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  • KKR to invest Rs 5,500 crore in Reliance Retail Ventures

    KKR to invest Rs 5,500 crore in Reliance Retail Ventures

    Mumbai: Reliance Industries Limited (“Reliance Industries”) and Reliance Retail Ventures Limited (“RRVL”) announced that global investment firm KKR will invest Rs 5,550 crore into RRVL, a subsidiary of Reliance Industries. This investment values Reliance Retail at a pre-money equity value of Rs 4.21 lakh crore. KKR’s investment will translate into a 1.28 per cent equity stake in RRVL on a fully diluted basis.

    This marks the second investment by KKR in a subsidiary of Reliance Industries, following a Rs 11,367 crore investment in Jio Platforms announced earlier this year.

    Reliance Retail Limited, a subsidiary of RRVL, operates India's largest, fastest growing and most profitable retail business serving close to 640 million footfalls across its 12,000 stores nationwide. Reliance Retail’s vision is to galvanize the Indian retail sector through an inclusive strategy serving millions of customers by empowering millions of farmers and micro, small and medium enterprises (MSMEs) and working closely with global and domestic companies as a preferred partner, to deliver immense benefits to Indian society, while protecting and generating employment for millions of Indians. Reliance Retail, through its new commerce strategy, has started a transformational digitalization of small and unorganised merchants and is committed to expanding the network to over 20 million of these merchants. This will enable the merchants to use technology tools and an efficient supply chain infrastructure to deliver a superior value proposition to their own customers.

    Read more news on Reliance Industries

    Founded in 1976, KKR has 222 billion dollars in assets under management as of June 30, 2020 and a long history of building leading global enterprises, including many companies at the forefront of technology and digital transformation including in areas of consumer retail and eCommerce, such as investments in Epic Games, OutSystems, Internet Brands, Go-jek and Voyager Innovations. KKR established its first of eight Asia offices in 2005 and the firm currently has approximately 5.1 billion dollars in private equity investments across more than 15 Indian companies, including Jio Platforms, JB Chemicals, Max Healthcare, Eurokids International and Ramky Enviro Engineers.

    Reliance Industries chairman and MD Mukesh Ambani said, “I am pleased to welcome KKR as an investor in Reliance Retail Ventures as we continue our onward march to growing and transforming the Indian Retail ecosystem for the benefit of all Indians. KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years. We look forward to working with KKR’s global platform, industry knowledge and operational expertise across our digital services and retail businesses.”

    KKR co-CEO & co-founder Henry Kravis said, “We are pleased to deepen our relationship with Reliance Industries through this investment in Reliance Retail Ventures, which is empowering merchants of all sizes and fundamentally changing the retail experience for Indian consumers. Reliance Retail’s new commerce platform is filling an important need for both consumers and small businesses as more Indian consumers move to shopping online and the company offers tools for Kiranas to be a critical part of the value chain. We are thrilled to support Reliance Retail in its mission to become India’s leading omnichannel retailer and ultimately to build a more inclusive Indian retail economy.”

    KKR is making its investment from its Asia private equity funds. The transaction is subject to regulatory and other customary approvals.

    Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels. Deloitte Touche Tohmatsu India LLP acted as financial advisor to KKR. Shardul Amarchand Mangaldas & Co. and Simpson Thacher & Bartlett LLP acted as legal counsel to KKR.

  • L&T tops the charts on following on LinkedIn

    L&T tops the charts on following on LinkedIn

    Larsen & Toubro, India’s leading EPC projects, manufacturing, defence and services conglomerate, has topped the LinkedIn in terms of most followed Indian conglomerate, leaving behind Reliance Industries, Aditya Birla Group, Tata Group and Adani Group.

    L&T with its 20 lakhs 5 thousand plus followers is the top most followed conglomerate, with Reliance Industries followed the second most at over 18 lakhs 98 thousand followers, over 15 lakhs 2 thousand followers for Aditya Birla Group, 4 lakh 83 thousand plus for Tata Group, over 3 lakh 41 thousand followers for Adani Group and over One lakh 58 thousand followers for Godrej Group, Linkedin data showed as on Sept 7, 2020.

    Larsen & Toubro spokesperson said: “We have grown this follower base through consistent and targeted messaging. The content strategy for a B2B conglomerate like L&T needs to be highly focused and different from a typical FMCG or a consumer products brand play book. We focussed on our strengths and leadership in our areas of business, while still maintaining approachability and creating engaging stories which impact people.”

    “We have realised that updates on big projects and achievements, and messages from our leadership consistently garner great response and engagement from the followers. Another message that resonates well with our audience is about Make in India achievement – a pride in building the things that help build the Nation, whether in infrastructure or technology and defence,” the spokesperson added.  

    The companies have been using this social media network to reach to professionals, students, potential employees to keep them updated about thoughts of their leadership, their achievements, milestones, HR initiatives, updates on campus recruitments etc. LinkedIn (90 per cent) is the top social media platform preferred by B2B marketers in 2019 followed by Facebook (77 per cent) and Twitter (63 per cent), data by Digital Marketing Community showed. While most of the working professionals are still working remotely, there is a huge spike in social media engagements on professional network LinkedIn. LinkedIn insights show that globally, there has been a 50% year-on-year growth in content sharing, between March-June 2020. While the job searches and career related posts are the most engaged content on the platform, professionals watched nearly 4x the amount of LinkedIn Learning content in June 2020 than they did a year ago.

    India has second largest LinkedIn user base at 68 million after United States that has close to 170 million users, July 2020 data by Statista showed. Globally, there are more than 706 million professionals across 200 countries who turn to the network to connect, learn, and plan for their careers. 

  • Hathway reports higher profits despite lower revenue

    Hathway reports higher profits despite lower revenue

    BENGALURU: The Mukesh Dhirubhai Ambani-controlled MSO and broadband internet services provider Hathway Cable and Datacom Ltd (Hathway) reported consolidated profit after tax (PAT) at Rs 66.06 crore for the quarter ended 30 June 2020 (Q1 2021, quarter or period under review) against loss of Rs 9.38 crore for the corresponding year ago quarter Q1 2020 (y-o-y). Consolidated operating EBITDA for the period under review at Rs 118.18 crore (28.2 percent of operating revenue) grew 26.9 percent y-o-y from Rs 83.14 crore (20.7 percent of operating revenue).

    Hathway’s consolidated operating revenue fell 6.7 percent y-o-y in Q1 2021 to Rs 419.56 crore from Rs 449.78 crore in Q1 2020. Consolidated total income (total revenue) during the quarter fell 3.6 percent y-o-y to Rs 514.46 crore from Rs 506.68 crore.

    Hathway has two major segments – broadband internet services (BB) and cable television or CATV.

    BB segment saw operating revenue increase 9.5 percent y-o-y in Q1 2021 to Rs 146.51 crore from Rs 133.81 crore in the corresponding year ago quarter. The segment’s operating result (operating profit) declined 14.2 percent y-o-y in Q1 2021 to Rs 7.84 crore from Rs 9.14 crore.

    CATV segment revenue declined 13.6 percent y-o-y in Q1 2021 to Rs 273.05 crore from Rs 315.97 crore in Q1 2020. The segment reported more than six-fold increase in operating result (operating profit) – which grew 505 percent y-o-y in Q1 2021 to Rs 17.06 crore from Rs 2.82 crore in Q1 2020.

    Let us look at the other numbers reported Hathway for Q1 2021

    All numbers in this report are consolidated unless stated otherwise.

    Total expenditure in Q1 2021 declined 17.6 percent y-o-y to Rs 427.92 crore from Rs 519.61 crore in the corresponding period of the previous year. Pay channel cost during the quarter under review increased 1.6 percent y-o-y to Rs 152.70 crore from Rs 130.06 crore. Employee cost in Q1 2021 grew 2.8 percent y-o-y to Rs 24.30 crore from Rs 23.63 crore in Q1 2020. Operational expenses in Q1 2021 grew 0.7 percent (almost flat) y-o-y to Rs 77.67 crore from Rs 77.13 crore. Finance cost was less than half (declined 59.7 percent) y-o-y to Rs 32.96 crore from Rs 81.79 crore in the corresponding quarter of last year. Other expenses in Q1 2021 declined 46.6 percent y-o-y to Rs 67.23 crore from Rs 125.82 crore.

  • Google to invest Rs 33,737 cr in Jio Platforms for 7.7% stake

    Google to invest Rs 33,737 cr in Jio Platforms for 7.7% stake

    KOLKATA: Putting an end to the speculations floating around, Jio has welcomed Google as its new strategic partner. At the 43rd annual general meeting of Reliance Industries Ltd (RIL), CMD Mukesh Ambani made the announcement.

    The business tycoon said that Google will invest Rs 33,737 crore for 7.7 per cent stake in Jio Platforms. The giants have signed a binding partnership and an investment agreement.

    “We are delighted to welcome Google as a strategic investor in Jio Platforms. We have signed a binding partnership and an investment agreement under which Google will invest Rs 33,737 crore for a 7.7 per cent stake in Jio Platforms,” Ambani stated.

    Google becomes the latest US tech giant to back Jio Platforms. Facebook started the series of investment by with a Rs 43,573.62 crore deal in April. Intel invested Rs 1,894.50 crore earlier this month. 

    He also stated that the company has fully kickstarted five accelerators of growth of digital connectivity: mobile broadband, JioFiber, Jio’s enterprise broadband, broadband for SMEs, and Jio’s Narrowband internet-of-things.

    Notably, Ambani has announced a significant development on the traditional side of Jio’s business. Jio has designed and developed a complete 5G solution from scratch. It will be ready for trials as soon as 5G spectrum is available and can be ready for field deployment next year.

  • Saudi Arabia’s Public Investment Fund to invest Rs 11,367 cr in Jio Platforms

    Saudi Arabia’s Public Investment Fund to invest Rs 11,367 cr in Jio Platforms

    MUMBAI: Reliance Industries Limited (“Reliance Industries”) and Jio Platforms Limited (“Jio Platforms”), India’s leading digital services platform, today announced an investment of Rs 11,367 crore by The Public Investment Fund (“PIF”). This investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. PIF’s investment will translate into a 2.32 per cent equity stake in Jio Platforms on a fully diluted basis. With this investment, Jio Platforms has raised Rs 115,693.95 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG and L Catterton, since April 2020. 

    With the addition of PIF’s investment, Jio Platforms has established partnerships with a marquee set of global financial investors, who will contribute to establishing the Digital Society vision for India. Jio Platforms, a wholly-owned subsidiary of Reliance Industries, is a next-generation technology company focused on providing high-quality and affordable digital services across India, with more than 388 million subscribers. 

    Jio Platforms has made significant investments across its digital ecosystem, powered by leading technologies spanning broadband connectivity, smart devices, cloud and edge computing, big data analytics, artificial intelligence, Internet of Things, augmented and mixed reality and blockchain. Jio Platforms’ vision is to enable a Digital India for 1.3 billion people and businesses across the country, including small merchants, microbusinesses and farmers, so that all of them can enjoy the fruits of inclusive growth. 

    PIF is the sovereign wealth fund of Saudi Arabia and as part of its mandate to diversify its economy, has made its largest investment into the Indian economy to-date. This investment is in line with PIF’s strategy and mandate of investing in sectors and companies that generate long-term commercial returns to drive Saudi Arabia’s economic transformation as part of Vision 2030 objectives. This investment supports PIF’s mandate of building strong global investment partnerships to further Saudi Arabia’s investment reach and exposure.

    Reliance Industries chairman and managing director Mukesh Ambani said, “We at Reliance have enjoyed a long and fruitful relationship with the Kingdom of Saudi Arabia for many decades. From Oil Economy, this relationship is now moving to strengthen India’s New Oil (Data-driven) Economy, as is evident from PIF’s investment into Jio Platforms. I have greatly admired the defining role PIF has played in driving the economic transformation of the Kingdom of Saudi Arabia. I welcome PIF as a valued partner in Jio Platforms and look forward to their sustained support and guidance as we take ambitious steps to accelerate India’s digital transformation for enriching and empowering the lives of 1.3 billion Indians.”

     His Excellency Yasir Al-Rumayyan, PIF governor, commented: “We are delighted to be investing in an innovative business which is at the forefront of the transformation of the technology sector in India. We believe that the potential of the Indian digital economy is very exciting and that Jio Platforms provides us with an excellent opportunity to gain access to that growth. This investment will also enable us to generate significant long-term commercial returns for the benefit of Saudi Arabia’s economy and our country’s citizens, in line with our mandate to safeguard and grow the national wealth of the Kingdom.” 

    The transaction is subject to Indian regulatory and other customary approvals. Morgan Stanley acted as financial advisor to Reliance Industries and AZB and Partners and Davis Polk & Wardwell acted as legal counsels.

  • Cable business drives Hathway’s return to profitability

    Cable business drives Hathway’s return to profitability

    BENGALURU: Mukesh Ambani’s Reliance Industries Limited-owned Indian multi-system operator and internet services provider Hathway Cable and Datacom Limited (Hathway) reported consolidated profit after tax (PAT) of Rs 105.47 crore for the year ended 31 March 2020 (FY 2020, year under review) as compared to a loss of Rs 187.67 crore for FY 2019. The company’s cable division reported a consolidated operating profit of Rs 84.77 crore and operating revenue of Rs 1,230.71 crore as compared to a consolidated operating loss of Rs 457.46 crore on operating revenue of Rs 1,030.66 crore in FY 2019. Cable business revenue for the year under review grew 19.4 per cent as compared to FY 2019.

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    The other business of Hathway – broadband internet services saw operating revenue grow 7.6 per cent in FY 2020 to Rs 567.59 crore from Rs 527.63 crore in the previous year. The internet services business incurred an operating loss of Rs 20.54 crore in FY 2020 as compared to an operating profit of Rs 42.01 crore in FT 2019.

    Hathway’s consolidated operating revenue in FY 2020 grew 15.4 per cent to Rs 1,798.39 crore from Rs 1,558.29 crore in FY 2019. Consolidated total income for the year grew 26.2 per cent to Rs 2044.14 crore from Rs 1,619.20 crore in the previous year.

    For the quarter ended 31 March 2020 (Q4 2020, quarter under review), Hathway reported consolidated operating revenue of Rs 455.68 crore, which was 19.6 per cent more than the Rs 381.04 crore in the corresponding quarter of the previous year Q4 2019 (Y-o-Y). Consolidated PAT for the quarter under review grew more than sevenfold (up 642.5 per cent) in Q4 2020 Y-o-Y to Rs 49.08 crore from Rs 6.61 crore.

    Cable business operating revenue for Q4 2020 increased 22.4 per cent to Rs 304.36 crore Y-o-Y from Rs 248.61 crore. Hathway reported operating profit of Rs 39.04 crore as compared to an operating loss of Rs 333.89 crore for Q4 2019. Internet services business revenue for the quarter under review grew 14.3 per cent Y-o-Y to Rs 151.32 crore from Rs 132.43 crore. Internet services business saw an operating profit of Rs 1.24 crore in Q4 2020 as compared to an operating loss of Rs 18.11 crore in Q4 2019.

    Let us look at the other numbers reported by the company

    All numbers in this report are consolidated unless stated otherwise.

    Total expenditure in FY 2020 grew 7.6 per cent to Rs 1,960.53 crore from Rs 1,822.72 crore in the previous year. Pay channel cost during the year under review declined 8.1 per cent to Rs 560.56 crore from Rs 609.85 crore. Employee cost in FY 2020 grew 14.4 per cent to Rs 94.79 crore from Rs 82.86 crore. Other operational expenses in FY 2020 grew 21.1 per cent to Rs 306.62 crore from Rs 253.30 crore. Finance cost grew 2.5 per cent to Rs 226.37 crore from Rs 220.80 crore. Other expenses in FY 2020 grew 32.2 per cent to Rs 401.09 crore from Rs 303.50.

    Total expenditure in Q4 2020 grew 5.2 per cent Y-o-Y to Rs 458.53 crore from Rs 435.97 crore. Pay channel cost during the period under review increased 16.25 per cent Y-o-Y to Rs 152.70 crore from Rs 131.41 crore. Employee cost in Q4 2020 reduced 3.1 per cent Y-o-Y to Rs 21.53 crore from Rs 22.22 crore. Other operational expenses in Q4 2020 grew 20.4 per cent Y-o-Y to Rs 79.72 crore from Rs 66/23 crore. Finance cost declined 22.1 per cent Y-o-Y to Rs 43.13 crore from Rs 55.38 crore. Other expenses in Q4 2020 grew 5.5 per cent Y-o-Y to Rs 81.70 crore from Rs 77.45 crore.

  • RIL announces Rs 500 crore contribution to PM CARES Fund

    RIL announces Rs 500 crore contribution to PM CARES Fund

    MUMBAI: Reliance Industries Ltd (RIL) announced a donation of Rs 500 crore to PM CARES Fund in response to the call by the prime minister to support the nation’s fight against the Coronavirus onslaught.

    RIL also informed that in addition to the financial contribution to the PM’s Fund, the company has also provided contributions of Rs 5 crore each to the governments of Maharashtra and Gujarat to support their fights against the Covid-19.

    RIL also continues its 24×7, multi-pronged, on-the-ground effort to do its bit to ensure the nation remains prepared, fed, supplied, safe, connected and motivated to fight and win against the unprecedented challenges brought upon by the Coronavirus pandemic.

    RIL has already deployed the strengths of the Reliance Family on this action plan against COVID-19. RIL and its motivated team have stepped up in the cities and villages, on roads and lanes, clinics and hospitals, grocery and retail stores, and it has pressed additional capabilities into the service of the nation.

    RIL and Reliance Foundation is leading with a significant effort that encompasses several initiatives.  These include:

    ·        Contribution of Rs 500 crore to the PM-CARES Fund

    ·        Contribution of Rs 5 crore to the Chief Minister’s Relief Fund of Maharashtra

    ·        Contribution of Rs 5 crore to the Chief Minister’s Relief Fund of Gujarat

    ·        India’s first 100 bed exclusive Covid-19 Hospital geared up in just two weeks to handle Covid-19 patients

    ·        Fifty lakh free meals in the next 10 days across the nation and scaling up rapidly to more meals and newer areas

    ·        One lakh masks daily for health-workers and caregivers

    ·        Thousands of PPEs daily for health-workers and caregivers

    ·        Free fuel across the country to notified emergency response vehicles

    ·        Jio seamlessly connecting nearly 40 crore individuals and thousands and thousands of organisations daily on its telecom backbone via ‘work from home’, ‘study from home’ and ‘health from home’ initiatives, helping to keep the country going

    ·        Reliance Retail providing Essential supplies daily for millions of Indians via stores and home deliveries

    This is RIL’s overall commitment to the nation, in addition to appropriate financial assistance from time to time. The company and its employees will be in the nation’s service daily, as an efficient support machinery for the millions of forces in the frontline – India’s doctors, nurses, health workers and caregivers, government officials, police and peace keeping forces, the transport and essential supply providers and the crores of Indian citizens who are staying at home to contribute to this fight.

    RIL particularly records its appreciation for its essential staff across the various divisions, our own heroes, who have effectively formed a second line of defence against the virus, supporting the frontline forces as well as the people fighting from their homes, and being part of the formidable buffer, which keeps the nation’s response effective and ongoing.  

    RIL remains committed to supporting India’s response to the Covid-19 challenge and will continue to build up its support till the challenge is overcome.

    RIL chairman and managing director Mukesh Ambani said, “We are confident that India will conquer the coronavirus crisis sooner rather than later. The entire Reliance Industries Limited team is with the nation in this hour of crisis and will do everything to win this battle against Covid-19.”

    Reliance Foundation founder chairperson Nita Ambani said, “As the nation comes together to fight the Covid-19 pandemic, all of us at Reliance Foundation stand in solidarity with our countrymen and women, especially those on the frontlines to whom we pledge our full support. Our doctors and staff have helped set up India’s first Covid-19 Hospital and are committed to supporting the government in exhaustive screening, testing, prevention, and treatment of Covid-19.”

    “The need of the hour is also for us to support our marginalized and daily wage communities. Through our meal distribution programme, we aim to feed lakhs of people daily across the country,” Nita Ambani added.

  • Reliance Industries sets up subsidiary for digital initiatives

    Reliance Industries sets up subsidiary for digital initiatives

    Mumbai, 25 October 2019: Reliance Industries Limited (“RIL”), through its digital platform and connectivity initiatives including Reliance Jio Infocomm Limited (“RJIL”), has transformed the digital eco-system in the country, catapulting India from 155th rank in broadband penetration to the 1st rank in mobile data consumption within a span of less than three years.

    Reliance Jio has built world class digital infrastructure and ecosystem, comprising of:

    i) Best in class end-to-end all IP network ii) Tower and Fiber infrastructure iii) Content Delivery Network iv) Digital Applications and Platforms

    v) Cloud Infrastructure vi) Technology capabilities

    Digital Connectivity:

    RJIL has emerged as the platform of choice with industry leading operating metrics, that rank amongst the highest globally:

    • Second largest single-country operator globally, with 355 million subscribers

    • Strong customer engagement metrics

    • Wireless network carries more than 400 crore GBs of data per month, and nearly 1,000 crore of voice minutes per day

    • Per capita mobile data usage of 11.7 GB/user/month

    • Trending towards half a billion customers, with net additions of 8-10 million per month

    This strong operating performance and customer engagement is backed by an end-to-end all IP network offering converged wireless and wireline solutions.

    Digital Connectivity Platform and Passive infrastructure separation:

    With completion of majority of RJIL’s capital expenditure, for optimizing operational efficiencies and better monetization of the Core Digital Connectivity Platform, tower and fiber passive infrastructure assets of approximately Rs. 1,25,000 crore were demerged from RJIL in March 2019 to Infrastructure Investment Trusts (InvITs).

    Post this demerger, RJIL has become asset light having a balance sheet size of Rs. 2,37,000 crore.

    Digital Platforms:

    The Group has been developing and fostering a vibrant digital ecosystem through various digital applications, tools and platforms (Digital Platforms) spanning self-care, information, entertainment, chat, utility tools etc.

    Most of these Platforms are best in class with high customer engagement metrics and differentiated features in their respective categories:

    • MyJio: An omni and self-care through single login app, ranks amongst the largest self- care apps in the world;

    • JioTV: India’s #1 live TV app; with wide bouquet of channels spanning 16 languages, 11 genres, 630+ channels, 135+ HD channels;

    • JioCinema: Amongst the top video entertainment apps in the country; built on state-of- the-art tech platform;

    • JioNews: India’s leading news and magazines app with the best-in-class content bouquet covering 900+ magazines, 300+ newspaper editions; varied contents formats including Live TV, Short videos, News articles;

    • JioSaavn: #1 music app in the country; continues to be the fastest growing streaming platform, with 45+ million tracks under license across 16 languages with differentiation through Artist Originals Program.

    Emerging Platforms:

    The Group continues to focus on cutting edge, technology enabled Digital Platforms that enable and accelerate Digital society with, frictionless and seamless universal access and adoption:

    i) Healthcare ii) Education iii) Agriculture iv) Commerce

    v) Government-to-Citizen services vi) Gaming vii) Manufacturing

    and many others.

    These Platforms are also backed by investment in following emerging and next generation technologies:

    • Blockchain

    • Artificial Intelligence & Machine Learning

    • Virtual, Augmented/Mixed Realty

    • Computer Vision

    • High Performance and Edge Computing

    • Natural Language Processing and Voice enabled services

    Digital Platforms Holding Company:

    A world class New-age Digital Technology Platform entity is proposed for:

    • Holding all Digital Platforms including RJIL, the Digital Connectivity Platform

    • Further development initiatives of cutting-edge technologies

    • Fostering inclusive Digital Society through collaborations & partnerships

    • Capital and organization structure that is benchmarked to global digital technology players

    • Compelling Investment Thesis with unencumbered capital structure, and

    • Enabling early monetization opportunities

    The Board of Directors of RIL today approved the formation of a wholly-owned subsidiary (“WOS”) for Digital Platform initiatives and investment of Rs. 1,08,000 crore in the WOS through OCPS.

    The WOS will also acquire RIL’s equity investment of Rs. 65,000 crore in RJIL.

    Debt reduction in RJIL

    The Board of Directors of RJIL approved:

    • A scheme of arrangement between RJIL and certain classes of its creditors including debenture holders for transfer of identified liabilities of up to Rs. 1,08,000 crore to RIL;

    • Rights Issue of Optionally Convertible Preference Shares (‘OCPS’) aggregating up to Rs. 1,08,000 crore for the purpose of payment of consideration for transfer of identified liabilities – WOS to subscribe to this issue.

    Consequent to the above, RJIL will become virtually net debt free company by 31st March 2020, with exception of spectrum related liabilities.

    Like global technology peers, the Digital Platform Company with negligible leverage makes a compelling investment proposition for both strategic and financial investors, many of whom have evinced strong interest in partnering with us. It will have significant financial strength to address the Digital Services opportunity in India.

    The proposed consolidated structure will be compliant with all statutory requirements.

    Commenting on the formation of the Platform Company, Shri Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “This new Company will be a truly transformational and disruptive digital services platform. It will bring together India’s No.1 connectivity platform, leading digital app ecosystem and world’s best tech capabilities globally, to create a truly Digital Society for each Indian. Jio has been heralding the digital services revolution in India and will continue to do so in the years to come.

    Given the reach and scale of our digital ecosystem, we have received strong interest from potential strategic partners. We will induct the right partners in our Platform Company, creating and unlocking meaningful value for RIL shareholders.”

    Summary of Impact

    • Ensures monetization opportunities accrue to shareholders efficiently;

    • There is no impact in the value pre and post reorganization for any shareholder;

    • There is no impact on the consolidated debt of RIL;

    • Consolidation of liabilities in RIL creates an efficient structure to manage debt and cash;

    • It does not impact RIL’s standalone credit profile given its robust cash flows and conservative leverage.

    About Reliance Industries Limited:

    • Reliance Industries Limited (RIL) is India’s largest private sector company, with a consolidated turnover of INR 622,809 crore ($90.1 billion), cash profit of INR 64,478 crore ($ 9.3 billion), and net profit of INR 39,588 crore ($5.7 billion) for the year ended March 31, 2019.

    • RIL’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.

    • RIL is the top most ranked company from India to feature in Fortune’s Global 500 list of ‘World’s Largest Corporations’ – currently ranking 106th in terms of both revenues and profits. The company stands 71st in the ‘Forbes Global 2000’ rankings for 2019 – top-most among Indian companies. It ranks 10th among LinkedIn’s ‘The Best Companies to Work For In India’ (2019).

  • Jio Fiber service to launch on 5 Sept 2019

    Jio Fiber service to launch on 5 Sept 2019

    MUMBAI: At the 42nd annual general meeting (AGM) of Reliance Industries Ltd (RIL), chairman and managing director Mukesh Ambani announced the much-awaited launch date for its fibre-to-the-home service. Jio Fiber will be launched on a commercial basis on 5 September on the third anniversary of the telecom giant’s launch.

    “Jio Fiber Services to be launched on commercial basis on 5 September 2019 – on the third anniversary of Jio’s launch. (We have) plan to reach 20 million residences and 15 million business establishments in 1,600 towns,” the business tycoon announced.

    In the last AGM of RIL, Ambani announced the high-speed fixed-line broadband services for retail customers. At the time of announced, Ambani revealed that it already invested more than $250 million in the industry. While the upcoming service has been on trial run since last year, he added that trial homes are, on average, consuming more than 100 GBs every month indicating the ever-increasing usage of internet in India.

    For a smooth rollout of the fibre service, Jio also made significant investments in two large multi system operators (MSOs) of India – Hathway and Den Networks. “Over the past months, we have upgraded our MSOs’ infrastructure to world-class standards. Now LCO partners can offer the largest bouquet of high-definition channels to customers with better features, reliability and customer experience than even DTH,” Ambani commented.

    Keeping the mixed economy structure of Indian internet users, Jio Fiber’s plans have been fixed from 100 mbps speed to all the way up to 1 Gbps. The pricing will range between Rs 700 per month to Rs 10,000 per month.

    To increase user engagement, Jio Fiber is set to offer various other entertainment opportunities to its consumers. Ambani also stated that Jio Fiber consumers will have access to premium over-the-top services. Moreover, Jio Fiber will launch a premium service where customers can watch movies at home on the release day itself, which will be launched in the middle of 2020.

  • RIL likely to infuse Rs 20,000 cr in Reliance Jio

    RIL likely to infuse Rs 20,000 cr in Reliance Jio

    MUMBAI: Mukesh Ambani-led Reliance Industries Ltd (RIL) is likely to infuse Rs 20,000 crore in Reliance Jio to boost its broadband and 5G services. As per a Mint report, Reliance Jio will issue 4 billion non-cumulative optionally convertible preference shares to its parent at Rs 50 each for cash.

    “The capital would be used to expand operations of Reliance Jio. The non-cumulative optionally convertible preference shares carry an interest rate of 9 per cent," Mint report said citing a source. Jio has built a subscriber base of 306.7 million in a very short span of time.

    An analyst at a domestic brokerage said that capital requirement for the telecom sector will stay high due to the constant infrastructure upgradation and the proposed 5G expansion. He added that Jio is now focused on reaching out to the country’s underserved homes and enterprise connectivity market.

    RIL has an outstanding debt of more than Rs 2.87 trillion as of 31 March which increased by Rs 69,000 crore during the year due to investments in Jio. The telco giant has decided to transfer its fibre and tower arms to two infrastructure investment trusts (InvITs) – Digital Fibre Infrastructure Trust and Tower Infrastructure Trust to cure debt.

    “In our view, the InvIT has effectively allowed RIL to replace ₹710 billion of external debt with very-long-term (20-year) money and thereby remove any refinancing need on this amount of debt. It also gives more balance sheet flexibility and allows RIL to further increase spending across its consumer business if it chooses to do so,” said an earlier JPMorgan report as quoted by Mint.