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.

FAMILY
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.

EDUCATION
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.

EMERGENCE OF THE ENTREPRENEUR
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.

ACHIEVEMENTS AND ACCOLADES
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.

LOCAL KING
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.

The MODERN INDIAN PHILANTHROPIST
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.

The VALUE CREATOR

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.

THE STORY WITH NO END
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.

On Thursday, September 25th, Prime Minister Narendra Modi launched the “Make in India” campaign. Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited (RIL) described the launch of this campaign as a historic day for Indian industry. In addition, he pledged that his company will create 1.25 lakh new jobs over the next 12 to 15 months to support this movement.

Mr. Ambani said, “PM Modi dreams and does, working 14 hours a day and motivates a billion Indians to dream and do.” He also believes that the program will help make our country globally competitive and put it on a fast-growth trajectory. “I firmly believe 8-10 per cent for a long period of time is the right potential for India,” he added.

According to him, the outlook of international investors has significantly changed since Narendra Modi came into power. He also thanked the Prime Minister for his leadership and inspiration to India Inc. He added that the Prime Minister’s vision of a digital India will also go hand-in-hand with the “Make in India” campaign.

Further, Mr. Ambani pointed out how the success of India’s mission to Mars on 24th September has exhibited what our country can achieve. The Mars mission cost less than INR7 per kilometer, which is less than the cost of travel by auto rickshaw in many large Indian cities.

Other business leaders such as Cyrus Mistry, Chairman of Tata Group; and Kumar Mangalam Birla, Chairman of Aditya Birla Group, also expressed their support towards this campaign.The former remains fully committed to investing in India while the latter believes that the campaign is a clarion call that can take the Indian economy to great heights.

Mukesh Ambani’s Visit to the US

Pressing prior engagements did not allow Mr. Ambani to be part of the business delegation that accompanied Narendra Modi on this visit to Japan last month. However, he is currently part of the business delegation in New York City and Washington D.C. and is attending some of the events that have been organized in honor of Prime Minister Narendra Modi’s 5-day visit to the United States.

Sources revealed that Mr. Ambani was scheduled to attend a dinner reception hosted by S Jaishankar, Indian Ambassador to the US, at The Pierre, a Taj Hotels-owned luxurious heritage hotel, on September 28th.On 30th September, he is scheduled to attend a reception hosted by the US-India Business Council (USIBC) at the Andrew Mellon Auditorium in Washington, DC.

RIL is known to have significant dealings with the United States. In addition to selling fuel, the company also has 3 shale assets in the country in which it plans to invest an addition of $2 billion. This investment will be made towards the extraction of natural gas and oil from the sedimentary rock formations. RIL has already invested $7.3 billion since its entry into the US shale market in 2010.

In order to finance the purchase of telecommunications equipment from vendors such as Samsung in Korea, Reliance Industries Limited (RIL) will be raising $800 million from Korea EximBank (K-Exim). The much-awaited rollout of 4G services by Reliance Jio, RIL’s telecommunications arm, is scheduled for the first quarter of 2015.

It is believed that K-Exim will fund about 60% of the amount while standing guarantees for the remaining. The rest will be bankrolled by a number of global banks, three each from Korea and Japan, including ANZ and HSBC. The agreements expected to be signed within the next 2 days.

Other International Financiers

This will be the first international financing for the company after it borrowed $1.5 billion through external commercial borrowing (ECB) for its spectrum payments in 2010. RIL will soon be refinancing that funding at well. The new tenure for$500 million will be 6.5 years and for $1 billion will be 5.25 years. It will be at spreads that are lower than the previous loans.

Between 2012 and now, RIL has been responsible for approximately 14% of India’s exports. In addition to this, it has raised more than $11 billion from foreign countries through bonds besides funding from export-import banks and ECBs. A major part of this funding is essentially to finance RIL’s capital expenditures for large expansions of its petrochemical capacity.

RIL’s longstanding Relationship with Export Credit Agencies

In addition to being the country’s largest overseas borrower, RIL is also one of the most active Indian corporations in tapping Export Credit Agency (ECA) financing routes, which offer cheaper credit than commercial banks for long tenures. The latest financing with K-Exim for instance is believed to be for 12 years.

Taking into consideration RIL’s credit ratings and its strong balance sheet, ECAs from the United States, Korea, France and UK have frequently provided funding during 2013. As a result of this, the company has been able to lock in capital commitments for as much as 14 years at extremely low rates. On an average, a fixed-rate ECA offered by the US government comes with an interest rate of 3.5% for a 10-year dollar-denominated bond.

Reliance Jio’s Roll-Out Plans

In a note on September 16th, analysts from Credit Suisse, Sunil Tirumalai and Chunky Shah, wrote, “RJio has completed installation of 32,000 LTE (Long Term Evolution) base stations nationwide. The pace of rollout, importantly, has picked up sharply to 6,500-7,000 per month. It seems the company and the rollout partners are maturing in the rollout process.”

Reliance Jio has been working towards the 2015 launch of its 4G services and is expected to invest as much as INR70,000 crore in this regard. It is believed that RIL will be pumping in about 42% of that amount over the next two years. Spokespersons at RIL said that Jio will initially cater to 5,000 towns and cities, covering more than 90% of urban India. In addition to this, it will also launch its services in over 215,000 villages in India. Their overall target is to reach out to over 600,000 villages.

Leading industrialists such as Managing Director of Reliance Industries Limited (RIL), Mukesh Ambani, and Chairman of Essar Group, Shashi Ruia, will be participating in Prime Minister Narendra Modi’s ambitious project ‘Make in India’. The campaign is scheduled to launch on Thursday, April 25th at New Delhi.

Reminiscent of the ‘Vibrant Gujarat’ campaign that was spearheaded by the then Chief Minister of the state, Narendra Modi himself, this program aims at making India a leading global manufacturing hub. In addition to improving trade and economic growth, the program also intends to create huge employment opportunities within the country.

The official invitation sent by the Government says, “The ‘Make in India’ Campaign is one of the key missions of the Government and companies from India and outside are being welcomed to expand and set up facilities for manufacturing in India – for servicing the domestic and global markets. CEOs of important manufacturing companies in India both domestic and MNCs will be present in the function.”

Other Hig- Profile Attendees

Other high-profile business personalities likely to attend the launch include Cyrus Mistry, Chairman of Tata Group; Anand Mahindra, Chief Managing Director of Mahindra Group; Kiran Mazumdar-Shaw, Chief Managing Director of Biocon; and Y C Deveshvar, Chairman of ITC Limited.

In addition to the assembled corporate guests, the list of attendees also includes members of the Prime Minister’s council. These individuals hold key portfolios such as commerce, infrastructure and finance.

Officials said that invitations from the government will also go out to 3,000 of the world’s top companies to consider India for their investments. It is expected that the country’s mission of economic growth will be facilitated through these invitations.

Birth of the ‘Make in India’ Campaign

In his first Independence Day address as Prime Minister, Narendra Modi, invited global business communities to set up manufacturing facilities in India, giving birth to the slogan ‘Come, Make in India’.

A senior Commerce Ministry official said, “The idea was floated by the Prime Minister on Aug 15. It is taking shape now. The basic objective is to make India a manufacturing hub with a sustainable long-term growth of 10 percent. Job creation is also a priority.”

He adds, “The campaign also has an implementation angle to it: Specific reforms in areas like tax policies and de-regulation will be identified and set in motion. The states will also be co-opted into this initiative for seamless flow of investments.”

It is believed that in addition to launching the campaign, the event on Thursday will offer a platform for potential investors to raise a number of questions. The queries will be addressed by a panel of top officials. Furthermore, ideas will be invited and provisions will be made to act upon them.

To facilitate reach and ensure success of the campaign, it will be simultaneously launched in different state capitals, including Bangalore, Chennai and Mumbai. The campaign will also be launched in a few other countries that share the same time zone as India.

With an aim to expedite the full roll-out of 4G by March 2015, Reliance Jio Infocomm has signed a tower-sharing deal with GTL Infrastructure. This deal will also help control costs at this stage of service deployment.

Sanjay Mashruwala, Managing Director of Reliance Jio Infocomm said, “Our mission is to launch pan-India next-generation voice and data services. We will build the same through a judicious combination of own build and rented infrastructure.” Further, he addedthat the GTL deal is “not only a step in that direction but will also help us accelerate our roll out.”

Reliance Jio has been actively entering into a number of infrastructure-sharing agreements with telecommunication companies that have existing passive infrastructure in place. In addition to quickening the pace of its launch, avoiding duplication of infrastructure, and lowering capital costs, this move can also help limit environmental damage since telecommunication towers tend to be heavy consumers of diesel.

Reliance Jio’s Roll-out Plans

The company intends to lease about 70,000 towers and install approximately 30,000 of its own. Since it aims to launch 4G data and voice services in the coming year, these figures also include smaller cell sites on single poles. According to the agreement with GTL Infrastructure, Reliance Jio will use about 30,000 of their telecom towers spread all over the country.

Last year, the company had announced an infrastructure-sharing deal with Anil Ambani-led Reliance Communications (RCOM). The deal proposed to use some or all of the 48,000 towers that are held by RCOM’s Reliance Infratelunit. Another tower-sharing agreement was also signed with Bharti Infratel along with an infrastructure deal with Bharti Group that allows Reliane Jio to use Airtel’s subsea cable network.

Picking up Pace

A spokesperson from the Switzerland-based multinational financial services company,Credit Suisse, said that Reliance Jio is very much on track with its plans to launch 4G services by March 2015. It has completed installation of about 32,000 Long Term Evolution (LTE) base stations across the country. Furthermore, the pace at which the installations take place has picked up to about 6,500 per month as compared to the rate of about 3,000 per month in May 2014.

Furthermore, the spokesperson said that that developments in the global LTE handset ecosystem is pushing down price-points at a fast pace. This means that sub-$100 LTE smart phones could soon become a reality. This shift in the market could be rather disruptive in India, where the top 30% of customers accounts for 70% of the revenues in the telecommunications sector.

Reliance Jio’s Airwaves License Agreements

Reliance Jioowns pan-India airwaves in the 2300MHz band since May 2010 and must deploy its 4G services by May 2015 to comply with its license agreement. It has also won the 1800MHz band airwaves at an auction in February this year. It is believed that this will be used to launch 4G data services and 2G voice services.

The spokesperson adds that Reliance Jio has also awarded a second LTE base station contract to Samsung for 50,000 to 70,000 units. This could result in the network size of the telecommunications company crossing 100,000 base stations.

Member of the winning squad of the 2010 FIFA World Cup and Spanish football star, Joan Capdevila, Capdevila has joined as the marquee player for the Guwahati franchise, NorthEast United team, of the Indian Super League (ISL). He believes that playing in this league will allow him to use his extensive experience to guide young Indian players.

Capdevila’s Career and Plans

Capdevila’s football career includes playing for La Liga clubs such as Espanyol, Deportivo La Coruna and Villarreal. In addition to this, he has played for Atlético Madrid on 31 occasions.

He told reporters, “I have played in top football leagues across the world like Spanish and Portuguese, the main reason is to join a new challenge that is growing up and I want to help this growth. With my experience, I want to help the budding talent of India to grow, by teaching them and guiding them.”

He adds, “I am really grateful to NorthEast United to give me this opportunity to join this new challenge for the whole country. I hope to bring my experience here to help NorthEast to grow and ISL to grow as well. I am in the last leg of my career and wanted to come and enjoy myself.”

The co-owner of the Guwahati franchise, John Abraham, says that the team will now play three friendly matches in Goa before they return to their home grounds for training.

Football Leagues in India

The much-revered left-back that has also made 60 international appearances representing Spain believes that the ISL has a unique format compared to other leagues and acts as a great start for India in the world of football.

The latest FIFA rankings put India at 158th place in the world. Capdevila says, “This is very different from other leagues. In India, it is just starting and this is a very nice beginning. It is a very nice project which is going to be for a lot of years. Indian football is going to grow and would call a lot of attention of other players for sure. It is a nice project for the future to be put like a league for the whole year. After many years, it is going to be the main league of India for sure.”

Meanwhile, Abraham believes that the ISL could eventually turn into an 8- or 9-month league like the English Premier League (EPL) and La Liga. When asked about whether or not opting for overseas players that are past their prime is the correct approach to sustain the league in the long run, he said, “Initially, it would help. It is very important to get players with that kind of experience on board. Having players like Capdevila and other marquee players, it will help. I think it will help in the short run initially to spark off the interest and be a catalyst but in the long run of course we need to re-strategize and understand what we need to do.”

The first match for the first season of this league will be held on October 12th while the finals will be held on December 20th.

Leading personalities from diverse walks of life have been chosen to receive the Priyadarshni Academy’s Global Awards. On 19th September 2014, the likes of Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited(RIL); Priyanka Chopra, Bollywood Actress; and Dada J P Vaswani, a Religious Leader and Head of the Sadhu Vaswani Mission will be awarded accolades at The Trident, Nariman Point, Mumbai.

The event will be attended by Union Minister Piyush Goyal along with the Maharashtra Assembly Speaker Dilip Walse-Patil and former Union Minister Suresh Prabhu, among many other renowned guests. Nitin Gadkari, Minister for Shipping, Road Transport & Highway; Rural Development and Panchayati Raj for the Government of India will be the Chief Guest at the event.

About Priyadarshni Academy

Since its inception in 1984, this not-for-profit academy has been involved in a variety of socio-cultural activities. For instance, the academy intends to facilitate national integration through encouragement of dance and music. The academy is also actively involved in a number of environment protection initiatives, in the provision of nutrition and monetary aid to the underprivileged, international cultural exchange programs and promotion of sports and education. It hosted its first Global Awards in 1985. This year will mark the academy’s 30th anniversary for the award function.

Recognizing Global Achievers

The Chairman of this establishment, Niranjan Hiranandani, says that through the Global Awards, the academy intends to pay tribute to achievers from around the world that inspire leaders of both current and future generations.

Mukesh Ambani has been selected for the Harish Mahindra Memorial Award to recognize his role as a business leader. In 2012, it was awarded to Kumar Mangalam Birla, Chairman of Aditya Birla Group for his outstanding contributions to globalization of Indian industry.

The Smita Patil Memorial Award, previously won by Deepika Padukone and Vidya Balan, will go to Priyanka Chopra this year in recognition of her contribution as an actress. The Spiritual Leadership Award will be given to J P Vaswani.

Other Awardees

Other notable names on the list of award recipients include Rajshree Birla, Director of Aditya Birla Group, who will be given the Ramakrishna Bajaj Award for her contribution in the field of Corporate Social Responsibility.

CEO of the Miss World Organization, Julia Morley is named for the Save the Children Award while Sir Fazle Hasan Abed from Bangladesh will be recognized for his role in the alleviation of poverty and empowerment of the poor. The award for Outstanding Contribution to Sustainable Development will go to American economist Jeffrey Sachs. Other past international winners include names such as Dr. Jacques Rogozinski, General Manager at Inter-American Investment Corporation, for his contribution towards economic development leveraging on small and medium enterprises.

This event is considered highly prestigious and acknowledges outstanding achievements of various individuals in the field of literature, entrepreneurship, science, technology, environment protection, education, and for their work in fields such as fine arts and films.

The number of US dollar billionaires in India is at a record high. According to the Hurun India Rich List for 2014, this is owed to the boom in the stock market and the slight strengthening of the rupee. The number of billionaires in the country hovered between 59 and 63 for the last two years. The listings made available on Tuesday said that this figure has gone up to 109.

Mukesh Ambani Leads the Billion-Dollar Club

The Chairman and Managing Director of Reliance Industries Limited (RIL) held on to his position as the richest man in the country. His fortune, at INR1.65 lakh crores, has gone up 37% from last year.

This is the third consecutive year in which Ambani tops the list of 230 individuals. His pole position does not come as a surprise considering the performance of his group of companies over the last few months. RIL sought approval for an INR78,000 crore expansion plan for its existing refinery business last year. In addition to this, RIL has also bought over Network 18, one of India’s largest media houses, for INR4,200 crore.

Others on the List

Dilip Shangvi, Founder and Managing Director of Sun Pharmaceuticals rose up to second position, surpassing Laxmi Mittal for the very first time. His wealth at INR1.29 lakh crores shot up by 43% over the last year. During the same period, his company acquired the Japanese-owned Ranbaxy, making Sun Pharmaceuticals the largest drug manufacturer in India and the 5th largest in the world.

With a fortune that went down by 4%, to INR97,000 crore, LaxmiMittal, Chairman and CEO of Arcelor Mittal dropped down one place to the 3rd position on the list. The 4th place is taken by AzimPremji, Chairman of Wipro Limited. He saw the value of his 57% stake in the company go up by 11% making him the richest South Indian on the list. His current fortune is valued at INR86,000 crores.

A surprise entry into the top 10 of the Hurun India Rich List of 2014 was Gautam Adani, Chairman and Founder of Adani Group. With a net worth of INR 44,020 crores, his wealth shot up by 152% from last year. The stock prices of Adani Ports and Adani Enterprises went up 90% and 180%, respectively, during this period.

Founder and Chairman of HCL Technologies, Shiv Nadar, at 5th position registered a 40%rise in wealth that is owed to the 57% increase in the stock price of his company. The 6th position went to Chairman of Hinduja Group of Companies, S P Hinduja, with a net worth of INR72,000 crores.

Pallonji Mistry, Chairman of Shapoorji Pallonji Group; Kumar Mangalam Birla, Chairman of Aditya Birla Group; and Sunil Mittal, Chairman and CEO of Bharti Enterprises, also made it into the top 10 of the Hurun India Rich List for 2014.

“If last year’s rich list demonstrated the resilience of Indian corporates in a sluggish market, this year’s exemplifies corporate India’s potential to lead the global market,” says Anas Rahman Junaid, Head of Hurun Report India. Furthermore, he also believes that the new Central Government has also sparked a boom in the stock market.

Amidst all the speculation about the future of 4G services in India, Reliance Jio is finally showing signs of its seriousness towards launching these services across 400 cities by March next year.

This year marks the completion of 1/5th of the total license period for Reliance Jio and 4 years have passed without the generation of any revenue.This put Chairman and Managing Director of Reliance Industries Limited (RIL), Mukesh Ambani under the scanner by the media and public alike.

Reliance Jio Back in Action

With the laying of the Optical Fiber Cable (OFC) being sped up, and a wide variety of equipment being imported and ready to be installed, the services are likely to see the light of day very soon. Sources say that the project is being led directly by Mukesh Ambani. There is a sudden change of vibe among company officials within Reliance Jio. The Delhi and Gurgaon offices have become an energetic hub of activity.

The cost to deploy 4G networks across India is estimated to run into ₹70,000 Crores. Global bank, UBS, recently valued Reliance Jio at ₹140 per share while adjusting for net debt of the business. Representatives also remarked that any sale of stake could drive up the valuations of the company.

As per a document submitted to bankers, Reliance Jio intends to roll out services in some of the leading urban cities and address rural area coverage as well. This plan takes into account the company’s ongoing endeavor in setting up 1,70,000-km long OFCs across the country.

A spokesperson from the company says, “While we believe that the revenues of the Indian telecom sector will continue to grow with the economy, its composition will shift from the predominant share of voice and text services as is the case today, to broadband and digital services in the years to come. Reliance Jio is well-positioned to capture a significant share of this revenue migration as well as of the additional value creation on account of broadband services.”

The success of this endeavor is important since the low broadband penetration in India makes end users more eager for 4G services.

RIL Increases Stake in Reliance Jio

Just ahead of its launch of 4G services, RIL has increased its stake in Reliance Jio to 98.9%. In March this year, it put in more capital into this business. The increased stake was bought over from the Nahatas, promoters of Infotel Broadband, since they did not make any additional investments after the 2010 rollout of services. Infotel Broadband was previously sold to RIL right after it won a pan-India broadband license in the year 2010. It is believed that the Nahatas will continue to have a seat on the board of Reliance Jio. Currently, they own 0.13% of stake in Reliance Jio. Additionally, Infotel Infocom owns 0.55% of the stake; NextwaveComm owns 0.17% of the company, while 0.25% belongs to other investors.

After the success of the Mumbai Indians cricket team and the first season of the Reliance-IMG football league only a few weeks away; sources say that Reliance Industries Limited (RIL) is likely to become the next big name to join the Hockey India League.

It is said that the business house will be replacing Dabur as the new owner of the Mumbai franchise, after the latter terminated its contract with Hockey India. A source revealed,”As per the recent developments, there are discussions being held with the Reliance Group to take over the Mumbai franchise. An official confirmation is expected within a month.”

Dabur’s Exit

It is believed that the Dabur Group decided to pull out of the league due to financial reasons. However, Hockey India denies such claims even while it has been trying to find a new replacement owner.

The source adds, “After the success of the first two editions, the top officials were looking at expanding the league in the next season. So, after the Mumbai franchise pulled out, they did not want the team to be removed and hence started looking for possible owners to replace them. However, there is nothing confirmed as yet.”

Setback for Hockey India

While the league was looking at expanding from 6 to 8 teams in the forthcoming season, it suffered a huge setback after 2 of the 6 franchises decided to withdraw. In addition to the Mumbai Magicians, the Ranchi Rhinos also exited because of an alleged tiff over the franchise fee with Hockey India.

While the players from the Mumbai team have already signed new forms for the mini-auction that is scheduled for the coming month, the players from Ranchi are yet to be informed about their future in the league. A player from Ranchi Rhinos says, “We have only received an email from Hockey India stating that the Ranchi owners have withdrawn. There was no mention about the auction. We are yet to sign the auction forms.”

Entry of a New Franchise

Meanwhile, good news comes in the form of an official announcement by Hockey India of the inclusion of a new franchise representing Pune in the league. With the inclusion of the league, there are now 5 teams that will battle for the leadership position in the Hockey India League. The Pune team has been bought by Anirban Sarkar, owner of Deccan Water Treatment Private Limited.

RIL’s Tryst with Sports

If talks between RIL and Hockey India are successful, this will be another feather in the hat for the business giant’s involvement in the sporting world.

It is the vision of Nita Ambani, Chairperson of Reliance Foundation, to help the nation connect with sports and inspire people to follow their dreams. In addition to RIL’s cricketing success in the Indian Premier League, this vision manifested in the form of a Reliance-IMG joint venture known as the Indian Super League, a football extravaganza scheduled to start next month. RIL is also involved with the Asian Junior Table Tennis Championships that currently being hosted in Mumbai.

The much-anticipated first season of the Indian Super League (ISL) is scheduled to start on October 12th. For this, the organizers have released a captivating TV commercial (TVC) that aptly captures the fervor behind the sport.

The ISL is arguably the most anxiously awaited football event in India this year. The official TV campaign that was launched on 7thSeptember kicked off with a 100-second panoramic film that appropriately showcased the hopes of 1.2 billion people in developing a thriving football culture in India.

The first television advertisement kick-starts the lead-up to a 36-day-long integrated marketing campaign for the opening game that is scheduled for next month.

Bringing about a Football Revolution

The league is a result of a joint venture between Reliance Industries Limited and International Management Group. The league is built on the vision of Nita Ambani, Chairperson of Reliance Foundation,to encourage the spirit of sports. The league intends to bring about a football revolution in India. She says, “ISL hopes to act as a foundation in creating an ecosystem to nurture talent and make our own national football heroes.”

This event ushers inhope of India qualifying for the FIFA World Cup in a few years’ time.

C’mon India, Let’s Football!

With this simple phrase, the television commercial conceptualized by Ogilvy & Mather urges Indians to be a part of their very own league. The peppy soundtrack for this commercial is composed by Amit Trivedi who has been able to aptly capture the spirit of millions of fans all over the country.

The commercial reaches out to everyone from fishermen in Kerala to pujaris on the banks of the Ganges;from monks in the north-eastern part of the country to dancers in Rajasthan. The joint effort, power and passion of Indian fans towards football eventually takesthe shape of a unique human stadium, acting as an overwhelming climax to the film.

Audience Reception

This artistic commercial was shot at over 20 locations across India by Manoj Pillai from ThinkPot Films. The campaign was launched in the T20 game between India and England on Sunday, followed with full-fledged promotional broadcasting across the Star Network.

Piyush Pandey, Executive Chairman and Creative Director, South Asia, Ogilvy & Mather adds, “India is a great nation, which will excel in everything possible and football is our next goal. I’m extremely excited about the League and the communication. The only thing I want to hear is 1.2 billion people saying,’C’mon India, let’s football!’”

Srinivasan Gopalkrishnan, AVP Marketing & Commercial – ISL says, “This film showcases India’s grand welcome to the beautiful game and, with it, the passion and dreams of all Indians out there. Come 12th October, the fans will be treated to a great sporting spectacle and we hope everyone joins us in saying: C’mon India,let’s football!”

The audience found the creative of the commercial to be loyal to the magnificent size of the project. It has been able to effectively bring alive a sense of inspiration that will eventually help India take its rightful place in the world of football. On social media as well, the sentiment towards this campaign is positive.