RIL AGM 2020: Mukesh Ambani says capital raise complete, Reliance will now focus on adding strategic partners

The company's newly launched video-conferencing app JioMeet been downloaded by over 500 million users.

FP Staff July 15, 2020 17:44:26 IST
RIL AGM 2020: Mukesh Ambani says capital raise complete, Reliance will now focus on adding strategic partners

Speaking at the 43rd Annual General Meeting on Wednesday, Reliance Industries (RIL) chairman and managing director Mukesh Ambani said the company has completed its capital raising target and is now looking to add only strategic partners.

Google will invest $4.5 billion (Rs 33,737 crore) for a 7.7 percent stake in Jio Platforms, Ambani said at RIL's 43rd Annual General Meeting (AGM).

"Google and Jio are partnering to build an android based smartphone operating system," Ambani said.

Thirteen other global investors have already invested in Jio Platforms, including Facebook, KKR, Intel and Qualcomm.

The company has raised a total of Rs 2.12 lakh crore through the Rights Issue, British Petroleum deal and stake sales in Jio Platforms, the RIL chairman said.

On 19 June, RIL said it had become net-debt free before its target date of 31 March, 2021.

At the AGM, Ambani also said Jio is working on a 5G product, will be available for trials as soon as spectrum is available.

"Jio Platforms will be positioned for 5G solution to other telecom operators," he said.

The company's newly launched video-conferencing app JioMeet been downloaded by over 500 million users. Isha Ambani said education is one of the biggest use cases for the newly launched video conferencing platform JioMeet.

RIL also rolled out JioTV+, which will curate OTT platforms, and JioGlass, a mixed reality headset, will enable holographic video calling.

Speaking about Reliance Retail, Mukesh Ambani said the company will induct global partners, investors into the retail business in the next few quarters.

"Reliance Retail is India's largest and most profitable retail business," Ambani said. RIL has previously said it is looking at an initial public offering of Reliance Retail.

At the AGM, he said over 2.50 lakh orders per day have been recorded on the company's grocery app JioMart.

Apart from groceries, JioMart will expand to provide electronics, fashion, pharmaceutical and healthcare.

The RIL chairman also provided an update on the company's oil business, adding that deal with Saudi Aramco has not progressed according to initial timelines.

"Due to unforeseen circumstances in the energy market and the COVID-19 situation, the deal has not progressed as per the original timeline. Our equity requirements have already been met. Nevertheless, we at Reliance value our over two-decade-long relationship with Saudi Aramco and are committed to a long-term partnership," Ambani said.

He also said the company has been approached by global companies for strategic partnerships with the petrochemicals business.

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

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