provincial side, though tractor deals and three-wheeler deals declined from the highs of FY 2017-18, they kept on developing in twofold digits.
Household request development for petrochemical items was solid with both polymer and polyester requests developing at 7% y-o-y. Reliance Jio has impelled India to turn into the biggest versatile information-devouring economy on the planet. With omnipresent and dependable information administrations, information systems are progressively being utilized for media and stimulation, instruction, showcase data, and exchanges.
The appropriation of advanced exchanges saw exponential development. Reliance Retail keeps on profiting by solid interest development crosswise over purchaser staples, optional merchandise, and its capacity to convey an unrivaled client experience and offer.
Refining And Marketing – Weak Light Distillate Cracks Lead Down Margins
During the year, benchmark Brent oil costs were up 22% due to geopolitical pressures, and supply interruptions from Venezuela, Iran, and Libya just as OPEC+ creation cuts. Request development was affected by the high siphon level costs in the US and different economies coupled with the slow development in the Chinese economy.
RIL’s gross refining edges declined to $9.2/bbl due to feeble light distillate breaks; this was somewhat counterbalanced by flexible center distillate splits. Operational greatness and adaptability helped Reliance keep up a noteworthy $4.3/bbl premium over the territorial benchmark-Singapore Refining Margins. The strong presentation by Reliance’s refining business was bolstered by proactive unrefined sourcing, enhancing of item yields, and vigorous hazard in a difficult domain.
Reliance Industries Founder Story | Dhirubhai Ambani Success Story
Petrochemicals – Resilient Business Model Shining Through
The petrochemicals business conveyed its best execution with an EBITDA commitment of 37,645 crores, up by 45.6% y-o-y. Petrochemical generation was additionally at a record high of 37.7 MMT, up 16% y-o-y.
The solid outcomes were accomplished in a situation of declining usage rates in key item chains with a new supply increase. This exhibits the strength of Reliance’s action plan which is dependent on linkages between refining and petrochemical chains, feedstock adaptability, and a wide item portfolio. While polymer chain edges were affected by new supplies out of the US Ethane-based wafers, polyester bind gains kept on increasing, driven by solid PTA and PX edges. With the initiation of ethane splitting at Nagothane, the key parts of Reliance’s petrochemical speculation cycle are adding to its income.
Oil And Gas Exploration And Production
Reliance has attempted the improvement of High-Pressure High Temperature (HPHT) R-Cluster, Satellite-Cluster, and D55 (MJ) fields. The first gas from R-Cluster is normal by mid-2020 followed by Satellite Cluster and MJ fields. The new improvement will use Reliance’s collaboration with BP, the existing framework in the Krishna-Godavari Basin, and the downturn in the capital hardware and specialist organization advertising.
Reliance Retail – Growth Across All Key Consumption Basket
Reliance Retail accomplished a record turnover of INR 1,30,566 crore, up 88.7% y-o-y. Turnover development was driven by quick store extension and strong development in same-store deals. Reliance Retail accomplished its most elevated EBITDA of INR 6,201 crores, up 145% y-o-y. The solid working presentation was driven by a 100 bps improvement in EBITDA to 4.7%. Proceeding with a solid development force, Reliance Retail has accomplished an income CAGR of 55% and EBITDA CAGR of 76% in the last 5 years.
Reliance Retail had 18,836 retail stores in more than 6,600 towns and urban areas covering a zone of 79.1 million sq. ft. as of November 2024. It has a registered customer base of 300 million. Reliance Retail is working on plans to dispatch a separate new commerce stage which will empower little shippers across India to contend in a computerized age and plans to double its sales in next 3-4 years.
Digital Services – Strong Traction In Subscriber Addition And User Engagement
Reliance Jio has over 478 million users to date and is currently India’s biggest portable telecom administrator positioned by Adjusted Gross Revenue (AGR). Jio comes out on top if Average Revenue Per User (ARPU) (126.2/month) is considered along with sound normal voice utilization (823 minutes for every client every month) and normal information utilization (10.9 GB per client every month).
Jio intends to give a worldwide standard wireline framework and administration in India through FTTH and Enterprise contributions. To quicken this rollout, RIL has made vital investments in Hathway Cable, Datacom Limited, and DEN Networks Limited. Jio likewise keeps on executing its arrangements of building an advanced biological system spreading crosswise over media, excitement, trade, training, human services, and horticulture.
As per reports from 12 March 2025, Reliance Jio has formed a partnership with Elon Musk’s SpaceX to bring Starlink satellite internet services to India. This unexpected partnership comes after months of disagreements over spectrum allocation in the country. As part of the agreement, Reliance Jio will stock Starlink equipment in its retail stores, providing Starlink with a direct distribution channel through thousands of outlets nationwide.
According to Deloitte, India’s satellite service sector is expected to grow at a rate of 36% annually, reaching $1.9 billion by 2030.
Media – Strengthening Offering Ahead Of Evolving Market Trends
Reliance is focused on offering media content for the Indian market as a feature of its computerized administration’s bunch. As a component of this dedication, Reliance is putting resources into the production of unique substances significant for the developing patterns in media utilization. Through possessed substance motors and cooperative organizations, Reliance is building a broad media content library that will take into account all portions of the crowd and dovetail with its wide conveyance stages.
Reliance’s media organization Network18 proceeded with its development direction and put resources into key regions to fill blank spaces and sustain its position as a leader.
Advanced Platforms
During the year, Reliance started stage-driven association procedures to tap the noteworthy potential for its organizations to improve proficiency and encourage educated and basic leadership procedures.
RIL went into a Memorandum of Understanding (MoU) with the Government of Maharashtra to build a Global Economic Digital and Services Hub with worldwide associations. RIL through its completely claimed backup has gone into an MoU with NMSEZ to a sub-rent place that is known for around 4,000 sections of land alongside related improvement rights. The project will usher in industry revolution 4.0 in Maharashtra and prompt critical industrial development by offering world-class infrastructure and collaboration with the best of worldwide innovation organizations in the areas of Innovation and Learning, Research and Development, Technological Advancement, and Manufacturing and Service capacities.
Indian Film Combine
RIL through its completely claimed backup has procured a dominant stake in the Indian Film Combine, and it is building a Drive-in Theater, Hotel, Retail Mall, and Clubhouse at Bandra Kurla Complex (BKC) in Mumbai.
JIO World Center
Reliance built a best-in-class, world-class convention center, performing arts theater, retail mall, office space, and clubhouse at Bandra Kurla Complex (BKC), Mumbai. It is the most alluring retail, entertainment, and cultural area of Mumbai city backed by a world-class convention center.
The last two years were portrayed by unstable, large-scale financial conditions. Adding to vulnerability were higher oil costs in the principal half of the year and expanding geopolitical pressures as the year progressed. Reliance accomplished its best execution in this condition with record commitment from its petrochemicals, retail, and advanced administration units. “Strong working execution for the year underscored the quality of the petrochemicals business that we have fortified throughout the last speculation cycle. Moreover, our purchaser organizations keep on scaling new statures with industry-driving measurements. The adaptability of retail and computerized administration business stages has made an exceptional incentive for all partners,” a Reliance representative added.
Revenue And Profit Of Reliance Industries Limited
Revenue of Reliance Industries
Reliance accomplished a solidified income of INR 6,22,809 crores ($90.1 billion), an expansion of 44.6% when contrasted with INR 4,30,731 crores in the earlier year. The increment in income was fundamental because of volume expansion with the adjustment of petrochemicals undertakings and oil-related increment of refining and petrochemical items. The higher volumes in the petrochemicals business are by the first entire year of tasks of new petrochemical offices. Reliance’s solidified income was bolstered by powerful development in retail and computerized administrations business which recorded an expansion of 88.7% and 94.5% in income individually when contrasted with the earlier year.
Reliance Industries Limited reported an increase in its consolidated revenue for FY24 at INR 917,121 crore from 889,569 crore in FY23.
The company reported a consolidated net profit of INR 78,633 crore for FY24, up from INR 73,646 crore in FY23.
Reliance Jio reported a revenue near to INR 1.3 trillion in fiscal year 2024.
Reliance Industries Limited reported a 26.2% year-on-year (Y-o-Y) increase in its consolidated net profit for FY22 at INR 67,845 cr. Reliance Industries Limited recorded a 47% Y-o-Y growth in its revenue, which became INR 7.92 lakh crore in FY22. The annual revenue of the digital services business of RIL crossed the 1 lakh crore mark for the first time in FY22. Reliance Industries Limited’s digital arm also recorded an all-time high EBITDA of INR 40,268 Cr during the year. The retail business of Reliance also recorded annual revenue of around INR 2 lakh crore and a record annual EBITDA of INR 12,423 cr.
The gross revenue of the Reliance Jio platform increased by 17.1% in FY22, which was recorded at INR 95,804 cr. The net profit of the same increased by 23.6%, which became INR 15,487 cr. The EBITDA of the Jio platforms rose by 20.9%, thereby becoming INR 39,112 cr during FY22.
Challenges and Controversies Of Reliance Industries Limited
While Reliance has been very successful, it has also faced challenges and controversies, such as:
Competition: As Reliance grows, it faces strong competition in sectors like retail and telecommunications.
Legal and Regulatory Issues: The company has dealt with legal problems and regulatory scrutiny, especially in telecom.
Environmental Concerns: Some of Reliance’s industrial activities have raised concerns about pollution and resource use.
Conclusion
Reliance Industries is an example of an Indian company that grew massively and made a global impact. Its success is built on ambition, innovation, and hard work, setting new standards in business.
With its focus on innovation, customer needs, and expanding across industries, Reliance has changed markets and helped millions. However, it has also faced challenges and controversies, highlighting the importance of responsible business and ethical leadership.
This case study on Reliance inspires entrepreneurs and shows how a small business can grow into a global giant through ambition and smart work.
FAQs
What is the history of Reliance Company?
The organization was established by Dhirubhai Ambani and Champaklal Damani in the 1960s as Reliance Commercial. It was later renamed Reliance Industries and diversified into financial services, petroleum refining, and the power sector.
Who is the owner of Reliance?
Dhirubhai Ambani founded the Reliance Group, and Mukesh Ambani is the owner of Reliance Industries Limited.
Who is the CEO of Reliance Industries?
Mukesh Ambani is known as the Reliance Industries CEO.
How much of Reliance does Ambani own?
The Ambani family holds approximately 46.32% of the total shares, whereas public shareholders, including FII and corporate bodies, constitute the remaining 53.68%.
How Reliance Industry became successful?
Reliance became successful by diversifying its business across various sectors like petrochemicals, retail, telecommunications, and media. Under Mukesh Ambani’s leadership, the company focused on innovation, large-scale investments, and strategic acquisitions, such as Jio’s entry into telecom and the growth of Reliance Retail. Their strong market presence, robust infrastructure, and focus on technology and digital services helped Reliance achieve rapid growth and success.
When Reliance started?
Reliance was founded by Dhirubhai Ambani in 1966 as a small textile company and later expanded into various industries, including petrochemicals, telecommunications, and retail.
What is Reliance business model?
Reliance follows a diversified business model, spanning telecom, retail, oil & gas, and digital services. It focuses on vertical integration, cost leadership, and scale to dominate multiple industries.
According to many news sources, Reliance Retail, the biggest shareholder in the struggling hyperlocal firm Dunzo, has wiped off its $200 million investment in the business. Following the company’s liquidity crunch and withdrawal from rapid commerce during the last 24 months, Reliance is also not engaged in any discussions to invest in Dunzo or buy it in a distressed sale. Kabeer Biswas, the CEO and cofounder of Dunzo, is currently spearheading negotiations with family offices and wealthy individuals for an acquisition deal that would value the business at INR 300 Cr ($25–$30 million).
Biswas has received assurances from Reliance that they will help him save Dunzo. However, they have no interest in purchasing Dunzo. Two to three years prior, Biswas had rejected their buyout bid, which sought to acquire the hyperlocal business at a valuation close to unicorn. However, according to a media report, Reliance had no interest in Dunzo at all as speedy commerce companies entered the market and Dunzo’s failure to expand beyond a few locations.
Reliance Executives and Other Investors Stepping Down
In 2023, key executives Ashwin Khagiwala and Rajendra Kamath of Reliance Retail, as well as representatives from Lightrock and Lightbox, among other investors, resigned from Dunzo‘s board. The rumoured $30 million price tag for the company’s acquisition would represent a huge decrease from the $770 million Dunzo demanded in its most recent investment round, when Reliance provided the funding. According to reports, Biswas has also discussed a buyout with Flipkart, Swiggy, Tata Group, and Zomato but has not been successful. According to sources, Dunzo has closed in other cities but is still active in some areas of Bengaluru. At the moment, the business continues to operate according to its previous strategy of linking internet customers with nearby merchants.
According to reports earlier this week, Biswas has informed investors of his intention to leave the company. The CEO plans to leave after completing any possible acquisition agreement. Reliance Retail contributed $200 million to Dunzo’s $240 million fundraising round in January 2022. Reliance Retail made its biggest investment in the Indian startup scene with this venture. The acquisition of edtech firm Embibe for INR 1,340 Cr, Clovia for INR 950 Cr, and NetMeds for INR 620 Cr are some of Reliance Industries’ other noteworthy investments. It was considered a sort of strategic investment at the time. Reliance and Dunzo planned to collaborate, with the former facilitating hyperlocal logistics for JioMart and Reliance’s network of retail locations.
The Reason for the Downfall
By 2022, the quick commerce game had altered, even if Dunzo had made it through the busy cycle and hyperlocal boom of 2015. Dunzo’s model was feeling dated, and the quick commerce sector started sprawling its nexus. In an attempt to compete with Blinkit, Instamart, and Zepto, the business started Dunzo Daily, but it was unable to grow outside of Bengaluru, Mumbai, and Delhi. Although it is evident in retrospect that the $240 million investment was insufficient to capitalise on the swift business opportunity, Zepto’s explosive growth brought a third competitor to the market, joining Zomato’s Blinkit and Swiggy-owned Instamart. Just like Zepto, Dunzo was unable to take advantage of this chance. Reliance Retail wants to investigate the rapid commerce possibilities with JioMart in light of Dunzo’s issues. Additionally, Dunzo’s financial condition has deteriorated over the last two years, resulting in significant budget cuts, a long list of unpaid invoices to suppliers, and the departure of founders and important executives.
If you have heard of the Ambani family, possibly the most famous person among them would not be either Mukesh Ambani or his children. The figure is actually his wife, Nita Ambani. A well-known figure in business and philanthropic circles, Nita is the chairperson of the Reliance Foundation and a director at the Dhirubhai Ambani International School. She is one of the co-owners of Reliance Industries and also runs the Mumbai Indians cricket team.
Till 2024, the estimated net worth of Nita Ambani is around INR 2340-2510 crore. This reflects her own contribution to the running and management of all the family businesses along with her philanthropic involvement.
Born to middle-class Gujarati parents in the person of Ravindrabhai and Purnima Dalal in November of 1964, Nita Ambani is an original Mumbaikar and even holds a college degree from the Narsee Monjee College of Commerce and Economics. She is a trained Bharatnatyam dancer and has proven her dancing talent several times.
Nita Ambani was spotted by Dhirubhai Ambani and Kokilaben Ambani at a dance show, where she later met her family with a marriage proposal for the eldest son, Mukesh Ambani. Their marriage was planned after dating for a couple of months back in the year 1985.
After her marriage, she would teach at school for several more years but soon ventured into the family business. She is very close to Dhirubhai Ambani who used to question her on world events every evening. It is her father-in-law whom she attributes to becoming the woman she is today.
Nita and Mukesh Ambani had their twins, Akash and Isha, via IVF seven years after their marriage. But Anant was naturally conceived three years after the twins were born. She is also a grandmother of four little toddlers.
Nita Ambani – founder and chair of Reliance Foundation
Nita Ambani is also the founder and chair of Reliance Foundation, and she is the corporate social responsibility arm for the company, Reliance Industries. She was elected to the Board in 2014 and resigned in August 2023. She preferred to put in all her efforts towards the Reliance Foundation. Nita Ambani still continues to attend all the Reliance Industries Board meetings as a permanent invitee.
Jamnagar Township Project
In 1997, Nita Ambani was working on the company township for the employees who are part of the Reliance refinery in Jamnagar. The project included the construction of environmentally friendly houses for over 17000 residents.
Mumbai Indians
She and her husband are co-owners of the Indian Premier League team-the Mumbai Indians. There are more than 5 titles under their belt currently (2013, 2015, 2017, 2019 and 2020). Not limited to this, she initiated the ‘Education and Sports for All (ESA)’. The initiative was that in return to society, as being made mandatory by Mumbai Indians under their banner, ESA has seen that over 100,000 underserved children have been approached to create awareness concerning education through various digital avenues.
IOC Membership
In 2016, Ambani was one of the eight candidates nominated as a member of the International Olympic Committee by the Swiss panel. The elections for these members took place at the 129th IOC Session in August 2016. Nita Ambani was the first Indian woman to be elected as an IOC member.
Her Circle
The ‘Her Circle’ is a digital platform for women who compete with its own discussion panels and social networking app. Nita Ambani’s Reliance Foundation launched the ‘Her Circle’ app on International Women’s Day in March 2022. This new initiative helps empower women with modern digital tools. Launched for Indian women, but extended to women overseas, the tool provides ladies with a ‘joyful and safe space for interaction, engagement, collaboration, and mutual support.’ As per Nita Ambani, the platform helps women lean on women and their shared experiences help end problems and improve triumphs for each other.
Nita Mukesh Ambani Cultural Centre (NMACC)
Located in the Nita Mukesh Ambani Cultural Centre, it was the first to be inaugurated within the Jio World Centre, Mumbai, in March 2023. The idea for this centre was to focus on community problems such as outreach programs and competitions, award functions, in-residency Guru-Shishya sessions, and literacy programs for adults. The four-storied building has over 16,000 sq ft of space and over three theatres. The biggest of these is a 2000-seat Grand Theatre that has a lotus-themed chandelier with over 8400 Swarovski crystals.
There are more than three dedicated spaces for performance art centres – The Grand Theatre, The Cube, and The Studio Theatre. The centre also has an Art House with a four-story space for both international and Indian artists.
Nita has received multiple awards and accolades for her work in sports, philanthropy, and CSR. These include:
2015: Entrepreneur of the Year – From All India Management Association (AIMA)
2016: Asia’s 50 Most Powerful Women – From Forbes Magazine
2017: Honored by the Metropolitan Museum of Art – From the Metropolitan Museum of Art
2017: Rashtriya Khel Protsahan Award – For promoting grassroots sports
2018-2019:Best Corporate Supporter of Indian Sports – From Times of India
2023: Global Leadership Award for Philanthropy and CSR – From the USA-India Strategic Partnership Forum (USISPF)
Pravinchandra V Gandhi Award for Excellence in Public Life – From the Rotary Club of Bombay
Global Philanthropist and the Leader of the Year Award – From the Vogue India Magazine
2023: Rotary Citizen of Mumbai Award – From the Rotary Club of Bombay
2024: Nita Ambani was awarded the “Outstanding Contribution to Brand India” at CNBC-TV18’s IBLA in Mumbai.
Nita Ambani is also a part of multiple commissions such as the Public Affairs and Social Development through the Sports Commission, the Olympic Channel Commission, and the Olympic Education Commission.
Nita is a trained Bharatanatyam dancer, which played a pivotal role in her introduction to Mukesh Ambani. Dhirubhai Ambani, Mukesh’s father, saw this performance and later proposed the alliance.
As chairperson of the Reliance Foundation, Nita led efforts in these four areas, namely education, health, rural development, and disaster response.
She owns the IPL cricket team called Mumbai Indians, and she bagged several IPL titles with that very team.
Nita formed a great setup of the Reliance Foundation Young Champs initiative, bringing grassroots football across India to its notice.
She was the first Indian lady to win membership in the International Olympic Committee in 2016.
She founded Dhirubhai Ambani International School one of India’s foremost international schools.
She resides at Antilia, one of the pricey private homes available in this world, in Mumbai.
She is known for her exquisite taste and has a collection of customized tea sets, reportedly valued at ₹1.5 crore, and Hermès Birkin bags.
Nita has been vocal about her fitness transformation. After battling weight issues, she adopted a healthier lifestyle, including yoga and a balanced diet.
Nita is an avid collector of Indian and international art. The Ambani family is known for supporting the arts and culture extensively.
Her sense of style and grace often make headlines. She frequently dons creations by top Indian and international designers.
Despite her immense success, Nita Ambani emphasizes the importance of family and often talks about her close bond with her children—Akash, Isha, and Anant—and her husband Mukesh.
When it comes to the Indian business arena, one simply cannot ignore Mr. Mukesh Ambani—the owner of Reliance Industries, and the wealthiest businessman in India. He has footprints in some of the most important sectors of the Indian economy such as refining, oil & gas, petrochemicals, telecom, retail, and media. Reliance’s oil refining business has been its crown jewel to date.
In September 2016, Mukesh Ambani officially launched his telecommunication venture called Jio (Joint Implementation Opportunities) and set an example by turning Jio into the largest mobile network in India and the third-largest mobile network operator in the world with over 477.94 million subscribers as of November 2024. Witnessing the growth in revenues, profits, and market share in the above-mentioned sectors, Mukesh Ambani is now all set to try his hand at e-commerce through his new venture called JioMart. So what exactly is JioMart all about?
JioMart is an online grocery store that provides 50,000+ grocery products at discounted rates at your doorstep through an express delivery system. Itfollows an on-demand model. The company will avoid the system of warehousing and partner with local retailers instead. These retailers will source the grocery products and deliver them to the customers.
JioMart began functioning in January 2020 and is available in over 200 cities and towns across India, including Mumbai, Chennai, Kolkata, Hyderabad, Delhi, Bengaluru, Jaipur, and Trivandrum.
JioMart’s app is available for download on Google Play Store and Apple Store.
JioMart will operate on the online-to-offline business model; it will connect with local retailers and deliver goods to customers by procuring them from the nearest store located in the customer’s vicinity. This model is unlike the warehouse model used by Grofers and Amazon Now.
The company wants to correct the unorganized retail sector and help local shopkeepers whose businesses were adversely affected due to competitive pricing and warehousing strategies of online retail stores. In addition to increased sales and margins, these shopkeepers will be equipped with point-of-sale (PoS) terminals, integrated billing applications, and GST compliance. It will also upskill them in inventory management and supply chain management.
RIL wants to establish its new venture, termed ‘Desh Ki Nayi Dukaan’, in this manner.
JioMart claims to offer the following consumer-friendly services:
Free home delivery: It will give you the benefit of delivery of commodities at your doorstep by procuring it from the nearby store, and that too free of cost, which your ‘Kirane wala bhaiya’ may not.
No minimum value: Generally, e-commerce sites set up a minimum value of a purchase to validate free delivery. For example, Grofers has a policy of free delivery on a minimum purchase of INR 500. JioMart will not expect a ‘minimum payment’ and abstain from delivery charges, even for the smallest of items ordered.
Express delivery: Express delivery means quicker delivery than ordinary services. In the e-commerce segment, it is generally within 24 hours.
No questions asked return policy: When you wish to return the goods that you ordered online, you are almost always bombarded with unnecessary questions. And most of the time, they cannot avoided. JioMart will save you this hassle.
Early bird discount of INR 3000: The platform has come up with a promotional strategy of pre-registration wherein people can save up to Rs 3000 on future shopping. Reliance Jio has started sending invites to its existing telecom service users in selected areas.
AI-Powered Inventory Management: JioMart leverages artificial intelligence to monitor inventory in real-time, ensuring better product availability and faster deliveries, eliminating the hassle of out-of-stock items.
Hyperlocal Approach: JioMart expanded beyond major cities by partnering with local kirana shops, reaching the core of India to ensure quick deliveries, no matter the location.
JioMart wasn’t an overnight expedition of Mukesh Ambani but a well-assessed move with the sole motive of capturing the highly sought-after e-commerce segment.
Mukesh Ambani already has a formidable customer base in the retail sector with Reliance Fresh which functions successfully on the brick-and-mortar model. JioMart owner Mukesh Ambani’s plan to set up an e-commerce platform goes back to 2019. His ambitious project emulates his desire to compete with global e-commerce giants such as Amazon and Walmart-owned Flipkart.
Reliance acquires Grab A Grub and C-Square
Acquisition of Grab A Grub: Grab A Grub is an Indian logistics startup founded in 2013. In March 2019, Reliance Industrial Investments and Holdings Limited (RIIHL) acquired it for $14.9 million to support the logistics of Jio Mart founder Mukesh Ambani’s ‘planned e-commerce venture’. Grab was chosen because it worked successfully with some mega-brands such as McDonald’s, BigBasket, Myntra, Amazon Now, and Swiggy.
Acquisition of C-Square: C-Square Info Solutions Private Limited, founded in 2002, provides software solutions for verticals like e-commerce, salesforce, retail, etc. It was acquired by RIIHL in March 2019 for $11.56 million. A strategic move by RIL, it was aimed to strengthen JioMart.
JioMart – Business Model and Revenue Model
RIL is offering local merchants an O2O (online-to-offline) marketplace through JioMart. This business model was pioneered by the Chinese e-commerce giant Alibaba Group Holding Ltd. Under the O2O model, a consumer searches for the product or service online but buys it through an offline channel.
JioMart, Reliance Retail’s e-commerce platform, has tripled its number of sellers compared to 2023, as shared in its December 2024 quarter results. While groceries remain its main focus, JioMart is now working to increase its share of non-grocery items.
It connects with local retailers and delivers goods to the customers by procuring them from the nearest store located in the customer’s locality. The customer will use his or her official WhatsApp number to place the order. Post confirmation, the user will receive the bill which is to be paid in cash. When the store is ready with the order, the customer will receive a notification to pick up the order from the store.
A retailer can register with JioMart to become a seller. After registering with JioMart, retailers will receive the required support for the smooth delivery of goods to customers.
Registered grocery store owners will be able to list their inventories, take orders, create offers, and manage online sales using the app. JioMart will ensure that the sellers associated with its platform get a smooth selling experience.
How JioMart Consumers and Retailers Benefitted from the Jio-Facebook Deal
The Jio-Facebook deal, wherein Facebook invested INR 43,574 crore ($5.7 billion) in Jio platforms, made lives easier for the consumers and retailers associated with JioMart. As part of this deal, WhatsApp – Facebook’s popular messaging platform collaborated with JioMart. Owing to this collaboration, JioMart users can place their order through WhatsApp and Facebook while payments can be made using the ‘WhatsApp Pay’ feature.
JioMart services have been made available on WhatsApp from 25 April 2020 in Navi Mumbai, Thane and Kalyan. JioMart is currently operating in these three cities only. However, the only mode of payment currently available is cash.
“In the very near future, JioMart – Jio’s digital new commerce platform, and Whatsapp – will empower nearly 3 crore small Indian Kirana shops to digitally transact with every customer in their neighbourhood”- Mukesh Ambani said, CEO, Jio Mart.
Grocery delivery startups like Blinkit (formerly Grofers), Big Basket, Zepto, and Swiggy Instamart have seen remarkable success in recent years, driven by significant funding and rapid revenue growth. Recognizing the market’s potential, major e-commerce players like Amazon have also entered the grocery and essentials delivery space.
With the entry of the biggest player in the Indian market, a serious threat looms over existing grocery delivery ventures. Besides being a popular brand name, JioMart has some features that lend it an upper hand over its competitors.
The company plans to deliver orders in 30 minutes as quick commerce grows popular.
Next month in December 2024, it will start 30-minute delivery in the top eight metros and later expand to 20-30 cities in phase one. Eventually, it will cover the rest of the country.
Deliveries will be managed through its 3,500+ stores. However, JioMart won’t open dark stores or compete in the 10-20 minute delivery race.
Conclusion
When Jio entered the telecom segment, it stirred a revolution and turned the tables. Big shots like Airtel and Vodafone who dominated for years were sent tumbling. A potential revolution is on the cards again because of Reliance’s JioMart. JioMart’s business model showcases its ambition to dominate India’s e-commerce space by expanding Reliance’s vast retail network, focusing on groceries, and steadily focusing on quick commerce, making it a key player in the digital commerce ecosystem.
FAQs
What is JioMart?
JioMart is Reliance Retail’s e-commerce platform offering groceries, essentials, and other products online.
What is JioMart’s business model?
RIL is offering local merchants an O2O (online-to-offline) marketplace through JioMart. This business model was pioneered by the Chinese e-commerce giant Alibaba Group Holding Ltd. Under the O2O model, a consumer searches for the product or service online but buys it through an offline channel.
Who is JioMart founder?
Mukesh Ambani is the owner of JioMart.
Does JioMart charge for delivery?
JioMart charges a delivery fee for orders under INR 250, but not for orders over INR 250 or new customers’ first three orders.
When was JioMart launched in India?
Jiomart was initially soft-launched in 2019. It was fully launched in May 2020 in 200 cities in India.
With the launch of JioStar.com as their official website, Reliance Industries and The Walt Disney Company announced on 15 November that their media merger in India was complete.
Instead of being a streaming platform as was previously speculated, JioStar.com, the company’s new digital destination, exhibits the merger’s tagline “forging a new path to inspire a billion imaginations” and is currently the company’s webpage.
Following the resolution of domain issues, there is speculation that the joint venture between Reliance Jio and Disney may eventually use JioHotstar for their unified streaming platform.
Jainam and Jivika, siblings from Dubai, currently own the JioHotstar.com name. They purchased it from a developer in Delhi who first requested INR 1 crore from Reliance to finance his MBA at Cambridge University. The siblings have offered to give Reliance the domain at no cost. “We have complete control over this. We have not received any correspondence or pressure from Reliance or any legal organisation,” the siblings said on their website.
The Jio-Disney Combination Unifies Two OTT Platforms and More Than 100 TV Channels
With the merger of JioCinema and Viacom18’s media activities with Star India Private Limited, the INR 70,352 crore (~US$8.5 billion) joint venture brings together India’s top entertainment companies. An additional INR 11,500 crore (about US$1.4 billion) in growth capital has been invested in the company by Reliance.
The joint venture will run more than 100 TV stations and generate more than 30,000 hours of TV content annually under the direction of recently appointed Chairperson Nita M. Ambani and Vice Chairperson Uday Shankar. The combined company includes JioCinema and Hotstar, two well-known streaming services with a combined user base of more than 50 million.
Three CEOs Will Spearhead Various Operations
Kevin Vaz will handle entertainment, Kiran Mani will lead digital operations, and Sanjog Gupta will oversee sports content. These three CEOs will drive various facets of the company. According to the ownership structure of the joint venture, Viacom18 owns 46.82% of the company, Disney 36.84%, and RIL 16.34%.
Disney CEO Bob Iger emphasised the venture’s ability to provide an improved content portfolio to Indian audiences, while RIL Chairman Mukesh Ambani referred to it as a “transformational era” for Indian media. Several regulatory bodies, including the Competition Commission of India, granted the merger the necessary approvals.
With a pro forma combined revenue of almost INR 26,000 crore (USD 3.1 billion) for the fiscal year that ends in March 2024, the joint venture is ranked among the biggest media and entertainment businesses in India.
According to RIL Chairman and Managing Director Mukesh Ambani, the establishment of this joint venture marks the beginning of a revolutionary period for the Indian media and entertainment sector. Reliance will guarantee unrivalled entertainment options at reasonable costs for Indian viewers because of its extensive creative experience, partnership with Disney, and unique comprehension of the Indian market. “The firm is very excited about the future of the JV and wishes it all the best,” Ambani added.
For about INR 28 crore (about $3.5 million USD), Reliance Consumer Products, a division of Reliance Retail, purchased the direct-to-consumer (D2C) snack company TagZ Foods. This purchase, which some have referred to as a distress sale, is another example of a big company purchasing a smaller direct-to-consumer brand.
Founded in 2019 by Anish Basu Roy and Sagar Bhalotia, TagZ Foods sells a variety of foods, including cookies, gourmet dips, and popped potato chips. The business demonstrated a multi-channel strategy to sales by operating through its website, multiple e-commerce platforms, and physical retail locations. Following their appearance on the well-liked Indian television programme Shark Tank India, their items saw some increase in visibility.
Overall Funds Raised by TagZ Foods
According to the company’s financial history, a total of roughly $3.2 million USD was raised across multiple funding rounds. This comprised a $1.2 million USD seed investment round from angel investors in 2020 and a $2 million USD pre-Series A round headed by 9 Unicorns. An undisclosed sum from former Indian cricket player Shikhar Dhawan, who also served as the company’s brand ambassador, was contributed in later investment rounds. Additionally, Dexter Angels, Agility Ventures, Venture Catalysts, and Klub are investors in TagZ Foods.
But in the last few months, TagZ Foods has encountered many difficulties. According to media citations, the company stopped production a few months ago because it was having trouble growing. As a result, TagZ items were conspicuously absent from both online and physical retail locations. Many workers also left the company as a result of the production standstill.
According to regulatory documents, the ultimate acquisition price of INR 28 crore could alter after a due diligence procedure. Before publication, neither Reliance Consumer nor TagZ Foods responded to any media enquiries, despite many attempts to reach them for comment on this deal.
Financial Dynamics of TagZ Foods
In the fiscal year 2023 (FY23), TagZ Foods reported a net loss of INR 10.7 crore compared to INR 9.6 crore in operating revenue. This highlights the financial strain the business was under prior to the takeover. In a saturated market with well-known brands like Uncle Chips, Lays, Too Yumm, and BRB, the company faces competition.
This purchase fits with a broader pattern in the D2C industry in India. Due to difficulties faced by numerous smaller direct-to-consumer (D2C) brands, larger, more established Fast-Moving Consumer Goods (FMCG) companies have acquired them. For example, Hindustan Unilever purchased Oziva and Wellbeing Nutrition in 2022, while ITC purchased Yoga Bar in January 2023. These purchases demonstrate the consolidation taking place in India’s quickly changing D2C market.
The continuous dynamic changes in the Indian D2C food industry are highlighted by Reliance Consumer Products’ acquisition of TagZ Foods. The deal highlights the difficulties encountered by smaller D2C firms and the strategic prospects for larger corporations looking to diversify their product portfolios, even though the final terms are still up for approval. How Reliance incorporates TagZ Foods into its current business operations and if it can effectively turn around the brand’s fortunes will be revealed in the future.
Akash Ambani, the eldest son of Indian business tycoon Mukesh Ambani, has emerged as a poised leader with a distinctive vision. Born in a world of legends where it’s easy to get overshadowed, Akash is not just a coheir to India’s biggest conglomerate. Rather, he is writing his own story as an avant-garde and bold innovator.
Through his calm demeanor and resilient business acumen, Akash has transformed India’s digital landscape through Jio, making it the largest telecom network in the country. Through his innovative methodologies and unconventional tech revolution, Akash is redefining the foundation of his inherited empire.
With an aim to connect millions through affordable and cutting-edge technology, Akash, in collaboration with his twin sister Isha Ambani, launched ‘Jio’ which changed the dynamics of the Indian telecom industry. Under his leadership, Jio witnessed a meteoric rise by attaining the maximum market share with its economical 4G services, turning his vision into reality.
Akash’s youthful dynamism, strategic foresight, and deep understanding of the digital economy make him a sparkplug of the future of Reliance Industries. Behind his calm character lies a bold thinker who is reshaping and modernizing ‘Reliance’ for the 21st century by pushing boundaries in digital services, e-commerce, and telecommunications.
His ability to create a bridge between old and new, Akash, has strengthened the legacy of the family with risk-taking, tech-vision, fresh perspective, and youthful energy. In this StartupTalker story, we will uncover Akash Ambani’s innovative leadership, the challenges he faced in navigating the digital age, and how he is shaping Reliance’s bold new future.
Learn about Akash Ambani, his education, career, family, philanthropy, Reliance, and more from this article.
Akash Ambani Biography
Name
Akash Mukesh Ambani
Born
October 23, 1991
Nationality
Indian
Hometown
Mumbai
Education
Dhirubhai Ambani International School Brown University, The United States
Profession
Chairman, Reliance Jio Infocomm Director on the Boards, Jio Platforms Limited Director on the Boards, Reliance Retail Ventures Limited Director on the Boards, Reliance New Energy Limited Director on the Boards, Reliance New Solar Energy Limited
Net Worth
$40 billion
Spouse
Shloka Mehta
Children
Prithvi Akash Ambani (Son) Veda Akash Ambani (Daughter)
On October 23, 1991, Akash was the firstborn son of renowned personalities Mukesh Ambani and Nita Ambani. Being born into one of the most wealthiest and influential families in India, Akash grew up with a deep sense of carrying the family tradition and legacy. Since a young age, Akash was surrounded by the world of business through his daily’s extensive global network.
Akash completed his early education from Dhirubhai Ambani International School, an Ivy League school in Mumbai, founded by his mother, Nita Ambani. After completing his schooling, Akash went to the United States to pursue a Bachelor’s degree in Economics from Brown University. His upbringing was marked by a focus on academic excellence and an awareness of the family’s cultural values, which has shaped his approach towards business.
In 2014, after attaining a degree in economics, Akash came back to India and officially joined Reliance Jio Infocomm Limited as a non-executive Director. In December 2015, Akash, along with his siblings Isha and Anant, launched Jio 4G services, which brought a digital revolution to the country.
In 2016, under Akash’s inventive leadership and strategy, Jio went public, offering free voice calls and low-cost data services, and acquired over 100 million subscribers within months. In 2017, Akash was appointed as the Director on the Boards for Reliance Jio and Reliance Retail, extending his headship beyond telecom to digitize the retail arm of Reliance Industries.
In 2018, Akash spearheaded key partnerships with global technology syndicates such as Facebook, Google, and Microsoft that led to positioning Jio as a leading player in the global tech ecosystem. Through his revolutionary business concepts, Jio expanded to create a digital ecosystem by integrating platforms like JioTV, JioCinema, and JioSaavn. By 2020, Akash secured a $20 billion investment deal from 13 marquee investors, solidifying Jio’s position as the leading telecom industry with a valuation of over $65 billion.
In 2022, Akash was appointed as the Chairman of Reliance Jio, marking the beginning of next-gen leadership at Reliance. In the same year, Akash launched Jio 5G, proposing the next phase of digital transformation in India. By January 2023, under his rheostat, Jio 5G spread across 192 cities across 29 states in India, revolutionizing industries like education, entertainment, and healthcare.
Akash Ambani: Personal Life
Akash Ambani with his Family
Akash married his childhood friend Shloka Mehta in March 2019, who is the daughter of diamond magnate Russell Mehta and Mona Mehta. Theirs was the second grand wedding of India, which took place in Mumbai and was one of the most talked-about events, attended by global celebrities, business tycoons, and political figures.
Akash and Shloka welcomed their first child, Prithvi Akash Ambani, in December 2020. In May 2023, they became parents to a daughter, Veda Ambani. Despite the enormous responsibilities that come with his role at Reliance, Akash is a grounded and humble person with a strong focus on family and legacy.
Akash is known to be passionate about sports, particularly football and cricket. He also plays a key role in managing the IPL’s Mumbai Indians cricket team, owned by the Ambani family. He often attends matches and is actively involved in the strategic management of the team alongside his mother, Nita Ambani.
Akash is actively involved in various philanthropic initiatives through the Reliance Foundation, led by his mother Nita Ambani. Through his digitized and technical approach, Akash plays a significant role in shaping the foundation’s focus on education, healthcare, rural transformation, and disaster response.
To lay emphasis on education for all, Akash supports education-related philanthropy done by the Dhirubhai Ambani International School in Mumbai. Under this initiative, the school offers scholarships to underprivileged children and emphasizes holistic development alongside academic excellence.
As a sports enthusiast, Akash plays an important role in promoting sports in India and supports various sports development programs for grassroots-level athletes to nurture young talent. Through the Reliance Foundation, Akash has undertaken various initiatives to promote football and other sports to encourage physical education and a healthy lifestyle.
Akash Ambani was involved in Reliance’s extensive relief efforts during the COVID-19 pandemic. The company set up India’s first dedicated COVID-19 hospital in Mumbai, provided medical equipment, and supported frontline workers. Through the Reliance Foundation, Akash helped distribute millions of free meals and essential supplies to those affected by the pandemic.
Apart from this, Akash’s wife Shloka is also engaged in social impact ventures through the Reliance Foundation. Akash and Shloka’s role as philanthropists emphasizes on their commitment towards bringing a positive change in society and uplifting underprivileged societies.
Akash Ambani: Controversies
Akash Ambani has generally maintained a positive and clean public image, apart from his Aston Martin car crash incident in 2013.
Akash Ambani: Awards And Recognition
Akash Ambani has been awarded with the following accolades:
TIME100 Next in TIME Magazine’s list of rising stars 2022
Akash Mukesh Ambani is an Indian businessman who serves as the chairman of Reliance Jio. He is the son of Mukesh Ambani.
Are Akash Ambani and Isha Ambani twins?
Yes, Akash Ambani and Isha Ambani are twins. They were both born on October 23, 1991, to Mukesh and Nita Ambani.
What is Akash Ambani education?
Akash Ambani attended Dhirubhai Ambani International School in Mumbai for his early education. He later went to Brown University in the United States, where he earned a degree in Economics.
In order to expedite the antitrust clearance process for their $8.5 billion merger of Indian media holdings, Reliance and Walt Disney have reportedly offered to sell some channels. However, they are reportedly fighting any adjustments made to the cricket broadcast rights that they own.
With a combined 120 TV channels and two streaming services, the Reliance-Disney merger, which was announced in February, is sure to be closely watched by antitrust experts. This is because it will result in creating India’s largest entertainment platform, locking horns directly with Sony, Netflix, Amazon, and Zee Entertainment.
The Merger Will Have an Upper Hand
Many are worried about the combined business’s pricing power and its influence on advertisers, especially since Reliance, owned by Asia’s wealthiest man Mukesh Ambani, will own a majority stake in the combined entity. The combined company will also own valuable cricket broadcasting rights worth billions of dollars.
Reliance and Disney have informed the Competition Commission of India (CCI) that they are prepared to sell a small number of television channels (less than ten) in order to allay fears of market dominance and secure early clearance, after the watchdog’s secret requests for approximately one hundred questions pertaining to the merger. There are other stipulations that pertain to regional Indian language channels that the two firms might control.
This Is Not the First Time Such a Merger Is Happening
During the year 2022, Zee and Sony made an offer to sell three television stations in order to create a television behemoth in India that would be worth ten billion dollars. However, despite the fact that this helped them get clearance from the CCI, the merger ultimately failed.
The notification that was issued by the Competition Commission of India (CCI) to approve that merger included information about the competitive landscape. The notification revealed that in the local language of Marathi, Disney and Reliance channels had a combined market share of between 65 and 75 per cent at that time. A market share of up to 50 per cent was held by the two with regard to Bengali language entertainment channels.
Cricketing Rights Play a Vital Role
Cricket is an additional area of disagreement in the merger procedure. In India, the sport has a devoted fan base, making the matches highly desirable for sponsors.
The Indian Premier League (IPL), the most prestigious cricket event in the world, and other major leagues’ digital and television cricket rights would be owned by Reliance-Disney.
So far, the CCI has not voiced any worries about the firms’ market strength in cricket rights, but the corporations have argued with the CCI that the rights cannot be sold at the moment because they expire in 2027 and 2028.
According to a report, the corporations are also worried that the approval process could be prolonged because the Indian cricket body would have to approve any sub-licencing of cricket rights.
