Archive for December, 2017

RIL Celebrates 40 Years and the Company Owes it All to Dhirubhai Ambani

December 27, 2017

Mukesh Ambani said that the progress of Reliance Industries Limited (RIL) owes to his father and the founder, Dhirubhai Ambani.

Mukesh Ambani talks about his father

On the Reliance Family Day (RDF) and also the 40th anniversary of RIL, Ambani addressed his father as a timeless legend and an iconic Indian inspiration for all the generations. Ambani said that whatever RIL is today is because of his father. He stated that the company will remain true to his visions, principles, and ideals forever. He added that because of Dhirubhai Ambani, RIL has grown from a single employee to 2,50,000,  from a single city to 28,000 towns and cities and four lakh villages, and from an INR 1,000 company to over INR six lakh crore company.

Ambani’s message to the employees of RIL

Ambani talked about the employees who worked with his father and called them as the great pioneers of RIL. He said that these employees worked against the impossible and that too with meager resources. But still, these employees had the passion, ambition, humility, dedication, and the desire and dream to make the company the pride of India, he added.

RIL aims at being among the top 20 in the world

Ambani targets at being among the top 20 companies in the world. He said that the company aspires to become a global player in all the businesses it operates and become a leader in the clean and affordable energy.

The chairman said that the company is customer obsessed and Jio and Retail have captured the leadership positions in India. Jio has around 150 million customers and aims at transforming different sectors.

Other people speak about Dhirubhai Ambani and RIL

At the celebration, Nita Ambani said that the sons of the company will color the skies, the daughters will reach the stars, and the women will conquer new horizons.

Kokilaben Ambani was also present at the event and while congratulating his son, she wished a long life to the Reliance family.

Isha Ambani, daughter of Mukesh Ambani, said that Dhirubhai Ambani was the father of all the startups and in 1977 at the time of the start of RIL, he went to the common Indian man and said that the profit will be of the people and he will take the loss. This is wisdom that no one will ever teach, she added.

Amitabh Bachchan, the megastar of Bollywood was also present at the event. When talking about Dhirubhai Ambani, he said that he had no luxuries and was not the third or fourth generation of a businessman; he was the first and came among the top. He was a person that invented his own opportunities with his dreams.

About the event

The event was attended by over 50,000 people in Navi Mumbai at the Reliance Corporate Park. Over 2,00,000 employees joined the celebration via live video conferencing from more than 1,000 locations across the nation including the retail stores, Jio points, and manufacturing sites.

RDF has a tagline, “A family that works together celebrates together.” The celebration is going to last for a week and will end on 29th December.

Summary

RIL celebrates the 40th anniversary of the company as Reliance Family Day and Mukesh Ambani aims to be among the top 20 companies in the world.

RIL Plans to Expand its Retail Business

December 20, 2017

Mukesh Ambani led Reliance Industries Limited (RIL) is looking forward to expand its business-to-business play in the retail market by the distribution of white goods, Fast Moving Consumer Goods (FMCG), and apparel directly to kirana outlets and neighborhood as the company aims to capture a larger part of the market.

Reliance Retail’s expansion plan

Reliance Retail is planning to start the trail distribution of apparel from early next year and the vendors are already informed about it. This will be expanded into white goods and FMCG by April, next year.

Currently, organized retail in India has a total market share of 8 percent. Two of the senior executives of the industry said that the company wants to tap on the remaining 92 percent and it cannot achieve quick growth by only betting on the retail business, which is consumer-facing. An executive also said that although Reliance Retail will be starting with the private brands, it will soon expand into the mainstream brands, too. Another executive informed that the potential is huge as the distributors’ reach in small towns is limited.

Distribution for the retail market

RIL is planning to use the Jio network for Reliance Retail, wherein local shops and kiranas will receive the payments through JioMoney platform. It is also planning to offer additional help to small stores with financial support, merchandising operations, GST solutions, and also managing an efficient supply chain. The company plans to roll out the business of distribution in 10,000 towns and cities, where Jio is already present.

RIL’s distribution of smartphones

Mukesh Ambani led RIL has a good experience in distribution of smartphones. The first example can be of LYF smartphone, which was a successful business model. It started with its own brand and eventually did that for other brands as well. The private brands have witnessed success in its own outlets. An executive revealed that 23 percent sale in FMCG is of private brands.

During the July to September quarter in the business of distribution of smartphones, Reliance Retail joined hands with over 7.5 lakh retailers across the nation and sold over three million accessories and devices. This business gained such a large scale that the contribution of smartphones and electronics increased in the company’s turnover from 34 percent to 52 percent.

About Reliance Retail

Reliance Retail is a consumer-centric initiative, which has adopted a multi-prong strategy that operates supermarkets, neighborhood stores, wholesale cash and carry stores, online stores, and specialty stores. This has democratized access to a variety of services and products for different segments of consumers in India.

Reliance Retail operates Reliance Market stores, Reliance Fresh, and Reliance Smart in its grocery and food category. The consumer electronics category operates the Jio stores, Reliance Digital and Reliance Digital Express Mini stores. Reliance Retail also has a fashion category, which operates Trends Women, Reliance Footprint, AJIO.com, Reliance Jewels, Reliance Trends, and Project Eve.

There are 3,679 stores that are operated by Reliance Retail across 750 cities. In the financial year of 2016-2017, it reported a turnover of INR 33,765 crore.

Summary

Reliance Retail to expand its business-to-business distribution in white goods, FMCG, and apparel.

Jio Adds 7.34 Million Subscribers while Data Speeds Increase by 50%

December 13, 2017

The data speed of Mukesh Ambani owned Reliance Jio increased by 50 percent after the phase of providing free services. In October, the telecom company added 7.34 million subscribers.

Jio’s data speed

Reliance Industries Limited’s (RIL) telecom service Jio was started in September 2016. At first, the services were distributed for free. Later in April 2017, Jio started charging for its services. Post this, it has been reported that the company has seen a 50 percent increase in the network performance. The report by OpenSignal says that the reason behind the sudden increase in speed is due to the unclogging of the network.

How the telecom company’s speeds increased

When Reliance Jio was launched, it offered free voice calls and unlimited 4G data to users. This led to over 100 million subscribers joining Jio. The huge increase in subscribers began to clog the network and eventually reduce the speed of data resulting in calling issues. In April 2017, Jio ended its free plans and customers started paying for their services. This has resulted in a fall in subscribers and an increase in data speed.

However, the report went on to say that the increase in speed cannot be entirely attributed to the unclogging of the Jio network. Other factors such as the upgradation of Jio’s network or users having to spend paid data more consciously may have given rise to this increase.

Mukesh Ambani led Reliance Jio’s speed in five months

Five test periods consisting of three months each were organized and it has been noticed that there is a steady rise in the average 4G download speed. After a small increase in February, Jio’s speed dropped to around 4.2 Mbps in March-April. After this, the free offers ended and the rise started and continued on until the end of July. Jio has seen a steady rise in its speed in the last six months. It went up to 5.8 Mbps from 3.9 Mbps, which is an almost 50 percent increase in speed.

Adding up subscribers in October

In spite of the reduction in customers during the introduction of its paid services, the Jio customer base has been steadily increasing. In October, it added 7.34 million subscribers resulting in a 12.39 percent market share. According to the data released by the Telecom Regulatory Authority of India (TRAI), Jio had 11.72 percent market share in September, in August it was 11.19 percent, and in July it was 10.83 percent. By the end of October, the Jio customer base had grown to almost 146 million.

Jio Data plans

Some popular data plans by the company are as follows:

  • INR 98 plan

This Jio data plan has a validity of 14 days. It has a daily limit of 0.15GB data. This plan also has free voice calls and 140 SMS.

  • INR 149 plan

This plan has a validity of 28 days. It has a daily limit of 0.15 GB data. Customers get free voice calls and 300 SMS.

  • INR 309 plan

The INR 309 plan has a validity of 49 days with unlimited voice calls and SMS. It has a daily limit of 1GB data.

Summary

Jio has experienced an increase in the data speed after ending its free services while at the same time adding 7.34 million subscribers in October.

Data is the New Soil: Mukesh Ambani

December 6, 2017

At the HT Leadership Summit 2017, Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited, spoke about how data connectivity and artificial intelligence will lead to a new industrial revolution; and how India offers the greatest investment opportunity in the world today.

Digital green revolution according to Ambani

Mukesh Ambani said that data is not only the new oil but also the new soil. According to him, there is a need and also an opportunity to create a digital green revolution using data.

Ambani’s definition of this digital green revolution covered the following points:

  • Mechanical services that are enabled digitally, which will benefit the farmers, regardless of their landholding
  • Fertilizers or pesticides enabled digitally to rejuvenate soil
  • Digitally enabled seed-to-crop process to get the best yield and increased income for farmers
  • Digitally enabled water management; and supply chain with full traceability, so that waste is removed at every stage and quality is assured

Mobile data and Jio

Further, Ambani spoke about Jio Infocomm and data consumption in the summit. Since its launch in September 2016, Jio posed tough competition in the telecom industry after offering free data and voice call offers. According to Ambani, the consumption of data has increased after this launch; catapulting India to the no. 1 rank for mobile broadband in the world, as compared to its earlier150th one.

Ambani believes that if Jio dons the mantle of leader then 19 lakh colleges, 700 universities, and 58,000 colleges in India will become digital.

India offers world’s greatest investment opportunity

Ambani believes that India offers the greatest investment opportunity across the globe. RIL backed his belief by investing USD 60 billion in the country when most other companies were investing abroad.

He expressed his conviction about data connectivity and artificial intelligence forming the base of the next industrial revolution; and how these could enable India to overtake even USA and China to become the largest economy in the world.

Further views on related topics

A few other notable points that Mukesh Ambani covered in his speech were:

  • Jio and artificial intelligence could serve to connect students from remote villages to faculty members from universities to deliver lectures
  • Data connectivity could help improve delivery of healthcare services remotely
  • Big data would prove to be a game-changer in the way business is done. Billions of data points would help anticipate and supply fulfillment of needs.
  • The Aadhar card has catapulted India decades ahead of even many advanced economies
  • Technology would provide an equitable and inclusive developmental model, based on good governance and a culture of empathy

Summary

Mukesh Ambani’s speech at the HT Leadership Summit 2017 emphasised how data connectivity and artificial intelligence would form the base of an industrial revolution and how India offered the greatest investment opportunity in the world.