Mukesh Ambani is certainly on its way to the ultimate zenith with Reliance industries. His AGM was a blockbuster hit, which made the share prices of Reliance Industries’ shares reach an all-time high of about 10 percent in a single day, since February 2018.
Here are the top ten takeaways from the 42nd RIL AGM held on 12th August 2019:
1. Deal with Aramco
The biggest blockbuster announcement made in the RIL AGM was that the company will be selling 20 percent of its oil to the chemical business stake to one of the largest companies in the world, Aramco, for an enterprise value of $75 billion.
2. Zero debt company
The second news which gave an adrenalin rush to the share-holders was, in the next 18 months, Reliance Industries has aimed to become a zero-debt company. This will be backed by the completion of Jio capital expenditure, stake sale, and asset monetization.
3. The market leader in telecom
Reliance Jio has become the second-largest operator in the world, with 340 million subscribers as of now, with an aim of 500 million subscribers well within its grasp.
4. Home Broadband
The new player which was released in the market by Mukesh Ambani last year, the Jio Giga-Fiber, has been receiving 15 million registrations from 1600 towns for home broadband services. RIL plans to complete the Jio Giga-Fiber rollout in the next 12 months. The additional benefit which rolled through the minds of the Jio Fiber customers was, they will enjoy the benefit of first-day first show movies.
5. Jio-Microsoft Deal
The digital transformation deal, between Jio and Microsoft, will accelerate, as both the companies have entered in a long term agreement. They have plans to make cloud investment for all the start-ups, free of cost, with free computing connectivity service from January 1, 2020.
6. Retail Revolution
Reliance Retail has become the largest retail company, larger than all the major retailers put together, which has crossed Rs.1.3 lakh crore in revenue. Over 1 lakh customers are served every hour in Reliance Retail chain.
7. New Commerce
A business opportunity which is meant to revolutionize India’s 3 crore kirana stores, with a purpose to transform unorganized retail into organized retail, which will integrate merchants, consumers, and producers.
8. Internet of Things
The IoT platform provided by Jio will be available from January 1, 2020, with an aim to connect 1 billion homes. The estimated revenue opportunity from IoT alone is Rs.20000 crore.
9. KG-D6 investment
For the purpose of augmented production of methane, the partnership with BP and JV, who will invest Rs.35000 crore in KG-D6, will be helpful.
10. Future Prospects
Reliance is confident enough to grow by 15 percent annually over the next 5 years, and along with that, Jio and Reliance Retail will move towards listing within the same period.
