As of 2nd Sept 2020
Exec Summary (<50 words)
- Full stack internet play in India with the ownership of 5G ready network infrastructure, the apps that run on that infra, strong parentage (run by India's wealthiest family)
- Blessed by top two internet behemoths - Google, Facebook and world's top investors - KKR, Silverlake, GA; all the stars are aligned for Jio to become internet economy value owner in India
Baseball Stats
Founded: 1973
Employees: 195k
MarketCap: $137B
3yr Return: 34%
5 yr Return: 39%
10Yr Return: 17%
Web: www.ril.com
Key Investors
Founder family owns >50%
Major investors - Google, Facebook, KKR, Vista PE, PIF, Mubadala, Capital Group,
Company description
Oil to internet conglomerate run by India's wealthiest family with strong relationship with current Govt regime
Three primary businesses:
- Reliance Jio (Connectivity) → Telecom Business (Wireless mobile, Fiber broadband to home (FTTH), TV cable)
- Reliance Retail (Commerce) → Offline retail footprint of 12k stores (Electronics, grocery, fashion)
- Reliance Petrochemicals (Chemicals) → Oil exploration, Refinery, Petrochemicals, retail petrol distribution (starting soon)
Detailed notes
Jio (Connectivity)
India's premier 4G network launched in 2016 with 750k+ 4G base stations and 250k+ towers.
- Invested INR 3.5Tr (~$45B) over last 4 yrs to create next gen 4G network (capex cycle is largely over)
- Customer's internet usage transformed due to Jio
- Leading to hyper growth; 400M users with market share of ~43% within 4 yrs of launch
- Wireline Fiber Broadband launched in 2019, higher margin business and enterprise sector addition to drive higher ARPU
- Launch of own apps to play the ecosystem game (akin to Alibaba)
- Aggressive M&A to expand reach, sometimes for teams, some for product
- R&D upside under-rated — building under the radar with partnerships and strong in-house development team
Digital Platforms
- Content/Cable
- Entertainment (Cinema, TV, OTT)