Reliance Jio's journey since 2016 has been 'incredible', potential for growth is immense, says chairman Mukesh Ambani

Announcing a bouquet of services for customers at the 42nd Annual General Meeting held on Monday (12 August) in Mumbai, Reliance Industries Ltd chairman and managing director, Mukesh Ambani said Jio's journey since 2016 was "incredible".

Ambani said that India was "data dark" before the entry of Jio into the telecom market.

"Jio has made India data-shining bright. Today Jio customer base stands at over 340 million... The potential for growth is immense and half a billion customers is now, I believe, well within our reach," he said.

"India because of you, Jio has not only become the largest operator in India but is the second-largest operator in the world on a single platform," he said.

The investment cycle of Jio is now complete, and only marginal investments would be needed in areas to grow capacity, he said adding that this gives the company strong operational leverage and a superior return on investments for years to come.

"We are ready to kickstart four engines of connectivity revenue for Jio...Internet of Things for entire country, home and enterprise broadband, broadband for small and medium enterprises (SME),' he added.

Jio which has amassed over 340 million subscribers in less than three years, is now ready to fire four new growth engines including Internet of Things (IoT) for the entire country, home and enterprise broadband services as well as broadband for SMEs.

"Revenue from each of these engines will kick in this fiscal itself," Reliance Industries' Chairman and Managing Director Mukesh Ambani said addressing the 42nd Annual General Meeting (AGM) here.

The investment cycle of Reliance Jio is complete, and about Rs 3.5 lakh crore has been invested in high-speed 4G network, he said.

Plans to make Reliance Industries a zero-net debt company

Ambani announced plans to make Reliance group a zero-net debt company in the next 18 months as he sells stakes in oil and chemical business to Saudi Aramco and fuel retailing business to British multinational, BP.

"We expect to complete transactions with Saudi Aramco and BP within this financial year. These are expected to generate an inflow of Rs 1.15 lakh crore," he said. These, along with other transactions to deleverage the group, would make the company a zero-net debt company in 18 months, he said.

"We have a very clear roadmap to becoming a zero-net debt company in [the] next 18 months," he said.

Ambani said Reliance ended last year with net debt of Rs 1,54,478 crore.

Reliance has invested nearly Rs 5.4 lakh crore over the last five years to generate EBITDA in excess of $1 billion annually for over a decade.

Ambani also said Reliance "will induct leading global partners in (telecom arm) Jio and Reliance Retail in the next few quarters, and move towards the listing of both these companies within the next five years."

"As we achieve our zero-net debt target this financial year, I assure you, my dear shareholders, that we will reward you abundantly through higher dividends, periodic bonus issues, and other means, and at a more accelerated pace than any time in our history," he said.

Ambani said Reliance ended last year with net debt of Rs 1,54,478 crore.

The company will also evaluate value unlocking options for its real estate and financial investments, he said.

(Disclosure - Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd)

--With PTI inputs