ITV

Tag: Reliance Industries

  • Nvidia and Reliance partner to build AI infrastructure in India

    Nvidia and Reliance partner to build AI infrastructure in India

    Mumbai: In a groundbreaking move poised to reshape India’s tech landscape, Nvidia and Reliance have announced a strategic partnership to develop advanced AI infrastructure in the country. The collaboration was unveiled during the Nvidia AI Summit 2024, with Nvidia CEO Jensen Huang and Reliance Industries chairman Mukesh Ambani sharing the stage in a compelling fireside chat. This partnership aims to accelerate India’s progress in artificial intelligence, leveraging cutting-edge technology to enhance various industries from healthcare to telecommunications.

    Speaking at the summit, Huang highlighted India’s emerging leadership in AI. “India has the potential to become one of the world’s AI superpowers, and with partners like Reliance, we can make AI more accessible to businesses and developers across the country,” said Huang. The joint venture will see Reliance’s extensive digital infrastructure integrated with Nvidia’s AI computing capabilities, creating a robust ecosystem to support the development of AI-driven applications.

    The initiative is set to play a key role in India’s AI mission, which seeks to harness the power of artificial intelligence to drive economic growth, job creation, and innovation. With Reliance providing its digital assets and extensive network through Jio Platforms, the partnership is expected to facilitate the rapid deployment of AI solutions across sectors such as agriculture, healthcare, and education.

    Ambani emphasised the potential of this collaboration, stating, “AI will be a catalyst for economic and social transformation, and together with Nvidia, we are committed to democratising AI in India.” The partnership is also expected to contribute significantly to the development of India’s digital infrastructure, enhancing capabilities in data processing, AI modelling, and real-time analytics.

    Nvidia’s decision to partner with Reliance aligns with India’s broader ambition to position itself as a global AI hub. This partnership represents a pivotal moment, as the country seeks to build foundational infrastructure to support AI innovation on a large scale. The collaboration will involve building AI supercomputers and software development platforms that will empower developers and startups to build AI-based applications.

  • Is Reliance Industries investing in Karan Johar ‘s Dharma Productions?

    Is Reliance Industries investing in Karan Johar ‘s Dharma Productions?

    MUMBAI: Mukesh Ambani’s Reliance Industries is looking to acquire film czar Karan Johar’s Dharma Productions, if media reports are to be believed.  Apparently, the changing clime in the entertainment business with rising talent and production costs, theatrical  releases bombing left and centre,  and evolving consumption habits of viewers towards streaming  services are making life financially difficult for India’s mostly family-owned studios.

    As is the case with Karan Johar which is almost wholly owned by him  and his mother Hiroo Johar. With no massive box office hits under his belt for a couple of years, and his getting on in years, Karan is believed to be looking at corporatising his studio by bringing in a corporate strategic investor.  Earlier reports were that he was in conversation with Saregama – a part of the RPG Sanjiv Goenka group – which the latter later denied.

    Reliance which has invested in Balaji Telefilms, owns Jio Studios, Studios, and Colosceum Media, could find adding Dharma to their portfolio of content creators  an interesting proposition. Johar is known to be pretty close to Nita Ambani. Additionally, telecom player Jio, and Viacom18’s streaming service JioCinema needs partners to constantly feed it with films and shows. Acquiring a stake in Dharma would help bring in a celebrated story teller like Johar in its fold.

    The Reliance group has been partnering strategically with fashion designers such as Abu Jani and Sandeep Khosla, Satya Paul, Raghavendra Rathore, Ritu Kumar, Anamika Khanna, Manish Malhotra, Rahul Mishra and Abraham & Thakore to grow its retail fashion segment. Could it follow that in entertainment too?

    However, with neither Johar nor Nita Ambani confirming or denying media reports, one can only wait until a deal is announced – or denied. 

     

    Picture courtesy Karan Johar’s instagram account
     

  • Reliance’s R|Elan fabric 2.0 gets a Huemn touch at Lakme Fashion Week

    Reliance’s R|Elan fabric 2.0 gets a Huemn touch at Lakme Fashion Week

    MUMBAI: Reliance Industries Limited’s R|Elan fabrics 2.0, which showcased its innovations at a meet a couple of months ago, has this time partnered with ready to wear home grown label Huemn.  The latter  presented a collection made from R|Elan fabrics 2.0  at the Lakme Fashion Week in partnership with FDCI on 11 October.

    Amongst the fabrics Huemn used for the show include: the eco-friendly R|Elan GreenGold, made from recycled PET bottles, R|Elan Kooltex, combining style with sustainability and R|Elan SmarTex – a revolutionary fabric that enables wearers  to stay fresh, active and comfortably cool. It has multiple functional properties like – cool to touch, odour control and UV protection – all in one fabric. By further integrating ethical practices into its design philosophy, Huemn aims to reduce textile waste further, while enhancing garment performance.

    “Founded on the principles of inclusivity and empowerment, Huemn constantly navigates the shifting social landscape, unlocking new perspectives through each collaboration and pushing the boundaries of design,”  Said Reliance Industries president – polyester Hemant D Sharma. “At the core of Huemns’s vision is the power of the human mind, which shapes culture and communities. This collaboration is a perfect example of how R|Elan’s advanced fabric technology’s performance and sustainability creates a one of a kind experience.”

    As part of the collaboration, Huemn embraced eco-friendly fabrics like R|Elan  The label, started in 2012 has been making fashion waves ever since its launch. Multi award winner and collaborator with several top brands, designer Pranav Mishra of Huemn, a graduate of the National Institute of Fashion Technology, Bangalore has been the driving force of the brand. Huemn’s latest collab with R|Elan created a fashionable stir on the ramp, during Lakm? Fashion Week in partnership with FDCI.

    For each amalgamation it’s a fresh narrative for Pranav and with R|Elan’s sustainable and innovative textiles, the partnership was just perfect, says a press release. The high-performance fabrics of R|Elan by Reliance Industries were turned into trendy gear and exhibited Huemn’s characteristic touches.

    The collection reflected the signature elements of Huemn when relaxed statement pieces appeared on the runway. The hand drawn prints were eye catchers, while the inclusive fits and styles offered a variety of options for the unisex buyers. Keeping in mind Indian crafts, there was a profusion of handcrafted textures and surfaces, along with traditional Indian craft techniques, like embroidery that brought a great mix of design. The highlight of the line was the intense fashion innovation for each garment that was directed towards amazing
    performance, sustainability and comfort. The Huemn designs were versatile and will resonate with a cross section of buyers.

    Said Huemn co-founder & creative director Pranav Misra: “At Huemn, our goal is to create a dialogue that resonates beyond fashion—connecting with people on a deeper level, and reflecting the times we live in. With R|Elan we had yet another opportunity to push the envelope in terms of both design and sustainability, creating pieces that are as responsible as they are relevant. The Huemn X R|Elan collaboration is a dynamic union of creative vision and technological innovation. It is poised to inspire consumers to rethink fashion.”

    The Huemn label is a homegrown brand from India that offers  contemporary, unisex, handcrafted clothing, which will always be relevant as it is inspired by the social, political and cultural atmosphere of the times., says the  press release.

  • Hathway Cable Q2 FY2025: Revenues rise, profits too

    Hathway Cable Q2 FY2025: Revenues rise, profits too

    MUMBAI: The cable TV sector is under pressure in India is known to many and  a lot has been written about the rampant cord cutters and cord-nevers. But this is one multisystem operator which seems to be bucking the trend – the Reliance Industries-owned Hathway Cable & Datacom. 

    At least that’s the first perception you get when you look at its financials for Q2FY2025 ended 30 September 2024, which were filed with the Bombay stock exchange on 11 October.

    Revenue from operations is up to Rs 5127.4 million as against Rs 4837.9 million in the previous year’s corresponding quarter. Profit before tax  is at Rs 398.8 million compared to Rs 339.3 million (Q2 FY 2024). Net profit too has  risen to Rs 257.8 million (Rs 200.3 million) a 28.4 per cent increase. EBITDA during the quarter showed a bit of an uptick at Rs 859.9 million (Rs 826.3 million).

    The company’s revenue from the broadband business for H1 FY2025 ended 30 September has slipped to Rs 3027.8 million (Rs  3132.2 million), even as it has risen for its cable TV business to  Rs 6801.5 million (Rs 6698 million).

    On a quarterly basis for Q2 FY2025  there has been a drop in its broadband revenues to Rs 1515.9 million (Rs 1564.6 million in Q2FY 2024) while cable TV has shown an increase to Rs 3440.1 million (Rs 3273.3 million). However, margins seem to be getting squeezed in both these segments with its cable TV business turning up negative segment results at Rs 143.2 million (negative Rs 138.1 million in Q2 FY2024). Its broadband segment too has reported  lower results  at Rs 56 million (Rs  115.8 million). 

     

    Picture courtesy Hathway Cable & Datacom Annual Report
     

  • Uday Shankar & what’s driving the Star-Disney-Viacom18 merger

    Uday Shankar & what’s driving the Star-Disney-Viacom18 merger

    MUMBAI: Uday Shankar has been lying low for quite a while, avoiding mixing and sharing his wisdom with journalists – a breed from which he emerged  – as he goes about reshaping a new media and entertainment powerhouse coming out of the merger of Disney Star with Reliance Industries’ Viacom18. 

    But the incoming vice-chair took some time out to speak to McKinsey.com. Speaking to the consulting firm’s insights section online, Uday, highlighted what drove the merger.

    “..India is one of the few markets where television still has reasonably good health, within that, a lot of it is changing. Connected TVs and handheld devices have become very substantial and mainstream,” he said. “You’re competing with global players: Google and Meta. Most of digital-advertising revenue goes to these two companies. So you need to pivot; you need to create a business. We saw an opportunity to leverage our inherent strengths and make that strategic pivot. That’s the primary rationale for the merger.”

    He added that the streaming business also requires innovation and disruption with AVoD and SVoD models having limited revenue potential in India. 

    “While there are a lot of people today who are willing to pay for content and who are interesting or important to advertisers, there are also a lot of people who are not relevant for either of these models,” explained Uday. “You need to create unique or native monetisation models to create value from that base. Whoever manages to create new revenue streams definitely has an advantage. So I think all these opportunities exist.”

    Uday then went on to say he’s learnt from every leader he has worked with, from Rupert, James, Lachlan and Mukesh Ambani who he currently continues to work closely with. 

    “The first thing is they’re all very clear about why they’re doing what they’re doing—and that clarity is very helpful,” he elucidated “They all play to win. And they all have a high threshold for failure. They’re patient, and they’re not willing to give up. And then, they all work on trust. They all take their bets on people. And once they trust people, they’re willing to back them up. And I learned that myself. I take my bets on people; I trust them once they earn my trust. And I back them up.”

    To read the full interview logon to 
    https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/uday-shankar-on-indias-media-and-entertainment-evolution#/

    Picture courtesy: McKinsey.com’s video interview with Uday Shankar
     

  • Reliance-Viacom18-Disney merger gets NCLT nod too

    Reliance-Viacom18-Disney merger gets NCLT nod too

    MUMBAI: Even as media watchers await the detailed order of the Competition Commission of India, (CCI) another hurdle has been cleared by Reliance Industries relating to the merger of Viacom18 and Disney Star India – that of the National Company Law Tribunal (NCLT).

    It was on Friday that the NCLT gave it the green signal. Judicial member Kishore Vemulapalli and technical member Anu Jagmohan Singh gave the thumbs up to what will become India’s leading media conglomerate valued at over Rs 70,000 crore.

    Reliance owns a clutch of channels including the Colors and Sports 18 brands through its offshoot Viacom18 as well as the OTT platform JioCinema. It is seeking to merge these into Star India creating a giant merged combined entity.

    The NCLT has directed the companies to get ministry of information and broadcasting approval before resorting to any such transfer of channels. 

    Additionally, it has directed the firms to file the NCLT order and the approved scheme with  the registrar of companies within 30 days as well as approach the superintendent of stamps for stamp duty adjudication, if applicable, within 60 days.

  • Vivek Srivastava to join JioCinema as EVP & business head

    Vivek Srivastava to join JioCinema as EVP & business head

    Mumbai: Vivek Srivastava, who led growth and business operations for Amazon Prime Video in India, will be taking over as the executive vice-president and business head for JioCinema Hindi, as per sources.

    Before Amazon, Srivastava held key roles in the media industry, such as president of digital and broadcast at Times Network and head of digital and commercial at Colors, Viacom18. In his new role, he will report to Viacom18 Media Pvt Ltd president of general entertainment Alok Jain.

    His appointment comes at a time when JioCinema has surpassed 15 million paying subscribers, following the launch of new subscription plans in April.

    Despite being a late entrant in local-language originals, JioCinema aims to grow its subscriber base with affordable pricing. Viacom18’s media operations are also set to merge with Star India Pvt Ltd, in a deal valued at ₹70,350 crore, with Reliance Industries investing ₹11,500 crore ($1.4 billion) to support its growth.

  • We are the only news network in India with global ambition: Mukesh Ambani

    We are the only news network in India with global ambition: Mukesh Ambani

    Mumbai: At the 47th Annual General Meeting (AGM) of Reliance Industries, Chairman Mukesh Ambani highlighted the performance and strategic growth of Network18’s news business.

    As part of his address, Ambani said, “Our News business is reaching new heights. This is due to our focus on high-quality journalism. We lead in both general and business news. We are the only network in India with global ambitions. News18 was India’s top TV network for election news. On June 4, the counting day, its reach was nearly 50% higher than the IPL final.

    “CNBC-TV18 had an 82% viewership share on the Budget Day. This is in line with its weekly performance. CNN-News18 often outperforms all other channels combined. It has been number one for over two years,” he added.

    Elaborating on Network18’s digital platforms, Ambani said, “Moneycontrol is transforming into an advanced fintech provider of data and analytics for users in India and beyond. It is unmatched in speed and accuracy. It has 70 million unique visitors. Our premium service, MC Pro, now has over 8,50,000 paid subscribers. This makes it a Top-10 subscription site globally and the largest in India.

    “Firstpost is becoming a global news powerhouse. Its subscriber base has more than doubled in the last 12 months. In July, Firstpost recorded 127 million video views. This ranks it sixth among global peers. Firstpost is recruiting top talent to become the definitive global news destination from India.”

    “I believe it is time for India, as the world’s most populous nation, to assert its voice and gain its rightful space in the influential global media,” added Ambani.

  • The Reliance-Disney merger’s impact on the media ecosystem: an Elara perspective

    The Reliance-Disney merger’s impact on the media ecosystem: an Elara perspective

    MUMBAI: We believe the merger of Viacom18 and Star India will have a big impact on the entire M&E ecosystem as the combined entity will command a huge market share. The merger will create a large media juggernaut with 108 plus channels (Star India has 70+ TV channels in eight languages whereas Viacom has 38 TV channels in eight languages), two large OTT apps (Jio Cinema and Hotstar) and two film studios (one each of Reliance and Disney India). Large market opportunity (TAM) for the merged company, as India’s M&E market for print, TV and digital is at $18 billion in CY22, poised to post a CAGR of 8.2 per cent  over CY22-25 (Source: EY FICCI).

    Post the merger, the combined entity will command a TV advertisement/TV subscription (excluding distributors/DTH/MSO revenue)/Total TV market share of 40 per cent /44 per cent /42 per cent  (as of FY23) respectively. The merged entity is expected to command a digital OTT market share of ~34 per cent  in CY23, while the TV viewership share in top 10 channels (according to BARC) is ~40 per cent  as of CY23. The consolidation between RIL and Disney on the India TV side could have a negative impact on other linear TV broadcasters, such as Sun TV, Zee, Sony, and others, as they may not be scale up on market share. The merged entity’s focus on maximizing market share through increased investments in content, synergies, and enhanced marketing power poses challenges for individual broadcasters to compete and grow. With a large customer base across various genres, including regional genres and urban GEC, the combined entity aims to dominate key markets, potentially leading to market share loss and challenges for other players, including the possibility of smaller channels shutting down.

    Jio Cinema + Disney Hotstar merger – potential negative for global OTT giants

    The merger of JioCinema and Hotstar poses a challenge for global OTT platforms, as India’s market values bundling and is price sensitive. The combined entity can offer a comprehensive package including web series, movies, sports, originals, and a global catalogue. This bundled premium plan, possibly in collaboration with Jio’s large subscriber base, may hinder the ability of global OTT platforms to raise Average Revenue Per User (ARPU).

    Better prospects of profitability in the medium to long term

    The merger may result in improved profitability for the combined entity as there may be a reduction in employee cost, production cost and marketing costs on the TV side and content costs, particularly on the OTT side, which could contribute to a more sustainable path to profitability over the medium to long term. Currently, both platforms are facing heavy losses due to high content costs, and Jio Cinema relies solely on AVOD without significant paid subscriber revenue. With the combination of Hotstar and JioCinema, the merged entity can enhance its subscription revenue by increasing subscription prices and attracting a larger subscriber base. Reliance may drive the entire business through Jio Platforms, with a significant influx of ad revenues in digital advertising. The digital advertising market, being a winner-takes-all business, heavily relies on scale. They may also have a pay-based mechanism via Jio Cinema/Hotstar at a larger scale which will propel healthy subscription revenue over the medium term

    Monopoly in sports properties may lead to higher ad revenues

    On the sports front, the merged entity is set to become monopolistic, with Disney and Jio collectively controlling approximately ~75-80 per cent  of the Indian sports market across both linear TV and digital platforms. This dominance in sports, primarily cricket, positions them to command a substantial share of the overall ad market, showcasing strong growth in an industry where sports is a key driver of viewership on both linear TV and digital platforms. In CY22, sports adex (TV+Digital) in India stood at  Rs 71billion (according to GroupM) out of which Disney India had a contribution of ~80 per cent . The combined entity will have lucrative sports properties like Indian Premier League (both TV and digital), ICC cricket tournaments (both TV and digital), Wimbledon, Pro Kabaddi League, BCCI domestic cricket etc.

    Telco customer retention and bundling

    Telecom companies have used OTT as a value-add to retain/gain subscribers. And OTT companies piggyback on telecom plays to scale up their subscriber base – TSPs (telecom service providers) have larger access to a wide variety of customers. With the vast content library of Jio and Disney, the merged entity’s content, spanning 1) international movies, 2) web series, 3) sports content and 4) catch-up TV content, could prove advantageous for Jio subscribers and make it a one-stop content hub. There might be initiatives such as a Jio Prime offering, providing subscribers access to content at an affordable or even free price through last mile resource and 5G wireless access. The company will have a big advantage of last mile with Jio having a subscriber base of more than 450 million smartphone users This will hit Bharti Airtel as it has tried to tie up with OTT players in the content ecosystem to offer value-add. Thus, Bharti Airtel may have to invest heavily in own content or shape partnerships with global OTT giants such as Netflix and Amazon or other OTT platforms to generate clout in the content ecosystem.

    Synergy prospects

    – The ad revenue potential from IPL is expected to increase significantly with the merged entity having exclusive rights (TV+Digital) to IPL. This consolidation may result in bundled advertisement revenues, potentially mitigating the higher cost of IPL rights and reducing overall losses; due to IPL rights being split between TV and digital between two different platforms and digital platform offering IPL free, there was a big dent in the IPL revenues on TV, which could see some respite.

    – The merger is anticipated to bring about restructuring in employee costs, reduced production expenses, and lower advertisement costs for TV. These potential cost synergies could contribute to improved margins for the merged entity. On the sports side too, content costs may pare sharply for TV, digital over the medium to long term, given that fewer platforms may bid aggressively for expensive properties.

    – In digital, content cost inflation (content cost for web series 3-5x higher than for TV non-fiction shows, per episode) has been sharper due to heavy fragmentation in the OTT market and entry of global giants with deep pockets. With the merger, content cost in digital may see much lower growth, which may improve the unit economics for the OTT business, potentially resulting in lower EBITDA losses for Jio Cinema and Hotstar.

    – Considering the critical role of technological advancements in the success of OTT platforms, the integration of Disney’s technological expertise is expected to enhance the user experience on Jio Cinema. This improvement may subsequently drive higher subscriber numbers and revenue growth.

    Risks

    – Post CCI approval, NCLT (National Company Law Tribunal) approval may take another eight to 12 months

    – A below par customer experience on the video apps despite a wide variety of content may not augur well in subscribers paying for the same; global OTT giants like Netflix have a very superior experience to command a premium ARPU

    – Continuance of hefty losses of the merged entity over the near to medium term due to high costs sports properties (IPL, ICC tournaments & BCCI bilateral rights) could negatively impact valuation prospects for the merged entity

    Shareholding pattern of the merged entity

    After the merger, the ownership structure of the combined entity will be as follows: Reliance will hold 53 per cent  stake through cash infusion, after acquiring Paramount’s balance stake and factoring TV18 and Viacom 18 stake in JV, which are RIL’s subsidiaries;  Disney will hold 36.8 per cent , whereas the Bodhi Tree (stake through Viacom18) /TV18 (ex of Reliance stake) will hold balance 6.2 per cent /3.8 per cent  stake respectively.

    Valuation

    The joint entity, including cash infusion, is valued at  RS 704bn. This valuation comprises  Rs 115 billion in cash,  Rs 330 billion for Viacom18 (including Jio Cinema) and the remaining  Rs 260 billion (~USD 3.2 billion) is the combined valuation of Star India and Hotstar. This valuation of Star India and Hotstar is much lower compared to pre-covid valuation of $12-13 billion which may be due to 1) loss of IPL digital rights leading to ~50 per cent  ad revenue decline and 40 per cent  subscription revenue decline for Hotstar, 2) TV ad revenue remaining flat over FY19-23 and 3) sports content which may continue to incur hefty losses in linear TV due to slower revenue growth. From a valuation standpoint, the impact on TV18 (which owns 13 per cent  in Viacom18) is minimal to negative, as the combined entity is expected to generate substantial losses in the near term due to sports content. Additionally, TV18’s stake in the merged entity is valued at  Rs 42 billion, implying a hefty premium for its news business at  Rs 40 billion (considering TV18’s overall current market cap of  Rs 82 billion).

  • Vibrant Media bags Rs 100 crore Jio-bp media account

    Vibrant Media bags Rs 100 crore Jio-bp media account

    MUMBAI: It’s vibrant and it’s going to be all about gas. Mumbai-based media outfit Vibrant Media has raced ahead of Group M and Beehive Communications to capture the Rs 100 crore account of Jio bp in a three-agency pitch.

    Reliance BP Mobility Limited (RBML) – a 51: 49 joint venture between  Mukesh Ambani’s Reliance Industries and global energy major bp – was set up in 2021 to operate the Jio-bp brand and make it a leading player in India’s fuels and mobility markets.

    Jio-bp has since then been  leveraging Reliance’s presence across 21 states and its millions of consumers through the Jio digital platform while bp has brought  its extensive global experience in high-quality differentiated fuels, lubricants, retail and advanced low carbon mobility solutions.

    RBML has plansto explodeits current count of 2,000gas station to up to 5,500 over the next three years.
    An advertising blitz is expected to break later this month and cuts across TV, digital, print, and outdoors, reveal sources. Jio bp had in June 2023 handed over the digital mandate for the account to Saatchi & Saatchi Propagate. That, according to sources, has been handed over to Vibrant, which handles most of the Reliance brands media spends.

    Jio BP – a joint venture between Mukesh Ambani’s Reliance Industries and oil major British Petroleum – seeks to become set up a chain of Operating under the “Jio-bp” brand, the joint venture aims to become a leading player in India’s fuels and mobility markets. It will leverage Reliance’s presence across 21 states and its millions of consumers through the Jio digital platform. bp will bring its extensive global experience in high-quality differentiated fuels, lubricants, retail and advanced low carbon mobility solutions. 

    bp and RIL expect the venture to grow rapidly to help meet India’s fast-growing demands for energy and mobility. India is expected to be the fastest-growing fuels market in the world over the next 20 years, with the number of passenger cars in the country estimated to grow almost six-fold over the period. RBML aims to expand from its current fuel retailing network of over 1,400 retail sites to up to 5,500 over the next five years. This rapid growth will require a four-fold increase in staff employed in service stations – growing from 20,000 to 80,000 in this period. The joint venture also aims to increase its presence from 30 to 45 airports in the coming years.