RIL narrative shifts to Jio
“The 40th AGM of Reliance Industries marked a historic landmark, both in terms of its telecom disruption as well as a corporate action. Mr. Mukesh Ambani, also took the opportunity to recount the journey of RIL over the last 40years underscoring that an investment of Rs.10,000 in RIL shares in 1977 would have grown to over Rs.1.50 crore today.
RIL announced a bonus issue in the ratio of 1:1 for the first time since 2009. But the big disruption in the AGM was telecom (Jio). The company launched smart phones for a refundable deposit of Rs.1500/- with no additional cost. Jio has added over 100 million customers in 170 days making it nearly 7 customers per second accretion. Since the service went priced on April 01st, nearly 100 million customers have migrated to the paid plan.
In the previous two phases, RIL had focused on investing nearly $20 billion in building the Jio network and then offering a data-cum-content proposition that was both, compelling and economical. In the third phase, Reliance Jio will drive the business through the hardware narrative with focus on affordable VoLTE phones. Jio has transformed from being a major investment allocation to being the group’s future value creator in a short span of 6 months.”