Mukesh Ambani-led Reliance Industries, which generates up to $1 billion in free cash every quarter, is planning to pump in around $4 billion into retail and 4G over the next two years.
RIL has already invested nearly $1.5 billion in retail and will get an additional $500 million to $1 billion soon. The remaining $2.5-3 billion will be pumped into 4G network. Sources told CNBC-TV18 that RIL has invested nearly $3bn so far in 4G spectrum.
Reuters
However the retail business is a loss-making venture even after six years and Reliance is spending billions to get into a fiercely competitive and unpredictable telecoms sector, with returns a distant and uncertain prospect.
Last year, it infused Rs 2580 crore through cumulative optionally convertible preference shares in its retail business; that’s more than the combined investment of other organised retail players. The company managed to trim losses marginally to Rs 395.5 crore from Rs 405 crore a year earlier, but Reliance Retail is not profitable yet.
