An Overview Of Reliance Industry And Jio
Reliance Industry Limited is the biggest private-sector corporation in India, listed as a Fortune 500 company. This company was declared as the first Indian Firm to enter the trillion-dollar slab.
The Jio Platform Limited is one of the major subsidiaries owned by the richest man in Asia-Mukesh Ambani. The company began by providing broadband services and now is on the verge to invest in a 5G network in India.
The Strategy Behind Jio Success
- Mukesh Ambani decided to come up with an investment in the 4G Optic fiber network when the other competitors were still investing in 2G and 3G.
- In the year 2016, Jio introduced Aadhar based digital Jio sim activation, to the customer to activate their number within minutes.
- India had around 1 billion mobile users but only 34% of the users had access to the internet. So. Keeping this scenario in mind, Mukesh planned to provide services at an affordable rate to attract the maximum number of users.
- He divided his plans into the following phases:
Phase 1- To make his competitors fail, Ambani gave an undercut price and free promotional data.
Phase 2- On giving data for free for 6 months, he attracted customers to switch to Jio.
Phase 3- Through his optic fiber network, Ambani launched 4G and gave a fast internet service at an affordable price. He also gave more than a GB of data, which made users switch even further.
Phase 4- Outstanding customer service and offers were provided to the customers to make them stick to Jio.
Phase 5- he started charging for his services and by that time gained 400 million subscribers which helped to reach the break-even point.
- On gaining the targeted customers, Jio started to provide telecom products and assistance.
- Keeping in mind the scope to expand the bandwidth in the future, they used VOLTE 4G network.
- They started providing digital services and introduced apps like JIO Tv, Jio Saavn, and many more for music, movies, games, etc.
- Ambani started rolling out LYF smartphones because he knew that smartphones to access fast internet services were too costly for the majority of people in India. These smartphones ranged from INR 4000 to INR 19000.
- On being successful in providing 4G data they are set to bring the first 5G network in India.
- Jio also invested in the e-commerce market with the launch of Ajio. It provided a range of brands and categories at a very affordable price and soon became a one-stop app featuring the latest trends. The excellent customer services provided by Ajio made it sustain in the Indian Market and became one of the most preferred retail platforms.
- The Jio platform on providing fast data services opted to tie up with kiranas to provide an online store leveraging the existing Jio customer base through Jio-Mart.
- Prime minister- Narendra Modi’s initiatives to make India a digital country encouraged people to use Indian Products and services and gave Jio a chance to launch apps like Jio Meet and Jio Chat.
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The Strategies Of Jio Attracted Global Investors Making Jio The First Indian Firm With A Capital Crossing Trillion-Dollar
- On 22nd June Reliance Industry Ltd (RIL) owned by Mukesh Ambani became the First Indian Firm to hit the market value of 150 billion. On the Bombay Stock Exchange, the companies value rose from ₹28,248.97 crores to ₹11,43,667 crores.
The stock value in BSE closed at 0.70% lower after rising 2.53 %, leaving it with the highest valuation to date.
On the National Stock Exchange (NSE), it raised by 2.54% during the day but again ended up closing at 0.39 percent.
- The market value of RIL crossed 1 trillion after the chairman of RIL announced that the company has become free from the net debt. Ambani raised 1.69 crores on record from global investors which helped his firm to become the first trillionaire.
- Mukesh Ambani’s telecom industry experienced a never-ending queue of investors lined up to buy its shares and it all started on April 22, when Mark Zuckerburg’s Facebook invested ₹43,574 crores in Jio leaving Facebook with a stake of 9.99% in Reliance Jio.
The investment by Silver Lake in Jio Platform for a share of 1.15% and investment of ₹11,367 crores by Visa Equity for a stake of 2.32% were also made.
Later the Jio platform had General Atlantic and KKR as its investors for a stake of 1.34% and 2.32% respectively.
In the last two months, when the world was facing the COVID pandemic crisis, an investment of ₹9,093 crores was made in reliance Jio by Mubadala investment company based in Abu Dhabi.
- The RIL has had 12 global investors so far with an investment of ₹1,52,056 crores, for a stake of 33% in Jio Platforms. These investments by other global firms and money raised by the chairman-Mukesh Ambani helped the firm to become net debt-free and a step ahead of becoming India’s first trillionaire.
- The Jio platform with around 400 million subscribers made RIL’s telecom business the largest in India.
- The following of all the regulations, making the firm net debt-free, established executed plans including Jio’s e-commerce plan and the high transformative potential of Digital India society made most of the global companies invest in Jio.
The changing of strategy with the change in trend made Jio a successful company and reliance, the only Indian firm with a capital reaching Trillion dollars. A firm needs to gain customers if they want to become successful and have a monopoly in a new market segment. To continue to fill the gap in the market Reliance Jio would further:
- Launch Jio Glass
- Make a successful Android-based operating system with Google
- Diversify the product line in Jio Mart
Also Read: Anil Ambani – A Riches To Rags Story Of A Series Of Wrong Business Decisions