Mukesh Ambani, managing director and the largest shareholder of Reliance Industries Limited (RIL) has earned rupees 805 trillion reliance industries through bonafide deals.
26 Deals in 2 Years!
RIL, India’s largest company by market capitalization has closed nearly 26 deals for the last two years. Among the 26, 15 deals have contributed the maximum in both the deal value and also in defining the potentiality of reliance as a company.
“Data is the new oil” – Mr. Mukesh Ambani
The 15 deals comprised a currently stalled bid for Reliance to buy communication spectrum and the sale of two energy assets, which were a part of the company. Moving back to the past few years, RIL used to be the energy major, whereas the oil refining and the petrochemicals remained the cash generating units.
According to Ambani “data is the new oil”, who is now in a continuous attempt to expand this glorious business empire. A data provided by Morgan Stanley shows that out of the total investment of $503 billion throughout the past five years, around 79 percent has contributed in the telecom sector.
The recent bids
Recently in the month of October for a total deal value of $630 million and reliance’s most significant acquisition of the company is the purchase of a 59 percent stake in Den Networks and 51.3 percent in Hathway Cable – both of which are the multiple system operators (MSO).
Earning Dominance every day!
The move made reliance to earn a dominant role in the cable TV and broadband market and also to assist in the rollout of Reliance Jio’s fixed broadband service.
What else?
In the month of June 2018, the other significant deal included $74 million acquisition of a 100% stake in Radisys. The deal will be an advantage for Reliance Jio to build its 5G and Internet-of-Things capability. Reliance industries also closed a deal with Reliance Communications in December 2017 for purchasing rupees 200 billion. Further, it even spent $566 million on acquisitions in the media space.
The company signed numerous deals in the months of February to March 2018, acquiring a 5 percent stake in Eros, an Indian film distributor company a 41 percent stake in Saavn, a music streaming service and, for around $150million. In July 2017, the company also bought a 25 percent stake in Balaji Telefilms for $64 million.
The deals mainly focused on the production and distribution of content for the Jio subscribers. The existing retail business of the reliance company is also in the process of expansion, ahead of a possible IPO, apart from these deals.
By 2024, the company is planning in increasing its store count of Trends fashion stores nearly five times to 2,500 outlets. To achieve this Ambani is putting all its efforts along with the recently announced foray into e-commerce.
