Mukesh Ambani – Profile

October 25th, 2010 - by admin
Mukesh Ambani - CMD, Reliance Industries Ltd.

Mukesh Ambani - CMD, Reliance Industries Ltd.

Mukesh Dhirubhai Ambani – business tycoon, industry icon, respected leader… Many are the adjectives that can be associated with the Chairman and Managing Director of Reliance Industries Limited, India’s largest private sector company.

Born on April 19, 1957 in Yemen, Mukesh Ambani is the elder son of the legendary Dhirubhai Ambani. He grew up with 3 siblings, Anil, Dipti and Nina. The passion of their father was balanced by the softness and love of their mother, Kokilaben and the prudence and practicality of Mukesh Ambani’s wife, Nita. In subsequent years, daughter, Isha, and sons, Anant and Akash, were beloved additions to their home.

Mukesh Ambani did his schooling from Abaay Morischa School, Mumbai and went on to earn a Bachelor of Chemical Engineering degree from UDCT, Mumbai. His choice of education reflected his father’s philosophy of investing in businesses of the future.

To prove to the world that Mukesh Ambani could do whatever he put his mind to, he applied and got accepted by some of the top universities when he applied for their Master of Business Administration course. Eventually, he chose Stanford University as his alma mater, but his growing entrepreneurial instinct urged him to drop out and help his father with his polyester plant.

Even while pursuing the challenging chemical engineering course, Mukesh Ambani was actively involved in his father’s company. As soon as he joined the company formally in 1981, he became one of the main impetuses for the company’s gargantuan progress.

Reliance’s backward integration from textiles into polyester fibers and further into petrochemicals was Mukesh Ambani’s brainchild. Reliance’s Jamnagar Refinery in Gujarat, which is now the world’s largest grassroots petroleum refinery, was directed under his watchful gaze. He was the force behind the creation of 51 new, world-class manufacturing facilities encompassing diverse technologies that increased its annual manufacturing capacity from less than a mission tons to over thirteen million tons. Currently, the refinery has a manufacturing capacity of 60,000 barrels per day.

Dhirubhai’s dream project, Reliance Infocomm, which is looked after by brother, Anil Ambani, after the company split in 2005, was also entrusted to Mukesh Ambani in its earlier stages.

Mukesh Ambani’s next strategy is to take a giant leap into the retail with stores across the country.

Mukesh Ambani’s popularity clearly shone forth in 2007, when he was selected as Businessman of the Year by a public poll conducted by NDTC. In the same year, he was presented the United States-India Business Council (USIBC) Leadership Award for Global Vision in Washington D.C., USA as well as the Chitralekha Person of the Year Award by the Chief Minister of Gujarat, Shri Narendra Modi. The same year also saw him recorded as India’s first trillionaire.

Rewinding his life, Mukesh Ambani was chosen as Economic Times Business Leader of the Year in 2006 and ranked 42nd among the World’s Most Respected Business Leaders and 2nd among the four Indian CEOs featured in a survey conducted by Pricewaterhouse Coopers and published in the Financial Times, London in 2004.

He was also conferred with the World Communication Award for the Most Influential Person in Telecommunications by Total Telecom and chosen Telecom Man of the Year by Voice and Data magazine in 2004. He ranked 13 in Fortune Magazine’s Asia’s Power 25 list of the Most Powerful People in Business and topped the Power List published by India Today for the second consecutive year.

In spite of managing the country’s biggest private sector company, Reliance Industries Ltd., Mukesh Ambani’s sight is currently on the Indian market alone. His vision is clear – he wants to expand rapidly within the country and change the lives of its people for the better. However, his focus extends beyond merely size increase to value generation and upscaling.

Mukesh Ambani is regarded as the ‘modern day philanthropist’, whose paragon actions have inspired and cultured a socially sound community today. As the saying goes, ‘A man’s true wealth here-after is derived by the good he does in this world’; Mukesh Ambani has persistently held social welfare through corporate social responsibility (CSR) and charitable deeds in high esteem. He believes in industrious innovations that transform society; and that unless a business has a larger purpose that serves the millions readily, sustainable growth is impracticable.
The Reliance Foundation, spearheaded by Mukesh Ambani and his wife Nita Ambani, is one of India’s largest corporate run social organization that addresses social development imperatives of India; namely quality, formal and vocational education, affordable high-quality health care, meaningful rural development and urban renewal, and protection and promotion of India’s priceless heritage of arts and culture.


Mukesh Ambani run Reliance Industries Limited has been accorded with the second position in the list of world’s 10 biggest ’sustainable value creators’. By generating the largest shareholder value in terms of market capitalization, Mukesh Ambani and Reliance Industries Limited, both, are held as the finest corporate entities of the world today.

Mukesh Ambani has for long regarded ‘value-addition’ process as primal to any business establishment. He affirms that unless a business admits value; in regards to its products, services, work force, shareholders and end users, a business’s worth is futile. With the influx of this belief into tangible action at RIL, Mukesh Ambani’s conviction has been proven true as Reliance climbs high on prosperity charts, becoming India’s most trusted and value-rich brands today.

Mukesh Ambani dons a cap with many feathers, but he carries them with grace and panache. At 53 years, his sheer energy is enough to take one’s breath away. Having achieved so much, Mukesh Ambani remains hungry for more. So, he continues to create, continues to build and continues to shine brightly on India’s business horizon.

The Reliance Digital store at Moments Mall Kirti Nagar, in the city of Delhi is all set to welcome actor Imraan Khan, Katrina Kaif and Ali Abbas Zafar today(5th September 5, 2011) at 5:00 PM. The actors and their team will visit the store for the promotion of their latest flick Mere Brother ki Dulhan. The cast is expected to interact with the crowd and media at the promotion event.

This Reliance Digital Store is the latest addition to the electronics chain. The store was launched on 3rd September. As a part of special launch festivities, Reliance Digital has put in place exclusive launch offers which range from price-offs and discounts to exchange offers. As a part of the ‘Mismatch Exchange’ scheme, customers can bring in their old refrigerators, washing machines and television sets in exchange for any of the latest electronic product from the store. Reliance Digital is also offering a special purchase scheme where customers can take home any product of their choice at an easy EMI of just Rs. 51. And every purchase will be backed by Reliance Digital’s customer support team at ‘Reliance resQ’, available 365 days a year.

About Reliance Digital:
Reliance Digital is a one stop shop with cutting edge technology for the entire range of household electronics, appliances, computers, gaming and telecom products. Reliance Digital Stores house over 150 international and national brands and over 4000 products. The range at Reliance Digital spans, Audio and Video products (TV’s, DVD players, Car Audio players), Electronic Musical Instruments and Digital Cameras, Gaming Consoles, Computers and Peripherals, Mobile and Fixed line instruments, Durables like, Air Conditioners, Refrigerators, Water Purifiers, Kitchen and Home Appliances.

Reliance Industries Limited (RIL) posted its results for the First Quarter of FY2015 and these results have surpassed all expectations. The company posted a billion dollar profit, the first in its illustrious history. However, there seems to be a huge scope for further growth at the Mukesh Ambani owned company on account of its ongoing expansion of its petrochemical production capacity is complete.

RIL’s share gas business in the United States; overtook its Indian counterpart in terms of revenue in the first quarter of FY 2015. This many believe was due to several factors. Dhaval Joshi, an analysts with brokerage firm Emkay was quoted as saying, “RIL’s decent performance during the quarter has largely been the result of lower depreciation and interest cost. However, in petchem, it is too early to expect a sustained recovery in demand and margins as demand still remains a concern. Any weakness in demand could impact a sustained margin recovery.” However, nearly all analysts in this domain agree that while Petrochemicals and shale gas represent a huge opportunity in the future, they won’t give any massive returns in the immediate future.

That being said, various expansions at RIL are structured in a staggered manner. What this means is that the balance sheet will show a significant spike in revenue growth only after a few years. Two of such expansions, refinery off-gas cracker and petcoke gasification are expected to contribute significantly to the company’s revenues. The off-gas cracker process produces ethylene, which is used as a raw material for other products. Petcoke gasification will reduce RIL’s dependence on external natural gas to run its refinery. RIL is spending $8 billion, or Rs.48,000 crore, to expand the aggregate capacity of its 20-odd petrochemical products by 66%. The products include ethylene, polyethylene or polythene (PE), paraxylene (PX) and purified terephthalic acid (PTA). All of this will bear fruit only by 2015-16 according to RIL’s CFO, Alok Agarwal.

Sales of RIL’s shale business in the US stood at Rupees 1,617 Crores, up 55% from the previous year and exceeded the domestic sales of Rupees 1,557 Crore by 4%. Agarwal expects RIL’s growth to be at around 20% in terms of revenues and profits based on estimates. In terms of investments, RIL has crossed $7 billion till date.

Reliance Industries estimates that by commissioning new capacities, the cost benefits of liquefied petroleum gas substitution in the Jamnagar Complex, will all contribute to the estimated Rupees 11,000 Crore addition to the company’s Ebitda. The shale gas business will also experience continuous growth and this, along with the petrochemical and natural business will surely contribute in boosting the profit well past the billion dollar mark in FY 2015.

Mukesh Ambani has been on somewhat of a spree acquiring new business and expanding the operations of current ones. Reliance Jio (RJIL) is touted to be the next big thing in the Indian telecommunications landscape and its parent company Reliance Industries Limited (RIL) is wasting no time in expanding its operations while gearing up for a highly anticipated launch in the first half of 2015. RIL hit headlines when it announced the acquisition of media behemoth Network 18. As such this marquee acquisition looks like the beginning of a highly ambitious phase for the company.

The past six months or so have seen RJIL enter into new agreements with mobile handset manufacturers and Videocon for telecom towers.The abrupt acquisition of the Independent Media Trust (”IMT”) of which RIL is the sole beneficiary, has completed the acquisition of control of Network 18 Media and Investments Limited (”NW18″) including its subsidiary TV18 Broadcast Limited (”TV18″).Apart from nominees of IMT, Deepak S Parekh and AdilZainulbhai have been inducted, as Independent Directors on the board of NW18 and RaghavBahl will continue to be on the Board of NW18 as a Non-executive Director.

On the other hand, the highly awaited fourth-generation services are expected to see the light of day in the next year. Mukesh Ambani, in the annual general meeting told investors that 2014 was going to be a year of testing and finalizing the rollout plan. 4G is the next big thing with network speeds faster than the existing 3G network by about 12 times. With over Rupees 70,000 invested in this domain, all eyes are on RJIL for a blockbuster launch next year.

The launch is expected to take place in two stages – In the first stage, the services will be introduced in 5000 towns and cities. In the second stage, the network will be expanded in six lakh villages. With intelligent marketing like reaching out to the student community at IIT-Bombay, analysts expect Reliance Jio to hit the ground running from day one.

Apart from these services, the company has also made the news for the many deals it has signed with its peers. The most notable such deal signed by RJIL has been with Sunil Mittal’s Bharti Airtel. Now, Reliance Jio has signed an agreement to share 500 towers of Videocon Telecom in Uttar Pradesh East, Uttar Pradesh West, Bihar and Jharkhand. Along with this, the fact that innovative products like live streaming television on its handsets mean that RJIL is well on its way to carving out a niche for themselves in the highly lucrative and promising Indian telecom sector.

Reliance’s retail division has been making a lot of news lately. From posting record profits in a financial year, to growing at an immense pace, the Mukesh Ambani-owned chain has been belting out great results on the business side of things for some time now. On the other hand, it has also been hugely supportive of the entertainment industry. Reliance Digital, the consumer electronics store has played host to many Bollywood superstars and hosted candid interactions between them and fans & the media.

Reliance Trends is the fashion store of Reliance Industries Limited’s retail stores. It stocks some of the most trendy, hottest clothing and accessories in the market right now. Fittingly, it’s associated with the entertainment industry, specifically films. Reliance Trends was the associate sponsor and the fashion partner for the 61stFilmfare Awards South. The awards, which honour the best and brightest in South-India’s huge film industry, were held in the second week of July. Renowned designers like Chaitanya Rao and Shabina Khan put together an exclusive Reliance Trends red carpet collection for the stars, who dazzled that night.

The highlight of the evening was Dhanush – winner of the Critics Award for Best Actor (male) for Tamil. He looked dapper in a black suit designed exclusively by Shabina for the brand. The star-studded evening also had Atharvaa – Best Actor (Tamil), Lakshmi Manchu, Best Supporting Actress (Telugu), Ann Augustine – Best Actress (Malyalam) and the emcees – Chinmayi and Rahul, all of whom wore designs from the exclusive red carpet collection designed by Chaitanya, for the brand. In fact, both Chinmayi and Rahul loved their outfits.”We thank Filmfare and Reliance Trends for our stunning red carpet outfits. Chaitanya has put together a glam collection,” they said. An elated Chaitanya said, “I love Reliance Trends for its great designs and vibrant colours. They’ve made fashion accessible across the country and I enjoyed working with India’s largest fashion destination.” Other stars such as RakulPreet Singh and IshaTalwar were also there, looking chic and told us they were wearing

It’s a conscious effort by Reliance Trends to include more Indian designers in their catalogue. Chaitanya’s creations for Reliance Trends,are just starting to hit the market. Many other designers already have designs and outfits which are sold at these stores and are hugely popular.

Reliance Industries Limited (RIL) has released a statement regarding the KG-D6 gas price issue. The Mukesh Ambani-owned company categorically states that the government’s move to disallow it recovery of certain costs relating to the D6 gas block in the Krishna-Godavari basin (KG-D6) did not amount to a penalty. Further, this was not in line with the contract it had signed with the Government when it was allotted exploration and production rights nearly a decade back.

RIL issued a statement at the Bombay Stock Exchange (BSE) regarding the penalty imposed by the government for the fall in the output levels of KG-D6 basin. In a statement, the company said, “RIL and its partners believe the purported rationale of the government, in proportionately disallowing the cost in the ratio of actual production to the estimated production from D1-D3 fields in KG-D6 is not as per the Production Sharing Contract (PSC).”The exchange had earlier sought a clarification from RIL on a news article saying the latter had been slapped with a new fine of $579 million. The company said media reports “apparently” misquoted the disallowance of cost recovery by the government as levy of fine or penalty.

The Ministry of Petroleum under the command of Minister Dharmendra Pradhan had told the Parliament that the government had issued a notice to RIL whereby a cumulative cost of $2.376 billion up to March 31 had been disallowed. “The ministry has also raised a claim of additional profit petroleum of $115 million to be paid by the contractor, on account of disallowance of cumulative contract costs of $1.797 billion, till 2012-13,” he had said.

According to the production sharing contract that is drawn between the Govt., & any private entity, a company and its partners can deduct all expenses from the sale of gas before sharing profits from this sale with the government. In this case, it applies to RIL’s partners – British Petroleum (BP) and Niko Resources. RIL has states that in 2012, the Govt. of Indiawrongfully sought to disallow cost recovery of investments made in the KG-DWN-98/3 block for 2010-11 and 2011-12. In a statement, the company said, “The potential impact to the contractor is the additional payment of profit petroleum to the government, when and if the disallowed cost is added to the profit petroleum.”

Reliance Industries have also states that it had commenced an arbitration process under the production sharing contract (with its partners BP & Niko) over the wrongful disallowance of cost recovery by the government in November 2011 and that the news item of disallowance of $579 Million related to 2013-14.

Reliance Jio Infocomm Limited’s (RJIL) highly anticipated fourth-generation mobile services (4G Services) are set to finally see the light of day in March 2015. Reliance Jio, a subsidiary of India’s largest Private Sector enterprise, Reliance Industries (RIL) is one of the newest telecom operators in India. However, the Mukesh Ambani-owned company is the only one to hold a pan-India 4G license which would enable it to offer cutting-edge services across the country.

4G is the next step in India’s growing telecom sector. It’s estimated that the 4G network that RJIL will be hosting is about 12 times faster than current 3G networks. Reliance has invested considerably in these services – the total investment is about Rupees 70,000 Crores over the past few years and the company is eager to see its efforts bear fruit. Hence, with a launch imminent at the close of FY 15, telecom experts are eagerly awaiting to see what RJIL brings to the market. The launch is expected to take place in two stages – In the first stage, the services will be introduced in 5000 towns and cities. In the second stage, the network will be expanded in six lakh villages.

Reliance Jio has also marketed the product very intelligently reaching out to niche audiences and venturing into territory that makes a lot of sense in the long term. For example, when RJIL showcased information about the products and services it’s going to offer at IIT-Bombay’s renowned tech fest in 2014, it garnered a lot of attention from the student community and mainstream media alike. In the fest, the company said that it will launch live TV streaming services simultaneously with 4G services. This is called Jio Play. Video on demand option will also be there will be called Jio World. There will also be Jio Drive in which every customer will be given 100 GB free storage. It is possible to store around 120 movies in this.

Every customer of Reliance Jio will be given an appliance which is connected to the television. It is connected to the nearly tower though which Wi-Fi network is offered. Jio will also offer video streaming, video calling, VOIP services, instant messenger and payment services. There will be telecom, education, entertainment and also reliance own applications to satisfy individual as well as corporate customers.

Mukesh Ambani’s Reliance Retail has achieved quite a high level of success in recent times. The retail chain has invested a lot in its expansion in rural and urban India and as constantly reinvented some of its store formats to appeal more to the local crowd. The chain reached profitability this past year, much to the delight of RIL Shareholders and Mukesh Ambani, the Chairman and Managing Director of Reliance Industries Limited (RIL), the parent company of Reliance Retail. As such, in the recent Annual general Meeting of RIL, Mukesh Ambani made a special note of Reliance’s retail plans. In his speech, Mr. Ambani mentioned the need to expansion of retail chains and sought to increase the profitability as well as visibility of the stores from the consumer’s perspective. With this as the target, the retail division of RIL did indeed start aggressively planning on increasing its foothold in the highly-lucrative sector.

New Acquisitions:

Carrefour is the world’s second largest retailer. The French Company had been in India for little under two years after Foreign Firms were allowed to consolidate their presence in 2012. Now, the French giant has decided to leave India and move its targets back to Europe and other emerging markets like China and Brazil. The retailer has not only quit India, but a host of other underperforming markets, including Singapore, Malaysia and Greece, under chief executive Georges Plassat’s three-year revival plan. The chain operated five stores in India.

Reliance Retail and Bharti Enterprises are believed to be in race to buy India assets of Carrefour who, like many stores of Reliance Retail operate on a cash and carry format. For many key decision-makers at RIL, the allure of readymade cash and carry stores and the associated infrastructure may be too difficult to ignore. Both Reliance Retail and Bharti Enterprises spokespersons declined to comment.

In a statement regarding its exit from India’s retail sector, a Carrefour statement said, “Closure of Carrefour’s business in India will be effective at the end of September 2014. Until that time, the company will continue to be fully engaged with all its employees, suppliers, partners and customers to ensure a smooth transition.”

The $500 billion retail sector was opened up to foreign supermarket operators in 2012 but mandatory local sourcing requirements and the policy of letting state governments decide whether to allow global chains in their states has deterred new entrants. The Narendra Modi government has also opposed foreign investment in the supermarket sector, fearing it will harm small shopkeepers.

For Indian Firms like Reliance Retail though, acquiring assets like these can only help in strengthening their brand across India’s incredibly vast geography and lead to an increase in profits – something which the RIL-owned company seems to have mastered, even in the light of a dismal economy.

Mukesh Ambani’s Reliance Jio seems to taking care of every possible thing before the launch of its highly anticipated fourth generation (4G) services in India. The Reliance Industries Limited (RIL) owned company has strived to optimize existing infrastructure while building ambitious new backend infrastructure. The company has also signed deals with many other entities for sharing infrastructure. This has served two purposes – the first being a sharing of costs thereby paving the way of increased profits and more importantly, conserving the environment. The most notable such deal signed by RJIL has been with Sunil Mittal’s Bharti Airtel.

Now, Reliance Jio has signed an agreement to share 500 towers of Videocon Telecom in Uttar Pradesh East, Uttar Pradesh West, Bihar and Jharkhand. The signing of this deal comes barely a few weeks after Mukesh Ambani in his annual address to shareholders promised the rollout of India’s first 4G services in 2015 after a comprehensive trial phase commencing in mid-2014.

Videocon Telecom managing director Arvind Bali said that his company plans to deploy 6,000 additional towers within a year for rolling out its 4G services, which may also be shared with Reliance Jio going forward. The company will also explore additional tie ups with the unit of Reliance Industries for 4G network sharing, optical fibre network sharing, internet broadband services and other mutually conducive opportunities, Bali added. The cooperation between many companies during the developmental phase of fourth-generation phase did raise a few eyebrows but all of this is in the best interests of the companies themselves and ultimately, the consumer.

Analysts say that this sharing of telecom essentials is not unheard of. In fact, that Indian companies are actually collaborating is evidence of a more liberal, progressive market. While the backend that will support these services is sure to be beefed up, many companies are actually contributing heavily in challenging the traditional boundaries of telecom. Reliance Jio, for example has been experiment with live streaming television on its handsets and the company has in fact tied up with many commercially viable and successful news, entertainment and sports channels to offer service on mobile. In addition, with Mukesh Ambani acquiring media behemoth Network 18, the task of content and sharing across the mobile landscape has in fact become easier for RJIL.

The past six months or so have seen RJIL enter into new agreements with a wide variety of businesses – from mobile handset manufacturers to entities controlling telecom towers. With 2014 poised to be a year of intense testing for the Mukesh Ambani-owned company, all eyes will be on the launch of 4G services from one of India’s greatest Private Sector success stories come 2015.

Mumbai, July 7, 2014: Reliance Industries Limited (“RIL”) today announced that Independent Media Trust (“IMT”) of which RIL is the sole beneficiary, has completed the acquisition of control of Network 18 Media and Investments Limited (“NW18”) including its subsidiary TV18 Broadcast Limited (“TV18”).

Apart from nominees of IMT, Shri Deepak S Parekh and Shri Adil Zainulbhai have been inducted, as Independent Directors on the board of NW18. Mr. Raghav Bahl will continue to be on the Board of NW18 as a Non-executive Director.

With the completion of this transaction, IMT and RIL have become promoters of NW18 and TV18. The open offers to the public shareholders for acquisition of equity shares of NW18, TV18 and Infomedia Press Ltd. as announced on May 29, 2014 by IMT are in process and the Draft letter of offer has been filed with SEBI for its comments.

About RIL

Reliance Industries Limited (RIL) is India’s largest private sector company on all major financial parameters with a turnover of INR 401,302 crore (US$ 67.0 billion), cash profit of INR 30,795 crore (US$ 5.1 billion) and net profit of INR 21,984 crore (US$ 3.7 billion) as of March 31, 2014.

RIL is the first private sector company from India to feature in Fortune’s Global 500 list of ‘World’s Largest Corporations’ and currently ranks 107th in terms of revenues and 128th in terms of profits in 2013. RIL ranks 68th in the Financial Times’ FT Global 500 list of the world’s largest companies. RIL is ranked amongst the ’50 Most Innovative Companies – 2010′ in the World in a survey conducted by the US financial publication – Business Week in collaboration with the Boston Consulting Group (BCG). In 2010, BCG also ranked RIL as the second highest ‘Sustainable Value Creators’ for creating the most shareholder value over the decade in the world.

Key Contact:

Tushar Pania

Reliance Industries Ltd.

+91 9820088536

India’s retail sector has been growing at an incredible rate for the past two years. Most Indian conglomerates have or at least tried to establish a presence in this sector. As such, the market leader for some time has been Mukesh Ambani’s Reliance Retail which owns a wide variety of stores in the consumer goods, automobile and food sectors. Now, the Reliance Industries Limited (RIL) owned retail chain is planning to take on the mother of all retail chains – Walmart when it established its presence in India.

The valuation of India’s retail sector is a staggering $450 Billion. Reliance Retail has tried to capture a large part of this. The company has always tried to innovate and offer new services that could turn into an asset and the ‘Cash and Carry’ format has been a huge hit so far. The Ambani-owned retail chain is certainly leading the pack as its set to open around 100 cash-and-carry stores in the next two years. During this time it faces stiff competition from a retail chain that practically rules the market in North America.

Walmart is one of the great business stories of our times. The chain has permeated into almost every neighbourhood of North America and is synonymous with ‘retail.’ With FDI in retail being given the thumbs up, the American-chain is seeking to establish its presence in India. Standing in its way is Reliance Retail – an already established name and brand that has garnered many accolades for its service. Reliance is set to open around 100 cash-and-carry stores in the next two years, while Walmart India CEO KrishIyer said it would take the world’s largest retailer another six years to launch 50 Best Price stores.

A person close to Reliance Retail was quoted as saying, “Within two years of opening our first cash-and-carry store, we have become the largest wholesale cash-and-carry chain in the country and we plan to continue our current pace of growth. Our store expansion programme will cover top Indian cities by 2016.”

The sizes of the new Reliance Market stores will range between 10,000 square feet and 45,000 square feet, said a person familiar with the development. To save on real estate costs, the company will adopt improvised methods to store goods vertically rather than horizontally. It will also focus on developing its own brands for all customer segments.

With new stores optimizing space to save real estate, the company will target both, end-consumers and small businesses. This is similar to the business model followed by other international retailers in the country. For instance, Walmart, Metro Cash & Carry and Carrefour operate only cash-and-carry stores that are different from B2C retail chains, such as Big Bazaar and Shoppers Stop. The cash-and-carry business is about bulk-buying and it can only serve registered members including kirana stores, hospitals and hotels. Reliance Market has 1.2 million registered members.

The Department of Telecom (DoT) has gone on record to categorically state that there was absolutely no wrong-doing on anyone’s part in granting licenses to Mukesh Ambani’s Reliance Jio Infocomm Limited (RJIL). The government agency that forms a critical part of the Telecom Ministry has further gone on to state that there was no wrongdoing in allowing Mukesh Ambani-owned Reliance Jio Infocomm to convert its internet service provider (ISP) permit into a unified licence (UL) or in the auction of the broadband wireless spectrum in 2010, as alleged in a draft report of the national auditor.

CAG’s Allegations:

The Comptroller & Auditor General of India (CAG) has claimed in a new report that the Department of Telecom (DoT) ignored signs that pointed to evidence of rigging the 2010 auctions in which a company called Infotel Broadband Services Pvt. Ltd (IBSPL) – won pan-India broadband spectrum by paying 5,000 times its net worth of Rupees 2.5 crore.

The CAG highlighted that IBSPL, which submitted an earnest money deposit of Rs 252.50 crore and won a slot of 20 MHz of pan-India BWA spectrum, had through the “covert and overt assistance of third party/private bank” bid for Rupees 12,847.77 crore and then sold the company to a Reliance Industries unit on the day of completion of the auction.

It accused IBSPL and RIL, the parent of Jio, of collusion, and asked for a through probe into the whole matter, cancellation of the broadband spectrum allotted post the 2010 auctions and “exemplary punishment” on the colluding firms.

Reliance’s Response:

Reliance Jio’s parent company Reliance Industries Limited (RIL) completely rejected the CAG’s allegations. “We outrightly reject any suggestion whereby spectrum was acquired in any manner other than through a transparent bidding process duly supervised by Government of India and our company being in compliance of every single stipulation and rule,” it said. The company also clarified that it was not aware of any such draft report from CAG.

Even IIBSPL’s parent company denied such allegations. MahendraNahata, the head of IIBSPL’s parent company Himachal Futuristic Company Ltd ( HFCL), said that no condition in the auction rules was violated and no confidential information was shared with anybody.According to the draft audit report, the IBSPL promoter-director went on electronic media on June 11, 2010, to say the company had been in talks with RIL during the course of auction process.