Archive for February, 2017

Elated at Jio’s 100 Million Customer Base, Mukesh Ambani Reveals the Factors Important for Business Growth

February 17, 2017

Reliance Jio’s unprecedented success has led to the brand creating a large-scale impact on the Indian digital sector. Chairman of Reliance Industries Limited (RIL), Mukesh Ambani has been overwhelmed by the response that the telecom subsidiary has garnered within a few months of its commercial launch.

Mukesh Ambani’s views on Jio’s growing customer base

At the Nasscom Leadership Forum, 2017, Mukesh Ambani expressed his amazement at Jio’s rapid growth in terms of its subscriber base, which has now crossed the 100 million mark. He stated that the company’s target was to acquire close to 100 million customers within a short period. However, he added that no one imagined that the company would reach its target in only a few months.

Reliance Jio made its initial entry with a soft launch on 27th December 2015. This rollout of data services was restricted to RIL employees. Later on, these facilities were made available to customers from 5th September 2016. With regard to customer acquisition, Mukesh Ambani revealed how the Aadhar card-based e-KYC system enabled Jio to draw a massive number of customers each day, an achievement not many can boast of.

Massive increase in customers in the shortest time

Customers may subscribe to the Jio network through verification of their Aadhar card numbers, which is a quick and convenient procedure. The company had recorded over 50 million users on its network within only 83 days of its launch, wherein 6 lakh subscribers were being added to its customer base each day.

Reliance Industries Limited had mentioned Jio’s approximate number of subscribers when it announced its quarter three results, revealing a customer base of 72.4 million as of December 31st, 2016.

Mukesh Ambani’s ideas on making a business succeed

At the Nasscom Forum, Mukesh Ambani stated that in order to succeed as an entrepreneur, it is important to handle the investors’ money more carefully than one’s own. He also added that having the right team is crucial to the success of any business. Mukesh Ambani personally considers these two aspects to be the key factors responsible for driving an enterprise. At the forum, he shed light on his entrepreneurial journey and the factors that contributed to his success. He also made a reference to the first lesson in entrepreneurship that he learnt from his father. According to him, an entrepreneur must first find the problems that he is passionate about and only then proceed with solving the same. Besides, in his view, solutions to problems should have a positive impact on the masses and their resulting financial returns should only be given secondary importance. This aspect, he stated, has been institutionalized at RIL.

Mukesh Ambani emphasized on learning for failures instead of being discouraged by them. He believes that an entrepreneur should be optimistic and help the team realize his own vision in order to achieve a common goal.

Summary

Mukesh Ambani spoke about Jio achieving its target of 100 million customers and the important factors responsible for a successful business at the Nasscom Forum.

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JioChat App’s New Feature Lets Users Send Money via Their JioMoney Account

February 8, 2017

Reliance Jio’s offerings span data services, 4G-compatible devices, free voice calling facilities, and premium applications. The brand’s apps have received a positive response for their superior functionality and convenience. JioChat and JioMoney are amongst the leading apps that have received impressive reviews.

New feature on JioChat

Mukesh Ambani led Reliance Jio recently made an announcement on a leading social networking platform that users may now seamlessly integrate the two apps, JioChat and JioMoney. This will make it possible for them to transfer money via their JioChat window. The design of the JioChat app has been modified to include the Rupee icon. Users may tap on this icon and transfer money even while having a conversation with a contact. Tapping on the icon will enable users to enter the amount they wish to have transferred. Once users enter the amount and submit the details, the specified amount would be subtracted from their JioMoney account balance. After the transaction is complete, users will receive a confirmation message on the JioChat window itself.

Announcement made via social networking platform

The announcement made on the social networking platform was followed by a short clip to offer users an insight into the app’s new transaction feature. This clip revealed how users could benefit by transferring money simply from a single app. The features have been cleverly depicted through a GIF. In addition to this, the telecom company released a video via its YouTube channel, ‘Jio’, which guides users on linking and unlinking JioChat with JioMoney.

Linking JioChat and JioMoney apps

To link the JioChat app with JioMoney, users need to ensure that the number registered for these services is common to both. Thereafter, users may visit the JioMoney account segment and click on the ‘Payments’ option. They must select ‘More’ and then tap on ‘Link’. This will lead to OTP authentication, which will result in the JioChat app getting linked to users’ JioMoney account. This procedure could even be completed while sending money through chat. Therefore, if a user attempts to send money by entering the amount, he will be requested to authenticate the same through OTP. To unlink the services, users may visit the ‘Payments’ segment on JioMoney, tap on ‘Unlink Account’, and thereafter click on ‘JioMoney Account’.

Currently, none of the OTT apps or digital content apps offered by incumbent operators includes this feature except JioChat. This makes the app unique in its functionality as compared to competitor applications. Currently, the app can be used by individuals having the JioMoney application.

Jio’s main idea is to create a comprehensive digital ecosystem and by integrating JioChat and JioMoney, the brand has reinstated its performance in the industry. The multitude of services being offered by Jio has also compelled incumbent operators to refine their facilities to meet the growing demands of customers. Jio’s services have become the precursors to many such innovative offerings that will be launched in the country in the upcoming years.

Summary

JioChat app now includes a new feature that will enable users to integrate the app with their JioMoney account in order to transfer money to their contacts.

$2.25 Billion to be Raised by Reliance Industries Limited for Jio’s Expansion

February 1, 2017

Mukesh Ambani led Reliance Industries Limited (RIL) is setting new standards with its business operations and active involvement in various areas, including its oil refinery business and telecommunications project. The company is now planning to raise approximately $2.25 billion, which is expected to be amongst the largest offshore debt issues by a corporate company in India. RIL intends to do this mainly because it wants to replace high-cost borrowings which currently exist. Another reason for this move is the company’s plans to create a reserve for future development of its telecom venture.

RIL’s plans to raise funds

Sources familiar with the matter have stated that almost 10 to 12 investment bankers are participating. They even added that destinations like the Middle East, Europe, Asia, and North America will be the venues for the marketing roadshows. External commercial borrowings (ECB) are where the money will most likely be raised from in the form of a syndicated loan.

Previous funds raised by the company

In January and September 2016, Reliance Industries Limited had raised close to Rs. 30,000 crore through a rights issue. The funds were collected in these two months in two parts. In January 2017, RIL announced its plans to raise an additional Rs. 30,000 crore, which it plans on investing towards Reliance Jio, its major telecommunications venture. The amount would be raised through a rights issue of optionally convertible preference shares.

A source who is associated with the fund-raising project stated that RIL is expecting Indian corporate firms to participate actively, mainly because the offshore debt market seems lucrative as of now.

Investments made by RIL

Reliance Industries owns the largest oil refinery complex in the world, located at Jamnagar. The capacity of this refinery is estimated at 1.24 million barrels per day. The company had even made an investment worth $25 billion towards building its 4G mobile network, Jio. RIL, while announcing its earnings for quarter three in January 2017, stated that it plans on investing an additional $4.4 billion to strengthen Jio’s infrastructure and network capacity. Reliance Jio currently has 72.4 million subscribers, with 6 lakh users subscribing to the network carrier every day. Jio is expected to reach out to 90% of the country’s population.

Experts stated that Reliance Industries Limited will be spending a large amount of money in the upcoming quarters, with the money expected to be used in various avenues. According to sptulsian.com’s Founder, SP Tulsian, RIL’s pace of investment will remain consistent for two quarters.

The capital expenditure of RIL in the October to December quarter was Rs. 37,791 crore. The company also spent Rs. 81,691 crore towards its refining and petrochemicals projects at Hazira, Jamnagar, and Dahej, apart from spending on its gas and digital services businesses. RIL’s pet-coke degassifier project is expected to add $2 per barrel to the company’s margins. The company will also witness growth in margins in the next two years and also earn profits through its petrochemicals projects, according to US-based Bernstein Research. The research firm added that RIL’s success in its telecom venture will also help it corner a sizeable market share.

Summary

RIL is planning to raise $2.25 billion in order to develop its telecommunications arm, Reliance Jio.