Shares of Reliance Industries Ltd extended a winning streak even on the seventh day of trading. Its market capitalisation crossed the 14,00,00,00,00,000 mark or in simpler terms 14 lakh crore mark. That is a lot of zeros. The heavyweight stock advanced in trading sessions to Rs.2250 per share. It is a hike of 14.53 percentage.
After creating history and fundraising and debt and prepayments, reliance industries Ltd has now an alluring balance sheet with high liquidity. This money is to be used to support the growth of its three highly profitable ventures – retail, telecom subsidiary Jio and oil to chemical business.
The main aim of the sell-out was to create higher liquidity, so that future business plans for the three most profitable ventures do not succumb to the dearth of liquidity. During 2000-21 reliance broke the record of India’s largest-ever rights issue. It was also the largest rights issue in the world by a non-financial institution in a decade. The rights issue was 53,124 crores (fuel retail).
The company clarified in their annual report about the ventures and stakes sold to raise the capital. The company sold minority shares in Jio, two lakh crore from sale in the retail arm, sold a 49% of stake in the fuel retail and raised 53,124 crores through the sale of rights.
The visionary behind this prosperity drew zero salary this fiscal year because of the poor show in business and economy due to coronavirus. This came forward after RIL released their annual report for 2020- 21, where the salary for Mukesh Ambani was written nil. Before that Mukesh Ambani regularly drew 15 crores as salary from RIL for almost a decade. He would stop drawing salary after the annual remuneration reached the 24 crore mark.
What is RIL now planning to do?
Reliance Industries Ltd clarified that they are working with Microsoft, Facebook and Google to transform and enrich the adoption of futuristic technologies in India. He believes that India has vast untapped possibility when it comes to technological advancement. Its partnership with these firms will ensure that India will be at par with the world when it comes to leading technologies like data analytics, artificial intelligence AI, cognitive services, Blockchain, the internet of things and edge computing. RIL is planning to invest in SMEs to provide such high-end services at economic rates.
One can without a doubt say that India has digital inequality. Such partnerships and initiatives with Facebook, Google and Microsoft will try to bridge that gap. This will enhance consumer services.
Jio platforms and QUALCOMM have joined forces so that important appliances required to harbour a 5G environment in India will be manufactured locally. This will reduce cost and provide employment, it’s a welcome move given the vast unemployment rate due to Covid 19. QUALCOMM and Jio platforms have successfully reached the 1 GBPS speed landmark on Jio 5G solution. To harbour the 5G ecosystem in India they have developed a next-generation cloud native 5G RAN technology which is open and wholly based on software. 5G is going to be a hundred times faster than 4G LTE. It will transfer up to 1 gigabit per second. There are speculations that 5G may replace home broadband connections.
Jio has collaborated with Google as a tactical partner so that it can devise an economy line of smartphones with an enhanced operating system. This economy line of smartphones will not only help in bridging the digital divide but will also foster the aim of providing everyone with high-speed internet. Reliance has said in its annual report that it aims to make India 2G Mukta Bharat. Jio plans to upgrade 300 million 2G users to 4G.
What does it plan to do in the world of SME?
Jio is going to be the harbinger of a new era of communication and digitalisation. It recently announced its entry into several digital services like Blockchain network, edge computing platform and IoT platform. This is not just limited to the telecom sector, it includes in its wast wings everything that has to do with the word called ‘Digital’. Jio meant business when it provided 340 million Indians subscribers with cheap and fast internet. Now that people are hooked up on cheap high-speed internet they cannot let go of Jio. It boosted the country’s digital profile and increased the number of internet subscribers.
Jio‘s previous attempt to give a push to retail business ended up in Paytm, Flipkart etc being aided. Jio is also responsible for thousands of businesses which thrived due to direct communication with their customer and were able to develop new tactics. Fast-growing e-payment and e-commerce businesses need high-grade telecom infrastructure to stay on top of things.
Jio aims to harbour an AI first economy, digital platforms will be its contribution for the same. It aims to provide small and medium enterprises cheap digital services, computations, storage, security solutions, market and sales solutions et cetera. Jio has invested in 14 start-ups which will help it to complete its goal of the digital revolution, as these startups are going to manufacture the digital infrastructure.
Jio announced that it will provide all these services together at one 10th of the cost that is Rs.1500. This will be an enormous relief for all the small and medium enterprises who are struggling to make it in this digital era. Businesses will have access to enterprise-grade digital services which will help them compete with large enterprises. Jio also has custom-designed digital plans for companies.
What is jio doing in blockchain technology?
Jio is creating the country’s biggest blockchain network which will be spread across the country. The company wants this distributed ledger technology to protect data and privacy. This digital distributed ledger collectively is called ‘the blockchain’. Blockchain technology helps in record keeping. Once the data is recorded in the blockchain, it cannot be erased, duplicated, tampered with or hacked. To access the blockchain, the parties will have to go for digital verification. Ambani believes that blockchain will be an integral part of innovation in agriculture and supply chains. He also believes that blockchain will ensure that the ownership and control of data resides with the Indians and not with foreign corporates.
What about IoT?
Internet of things or IoT is a connection of physical devices like smartphones, refrigerator, air-conditioners, laptops, television, doorbell, iPods et cetera to a network. All these devices are imbued with software, sensor, operating system et cetera so that devices can connect and share information over the internet.
What Jio wants to do is it wants to install 2 billion IoT devices in India and it wants to have half the share of that pie. Jio believes that IoT devices promise a market of 20,000 crore rupees. Because of which other private players like Airtel is also hustling to install IoT devices in India. IoT via the help of sensors fitted with information exchange programming, generates a vast amount of data that will help in machine learning, making smart decisions, having personalised recommendations. These data insights will also help owner companies in planning and implementation of business policies so that they capture the market of digital solution.
This move is unprecedented and very promising. Investors also believe that because without the trust of investors RIL wouldn’t have been able to cross the 14 lakh crore market capitalisation mark. It will also give something back to society by generating employment, bridging digital inequality, bringing India at par with other countries in the digital world, improve businesses and services via good connectivity.