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Tag: Reliance Industries Ltd

  • Gayatri Yadav roped in as group CMO and EVP at Reliance Industries

    Gayatri Yadav roped in as group CMO and EVP at Reliance Industries

    MUMBAI: Veteran marketing leader Gayatri Yadav has joined Reliance Industries Limited as group chief marketing officer (CMO) and EVP, strategic initiatives, chairman’s office. In this role, she will collaborate closely with Mukesh Ambani, Nita Ambani, Isha Ambani, Akash Ambani, and Anant Ambani to drive brand innovation and strengthen consumer engagement.

    Gayatri, who brings over three decades of diverse experience, has held prominent positions across FMCG, media, and investment sectors. Her career includes key roles at Procter & Gamble, General Mills, and Star India, where she spearheaded major marketing strategies. Most recently, she served as CMO at Peak XV Partners (formerly Sequoia India & SEA), leading its rebranding and digital growth initiatives.

    Reflecting on her journey, Gayatri expressed gratitude for past opportunities and highlighted her excitement to contribute to Reliance’s growth-driven vision, stating: “What is good for India is good for Reliance.”

    Beyond her corporate roles, Gayatri holds board positions at Paani Foundation, United Way Mumbai, and PRS Legislative Research, underscoring her commitment to social impact.

  • Reliance Industries: a subsidiary change

    Reliance Industries: a subsidiary change

    MUMBAI: Network18 Media & Investments informed the Bombay stock exchange on the evening of 31 December that Viacom18 India had ceased to be its subsidiary on 30 December and become a direct offshoot of Reliance Industries Ltd (RIL).

    This, it said,  happened when RIL converted 24,61,33,682 compulsorily convertible preference shares (CCPS) held by it in Viacom18 into 24,61,33,682 equity shares. Post this conversion, RIL’s equity holding in Viacom18 went up to 83.88 per cent and 70.49 per cent on a fully diluted basis. Network18 ended up with 16.12 per cent of Viacom18’s  total equity share capital and 13.54 per cent on a fully diluted basis. On 14 November, RIL had informed  the exchange that its stake in Viacom18 was at 70.49 pr cent on a fully diluted basis following its acquisition of Paramount’s 13.01 per cent stake (on a fully diluted basis) in it for Rs 4,286 crore. 

    AS per the BSE regulatory filing, Viacom18 was a material subsidiary of Network18 with nil turnover and a net worth of Rs 26,928.17 crore (representing 90.39 per cent, of the annual consolidated net worth of  Network18) for the financial year 2023-24.

    Network18    received     intimation     from     Viacom18     on 30 December at 7:46 p.m. regarding the allotment of equity shares to RIL pursuant to conversion of CCPS.

    The shareholders of Network18 had earlier approved this change of ownership.

    With this transition, Viacom18 will now operate under RIL control.

  • Reliance-Disney Star India merger to see closure within a couple of months

    Reliance-Disney Star India merger to see closure within a couple of months

    Mumbai: Reliance Industries Limited (RIL) is on track to finalise its merger with Disney’s India operations by the third quarter of FY25  – a move anticipated to significantly bolster its media presence. (Q3 FY 2025 ends on 31 December 2024, which means the merger has got just about two months, if not earlier, to achieve closure). This announcement follows RIL’s  Q2 FY 2025  financial results, showcasing a resilient performance across its diversified business segments.

    On 28 September, the ministry of information & broadcasting (MIB) granted approval to RIL for the transfer of channels from Viacom18 to Disney Star India, paving the way for the $8.5 billion merger with Disney. The merger of Viacom18 and Star India has already been given the green signal from the Competition Commission of India (CCI- subject to certain voluntary conditions), and the National Company Law Tribunal (NCLT) has also given it the thumbs up. “The companies are now securing additional required approvals, with the transaction expected to close in Q3 FY25,”  Reliance Industries announced in its quarterly earnings report on 14 October 2024.

    In a statement, Reliance chairman & managing director, Mukesh D. Ambani expressed optimism about the merger’s potential impact: “This merger will create a powerful platform for delivering exceptional content and experiences to our customers.” He highlighted the strategic alignment between Reliance’s digital services and Disney’s rich content library as a catalyst for growth.

    “Viacom18’s integration with Disney’s assets is expected to create a formidable entertainment platform, offering a diversified content library and reaching millions of viewers across the country,” a company spokesperson stated. “The strategic alignment of media assets will enhance our ability to deliver premium content and attract more subscribers.”

     

  • Reliance Industries reports lower net profit; flat revenues in Q2 FY 2025

    Reliance Industries reports lower net profit; flat revenues in Q2 FY 2025

    MUMBAI: Billionaire Mukesh Ambani’s Reliance Industries Ltd reported nearly flat revenues and lower profits for Q2 of FY 2025 ended 30 September 2024 as compared to Q2 of FY 2024 ended 30 September 2023.

    Revenue from operations at the oil to telecom conglomerate was at Rs 235,481 crore (Rs 234,956 crore); other income (Rs 4,876 crore vs Rs 3,841 crore) took up total income to Rs 240,357 crore (Rs 238,797 crore). Higher expenses of Rs 215,320 crore (Rs 212,304 crore) took a toll on the bottom line with PBT falling to Rs 25,037 crore (Rs 26,493 crore). Lower taxes (both direct and differed) of Rs 5,396 crore (Rs 6,673 crore) helped rescue the fall in PAT marginally which dropped to Rs 19,101 crore (Rs 19,820 crore). Net profit attributable to the owners of the company fell 4.88 per cent to Rs 16,563 crore (Rs 17,394 crore).

    The oil to chemicals business reported higher revenues of Rs 155,580 crore (Rs 147,988 crore) with EBITDA dipping to Rs 12,143 crore (Rs 16,277 crore). A press release stated that the oil to chemicals revenue improved with higher volumes and increased domestic placement of products. EBITDA was lower by 23.7 per cent on account of sharp decline in product margins. Fuel cracks declined by nearly 50 per cent Y-o-Y. Downstream chemical also declined with muted global demand. In a well-supplied market, RIL benefited due to superior ethane cracking economics driven by sharp fall in ethane prices.

    The oil and gas business had a lower top line with revenues at Rs 6,222 crore (Rs 6,6620 crore). EBITDA for this segment however showed buoyancy rising to Rs 5,290 crore (Rs 4,766 crore). The press release stated that lower gas price realizations led to six per cent  lower revenue in the oil and gas segment. Oil and gas segment EBITDA increased by 11.0 per cent on account of sustained volume growth and one time provisioning towards decommissioning cost for Tapti field in Q2 FY 24.

    Reliance’s retail business received a slight knock with revenues dropping to Rs 76,325 crore (Rs 77,163 crore). The press release said EBITDA for this segment improved fractionally to Rs 5,861 crore (Rs 5,841 crore) with a continued focus on streamlining of operations and calibrated approach in B2B.

    Digital services which includes its Jio Platforms business was the shining star with revenues climbing to Rs 38,055 crore (Rs 32,657 crore) and EBITDA at Rs 16,139 crore (Rs 14,055 crore). The 17.8 per cent Y-o-Y EBITDA increase was due to better subscriber mix, digital services scale-up and revision in telecom tariffs, stated the RIL press release.  

    “I am happy to note that during this quarter Reliance once again demonstrated the resilience of its diversified business portfolio. Our performance reflects robust growth in digital services and upstream business,” said RIL chairman & managing director Mukesh Ambani. ”This helped partially offset weak contribution from O2C business which was impacted by unfavorable global demand-supply dynamics.  

    “Growth in digital services was led by increased ARPU and improving customer engagement metrics reflecting the strong value proposition of our services. The home broadband segment is witnessing accelerated momentum on the back of our unique industry-leading JioAirFiber offering. Jio’s broad spectrum of offerings enables it to digitally empower every village, town and city in India as well as the country’s small and medium scale enterprises. The digital services business continues to focus on innovative deep-tech solutions on a national scale and is on track to deliver the path-breaking benefits of Artificial Intelligence to all Indians. 

    “The retail segment continues to increase its consumer touchpoints and product offerings across physical and digital channels. The unique omni-channel retail model enables the business to service a wide range of requirements of a vast, heterogenous customer base. The retail business continues to partner with renowned domestic as well as global players, expanding its basket of quality product offerings. The focus on strengthening our retail operations will help us rapidly scale-up this business in the coming quarters and years and sustain our industry-leading growth momentum.  

    “The first of our new energy giga-factories is on-track to commence production of solar PV modules by the end of this year. With a comprehensive range of renewable solutions including solar, energy storage systems, green hydrogen, bio-energy and wind, the new energy business is poised to become a significant contributor to global clean energy transition.” 

  • MIB gives nod to RIL’s Viacom18 to transfer TV channel licences to Disney’s Star India

    MIB gives nod to RIL’s Viacom18 to transfer TV channel licences to Disney’s Star India

    MUMBAI: The creation of a media monolith in India got another tick mark over the weekend.

    Oil to telecom to retail giant the Mukesh Ambani-owned Reliance Industries Ltd and its broadcast subsidiary  TV18  Broadcast Ltd informed the Bombay stock exchange that the ministry of information & broadcasting (MIB) has given its offshoot Viacom18 Media the go-ahead to transfer its non-news and current affairs TV channel licences to the Walt Disney owned Star India.  

    The ministry issued the clearance on 27 September, stating that it is subject to complying of conditions laid down by the Competition Commission of India (CCI). 

    RIL and the mouse house had on 28 February announced that the two giants were “setting up a strategic  joint venture to  bring together the most compelling and engaging brands in India.”

    The transaction had valued the joint venture at Rs 70,352 crore, with RIL pumping  Rs 11,500 crore into it.

    The two had also agreed to merge Viacom 18 Media’s assets with Star India with the  transfer and vesting of the Media Operations Undertaking from Viacom 18 and Jio Cinema into Digital 18, a subsidiary of Viacom 18.

    RIL owns a clutch of channels including the Colors and Sports 18 brands through  Viacom18 as well as the OTT platform JioCinema whereas Star operates market leader Star Plus, several regional language channels  and the OTT service Hotstar. 

    Under the finalised deal, RIL and its affiliates will hold a 63.16 per cent  stake in the newly formed entity, which will manage two streaming services and 120 television channels. The Walt Disney Company will retain the remaining 36.84 per cent stake.

    Permissions for the initiative got the CCI green signal, subject to certain conditions, on 28 August, while the Mumbai bench of the National Company Law Tribunal (NCLT) gave its clearance on 30 August for the two to merge, subject to clearance for the transfer of licences by the MIB.

    Post the merger, RIL director Nita Ambani will be appointed as the chair person of the new entity with Uday Shankar being  the vice-chairman. 

  • CCI gives go ahead to Viacom18-Disney Star India marriage

    CCI gives go ahead to Viacom18-Disney Star India marriage

    MUMBAI: The big fusion has been given the go ahead. The Competition Commission of India  (CCI) has approved the proposed merger involving Reliance Industries Limited, Viacom18 Media Private Limited, Digital18 Media Limited, Star India Private Limited and Star Television Productions Limited, subject to the compliance of voluntary modifications.

    The CCI, in its post on the X platform, stated, “C-2024/05/1155 Commission approves the proposed combination involving Reliance Industries Ltd, Viacom18 Media Private Ltd, Digital18 Media Ltd, Star India Private Ltd, and Star Television Productions Ltd, subject to the compliance of voluntary modifications.”

     

    This approval was announced just a day before Reliance Industries Ltd’s (RIL) 47th annual general meeting. 

    A press release issued by the CCI later in the evening at 6:34 pm on the Press Information Bureau website stated: 

    The proposed combination envisages to combine the entertainment businesses (along with certain other identified businesses) of Viacom18, part of RIL group and SIPL, wholly owned by The Walt Disney Company (TWDC). As a result of the transaction, SIPL, currently a wholly owned entity of TWDC through its subsidiaries, shall become a joint venture (JV) which will be jointly held by RIL, Viacom18 and existing TWDC subsidiaries.
    RIL, either directly or indirectly, is engaged in several businesses such as exploration and production of oil and gas; petroleum refining and marketing; manufacture and sale of petrochemicals; manufacture and sale of chemicals; organised retail; media and entertainment activities; and telecommunication and digital services in India and worldwide.

    Viacom18 is, inter alia, engaged in the business of broadcasting of television (TV) channels, operation of an OTT platform, selling commercial advertisement space on TV channels, licensing of merchandise, and organization of live events in India and worldwide. Viacom18 is also engaged in the business of production and distribution of motion pictures.

    SIPL is engaged in a range of media activities including TV broadcasting and the production of AV content and motion pictures, operation of an OTT platform, and selling commercial advertisement space on TV channels and OTT platforms. SIPL is, directly or indirectly, a wholly owned entity of TWDC.

    STPL is a company incorporated in the British Virgin Islands and owned, indirectly, by TWDC.

    The Commission approved the proposed combination subject to the compliance of voluntary modifications.

    Detailed order of the CCI will follow.
     

    Earlier in February 2024, RIL’s subsidiary Viacom18 and Disney’s Indian unit, Star India, had unveiled plans for merging their businesses, setting the stage for the creation of one of the largest TV and digital streaming platforms in India.

    Under the merger arrangement, Viacom18’s media operations will be integrated with Star India Pvt Ltd (SIPL) through a scheme of arrangement approved by the court. The joint venture, which is valued at Rs 70,350 crore (approximately $8.5 billion) on a post-money basis, involves an infusion of Rs 11,500 crore (about $1.4 billion) by RIL to support the new entity’s growth strategy.

    The combined entity will position itself to compete with major players like Sony, Netflix, and Amazon, boasting a portfolio of 120 TV channels and two streaming platforms. The new board of directors will comprise 10 members, with five nominated by RIL, three by Disney, and two serving as independent directors.

    Nita Ambani is set to be the chairperson of the merged entity, while Walt Disney former executive Uday Shankar, will serve as vice chairperson. The merger is projected to be finalised between the last quarter of 2024 and the first quarter of 2025.

    Ownership in the joint venture will be structured as follows: RIL will hold a 16.34 per cent stake, Viacom18 will own 46.82 per cent, and Disney will have a 36.84 per cent share, according to the merger agreement’s terms.

    On 28 August, following the announcement, RIL’s shares remained steady, closing at Rs 2,999 per share. Notably, the CCI’s approval was announced after trading hours.

  • Reliance Jio appoints Sidharth Kedia appointed as SVP & head of JioGames

    Reliance Jio appoints Sidharth Kedia appointed as SVP & head of JioGames

    Mumbai: Reliance Jio has appointed Nodwin Gaming’s ex-CEO Sidharth Kedia, as senior vice president and head of JioGames. This strategic move is intended to expand JioGames’ business operations. Kedia, who started his new role in June, expressed his excitement about rejoining Reliance Industries Ltd (RIL) after nearly ten years.

    “A decade later, I feel pretty stoked to be called back in the RIL family and be entrusted with the opportunity to scale JioGames and build a gaming behemoth that India awaits,” Kedia stated.

    Kedia has a diverse professional background. He previously held various positions within the Reliance Group, including executive roles at Viacom18 and Network18. At Viacom18, he served as executive vice president and head of strategy, M&A, data science, and eSports for almost three years. At Network18, he was CEO-digital (non-news) and managed corporate strategy for almost two years.

    Kedia is optimistic about the growth potential of JioGames, especially within the expanding digital landscape of India. He envisions transforming JioGames into a major player in the gaming industry by capitalizing on the strong digital infrastructure that Jio has built.

  • Reliance and Disney announce strategic joint venture

    Reliance and Disney announce strategic joint venture

    Mumbai: Reliance Industries Ltd (“RIL”), Viacom 18 Media Private Ltd (“Viacom18”) and The Walt Disney Company (NYSE: DIS) (“Disney”) today announced the signing of binding definitive agreements to form a joint venture (“JV”) that will combine the businesses of Viacom18 and Star India. As part of the transaction, the media undertaking of Viacom18 will be merged into Star India Private Limited (“SIPL”) through a court-approved scheme of arrangement.

    In addition, RIL has agreed to invest at closing Rs 11,500 crore (~US$ 1.4 billion) into the JV for its growth strategy.

    The transaction values the JV at Rs 70,352 crore (~US$ 8.5 billion) on a post-money basis, excluding synergies. Post completion of the above steps, the JV will be controlled by RIL and owned 16.34 per cent  by RIL, 46.82bper cent  by Viacom18 and 36.84 per cent  by Disney.

    Disney may also contribute certain additional media assets to the JV, subject to regulatory and third-party approvals.

    Nita M. Ambani will be the chairperson of the JV, with Uday Shankar as vice chairperson providing strategic guidance to the JV.

    The JV will be one of the leading TV and digital streaming platforms for entertainment and sports content in India, bringing together iconic media assets across entertainment (e.g. Colors, StarPlus, StarGOLD) and sports (e.g. Star Sports and Sports18) including access to highly anticipated events across television and digital platforms through JioCinema and Hotstar. The JV will have over 750 million viewers across India and will also cater to the Indian diaspora across the world.

    The JV will seek to lead the digital transformation of the media and entertainment industry in India and offer consumers high-quality and comprehensive content offerings anytime and anywhere. The combination of the media expertise, cutting-edge technology and diverse content libraries of Viacom18 and Star India will allow the JV to offer more appealing domestic and global entertainment content and sports livestreaming services, while delivering an innovative and convenient digital entertainment experience at affordable prices. With the addition of Disney’s acclaimed films and shows to Viacom18’s renowned productions and sports offerings, the JV will offer a compelling, accessible and novel digital-focused entertainment experience to people in India and the Indian diaspora globally.

    The JV will also be granted exclusive rights to distribute Disney films and productions in India, with a license to more than 30,000 Disney content assets, providing a full suite of entertainment options for the Indian consumer.

    Speaking about the JV,  Reliance Industries , chairman & managing director Mukesh D Ambani said, “This is a landmark agreement that heralds a new era in the Indian entertainment industry. We have always respected Disney as the best media group globally and are very excited at forming this strategic joint venture that will help us pool our extensive resources, creative prowess, and market insights to deliver unparalleled content at affordable prices to audiences across the nation. We welcome Disney as a key partner of Reliance group.”

    The Walt Disney CompanynCEO Bob Iger said, “India is the world’s most populous market, and we are excited for the opportunities that this joint venture will provide to create long-term value for the company.

    Reliance has a deep understanding of the Indian market and consumer, and together we will create one of the country’s leading media companies, allowing us to better serve consumers with a broad portfolio of digital services and entertainment and sports content.”

    Bodhi Tree Systems , co-founder Uday Shankar said, “We are privileged to be enhancing our relationship with Reliance to now also include Disney, a global leader in media & entertainment. All of us are committed to delivering exceptional value to our audiences, advertisers, and partners. This joint venture is poised to shape the future of entertainment in India and accelerate the Prime Minister’s vision of making Digital India a global exemplar.”

    The transaction is subject to regulatory, shareholder and other customary approvals and is expected to be completed in the last quarter of Calendar Year 2024 or first quarter of Calendar Year 2025.

    Goldman Sachs is acting as financial and valuation advisor and Skadden, Arps, Slate, Meagher & Flom LLP, Khaitan & Co and Shardul Amarchand Mangaldas & Co are acting as legal counsels to RIL and Viacom18 on the transaction. Ernst & Young has provided an independent valuation to RIL and Viacom18, while HSBC India acting as financial advisor has provided a Fairness Opinion to Viacom18.

    The Raine Group is acting as lead financial advisor to Disney on the transaction. Citi is acting as a financial advisor to Disney. Cleary Gottlieb served as lead outside counsel to Disney and Covington & Burling and AZB served as legal counsels to Disney on the transaction. BDO has provided an independent valuation to SIPL.

  • Reliance set to finalise a multibillion dollar deal with Walt Disney Co.

    Reliance set to finalise a multibillion dollar deal with Walt Disney Co.

    Mumbai: Reliance Industries Ltd., is all set to finalise a multibillion dollar deal with Walt Disney Co. to buy its India operations, according to media reports.

    The RIL is expected to enjoy a controlling stake in the Disney Star business, which has an estimated valuation of $10 billion. The US entertainment giant will end up holding a minority stake in the business. Reliance views the assets at between $7 billion to $8 billion, as per close sources.

    The giant acquisition is expected to be declared by the companies next month. Under the proposal, Disney is likely to continue holding on to a minority stake in the Indian company after the completion of cash and stock swap transaction. According to the news report, Disney could choose to hold onto assets for a bit longer.