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Reliance Industries (RIL) is expected to focus on consumer-oriented businesses in the coming years, said its chairman, Mukesh Ambani, while he addressed shareholders at the 41st meeting Annual General Meeting of the Company Thursday
. Over the next decade, our consumer businesses (Reliance Retail and Jio) will contribute nearly as much to the overall profits of the company as our energy and petrochemical businesses, "he said.
The statement becomes important because all these years oil and refining companies have contributed significantly to the profits of the company and provided liquidity to support new businesses such as the retail trade and telecommunications. RIL reinvents itself to become a retail giant. Jio, the digital sector, including telecommunications, is expected to become vital in the retail trade
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" As India begins its high-growth journey to double the size of its economy by 2025, I badure you that the size of Reliance will more than double during the same period, "he said. -he says.
Affirming that the current year was still a "transformational" year for RIL, Ambani said that the group's consumer business accounted for about 13 percent of consolidated Ebitda (earnings before interest, taxes, depreciation and amortization), compared with only 2 per cent last year. "This increase is particularly remarkable because it comes at a time when the activity of hydrocarbons is growing rapidly," he added.
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On the one hand, consumer businesses started generating profits for RIL, from On the other hand, its activities in the hydrocarbon sector have increased its capabilities to become more profitable, integrated and predictable in its profit profile.
18, the petrochemical sector recorded a 35% increase in its turnover to 1.25 trillion rupees and the Ebit segment (earnings before interest and taxes) jumped 63% year-on-year to 211.79 billion rupees. The Ebit segment of its refining business also reached a record 258.69 billion rupees for 2017-18. "We expect further improvement in Ebitda levels over the next 12-18 months as the company takes full advantage of its investments in refining and petrochemicals, and generates a stronger"
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Largely a Ambani scions pet, grow to match the size and scale of the # 39; inheritance company? Ajay Bodke, head of investment strategy and advice, Prabhudas Lilladhar, believes that while it looks ambitious at the moment, if it is backed by capital , 10 years is a long horizon on which the mainstream business could develop naturally.In fact, the downstream oil industry (retail outlets) should emerge as a big game, says Bodke [19659002] The Jio push [1945] 9006]
In an effort to further expand its telecommunications business, Reliance Thursday, has introduced a new broadband service, which is expected to be a price disrupter in the domestic market largely dominated by two players now – Bharti Airtel and BSNL belonging to the state. Analysts believe that Jio's entry is likely to spice up the broadband market of 420 million subscribers. This will be the largest fixed broadband deployment of greenfield.
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RIL plans to launch JioGigaFiber in more than 1,100 Indian cities on August 15th. With up to 100 Mbps (megabits per second), JioGigaFiber is expected to offer videoconferencing services, smart home solutions, online gaming and high-definition video services. With the aspiration of reaching 100 million people, he launched the JioPhone 2, the successor of the original Jio phone, with a QWERTY keyboard and priced at Rs 2,999. True to the marketing style of Reliance, she has launched a "Monsoon Hungama" offer for early risers who can swap their old phones for the JioPhone2 at 501 Rs. There are 25 million JioPhone users now.
Jio, said Ambani, has doubled its customer base to over $ 215 million now. "215 million customers within 22 months is a record that no technology company has been able to achieve in the world," Ambani said emphatically
The retail game plan
As Reliance Transitions to become a "technology platform company," it is looking to launch a new online business platform to offline, said Ambani, an initiative that has been launched. he christened "Bharat-India Jodo Company".
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"We will create this (new trading platform) by integrating and synergizing the power of Reliance's physical market Retail with the fabulous strengths of Jio's infrastructure and digital services.This platform will bring together the 350 million customers in Reliance Retail stores, the 215 million Jio Connectivity customers, the 50 million Jio Giga-Homes and 30 million small traders and traders who provide connectivity to the last mile's physical market. "he said.
Through the deployment of merchant outlets for small traders, the company intends to allow traders to do everything large companies and large e-commerce players can do, including inventory management, digital document retention and filing filing, improved working capital management, retention and upgrading of customers, the link with its chain of custody. highly efficient supply, etc.
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Ambani claimed that JioGigaFiber would bring the entire market to the big high-powered screens "We will also benefit from Reliance Retail's deep knowledge of Indian customers, their significant local presence, and their world-clbad supply chain," he said. 7,500,400 cities. He opened more than 4,000 new stores during fiscal year 2018.
Growth Pill for the Legacy Industry
Efforts to transform into a more consumer-centric conglomerate are not limited to retail and telecom businesses. Ambani added that the company would examine the possibilities of sourcing and distributing gas to Indian consumers, including urban distribution. RIL seeks to do this through a joint venture with BP BP. "Your company is proposing a cross-border merger of RHUSA with RIL, thus integrating US gas resources into the Indian market, as we did with ethane for petrochemicals," he adds.
Even though RIL is looking to accelerate its consumer activities, vast resources have already been injected into the scale up of the core segment. RIL recently completed a huge capital expenditure cycle.
There is more to wait on the petrochemical industry in the coming years. "As the world migrates from fossil fuels to renewable energy, we will continue to maximize this conversion of oil into chemicals and improve all our fuels for valuable petrochemicals," said Ambani without disclosing details. Part of its retail sector is also a network of more than 1,300 fuel outlets. Currently, RIL has a 4.3 per cent market share in the fuel distribution business and anticipates 1,890 new fuel intakes. According to a CLSA report, the fuel retail business contributed 15% to the total business turnover of Reliance Retail during fiscal year 18.
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