WILL WE HAVE AN ECONOMY DICTATOR?

-

 Today Reliance is a name that all of us know. Reliance has successfully made it's path to every household in every corner of the country. With the help of Jio, we all are directly or indirectly using the resources of Reliance. 

The company is led by Mukesh Ambani who is the Chairman, Managing director and the largest shareholder of the Reliance Industries LTD. The Ambani family has been at their best on being the face of Reliance industries and representing it worldwide.

 
 In recent times the negotiation skills and expansion ideas of Mukesh Ambani was praised after he managed to close 11 big investment deals for almost 30.11% stakes in Jio for the huge sum of nearly 1.38 Lakh Crore Rupees. These Investments proves the experience and entrepreneurial skills of Mukesh Ambani. The timeline of investments are as follows :-

  • April 22 : Facebook : The social media giant announced an investment of Rs 43,574 crores in Reliance Jio accounting for a 9.99% stake in the company's platforms. 
  • May 3 : Silver Lake : The American private equity(PE) giant will pick a 1.15% stake in Reliance Jio with an investment of Rs 5,656 crores in it's platform. Silver Lake also invested an amount of Rs 4,546.80 crores for the share of 0.93% stake.
  •  May 8 : Vista Equity : The US- based private equity firm will pick a 2.32% stake in RIL's Jio platforms for Rs 11,367 crores. 
  • May 17 : General Atlantic : The New York- headquartered PE firm announced an investment of Rs 6,598 crores in Reliance Jio for a 1.34% stake.  
  •   May 22 : KKR : The US-based PE company will buy a 2.32% stake in Jio platforms for Rs 11,367 crores.  
  •  June 5 : Mubadala :The Abu Dhabi- based sovereign investor announced an equity infusion of Rs 9,903 in Reliance Jio on Friday in exchange for a 1.85% stake in telecom arm RIL.  
  • June 13 : TPG : RIL on Saturday announced TPG will invest Rs 4,456.80 crores in Jio Platforms at an equity value of Rs 4.91 lakh crores and an enterprise value of Rs 5.16 lakh crore. This was the ninth investment for the company in the period of seven week.  
  •  June 13 : L Catterton : One of the world's largest consumer- focused private equity firms, will also invest Rs 1,894.50 crore in JPL. L Catterton's investment will translate into a 0.39% equity stake in Jio platforms on fully diluted basis. 
  •  Another investment included is from Abu Dhabi Investment Authority for a sum of Rs 5,683.50 crores for 1.16% stake in the Jio platform. 
  •  July 15 : Google : Google became the latest high-profile firm to back India's Reliance Jio Platforms. The search Giant is investing $4.5 billion which is almost 33,537 crore rupees for a 7.73% stake in the top Indian telecom network. This was revealed in the recently held AGM of Reliance Industries in which also appeared the CEO of Google Sundar Pichai.

Not just investments, recent moves and Investments show that Reliance is now moving towards capturing every sector of Indian Economy and reaching to the small scale operations as well.The details of Reliance Industries entering every sector is :-

  • E-Commerce - Reliance launched Jio Mart which is an Indian grocery delivery service, started as a joint venture between Reliance retail and Jio Platforms. JioMart delivers grocery and daily essentials from nearby stores. Reliance plans to expand their product lines very soon and this will act as a competition to the E-Commerce giants - Amazon and Flipkart. 
  • Oil & Gas -  Reliance Petroleum Limited is a company owned by Reliance Industries Limited, one of India's largest private sector companies which was founded in 2008 and is at war from a long time with ONGC and Indian Oil. 
  • Media - Network 18 is an Indian media and communication company that is majority owned by Reliance Industries. It is also the parent company of TV18, DEN Networks and Hatway cable and Datacom. This company is at competition with ZEE media and STAR media. 
  • Healthcare - JioHealthHub is a recently launched company by Reliance Industries which is majorly owned by Jio. This is an online medicines delivery app which competes with Medlife and Practo. 
  • Online Education - Reliance Industries is the parent organization of the Individual learning company Embibe. This is at a competition with BYJU's and many other developing online education companies. 
  •  Wallets & Payments - Jiomoney is also a newly launched platform under Jio controlled by Reliance Industries. This is money transferring and payment app which is developing under the reigns of Paytm, GooglePay and PhonePE. 
  • Video Conferencing - After observing the sudden increase in the demand of the video conferencing platforms Reliance did not wait to launch it's very own platform called the JioMeet. This will give decent competition to Zoom and Google Meet. 
  • Telecom - Reliance Jio is supposedly one of most famous ventures of Reliance which gave Reliance the exposure to reach door to door and provide it's services. One of the most famous economic battles between companies took place after the launch of Jio when it crushed Airtel and Vodafone Idea to the extent that they recorded historical quarter losses. 
  • Music Streaming - Reliance Industries is the parent organization of JioSaavn after it bought Saavn, the online music streaming service in December 2018. After acquiring Saavn Reliance is in competitions with other online music streaming service providers like Spotify and Gaana. 
  • Retail - RelianceSmart is a retail service provider which offers groceries, apparel, electronic goods, vegetables, fruits and many more daily use products to the consumers. RelianceSmart faces competition with the already established BigBazaar and Spencers in this field. 
  • Electronics - Reliance Digital is a consumer durable concept from Reliance retail. It is a subsidiary of Reliance Retail, which is a wholly owned subsidiary of Reliance Industries. Reliance Digital is at competition with many giants in this sector which are Croma, Great Eastern electronics.

The questions to be asked here are :
 
  • If Reliance does manage to seize every sector and eventually the Indian economy, will it optimize it's resources to develop the standard of living of the lower middle class and the lower class? 
  • Or will it act as a typical monopoly and go after profits and we will have a economy dictator? 
  •  Will the Indian government intervene in between the operations of Reliance Industries or will it have full liberty to act on it's own? 

What's your take on this?
Do like and share

KEEP READING
THANK YOU 
 
 
 
 
 



 

Comments

Post a Comment

Popular posts from this blog

The present India

-
INDIA A country where culture unwraps itself in the best possible way. A country which is proud of it's rich and varied heritage. But things have not been good for India recently and maybe one of the major reasons for this is the Indian youth and young adults. Youth is the period between childhood and adult age. During this phase of the life, a human body goes through many changes developing desires, habits and etc etc. Youth in collective has lot of power. Not only do they have sense of reasoning but also the audacity to ask for answers. The youth of the country can be a key measure to the country's success but Indian youth have been distracted by various outside factors. The known future of the country are attracted to artificiality rather than realism. The youth of India indulges itself in gadgets, apps, games, materialism rather than indulging itself in relationships, knowledge, art. According to the data produced by the Global Business Coalition for Education (G
Read more

Are we going to a war?

-
INDIA AND CHINA BORDER TENSION 2020 " A true soldier fights not because he hates what is in front of him, but because he loves what is behind him"       - G.K. Chesterton After destroying world economy and causing almost three months of worldwide lock down, China is back to being its own self just after things were beginning to settle down as tensions between the two most populous countries have flared again in the recent weeks. On May 5, 2020, China began to push along the Sino-Indian border and things have been pretty heated from there on. In addition, face-offs are ongoing at multiple locations in eastern Ladakh, along the Line of Actual Control (LAC) that has persisted from the 1962 Sino-Indian war. China pushing/crossing Indian borders is no new thing. Since the 1980s, there have been 20 rounds of talks between the two countries related to the border issues. The face-offs are taking place in two states , which are Ladakh and Sikkim. On May 9, dozens
Read more

EDUCATION: FREEDOM OR CAPTIVITY?

-
"Education is not about molding children the way you think they should be. Education is about organizing the natural longing in a human being to know"        - SADHGURU Education, a process everyone has the right to enjoy. Education should be the activity of learning new skills, values and gaining knowledge but the education system and the society has made it more like a competition and a race. Sadhguru in one of his interviews in the London School of Economics was questioned on the part of competition in the modern day education and on the race of being the first in the class. He answered in the most sensible way possible as, "Being better than someone, if it's a pleasure for you, I call that sickness, it is not success". Competition is a subject that has divided opinion for years. Some argue that it encourages a child to excel in today's fiercely competitive world where we compete for everything be it a job, a partner or a house. Others say it can
Read more