Reliance Industries plans to invest around $24 billion in a digital services holding company — similar to Alibaba Group Holdings Ltd. and Alphabet Inc. This will be used to setup an online e-commerce platform to connect retailers and consumers, to take on Amazon, Flipkart and Walmart.
Crux of the Matter
The board of Mukesh Ambani led Reliance Industries Ltd. approved a proposal to invest Rs 1.08 lakh crore into a fully owned subsidiary, which will in turn invest that amount in Reliance Jio Infocomm Ltd.
The subsidiary plans to absorb the parent’s equity investment of Rs 650 billion in Jio and make Jio almost debt-free by 2020, according to RIL.
This move by Asia’s richest man is the latest sign of the group’s growing interest and move in the direction of data and digital services as well as e-commerce platforms for future growth.
Curiopedia
Reliance Industries Limited (RIL) is an Indian multinational conglomerate company headquartered in Mumbai, Maharashtra, India. Reliance owns businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications. Reliance is one of the most profitable companies in India, the largest publicly traded company in India by market capitalization, and the largest company in India as measured by revenue after recently surpassing the government-controlled Indian Oil Corporation. On 18 October 2007, Reliance Industries became the first Indian company to breach $100 billion market capitalization. Read More
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