Reliance Industries Chairman Mukesh Ambani announced major decisions like launch of 5G telephony and succession plans for the industry in his 45th AGM meet . There are about Ten major takeaways from the Meet. Lets understand each one of them.
Reliance Industries History
- Reliance Industries had diverse business including energy, petrochemicals, natural gas, retail, and telecommunications, mass media and textiles.
- Reliance is one of the most profitable companies in India and continues to export about 8% of the total exports of the country and has access to 100 countries.
- Reliance is also responsible for almost 5 % of the government of India’s total revenues from the customs and excise duty. Reliance also pays the highest income tax in India.
- The company was founded by Mr. Dhirubhai Ambani and Champaklal Damani in 1960’s as Reliance Commercial Corporation .The partnership ended in the year 1965 and Dhirubhai continued with the polyester business.
- Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global leader in the materials and energy value chain businesses. It was in 1957 when he returned to India after a stint with A.Besse& Co., Aden he started yarn trading business from a small 500 sq.ft. Office in Masjid Bunder, Mumbai. He set up his brand new mill in Naroda, Gujarat.
The Multinational Conglomerate Formation
- In 1996 Reliance went on to become the biggest textile brand ‘Only Vimal’. In 1977 the Reliance Textile Industries came with an IPO which was oversubscribed seven times.
- Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products.
- Starting as a small textile company, Reliance has in its journey crossed several milestones to become a Fortune 500 company in less than 3 decades.
- Today, RIL has over 30 lakh shareholders; the Ambani family holds nearly 52% of the total shares. Also, the company has over 24,000 employees . It has 158 subsidiary companies and 10 associate companies in different fields.
- The largest retail store network of India, Reliance Retails holds several cutting edge brands like Reliance Fresh, Reliance Wellness, Reliance Time Out, Reliance iStore, Reliance Market, Reliance Trends, Reliance Jewel, and many more.
- It deals in medical, plant and industrial biotechnology opportunities. The specialty areas of this segment include making, marketing and branding the products of RIL in pharmaceuticals, clinical researches, molecular medicine, biofuels, industrial biotechnology, and few others.
- A great imitative by Reliance Industries, Relicord is working to bring advancement in the biotechnological industry. It is licensed by the Food and Drug Administration, Government of India. Relicord is the first to have a registered cord blood bank and repository in the entire region of Southeast Asia.
- A famous educational institution, Reliance Institute of Life Science offers higher learning in different domains of life sciences and related technologies. It was established by the Dhirubhai Ambani Foundation and now has become a pioneer in offering graduate, post-graduate, doctoral, research and many other education programs.
- Reliance Jio Infocomm Limited is an important part of Reliance Group; it is a broadband service provider. This is the sixth-largest mobile network operator in the whole world with over 306 million subscribers. Earlier the company was known as Infotel Broadband.
- Reliance Logistics is an important win of Reliance Group; it is involved in the selling of products related to distribution, warehousing, supply chain, logistics, and transportation. It is an asset-based company with its infrastructure and fleet. It offers supply for logistics to the RIL and also other third party companies.
- Reliance Clinical Research is a contract research organization and specialized in the clinical research services industry. This is a wholly-owned subsidiary of Reliance Life Sciences.
- Reliance Solar deals in solar energy; it produces and sells solar energy systems to remote and rural areas. It presents a wide variety of products like solar lanterns, home lighting solutions, street light systems, water purifying system and many other products based on solar energy.
- Reliance Industrial Infrastructure holds about 45.43 percent shares of Reliance Group. It is mainly involved in establishing and operating industrial infrastructure. RII also works for leashing and providing services in data processing and computer software.
- LYF is an Indian mobile handset company; it manufactures 4G-enabled VoLTE smartphones. This is the subsidiary of Reliance Retails and runs with the parent company’s flagship venture, Jip.
- Reliance Group has touched all segments of business, and the film industry is not an exception. Reliance Eros Productions is involved in producing file content in India. This is a jointed venture with Eros International.
- A renowned mass media company, Network 18 is also the subsidiary of Reliance Group. It has diversified activities in different segments like digital platforms, films, mobiles and also television. It has acquired the ETV network and also has some joint ventures namely History TV18, Viacom 18.
45Th Annual General Meeting-Ten Important Gist of the Meet
- 5G Rollout in Metros by Diwali
- Ambani announced a Rs 2 lakh crore investment plan in deploying 5G telephony with a rollout in metro cities by Diwali.
- He said 5G services would be launched across multiple key cities including Mumbai, Delhi, Chennai & Kolkata by Diwali. Subsequently, the company aims to connect every town, taluka, and tehsil by December 2023.
- Reliance Jio, India’s largest telecom operator has deployed a standalone 5G stack rather than upgrading the existing 4G network to offer ultra high speed internet.
- Leadership Transition Roadmap
- Ambani laid out a clear roadmap that gives an idea of how the conglomerate will be divided among two sons Akash and Anant, and daughter Isha.
- Talking about succession, the 65-year-old tycoon said that Akash and Isha have taken leadership roles at the telecom and retail businesses while younger son Anant has joined the new energy business and is being groomed for a leadership role.
- Foray in to FMCG Business
- Isha Ambani director of Reliance Retail Ventures Ltd said that India’s conglomerate behemoth Reliance Industries will this year launch its fast-moving consumer goods business.
- Rs 75000 crore Investment for Petrochem Expansion
- Ambani announced an investment for Rs 75,000 crore in the next five years in the petrochemical business.
- On the occasion of the 45th AGM, Ambani said that the new investments will be in setting up a PTA plant, expanding polyester capacity, tripling capacity of vinyl chain and a chemical unit in UAE.
- The announcement signifies the Reliance’s commitment to the O2C business at a time when the focus of the group has been on the diversification in telecom, retail and new energy.
- JioAir Fiber Hotspot
- Reliance JIO chairman Akash Ambani announced JioAirfiber, a wifi hotspot that will allow consumers to access fiber-like speeds at homes and offices.
- With a single device, it will be real easy to quickly connect any home or office to Gigabit-speed internet without any wires .
- This will allow connecting of millions of homes and offices to ultra-high-speed broadband in a very short period. With it, India can rank among the Top-10 nations, even for fixed broadband.
- Giga Factory for Power Electronics
- Mukesh Ambani announced the setting up of a new gigafactory for power electronics. One of the key components linking the entire valley of green energy is affordable and reliable power electronics.
- The company intends to build it through partnerships with global players to provide affordable solutions.
- New Energy
- Reliance aims to progressively commence its transition from grey hydrogen to green hydrogen by 2025, after proving its cost and performance targets. It will deliver modular, at scale and the most affordable modern green energy manufacturing business based in India, for India and for the world.
- Battery Packs
- Reliance also aims to start production of battery packs by 2023 and scale up to a fully integrated 5 GWh annual cell to pack manufacturing facility by 2024, and further scale up to 50 GWh annual capacity by 2027.
- Shop From Reliance Jio Mart via Whatsapp
- Isha Ambani at the company’s 45th AGM announced that consumers will be able to browse and purchase groceries and other household products on Meta-owned WhatsApp.
- India Beacon of Growth and stability
- India stands as a beacon of growth and stability amid widespread unpredictability in the world. Amidst this widespread unpredictability, India stands tall as a beacon of growth and stability. The Government’s skilful management of the pandemic, and pragmatic approach in dealing with the ensuing economic challenges, have helped India
