Reliance Industries Limited (RIL)

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

Founded: 1973

Employees: 195k

MarketCap: $137B

3yr Return: 34%

5 yr Return: 39%

10Yr Return: 17%

Founder family owns >50%

Major investors - Google, Facebook, KKR, Vista PE, PIF, Mubadala, Capital Group,

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)

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