Reliance Jio, we all have been hearing a lot about this company for the past few years. Reliance Jio is a well-structured company whose business model is considered ‘the sweetest data bait.’
Jio has proven itself the icon of international tech and private capital investors. According to estimated data, Jio has raised Rs. 67,194.75 crore from the forthcoming technology investors including Silver Lake, General Atlantic, Facebook, and Vista Equity.
With the vibrant interest of the foreign investors in the Indian market have signed several deals for Reliance Jio. When it comes to the business model of Jio, the company has opted for very cleverish strategies which have resulted in remarkable profits for the company.
Reliance Jio holds a very strong position in the market with an immense customer base. Through this article, we will be discussing the business model of Reliance Jio briefly along with its tremendous marketing strategies. Let’s begin!
Jio is officially termed as Reliance Jio Infocomm Limited which functions as the Indian telecommunications company. Jio was founded by Mukesh Ambani in 2007 as the subsidiary of Reliance Industries.
Reliance Jio, which functions as a subsidiary of Jio platforms and telecommunications services providers has its well-established headquarter in Mumbai, Maharashtra, India. Alongside the company operates all 22 telecom circles through the National LTE network. Through this, Jio provides the voice service on its 4G network, that too only from the LTE network.
Today, Jio is known as the largest mobile network operator across India and the third-largest in the world. The company has over 42.62 crore subscribers. Recently in 2019, Jio launched its service of fiber to the home, where it offers television, telephone, and home broadband services. As of 2020, Reliance Jio raised its funds by selling around 33% equity stake in Jio Partner, worth Rs. 1.65 lakh crore that is, US$23 billion.
Jio Business Model and the success story
Key Product and Services of Reliance Jio
Reliance Jio Services
Reliance Jio offers tons of amazing services through its fiber-to-the-home services. Its key services include telephone services, television, and home broadband services.
While its key products are Mobile Phones, top-notch internet speed and services, fixed-line telephone, OTT services, and Wireless broadband.
Target Audience of Reliance Jio
Reliance Jio majorly concentrates on the audience who are smartphone users. It provides the service of high-speed internet and great android mobile services. Jio targets the urban and two-tier middle and upper-class people. Jio works towards transforming India into a digital nation.
Jio, being the highest in the market strategizes its business model in a very significant and unique way. It has opted for the formula of ‘Unique Selling Point.’ This basically means Jio offering such unique and advantageous services to their customers that can not be resisted. This can be elaborate as when Jio launched the unlimited offer with a 4G server, people of India weren’t encountered 4G at all. And with such a unique offer, how can someone turn it down? And that’s what benefits the company of Reliance Jio.
Jio offers a broad range of customer-based features and services like high-speed Internet, free voice calls, unlimited texting, and many other. All these are developed to charge money from the customers. Its tariff plans are exclusively built to catch consumers’ eyes.
Jio has offered some very exclusive services to its customers with a fully served 4G network. Jio was the first to bring on the popularity and use of 4G network while other telecom companies were still working with 3G networks. And with this significant approach, Jio builds the biggest loyal customers base. People wanted more things in less price, Jio took the opportunity and provided them that. This unique strategy is what brought Jio where it is now!
What is unique about the business model of Reliance Jio?
Jio has opted for the most powerful and promising business strategies, which has surely brought great benefits and profit to it. Its business model is very simple, yet unique. The most unique thing about Jio is it offers free voice calls to its customers. According to statistics, only 10-15% of the Jio 4G network is used for calling while the other 85-90% is used for data. And when you have this amount of popularity and usage, paying a little price is always worth it. That’s what Jio does!
In this way, it attracts more and more customers to its services and creates a significant marketing buzz with free offerings. In all manner, it’s beneficial for the company.
How does Reliance Jio make money?
Reliance Jio generates its money from two major options- Charging extra per unit and selling more units. And as compared to other telecom companies, Jio sells way more of its units to generate more money.
For those who refer to Jio as a cheap telecom service provider, they are talking about its per-unit cost. But apart from this, the company charges its customers INR 154 for ARPU. And this amount is higher than any other telecom operator company.
So, the Jio customers are actually paying more for the cheap products. Jio does not provide the facility of paying just INR 10 per month as compared to other telecom companies. Jio majorly focuses on generating more money through all its plans.
With its incredible marketing strategy of generating money through Jio tariff plans that come in 4G network brings great profit for the company. Jio follows different pricing options and makes enormous customer deals.
They offer various applications, devices, and fiber services to multiply their revenue. This helps Jio to win numerous business verticals. And with such marketing strategies and development, Jio’s market value and position are unbeatable.
FAQs
What is the revenue of Reliance?
Reliance has a revenue of 7.27 lakh crores INR (US$100 billion, 2021).
Even during the pandemic, the net worth of many billionaires have been growing consistently. According to Forbes, the number of billionaires in the Forbes 35th list of the world wealthiest people, the number of billionaires have increased to 2,755, which was 660 more than a year ago.
Everyone knows that the richest person on the planet is Elon Musk with a net worth of $203.4 billion, followed by Jeff Bezos with $192.2 billion and Bernard Arnault & family with $185.8 billion, as of October 16, 2021. But do you know the top twenty richest people in Asia? According to Bloomberg Billionaire Index and the Forbes Billionaires List, the top 15 richest people in Asia, collectively account to over $500 billion.
The people in this list are self-made, big tech tycoons and real estate giants. The person who takes the top spot in the list of Asia is none other than India’s richest person, Mukesh Ambani who is the Chairman of the conglomerate, Reliance Industries Ltd. The other high profile billionaires from the continent are Jack Ma, Gautam Adani, Zhong Shanshan, Ma Huateng, Li Ka-Shing, etc. To find out who else made the top 20 according to Forbes.
Here is the list of the Top 20 Richest People in Asia.
1. Mukesh Ambani
Chairman/MD
Reliance Industries Ltd
Net Worth
US$100.6 billion (as of October 2021)
Industry
Energy, Telecom, Retail, Petrochemicals, Textiles and Natural Resources
Country
India
Age
64 (2021)
Mukesh Ambani
Mukesh Dhirubhai Ambani is an Indian Billionaire Businessman, the Chairman, Managing Director and the largest shareholder of the Reliance Industries Ltd., which is an energy and telecom multinational conglomerate.
Reliance Industries owns business across India and has its foothold in the industries such as energy, petrochemicals, textiles, natural resources, retail and even telecommunications. The company is also in the list of the Fortune Global 500 Company and is the country most valuable company as per its market value.
Ambani is credited for creating Jio, an affordable 4G phone service in India. The billionaire also owns an Indian Premier League team known as the Mumbai Indians and also has a property worth more than $400 million. As of 16th October 2021, Mukesh Ambani is the richest person not only in India but also Asia with a net worth of US $100.6 billion and is also the 11th richest person in the world. The head honcho of Reliance India Limited has joined the coveted club of billionaires with a fortune of at least $100 billion on 8th October 2021, Friday, following the rapid rise of the stocks of the conglomerate.
2. Zhong Shanchan
Founder/ CEO
Nongfu Spring
Majority stake holder
Beijing Wantai Biological Pharmacy Enterprise
Net Worth
US$71.6 billion (as of 28th May 2021)
Industry
Beverage and Pharmacy
Country
China
Age
67
Zhong Shanshan
Zhong Shanshan is a Chinese billionaire businessman, the founder and chairman of Nongfu Spring which is a popular beverage company in China and a majority stake holder of Beijing Wantai Biological Pharmacy Enterprise.
Nongfu Spring is a bottled water and beverage company that went public in September 2020, the company recently tripled its value to $85 billion. As of 16th October 2021, the net worth of Shangshan is $71.6 billion, making him the richest person in China, the 2nd richest person in Asia after Gautam Adani.
He became the second richest person in Asia due to the recent stock listing of Nongfu and also because Wantai Biological managed to tap into the high demand of Covid 19 kits. Zhong Shanshan is also known to have accumulated his wealth the fastest in history, according to Bloomberg.
Resources, Logistics, Energy, Energy, Defence, Aerospace, Real Estate, Financial, etc.
Country
India
Age
59 (2021)
Gautam Adani
Gautam Shantilal Adani is an Indian Billionaire Industrialist, the Founder and Chairman of the Adani Group. Adani Group is an Indian multinational conglomerate that has diverse businesses across the industries of resources, logistics, energy, energy, defense, aerospace, real estate, financial, etc.
Adani Group has an annual revenue of more than US $13 billion with operations in more than 50 countries. Adani is especially known for being a port developer and operator and is known for having the largest port in the country known as the Mundra port.
As of 2018, Gautam Adani has over 66% stake in Adani Ports & SEZ, 75% stake in Adani Enterprises, 73% stake in Adani Power, and a 75% stake in Adani Transmission. As of 16th October 2021, Gautam Adani has a net worth of US $75.20 Billion, making him the second richest person in Asia. He had recently overtaken Chinese bottled water producer, Zhong Shanshan in September 2021.
4. Robin Zeng
Founder/ Chairman
Contemporary Amperex Technology
Net Worth
US $50.70 billion (as of October 2021)
Industry
Automotive Li-ion Batteries, Energy Storage Systems, Battery Recycling
Country
China
Age
53 (2021)
Robin Zeng
Robin Zeng also known as Zeng Yuqun is a Chinese billionaire entrepreneur, the Founder and Chairman of Contemporary Amperex Technology (CATL).
The CATL is well known Chinese’s battery manufacturer and Technology Company that specializes in making lithium-ion battery for electric vehicles, battery management systems. Zeng is among the richest people in China and in Asia. With a net worth of $50.70 billion, he recently overtook Jack Ma, as per the reports dated October 16, 2021.
5. Ma Huateng
Chairman/MD
Tencent Holdings
Net Worth
US$49.10 billion (as of October 2021)
Industry
Technology
Country
China
Age
49 (2021)
Ma Huateng
Ma Huateng, also known as Pony Ma is a Chinese Billionaire Businessman, the Founder, Chairman and CEO of Tencent. Tencent is the continent’s most valuable company and one of the largest internet and Technology Company.
Besides , Tencent is also one of the biggest investment, gaming and entertainment conglomerate in the world known for developing China’s instant messaging app called WeChat. According to Time magazine Ma Huateng is one of the most influencial people in 2018, while Fortune also ranked him as among the top businessmen of the year in 2017.
The businessman wealth comes from the 9.7% stake in Tencent holdings. He is known to own properties in Hong Kong and art pieces that are worth over US $150 million. As of 16th October 2021, the net worth of Ma Huateng is US $49.10 billion, making him one of the richest people in China and the 5th richest person in Asia.
Zhang Yiming is a Chinese Billionaire Businessman and the Founder of ByteDance and developer for the news aggregator Toutiao and the world renowned video sharing platform TikTok. ByteDance is a Chinese multinational internet tech company known for developing video sharing and social networking sites like TikTok and Douyin.
ByteDance also developed an app known as Toutiao, which is a platform that delivers news content in various forms. As of 2018, ByteDance has over 800 million daily users across all its content platforms and has been valued at $250 billion as of 2021. According to Bloomberg billionaires index Zhang’s personal wealth is estimated to be around $44 billion.
Zhang Yiming stepped down from the position of CEO of Bytedance to embrace a new role within the company on 20th May 2021.
7. Jack Ma
Founder/ CEO
Alibaba Group
Net Worth
US$42.30 billion (as of October 2021)
Industry
Technology, E-commerce, Retail
Country
China
Age
56 (2021)
Jack Ma
Jack Ma is a Chinese billionaire businessman, the Founder and former Executive Chairman of Alibaba Group. Alibaba is a Multinational Technology Conglomerate that specializes in E-commerce, retail, technology and offers C2C, B2C and B2B sales, electronic payments, shopping search engines and cloud computing services.
Alibaba is the world largest retailers and e-commerce companies and has the 6th highest global brand valuation in 2018.Jack Ma was ranked 2nd in the Forbes list of the World 50 greatest leaders and is also a popular philanthropist as he has supported many underprivileged communities in China, Africa, Australia, and the Middle East.
As of 16th October 2021, the net worth of Jack Ma is US$42.3 billion making him a distinguished billionaire in China and the 7th richest person in Asia.
8. Li Ka Shing
Chairman
Li Ka Shing Foundation
Net Worth
US $31.80 Billion (As of October 2021)
Industry
Real Estate
Country
Hong Kong
Age
92 (2021)
Li Ka Shing is a Hong Kong businessman, an investor and well known philanthropist. He is the senior advisor and former chairman of the board for CK Hutchison Holdings and CK Asset Holdings. Li Ka Shing is 92 years old and is known to be the world leading port investor, developer and operator of the largest health and beauty and retailer in Asia and Europe.
According to Forbes Hong Kong Fortune league chart, Li Ka Shing became the richest person in Hong Kong in February 2021. Li is often regarded as “Superman li” by the Hong Kong media because of his business prowess, he also is the most influential entrepreneurs in the continent.
Li presides over a huge business empire that has its foothold in the industries such as transportation, real estate, financial services, retail, and energy and utilities. The billionaire is also a philanthropist that leads a simple life and has donated billions of dollars to charity and causes making him Asia most generous philanthropists.
As of 16th October 2021, Li Ka Shing net worth is over US $31.80 Billion making him one of the richest person in Hong Kong and among the richest in Asia.
9. He Xiangjian
Founder
Midea Group
Net Worth
US$31.70 billion (as of October 2021)
Industry
Consumer appliances
Country
China
Age
79 (2021)
He Xiangjian
He Xiangjian is the Co-founder of Midea Group, which is known to be one of the world’s largest appliance makers. Midea Group is electrical appliances manufacturer that has more than 200 subsidiaries.
The company is known for its products like lighting, water appliance, floor care, small kitchen appliance, laundry, cooking appliance and refrigeration appliances. According to Bloomberg Billionaire Index, Xiangjian was ranked the 44th place as his net worth was $32.7 billion in April 2021.
Media is also the world largest producers of robots and appliances which is why the company was also listed in the Fortune Global 500 since 2016. He Xiangjian stepped down from the company operation in 2012, but is still one among the richest in China and Asia with a wealth of $32.70 billion.
10. Lee Shau Kee
Founder/Chairman
Henderson Land Development
Net Worth
US $31.10 billion (as of October 2021)
Industry
Real Estate
Country
Hong Kong
Age
93 (2021)
Le Shau Kee
Le Shau Kee is a billionaire businessman from Hong Kong, real estate tycoon, founder and former chairman of Henderson Land Development. Henderson Land Development is a well known property conglomerate with stakes in property, hotels, restaurants and internet services.
The company’s main activities are property development, investment, project management, construction, hotel operation, finance, investment holding and infrastructure. The billionaire controlled over 70.17% of the share capital of the company as of 2015.
Kee stepped down from the position of chairman in 2019 at the age of 91 and passed the mantel to his sons. Le Shau Kee is one of the richest people in Hong Kong and in Asia. His net worth is estimated to be $31.10 billion, as of 16th October 2021.
11. Colin Huang
Founder/ CEO
Pinduoduo
Net Worth
US$31.10 billion (as of October 2021)
Industry
E-commerce, Agriculture
Country
China
Age
41 (2021)
Colin Huang
Colin Huang also known as Huang Zheng is a Chinese billionaire businessman, the Founder and CEO of Pinduoduo. Pinduoduo is a leading E-commerce and the largest agriculture-focused technology platform in China. Pinduoduo’s main objective is to connect farmers and distributors directly with the consumers and provide an interactive shopping experience.
Over 600,000 merchants have sold their produce through the platform with more than 12 million farmers supplying their fruits and vegetable to the merchants. According to Bloomberg, the platform has over 628 million customers and made $4.2 billion in 2019. Huang has also founded two other popular internet based companies known as Xinyoudi (a gaming business) and Ouku.com (an e-commerce platform).
The businessman has grown his wealth steadily in the recent years, climbing the global ranks from number 94 in 2019, to number 57 in 2020, and then 21. As of 16th October 2021, Colin Huang net worth is US$31.10 billion, which makes him the one of the richest people in China and the 11st richest person in Asia.
Tadashi Yanai is a Japanese Billionaire businessman, the Founder and President of Fast Retailing. Fast Retailing is public Japanese retail holding company that owns more than a 1000 stores. The company owns popular Japanese subsidiaries like Uniqlo, J brand, Comptoir des Cotonniers, GU, Princesse Tam Tam and Theory.
He is also the biggest shareholder of Asia’s largest clothing retailer known as Uniqlo. According to Bloomberg Billionaire Index, Tadashi Yanai became the richest person in Japan and the 34th richest person in the world, as his net worth was estimated to be $42.billion as of April 2021.
However, as of 16th October 2021, the billionaire’s net worth is US $32.5 billion, making him the richest person in Japan and among the richest in Asia.
13. Ding Lei
Founder/CEO
NetEase
Net Worth
US $29.8 billion (as of October 2021)
Industry
Technology
Country
China
Age
49 (2021)
Ding Lei is also known as William ding is a Chinese Billionaire businessman, the Founder and CEO of NetEase. NetEase is Internet Tech Company known for its services like content, community, communications and commerce. The company also develops online PC and mobile games, advertising services and e-commerce platforms in China.
NetEase is one of the largest internet and video game companies in the world. Besides gaming, NetEase works with other online media entertainment like movies and music. Ding Lei is known to have made many contributions to the development of computer networks in China, while his company work with Blizzard Entertainment and Microsoft subsidiary Mojang.
According to Bloomberg, the net worth of Ding Lei as of 16th October 2021 is $29.8 billion, making him one of the richest people in China and in Asia.
14. Wang Wei
Founder/Chairman
SF Express
Net Worth
US $28.8 billion (16th October 2021)
Industry
International express delivery and logistics services
Country
China
Age
50 (2021)
Wang Wei is a Chinese billionaire businessman, the Founder and Chairman of SF Express. SF Express is a multinational express delivery services and logistics company. The company is the 2nd largest courier in China as it provides domestic and international express delivery.
It is also known for the SF Airlines which has a fleet of 50 cargo aircrafts. SF Express began in 2009 and has transported more than two million tonnes of cargo till 2018. This is why the SF Express is known as the “Fedex of China.”
As of 16th October 2021, the net worth of Wang Wei is US $28.8 billion, making him one among the richest people in China as well as in Asia.
15. Takemitsu Takizaki
Founder/Chairman
Keyence
Net Worth
$28.5 billion (as of October 2021)
Industry
Technology
Country
Japan
Age
75 (2021)
Takemitsu Takizaki is a Japanese bilionaire businessman, founder and chairman of Keyence. Keyence is a well-known manufacturer of automation sensors, vision systems, barcode readers, laser markers, measuring instruments, and digital microscopes.
The company has many big brands as its clients Toyota, Toshiba, and Volkswagen. Takizaki stepped down as the company chairman but still has a net worth of $28.5 billion, as of 16th October 2021, making him one of the richest people in Japan and Asia.
16. Masayoshi Son
Founder/ CEO
Softbank
Net Worth
US$28.20 billion (as of October 2021)
Industry
Investment
Country
Japan
Age
63 (2021)
Masayoshi Son
Masayoshi Son is a Japanese billionaire entrepreneur, the Founder and CEO of SoftBank and also the chairman of the UK based Arm Holdings. Softbank is a well-known Japanese multinational holding company that operates in the areas of broadband, fixed-line telecommunications, e-commerce, internet, technology services, finance, media and marketing, semiconductor design, etc.
The company was also ranked 36th in the list of Forbes Global 2000. Masayoshi Son’s net worth is estimated to be $28.2 billion as of 16th October 2021, making him the one of the richest people in Japan and the 16th richest person in Asia. Masayoshi was also ranked as the 45th in the list of Most Powerful People, according to Forbes.
Country Garden Holdings and Bright Scholar Education Holdings
Net Worth
US $27.3 billion (as of August 2021)
Industry
Real Estate
Country
China
Age
40 (2021)
Yang Huiyan
Yang Huiyan is a Chinese billionaire businesswoman, Property developer and a majority stakeholder of Country Garden Holdings, 70% of shares of the company were transferred to her by her father Yang Guoqiang in 2007.
The Country Garden is a property development company that constructs buildings and manages hotels in China, owned by Yang’s family. The company was ranked 147thin the Fortunes Global 500 list. Country Garden has more than 200 high-end township developments in countries like China, Malaysia, and Australia.
As of August 2021, Yang Huiyan’s net worth is estimated to be $27.3 billion, making her not only the richest woman in China but also the richest woman in Asia.
Qin Yinglin is a Chinese billionaire, founder and chairman of Muyuan Foodstuff. Muyuan is a popular pig breeding and distribution company that breeds and sells pigs and pork products. Qin is known to have started the company with his wife in 1992, and by 2019 the company made $3 billion.
The agriculture billionaire is known to be the “the country’s largest pig breeder in the world’s biggest pork market”, according to Forbes. Qin is famous as the world’s richest farmer. His net worth is estimated to be $25 billion, as of 16th October 2021. This makes him one of the richest people in China and in Asia.
Pang Kang is a Chinese billionaire businessman and the chairman of a popular food and beverage company known as Foshan Haitian Flavoring and Food Co. The company manufactures a wide variety of sauces and flavoring, it is also the largest manufacturer of Soy Sauce in the world.
Based in China’s Guangdong providence, the food company made $2.9 billion in 2019, within five years of its launch. Foshan also makes over 200 different condiments such as oyster sauce, hoisin, shrimp, vinegar, and chicken stock.
As of 16th October 2021, the net worth of Pang Kang is over $23.80 billion, making him one of the richest people in China and in Asia as well.
20. Li Xiting
Founder/Chairman
Shenzhen Mindray Bio-Medical Electronics
Net Worth
US $21.30 billion (as of October 2021)
Industry
Medical Electronics
Country
Singapore
Age
70 (2021)
Li Xiting is a Singaporean billionaire, Founder and former Chairman of Shenzhen Mindray Bio-Medical Electronics. Over the year the billionaire has been one of the pioneers in the world of healthcare. While his company is known to operate in 30 countries and have over 17 subsidiaries.
Mindray is known for its healthcare devices such as health monitoring systems, ventilators, defibrillators, anesthesia machines and infusion systems. According to Forbes, Li Xiting is the richest person in Singapore in 2020. As of 16th October 2021, the net worth of Li Xiting is $21.30 billion, making him the richest Singaporean and among the richest people in Asia.
Who are the top three richest people of the world?
The top three billionaires of the world are Elon Musk, with a net worth of $203.4 billion, followed by Jeff Bezos with $197.7 billion and Bernard Arnault with $193.2 billion, as of 16th October 2021.
Who are the top ten richest people of Asia?
The top ten richest billionaires of Asia are Mukesh Ambani, Zhong Shanchan, Gautam Adani, Robin Zeng, Ma Huateng, Zhang Yiming, Jack Ma, Li Ka Shing, He Xiangjian, Le Shau Kee.
Who are the other top people of Asia?
The other top billionaires of Asia are He Xiangjian, Ding Lei, Li Ka Shing, Yang Huiyan, Wang Wei, Pang Kang, Li Xiting, Qin Yinglin and Takemitsu Takizaki.
The 44th AGM of Reliance Industries was conducted on 24 June 2021. The company had mentioned certain key points that they undertook during the Coronavirus pandemic such as contributing to oxygen. Reliance boasts of producing 11% of the country’s liquid oxygen that is the highest by any company, gave around 7.5 crore free meals, set up 116 vaccination centers in 109 cities across the country, and also conducted the largest corporate vaccination drive for its employees.
Other than these the Chairman of the company, Mukesh Ambani had also discussed various projects that the company will undertake in the coming future. Let’s look at the projects and the details about them.
One of the major key takeaways from the Annual General Meeting of Reliance is its clean energy business. The company has stated that it would invest around INR 75,000 crore in a new clean and green energy business over the phase of the next 3 years.
Another takeaway is about the partnerships of Jio and the introduction of a new phone under the brand Jio with the collaboration with Google. The company also announced the launch of Jiomart, where it will collaborate with Facebook.
Mukesh Ambani on Green Energy Project at Reliance AGM
On the 44th Annual General Meeting of Reliance the chairman of Reliance Industries, Mukesh Ambani has announced to begin the work on developing a clean energy project which is the Dhirubhai Ambani Green Energy Giga Complex in Jamnagar, which will be a 5,000 acres project.
The company had announced that it has a target to reach a net-zero carbon company by 2035, where 60% of the revenue that is earned by the company is through hydrocarbon-fueled energy operations, as per the reports of the recent financial year. While compared to other players in the industry 2035 is a relatively shorter time frame where the major players such as BPCL, Royal Dutch shell, and many others commit to reaching the target by 2050.
He said that the company has started working on the Giga Complex, which is expected to be one of the largest renewable energy integrated manufacturing facilities in the entire world. The Giga complex will contain a solar manufacturing unit, battery factory for energy storage, fuel cell making factory, and an electrolyzer unit which will be used to manufacture green hydrogen.
The company also has plans to build for other Giga factories in order to integrate and manufacture all the components that are required by the new energy system, which include solar photovoltaic module factory, energy storage battery factory, fuel cell factory, and electrolyzer factory.
The company is expecting to create an end-to-end renewables energy ecosystem and announced that it would invest around INR 60,000 crores in these 3 initiatives and the rest INR 15,000 crores will be invested into partnerships, future technologies, and value chain, and also upstream and downstream businesses.
Ambani had also conveyed that the company will invest in building two additional divisions to strengthen this ecosystem. There will be a dedicated renewable energy project management and construction division and a dedicated renewable energy project finance division.
Reliance also aims to set up a 100 GW solar energy by the end of the year 2030.
JioPhone Next will be developed through a partnership with Jio and Google and will be released as a Made in India phone. The smartphone will be powered through an optimized version of the Android platform, which will be especially developed for the JioPhone Next.
JioPhone Next
The smartphone will be a 4G enabled smartphone and will enable the users to use the phone in their preferred language. The phone is expected to deliver a great camera quality and even the latest updates on the Android features and the security updates.
JioPhone Next will contain all the major features such as Google Assistant, language translation, automatic read-aloud of screen text, smart camera with augmented reality, and much more. The smartphone is expected to be released in the market during the time of the Ganesh Chaturthi festival.
The JioPhone Next is considered to be the most affordable 4G phone in the country and the entire world.
The company has plans to make India a 5G-must nation by the introduction of 5G into the country. The company has a 100% homegrown 5G solution where the company can roll out a 5G network in the country through a standalone position.
The Jio 5G solutions have successfully provided over 1GB per second during the trials that were conducted using the 5G network. Ambani has conveyed that the company has received 5G approval from the regulators and also trial spectrum for 5G field trials.
Google Cloud and Jio partnership announcement at Reliance AGM
Mukesh Ambani had announced the partnership of the company with the Google Cloud services in order to power the 5G services and network of Jio. Google will provide an end-to-end cloud offering that will power the automated lifecycle management of Jio’s 5G network and services.
In addition to this, to address the business challenges faced by the industries, both the companies will collaborate to bring a 5G edge computing solution.
The services of Jio’s 5G network, software, and Google cloud’s innovation in AI and ML will be explored in the new sectors such as gaming, healthcare, video entertainment sectors, and education. Jio and Facebook
The company has united the initial stage of JioMart with Facebooks’ WhatsApp and has provided encouraging results and valuable feedback by the company. Currently, the company is working on developing a full new commerce solution that will link the consumers and merchants. All these plans are expected to be implemented and launch over the next few quarters.
Jio and Microsoft partnership announcement at Reliance AGM
The company has also partnered with Microsoft in order to launch a 100 MW capacity of Jio-Azure cloud data centers in two cities of the country – Nagpur, and Jamnagar. The company is currently onboarding a group of customers for testing the product and service.
Over the coming quarters, the company has plans to expand the data center capacity and offering the services to a growing number of SMEs and various other startups.
Conclusion
The main focus of the AGM was on the Green energy Giga factory that will be set up by the Reliance Industries. In the year 2016 the company had launched Jio in order to bridge the gap in the country in relation to the Digital divide and in the year 2021 the company is launching its clean energy business in order to bridge the gap in the green energy division.
FAQ
What is Reliance AGM ?
Reliance AGM is annual general meeting held by Reliance industries where the chairman of Reliance Industries, Mukesh Ambani announces future projects and partnerships of Reliance.
What is the Revenue of Reliance Industries?
The Revenue of Reliance Industries is ₹540,000 crore (US$76 billion) in 2021.
What is net worth of Mukesh Ambani?
The net worth of Mukesh Ambani is 8,490 crores USD as of 2021.
The State Bank of India which is one of the largest Public Sector Banks in the country and is one of the leading banks of the country. The bank had tagged Reliance Infratel Limited which is a company under the Anil Ambani group as Fraud and has recently announced that the bank is withdrawing the tag. Let’s look at why SBI is removing the Fraud tag from the company.
On 9 June 2021, the State Bank of India had conveyed that they would choose to withdraw the tag placed on Reliance Infratel which is a Reliance company that comes under the Anil Ambani group which is a Reliance communications tower and Fiber company. The bank had filed an affidavit in NCLT Mumbai stating that they would want to remove the Fraud tag on the company.
Why did SBI tag Reliance Infratel as Fraud?
Reliance Infratel is a bankrupt company that owes a lot of debt in the market majorly to many other investors. The company has around 13 lenders and some of the claims from the investors include State Bank of India – INR 3,628. 68 crores, Syndicate Bank – INR 1,225.18 crore, Bank of India – INR 1,064. 82 crore and also from the Industrial and Commercial Bank of China (ICBC) – INR 1,832.91 crore. These are the major lenders of the company.
Apart from these, there were a lot of financial creditors the company owed money to. Since the company owed a lot of money and had also recorded bankruptcy the State Bank of India had tagged the company as Fraud.
The Reliance Industries Group which is owned by Mukesh Ambani had been a resolution partner for Reliance Infratel. Reliance Industries Reliance Projects and Property Management Service had been successful in being the resolution partner in the Corporate Insolvency Resolution Process (CIRP) and also won the right to acquire a 100 % stake in the shareholding of Reliance Infratel Ltd.
The resolution order was given by the NCLT which awarded the Reliance Infratel company to the Reliance Industries owned by the Mukesh Ambanias on 3 December 2020 but then SBI had already classified the company as Fraud on 10 November 2020 and later on SBI had withheld this information before the NCLT before it gave the order.
The Fraud tag being classified by the bank and withholding it from the NCLT is considered to be a grave error and the State Bank of India also did not upload the same on the CRILIC website for 45 days until 21 December 2020 which is considered to be against the norms and violating the principles. Later the bank also filed a complaint to the CBI on the directors of Reliance Infratel.
One of the major reasons for the removal of the tag was because after the complaint being filed to the CBI, Reliance Infratel had moved to the High Court of India on 6 January 2021 and got a stay regarding the actions taken by the State Bank of India.
The court also ordered the CBI to not to take any actions on the complaint filed by the State Bank of India. Later on, the State Bank of India had moved towards withdrawing the Fraud tag which it had posted against Reliance Infratel by filing an affidavit in order to declassify it before the NCLT Mumbai.
Resolution plan of Reliance Infratel and Reliance communication
The dedicated insolvency court had provided a nod to the resolution plan of Reliance Infratel by providing 100 % shareholding towards Reliance Communication. The Reliance Jio Infocomm has received the permission to pick the tower and the fiber assets of the Reliance Infratel which is a bankrupt company.
Conclusion
It is said that the lenders are expected to take a 60 % of the 100% stake through the Asset monetization plan of the tower company. According to the plan provided by NCLT, the lenders are expected to recover an amount of INR 4000 crore through the resolution plan of the company.
FAQ
Who owns Reliance Infratel?
The Reliance Jio Infocomm received the permission from the court to pick the tower and the fiber assets of the Reliance Infratel which is a bankrupt company.
Why did SBI tag Reliance Infratel as Fraud?
Since the company owed a lot of money and had also recorded bankruptcy the State Bank of India tagged the company as Fraud.
Why did SBI Withdraw the fraud tag?
As the Reliance Industries Group which is owned by Mukesh Ambani had been a resolution partner for Reliance Infratel and has acquired a 100 % stake in the shareholding of Reliance Infratel Ltd, SBI had to withdraw the fraud tag.
Reliance Industries which is led by Mukesh Ambani has recorded a rise in its profit of up to 35%. Reliance is one of the leading companies in the oil and telecom sector in the country. The telecom sector has been growing under the brand name Jio and had created a disruption in the market at the time of its launch. Let’s look at the financial results of Reliance Industries for the end of the financial year 31 March 2021 and the reason for the rise in profits.
Reliance Industries is an Indian based multinational conglomerate. The company was founded in the year 1973 and has its headquarters located in Mumbai, India. The company provides services across the globe and is the largest publicly traded company in India.
Some of the products and services of Reliance Industries include Petroleum, Natural Gas, Textiles, Petrochemicals, Telecommunications, Retail, Television, Media, Entertainment, Financial services, Music and Software.
Reliance Industries owns a lot of subsidiaries which include Jio Platforms, Reliance Retail, Jio Payments Bank, Reliance Petroleum, Alok Group, Network18 Group, Reliance Foundation and the IPL team Mumbai Indians.
Reliance Industries which is an oil to telecom conglomerate reported a rise in its profit for the end of the year which ended on 31 March 2021 of about 34.7 % increase at INR 53, 739 crores. The company led by Mukesh Ambani had seen a net profit of around INR 39, 880 crores at the end of the previous financial year 2020.
The revenue generated by the company for the FY21 is around INR 5.39 lakh crore which is around 18.3 % lower than INR 6.60 lakh crore. Total income of the company reviewed under the fiscal fell around 20% from INR 6.26 lakh crore to INR 5.03 lakh crore which was recorded at the fiscal which ended on 31 March 2020.
This was conveyed by Reliance Industries on 30 April 2021 during a Regulatory filing. There was also a decline of around 4.6 % in the FY 21 in the Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) of the company which stood at INR 97, 580 crores.
The cash profit for the fiscal under review has seen an increase of around 18.8 % which stood at 79, 828 crores.
The net profit of the company for the March quarter of FY 21 had seen an increase of around 129 % year on year from INR 6, 546 crores to INR 14, 995 crores. The revenue for the quarter had also seen an increase of around 13. 62 % compared to the previous year from 1.52 lakh crore to 1.72 lakh crore for the current year.
The EBITDA of the company during the March quarter of FY21 saw an increase of 1.9 % month on month which was around 26, 602 crores. The cash profit of the company had seen a rise of around 6.5 % for the quarter ended on 31 March 2021 which is INR 22, 746 crores.
Reliance Industries had said that its non-convertible debentures (NCDs) outstanding as of 31 March 2021 were around INR 66,665 crore in which INR 13,351 crores are secured non-convertible debentures.
Reliance further added that the secured non-convertible debentures of the company which is recorded at INR 13,351 crores for the year ended 31 March 2021 are secured through movable properties by the way of its first charge.
Mukesh Ambani who is the chairman of Reliance Industries conveyed that they have seen a vigorous growth in the O2C and retail segment of the business and a strong growth in the Digital Services in their business.
The growth of O2C earnings was supported through the sustained high utilization rates across sites, transportation fuel margins as well as improvement in downstream products deltas. He added that during these challenging times the consumer business of Reliance Industries has proved to be a physical and digital lifeline for the nation.
FAQ
What is the annual profit of Reliance Industries?
The annual profit of Reliance Industries is 1,15,461 CRORE.
How many companies Mukesh Ambani have?
Mukesh Ambani have 7 companies under him.
Is Jio under Reliance Industries?
Yes, Reliance Industries wholly owns subsidiary of Reliance Jio Infocomm.
Conclusion
Mukesh Ambani-led Reliance Industries has added around 75,000 jobs during the Covid pandemic while ensuring the health and safety of the employees. Reliance Industries also announced a dividend of INR 7 per share.
Jio has become a prominent market in today’s India. It is growing up on a daily basis and are trying to explore different ventures. Well, it is the best time to become a part of such an outgrowing organization.
RIL (Reliance India Limited) has come up with a new venture and have entered the e-commerce world with JioMart. It can create a buzz in the e-commerce market and can become helpful for small vendors and businessman.
JioMart retailer can be a good option as it is creating a prominent competition in this field too. Ruling over the telecom sector now Jio has become a trusted brand and with these new ventures they are trying to create an ecosystem for the customers which will make the customers life much easier.
With the introduction of Reliance JioMart, every grocery shop owner want to collaborate with them. And this is obvious how come one won’t be desired of becoming a partner with a billionaire firm. But in order to do there are some company standards like adequate finance, sufficient infrastructure and so on , which need to be followed if someone wants to collaborate with them.
So, if you are meeting with all those required standards Jio Mart can be joined through Partnercentral Jioconnect. You just need to visit partnercentral.jioconnect and to intimate them just by clicking on “I’m Interested” and fill the required columns.
What Exactly Is Jio Mart?
Jio mart has come up with a different approach to sell the products of the retailers which are close to our houses. Giving a great amount of competition to Amazon and Flipkart.
Amazon and Flipkart have been delivering either their own product or from different sellers which are not so close to our location due to which it takes a lot of time to reach our homes. Well, Jio Mart have decided that it will help all the MSME’s and local shops by making them a Jio Mart Retailer and they can provide delivery services in lesser amount of time.
Jio Mart has been launched on 24th May 2020
Jio Mart has just entered into the ecommerce market and can become a game changer here. Well, while all the small businesses going down because of this pandemic, with the help of Facebook, RIL has come forward to help them stand on their feets again.
Jio Mart stated that, “Our focus will be India’s 60 million micro, small and medium businesses, 120 million farmers, 30 million small merchants and millions of small and medium enterprises in the informal sector,”. This statement was given when they had the deal with Facebook few months ago, Facebook getting nearly 10 percent of share of Reliance Jio.
It started with the cities of Maharashtra namely Thane, Kalyan and Navi Mumbai and started to expand in the metro cities where it is easily accessible and necessary at this time of covid pandemic and providing the essential services.
Now, Jio Mart serves in around 200 cities in India. Customers can check the serviceability of their area by selecting pin code while placing the order.
Who Can Apply For Jio Mart
JioMart has launched itself in the market to compete with companies like Flipkart Fresh, Grofers, BigBasket and Amazon Pantry. They are targetting the grocery sector first as according to the present situation customer is only aiming for basic requirements which are needed for the daily processes.
So, JioMart have started it by getting in contact with the local vendors, Kirana stores, Dairy stores and those who basically are providing groceries on a daily basis.
People who are in the distribution business are eligible for JioMart and can easily become a retailer.
How To Become A Jio Mart Retailer
Jio Mart Retailer Can be easily accessed by retailers and can get benefits
By few simple and easy steps you can become a Jio Mart retailer.
Log into partnercentral.jioconnect website link through your web browser. (There will be many different fake links but try to log into the original one.)
Then click on to the retailer bar and go on to click on I Am Interested.
Then fill up your necessary details on the page that will open up.
After filling up the necessary details, you can click on submit and you have created your Jio Mart Retailer account.
An Indian Citizenship, Proof of address is required and a trusted shop certificate is also required. Here are some of the necessary documents required:
These proofs would be enough for the documentation process.
Benefits of Jio Mart Retailing
Local stores can get access to lots of benefits after getting connected with the Jio Mart and can grow up their business by following ways:
They will get increased numbers of orders as people will prefer buying from them as compared to the sellers who provide from far off places.
They can reach to a large extent of customer base and can help them expand in due course of time
Providing the product at what the customer wants will help make them gain more trust and sell more.
FAQs
Who is the owner of Jio Mart?
Mukesh Ambani is the owner of Jio Mart.
How to become a Jio Mart retailer?
To be a Reliance Jio Mart Retailer, go to partnercentral.jioconnect > Retailer > Become A Retailer > I am Interested > My Details > Submit.
Your Jio Mart Retailer account will be created. You will need, PAN Card Aadhar Card, Shop GST Certificate, Passport size photographs, and Address Proof details for verification purpose.
Can I sell my product on JioMart?
Shopkeepers can register their shops on JioMart website and App to list their products with prices and offers.
There was a recent news headlines which said SEBI has slapped INR 25 crore fine on Ambani’s due to the 2000 case over the allegation of violation of the takeover code regulations. Let’s look at the below article to get a clear understanding about the regulation and the reason for imposing the fine.
Substantial Acquisitions of Shares and Takeovers (SAST) Regulations 1997
According to the Substantial Acquisitions of Shares and Takeovers (SAST) Regulations 1997, If a company’s promoter group acquires more than 5% of the voting rights in the company, during a financial year. Then the company will have to make an open offer to the minority investors which will give them an option to exit the company if required.
What Happened with the Ambani family?
SEBI has fined the Ambani family which include Mukesh Ambani, Nita Ambani, Anil Ambani, Tina Ambani and the various other firms linked to the Ambani group. It is because they have been alleged for violation of the takeover code regulations in 2000.
The case is because of the increase in the promoter stake of the Reliance Industries Ltd. (RIL) which is during January 2000. The promoter stake in the company was increased after the conversion of various warrants which was issues during 1994.
In January 2000, the promoter stake of Reliance Industries Ltd (RIL) had increased to 6.83% from the maximum limit of 5% according to SEBI. Securities Exchange Board of India has even alleged that the company or the promoter group had failed to make an offer to the minority investors providing them an opportunity to exit the company.
SEBI has said that the promoter group of Reliance Industries Ltd had failed to make an open offer as required under the norms issued.
SEBI has said that in the instant case the violation was not just committed for a particular year or once and for all but it continues till date, that is even now the promoters of Reliance Industries have the majority voting rights in the company.
In an 85-page adjudication order it was written that the violation of the statutory provisions by which the acquisitions of securities giving the notices that is the Ambani family has provided enhanced control by the exercise of voting rights, etc.
Which is a disobedience against the regulation and these are violations which are being continued so long as the voting rights are acquired by violating the letter and the spirit of the law.
SEBI has said that the notices have been alleged because they have been failed to make a public announcement, when they were acquiring more shares of the company to increase the promoter holdings. This has led the other shareholders to be deprived of their statutory rights and opportunity to exit from the target company.
This has led the promoter group of Reliance Industries Ltd to breach the provisions of Substantial Acquisitions of Shares and Takeovers (SAST) Regulations 1997. All these charges against the notices will make the instant matter grave.
The SEBI order has said that it has been difficult to ascertain the value of the unfair advantage made by RIL promoter group due to this violation.
SEBI had said that while determining the amount of penalty they have not found any amount which can be expressed as figures or any data which can be used to record the gain received by the promoter group because of this violation and the amount of loss which has been caused to the minority shareholders in the company as a result of the default that was committed.
Under Section 15H of the SEBI Act which was amended in October 2002, a maximum penalty of INR 25 crore or three times the number of profits made out of the failure is allowed.
The Regulator has said that the penalty of INR 25 crore will have to be paid together by the 34 individuals who are named in the SEBI order which includes the mother of Mukesh Ambani and Anil Ambani and even the children of Mukesh Ambani and Anil Ambani. The amount is said to be paid within 45 days.
SEBI and Ambani
In November 2020, in reply to the regulator SEBI said the Ambani family that the issue of warrants and the issue of shares on conversion of warrants were not to subject to SEBI’s Substantial Acquisitions of Shares and Takeovers (SAST) Regulations 1997.
The Reliance promoter group had responded to SEBI saying that the initiation of the adjudication proceedings in the particular case with a large misappropriate delay was unreasonable, arbitrary and causes substantial prejudice to the notices.
FAQ
What is the number of Mukesh Ambani in world richest person?
Reliance Industries (RIL) Chairman Mukesh Ambani is the eighth richest person in the world with a fortune of $83 billion, according to the Hurun Global Rich List 2021.
Who is the CEO of Jio?
Atul Kansal is the current CEO of Jio.
How much did Ambani earn in lockdown?
According to the Oxfam report, Ambani earned Rs 90 crore per hour during the coronavirus pandemic.
Conclusion
The market regulator had issued the show cause notices (SCN) regarding this matter in February 2011. That is almost 11 years after the allegation of violation.
There was a recent news where the headquarters of Reliance ADAG group which was headed by Anil Ambani, the Reliance Center, Santacruz, Mumbai was sold to Yes Bank for INR 1,200 crores. Let’s look at the reason and the details for the sale of Reliance’s headquarters.
Reliance Infrastructure is a Indian-based private sector company. The company was involved in power generation, infrastructure defense, and construction. The company is part of the Reliance Anil Dhirubhai Ambani group.
The company has undertaken a lot of projects which include power plants, metro rails, airports, toll roads, bridges, and defense. The company has a major shareholding in Reliance Power and Reliance Naval and Engineering Limited.
Reliance Infrastructure was ranked as the 51st largest corporation in Fortune India’s 500 lists of 2019 and it had the 1st rank in the category of Infrastructure Development.
Reliance Infrastructure came into existence when it took over an eighty three year old company which was undertaken by the Government which was known as Bombay Suburban Electric Supply (BSES) in the year 2002.
Reliance Infrastructure was formerly known as Reliance Energy Limited.
Reliance Infrastructure which is part of Anil Ambani’s group has sold its headquarters to Yes Bank. The amount of the sales is expected to be INR 1,200 crores. The headquarters is located in Mumbai’s Santacruz.
Reliance Center is a building with high technology office. The building has an area of 695,000 square feet on a plot of 15,514 square meters of land. Anil Ambani had shifted to this office after he had moved out of Reliance’s Ballard Estate Office.
The experts in the field of Real Estate have that the office has a prime location because the Reliance Center is close to Mumbai’s Western Express Highway.
Other than this, the office just has a 15-minute drive to Chhatrapati Shivaji International Airport Terminal that is T2 and a 10-minute drive to the Chhatrapati International Airport Domestic Terminal that is T1. The building is a stone’s throw from the Bandra-Kurla Complex business district in Mumbai.
Total Revenue of Reliance Infrastructure Ltd
Why did Yes bank took over Reliance Centre
Reliance’s ADAG group which is headed by Anil Ambani is expected to have an exposure of INR 4,000 crores which it has to pay to Yes Bank. Last year, Yes bank had said that last year it had issued a demand notice to the ADAG group to pay the borrowed amount of INR 2,892 crores.
The demand notice was sent under the SARFAESI ( Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest) Act. The dues had to be paid back by 60 days from the issue of the demand notice.
Reliance’s ADAG group had failed to pay the dues on time and Yes bank had announced that it was going to take the possession of the building due to non-payment of loans which amounted to INR 2,892 crores.
It is said that Yes bank had taken possession of the building looking at the Mumbai Airport. With this project, the Reliance Infrastructure has closed 3 different transactions which include the sale of assets. These transactions had taken place in the last 90 days.
Recently Reliance Infrastructure and Yes Bank announced that they were getting in to a sale transaction where the Reliance Centre, Santacruz, Mumbai will be sold to Yes Bank. Yes Bank which currently operates its business from One Indiabulls center in Central Mumbai is planning to convert the Santacruz office to its Corporate Head Office.
An official from the company has said that with the sale of Reliance Center, Santacruz, Mumbai Reliance Infrastructure’s debt exposure to YES Bank has been reduced. The debt exposure of INR 2,000 crores from INR 4,000 crores has been reduced.
FAQ
What is the net worth of Anil Ambani in 2020?
As per the reports declared before a UK court in February 2020 that his net worth is zero and he is bankrupt.
What does Anil Ambani owns?
Reliance Infrastructure which is an Private Sector Enterprise managing power, defense, construction and infrastructure and Reliance Power.
How many companies Mukesh Ambani have?
Mukesh Ambani has 7 companies that are, Reliance Retail, Reliance Life Sciences, Reliance Jio Infocomm Limited, Reliance Petroleum, Network 18, Reliance Industrial Infrastructure Limited, and Football Sports Development Limited.
Conclusion
Yes Bank has said that the value of the transaction of the building is expected to be INR 1,200 crores and the entire amount from the sale of Reliance Center, Santacruz, Mumbai is utilized only to pay the debt it owes to Yes Bank. The company official has said that the company is planning to be a debt-free company within 2021.
In the year 2019, Reliance Industries launched their own online groceries ordering website called JioMart, this was meant to be an alternative for the other grocery websites like BigBasket which is a well-established company in the market for the last few years. BigBasket has the experience and expertise of almost a decade, while JioMart launched in 2019 is already gaining users rapidly.
However JioMart has an added advantage which is pricing, JioMart offers a flat 5% minimum discount on MRP on all their products which is pretty similar to DMart’s model, this model helped DMart become an overnight success story in India with their malls being found left, right and center in most Indian cities today. Hence why, Mukesh Ambani’s digital grocery JioMart is scaling at a pace for its competitors to take a very hard look at their ventures.
JioMart is currently receiving orders at 250,000 per day. At the same time, the old players in the market such as Big Basket is receiving 220,000 per day respectively during the coronavirus induced nationwide lockdown, Bigbasket however has seen per day orders to rise around 190,000 and 300,000 levels respectively. JioMart operates in 200 cities, while Big Basket operates inly in 30 cities.
Big Basket is one of the largest online grocery super market in India. The company was founded in 2011 by Hari Menon, VS Sudharkar, VS Ramesh, Vipul Parekh and Abhinav Choudari. It is headquartered in Bengaluru and operates in 30 cities in India. Big Basket offers variety of products such as fresh fruits, vegetable, food grains, oil, masala, poultry and meat, packaged snacks, beverages household supplies including healthcare products.
It has more than 20,000 different from 1000 different brands across its catalog. The valuation of the company is 1.8 billion, reaching the unicorn status. Bigbasket has revenue of around $3.2 million and approximately 4,000 employees. It delivers to various cities in India such as Hyderabad, Mumbai, Pune, Chennai, Delhi, Noida, Mysore, Coimbatore, Vijayawada, Kolkata, Ahmedabad, Lucknow, Kanpur, Gurgaon, Vadodara, Vizag, Surat, Nagpur, Patna, Indore, Chandigarh, etc.
Big basket was launched at a time when India’s urban workforce in cities was finding it difficult to allocate time to buy groceries and home essentials. Bigbasket gave its customers a flexibility to place their order anytime and get the things delivered at their preferred time. Bigbasket comes with the promise of having low prices and prompt delivery services.
The logos of bigbasket and jiomart
A brief about JioMart
JioMart is an Indian online grocery delivery service, started as a joint venture between Reliance Retail and Jio platforms. JioMart delivery grocery and daily essential from nearby stores. The platform was soft launched in December 2019. A pilot was launched in selected areas of Navi Mumbai, Thane and Kalyan in April 2020. In May 2020, Jiomart launched in 200 cities and towns in India.
Within a few days of its launch the JioMart Applicationcrossed 1 million downloads. In October 2020, JioMart signed an agreement with Infibeam Avenues. JioMart is an online selling channel format of Reliance Retail Limited. We offer you convenience of shopping everything that you need for your home. The website sells products like fresh fruits and vegetables, cereals, packaged food, bakery and dairy, frozen and pet food, household cleaning items to your specialized beauty and personal care products from a single virtual store.
JioMart is an online grocery store that provides 50,000 plus grocery products at discounts rates at your doorstep through an express delivery system. The company follows the on-demand model. JioMart also avoids using the system of warehousing and partner with local retailers instead. These retailers will source the grocery products and deliver it to the customers. JioMart’s app is available for download on Google Play Store and Apple Store.
BigBasket has over 10 million customers. While the companies target audience is the working people, students and old people who don’t have the energy to go to grocery stores or to even stand in lines and buy the necessary products. Big basket helps people to browse through a huge variety of quality grocery items. Big basket helps these people to browse through a huge variety of quality grocery items.
BigBasket home page
When the customers can order the required products which will be delivery within 90 minutes for express delivery or next morning for slotted delivery. There are three types of delivery systems which are
Slotted delivery: Customers can pick a convenient slot when they want their purchase to be delivery.
Express delivery: This service can be availed by customers in cities like Bangalore, Mumbai, Pune, Chennai, Kolkata, Hyderabad and Delhi NCR. Delivery will be done within 90 minutes
The company has BB specialty stores: Big Basket has partnership with specialty stores like Karachi bakery. Customers can request a product from the store which will be delivered within 90 minutes. Big basket has acquired 100% stakes in milk delivery ventures Raincan and morningcart. The milk delivery service was branded as BB daily where customers can get milk delivered to their home in the morning everyday through subscribing for a fee.
JioMart will operate on the online to offline business model, it will connect with the local retailers and deliver goods to customers by procuring then from the nearest store located in the customer’s vicinity. This is unlike Grofers and BigBasket that use warehouse model. JioMart helps the 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.
JioMart home page
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. The types of delivery services provided by JioMart are:
Free home delivery: It will give you the benefit of delivery of commodities at your doorstep by producing it from the nearby store.
No minimum value for free delivery: Sites like Big Basket and grofers det up a minimum value of purchase to avail the free delivery.
Express delivery: Express delivery means quicker delivery than ordinary services. In the ecommerce segment, it is generally within 24 hours.
No question asked return policy: When you wish to return the goods that you ordered online, you are almost always bombarded with unnecessary questions, JioMart will not ask the customer those questions.
Big discounts: The platform gives early discount of Rs. 3000, the platform has come up with a promotional strategy of pre-registration wherein people can save up to Rs. 3000 on future shopping.
Funding and acquisitions of Big Basket and JioMart
BigBasket has received funds worth around $526 million. The investors include Alibaba group, Abraaj Group, Ascent Capital, Bessemer venture partner, Brand Capital, Helium venture partner, ICICI venture, IFC Venture capital group, LionRock Capital, Paytm Mall, Sands Capital management, Sands capital ventures, Trifecta capital and Zodius Capital.
There are also talks about additional funding of around $200million post which the company would be valued at around $900 million. When it come to the acquisition BigBasket acquisition of delyver in June 2015 for an undisclosed amount. Delyver was also an online grocery store and its specialty was using local stores to deliver groceries to people. Now, all business assets of delyver have been merged with bigbasket.
The Reliance Industries has acquired or invested in several companies, which are now under Jio platforms. Some of them Haptik, Embibe, Radisys, Reverie, Grab a Crub, EasyGov, Asteria Aerospace, Tesseract. The companies that have a stake in the Jio platforms are KKR, Public Investment fund of Saudi Arabia, Vista equity partners, Silver Lake Partners, Mudabla Investment Company, General Atlantic, Google and Facebook among others.
Valuation of JioMart and Big Basket
In May 2020, the enterprise value of Jio platform was estimated to be $72 billion. The company was also reported to be valuable than all other businesses of RIL put together. Morgan Stanley has valued the net asset value of Reliance Retail at $29 billion the company estimates the e commerce will account for 15% of all retail sales in India by 2023. Big Basket on the other hand has the valuation of over $1.2 billion.
Big basket raised $300 million in February 2018 as part of its series E financing, which was led by the Alibaba Group. This gave the company a post-money valuation of $850 million. According to market sources, BigBasket is scouting for additional funding of $350-400 million at a valuation of about $2 billion. BigBasket has hence upped growth targets for FY21 by 40-50 per cent.
When it comes to workflow both the websites are similar overall ordering process, you sing up using email and phone number, selection or area or pin number, adding item to the cart, clicking on the checkout button to finally finish the payment process. BigBasket has a much wider variety of categories for products, while JioMart needs to work more in this area. However, JioMart is gets a point as it has the multi search feature. With the help of this feature the user can search multiple products in one go and the combined results will be displayed.
Navigation and search on big basket and jiomart
Wallet and checkout
JioMart does not have a wallet, it is also difficult choose an option to apply discount vouchers or choose a delivery slot. However JioMart directly refunds to your online payment method in case there is an adjustment later and they also have an option of crediting the amount to your store credit account. In contrast BigBasket provides lots of options during checkout such as the ability to apply a voucher, use balance from the wallet select a delivery slot, etc.
JioMart orders are sourced from your nearest retail outlet of reliance Fresh or reliance mart unlike BigBasket which are sourced from their own warehouses. This way JioMart has an advantage that is their sources like Reliance fresh are already established enterprises unlike the Big Basket warehouses, so they didn’t have to create their supply chain from scratch. Also, I think their stocks will churn out much faster as both online and offline buyers will buy from the same sources.
Reliance Industries Limited is an Indian multinational conglomerate company that is headquartered in Mumbai, India. Reliance owns businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications. Reliance is one of the most profitable and the largest publicly traded companies in India. The subsidiaries of Reliance Industries is what makes it successful.
It is also known to be the largest company in India as measured by revenue after recently surpassing the government-controlled Indian Oil Corporation. In the year 2020 Reliance Industries became the first Indian company to exceed US$150 billion in the market capitalization after its market capitalization hit ₹11,43,667 crore on the BSE. It is ranked as 8thamong the top 250 Global Energy Companies by Platts as of 2016.
The company is ranked 96th on the Fortune Global 500 list of the world’s biggest corporations as of 2020. Reliance continues to be India’s largest exporter as it accounts for 8% of India’s total merchandise exports with a value of ₹1,47,755 crore and access to markets in 108 countries. 5% of the government of India’s total revenue comes from Reliance’s customs and exercise duty. It is also the highest income tax payer in the private sector in India.
The number of share of Reliance Industries are approximately 310 crores (3.1 billion) and plays a major role in the Reliance industries. The Ambani family only holds 46.32% of the total shares whereas the remaining 53.68% shares are held by public shareholders including FII and corporate bodies. The life Insurance Corporations of India is the largest non-promoter investor in the company with 7.98% shareholding.
Various Operations of Reliance
The companies petrochemical, refining, oil, and gas-related operations form the core of its business other divisions of the company include cloth, retail business, telecommunication, and special economic zone development. In July 2012 Reliance Industries informed that it was going to invest US$1 billion over the next few years in its new aerospace division which will design, develop, manufacture, equipment, and components including aircraft, engine, radars, avionic, and accessories for military and civilian aircraft, helicopters, and aerostats, etc.
Major Subsidiaries of Reliance Industries:
Reliance Group has 158 + subsidiary companies and 7 associate companies. Here are some of the most popular Reliance Industries Subsidiaries:
Jio Platforms Limited
Facts on Jio | Reliance Subsidiaries List
Jio is essentially a technology company that is a majority-owned subsidiary of reliance industries. It is one of the top reliance subsidiary companies lists. It was announced in October 2019 and has all digital initiatives and the telecommunication assets being housed under it. This new subsidiary holds all the digital business assets including Reliance Jio Infocomm Ltd.
Jio Infocomm in turn holds the Jio connectivity business which includes Mobile, broadband and enterprise, and also the other digital assets. Jio apps are the tech backbone and investment in other tech entities like Haptic, Hathaway, and Den networks among others. In April 2020, reliance announced a strategic investment of ₹43,574 crores by Facebook into the Jio Platform.
This investment translated into a 9.99% equity stake, on a fully diluted basis. Further in May 2020, reliance sold roughly 1.15% stake in Jio Platforms for ₹5,656 crores to the American private equity investor, Silver lake partner. Intel became the 12th company to invest in reliance Jio platform after it invested ₹1,894.50 crores. In July 2020 google announced that it will acquire a 7.7% stake in the Jio platform for ₹33,737 crores.
Reliance Retail is the retail business wing of Reliance Industries. In March 2013, it had 1466 stores in India. It is the largest retailer in India as it includes many brands like Reliance Fresh, Reliance Footprint, Reliance Time Out, Reliance Wellness, Reliance Trends, Reliance Autozone, Reliance Mart, Reliance iStore.
Reliance Home kitchen, Reliance Home Kitchens, Reliance Market (cash n carry), and Reliance Jewels all come under the banner of Reliance Retail brand. Its annual income revenue for the financial year of 2019 was ₹1.62 billion.
Reliance Life Science
This company works around medical, plant, and industrial biotechnology opportunities. It specializes in the manufacturing, branding, and marketing of Reliance Industries products in Biopharmaceuticals, clinical research services, regenerative medicine, molecular medicine, novel therapeutics, biofuels, plant biotechnology, and industrial biotechnology sectors of the medical business industry. Reliance Institute of life science (RILS) was established by Dhirubhai Ambani Foundation as it is an institution offering higher education in various fields of life science and related technologies.
Reliance Logistics
It is a single-window company selling transportation, distribution, warehousing, logistics, and supply chain-related products. Reliance Logistics is an asset-based company with its own fleet and infrastructure. It provides logistics services to Reliance group subsidiaries and outsiders. Merged content from Reliance Logistics to here.
It is a contract research organization (CRO) and a wholly-owned subsidiary of Reliance Life Science, specializes in the clinical research services industry. Its clients are primarily pharmaceutical, biotechnology, and medical device companies.
Reliance Solar
The solar energy subsidiary of Reliance was established to produce and retail solar energy systems primarily to remote and rural areas. It offers a range of products based on solar energy, solar lantern, home lighting systems, street lighting systems, water purification systems, refrigeration systems, and solar air conditioners.
Network 18
Reliance Subsidiary Companies
In the mass media company, it has interests in television, digital platforms, publication, mobile apps, and films. It also operates two joint ventures namely Viacom 18 and History TV18 with Viacom and A+E Network respectively. It also has acquired ETV Network and since renamed its channels under the Colors TV brand.
Relicord
This is a subsidiary for cord blood banking service which is owned by Reliance Life science. It was established in 2002 and has been inspected and accredited by AABB and also has been accorded a license by the Food and Drug Administration (FDA) Government of India.
Reliance Jio Infocomm Limited
Previously known as Infotel Broadband, is a broadband service provider which gained 4G licenses for operating across India.
It is an associate company of Reliance Industries. It holds 45.43% of the total shares of Reliance Industries. It mainly engages in the business of setting up and operating industrial infrastructure. The company is also engaged in related activities involving leasing and providing services connected with computer software and data processing.
The company set up a 200-millimeter diameter twin pipeline system that connects the Bharat petroleum refinery at Mahul, Maharashtra. The infrastructure company constructed a 71,000-kilolitre petrochemical product storage and distribution terminal at the Jawaharlal Nehru Port Trust (JNPT) Area in Maharashtra.
Reliance Eros Productions LLP
Has a joint venture with Eros International to produce film content in India.
LYF
It is a well-known 4G enabled Volte device brand from Reliance Retail. It is one of a Jio reliance subsidiaries, the consumer electronics arm of Reliance Industries Limited.
How many subsidiaries does Reliance have or how many subsidiaries of reliance?
Reliance Group has six listed companies.
Is Jio a subsidiary of Reliance?
Jio Platforms Ltd is an Indian technology company and a subsidiaryofReliance Industries Limited. Established in 2019, the company owns India’s largest mobile network operator Jio and other digital businesses of Reliance.
What companies does reliance own?
Reliance Subsidiaries or subsidiary companies of reliance:
Reliance Communications Limited.
Reliance Infrastructure Limited.
Reliance Entertainment.
Reliance Power.
Kokilaben Dhirubhai Ambani Hospital.
Is reliance a multinational company?
Reliance Industries Limited(RIL) is an Indian multinational conglomerate company headquartered in Mumbai, Maharashtra, India. Reliance owns businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications.
How many branches of reliance company?
RelianceRetail is the retail business wing of Reliance Industries. In March 2013, it had 1466 stores in India. It is the largest retailer in India.
Devashish Shrivastava
