What are the key takeaways from Reliance AGM?

India’s most valuable company Reliance Industries held its 45th Annual General Meeting on Monday with Chairman Mukesh Ambani making a slew of announcements. The AGM was held virtually for the third time in a row. 

After Reliance Jio bought spectrum worth $11 billion in the $19-billion 5G spectrum auction, Ambani laid out the timeline for the launch of Jio’s 5G services. 

Jio is targeting a Diwali launch for 5G in top cities including Chennai, Delhi, Kolkata and Mumbai before expanding across India by December next year, which is 18 months from now. 

The telecom major will deploy standalone 5G, which won’t depend on its existing 4G infrastructure.

Hence, the delivery is expected to be faster. Reliance is investing $25 billion to build the pan-India 5G network. Jio also announced its foray into private 5G networks, adding that it is working with Google to develop ultra-affordable 5G smartphones for India.

Akash Ambani, who replaced his father as the Chairman of Jio, announced the launch of Jio AirFiber service and the JioAirFiber Home Gateway device – a wireless WiFi hotspot connected to Jio’s 5G. It promises fibre-like Gigabit-speed internet over the air without any wires. 

JioFiber customers can opt to use a new service called the Jio Cloud PC, which offers virtual PC hosted in the cloud. Targeted at students, gig-workers and small businesses, customers will pay only to the extent they use the cloud PC.

The telecom major said, it will expand its partnership with Qualcomm to develop cloud-based 5G solutions for India.

Isha Ambani, executive director of Reliance Retail Ventures, demonstrated the JioMart integration on WhatsApp.

This will enable users in India to browse through JioMart’s entire catalogue, add items to the cart and make the payment to complete the purchase, all without leaving the WhatsApp platform. 

Isha Ambani further announced that Reliance will launch its FMCG business this year as it takes its private label brands to general trade. 

Mukesh Ambani said Reliance will invest $9.4 billion in the oil-to-chemicals business over five years to expand capacities in existing and new value chains. 

Reliance will strengthen its polyester and Vinyl chains through the building of new facilities and expansion of existing units as well as setting up a carbon fibre plant.

Expanding on the previous plan to invest over $10 billion to build four giga factories at Jamnagar for solar cells and modules, fuel cells, batteries and green hydrogen, Ambani announced a plan to set up a fifth giga factory for power electronics.

Deven Choksey, Managing Director, KR Choksey Investment Managers says, size of RIL to double in terms of profit. Jio will be the leader in profit generation. $25-bn Jio investment signals it could be listed. 

The country’s second-richest man announced his family succession plan for the group, when he listed the separate businesses his three children will lead.

Akash will head the digital business housed in Jio, his twin sister Isha will lead the retail business and their younger sibling Anant has joined the new energy business. Ambani said the siblings have inherited his father and RIL founder Dhirubhai Ambani’s mindset.

However, Ambani insisted he isn’t retiring yet and will “continue to provide hands-on leadership as before”.