Archive for May, 2017

Reliance Industries Aims to Double Its Market Share in Fuel Retail

May 30, 2017

Mukesh Ambani led Reliance Industries Limited (RIL) is gearing up to capture a 10 percent market share in the fuel retail business, which will be double of its current market share. RIL is focusing on expansion and aspires to achieve this target in the coming two to three years.

RIL’s fuel retail business

In 2005, RIL had a 12 percent market share in fuel retail. Then, the crude oil prices started rising exponentially. RIL, being a private company did not get the benefit of subsidies that State-run oil companies enjoyed. Thus, in a period of nine years from 2005, the market share of RIL fell to 0.5 percent.

In June 2010, the government deregulated petrol prices and diesel prices were deregulated in October 2014. After this, RIL gradually started to make its fuel retail outlets operational again. The company currently holds a 5 percent market share in fuel retail.

Between 2004 and 2006, RIL set up 1,470 fuel retail outlets at the cost of INR 5,000 crore. Of these, 1,221 outlets are operating right now. The company has planned to reopen the remaining 249 outlets by the end of this year.

According to analysts, RIL sold Gulf Africa Petroleum Corp. this year, which was its South African venture in fuel retail and this indicates that RIL would be looking to expand the fuel retail business in the domestic market.

RIL’s future plans

As per a report, two officials have shared that RIL is planning to achieve a market share of 10 percent in the next two to three years, effectively doubling its current market share.

As per the officials, RIL is working on several plans to achieve its target. They revealed that RIL is exploring the markets where it is not represented in, which mostly consists of areas other than urban markets.

Analysts opined that RIL may be considering expanding its network to operate 2,500 to 3,000 outlets. This number would depend on commercial viability. The company may have up to 5,000 fuel retail outlets as it holds the licenses for this number.

In the end of Financial Year (FY) 2016–2017, RIL reported that its fuel retail revenue rose by 60.2 percent to INR 33,765 crore. The company also announced its plan to invest INR 2,500 crore in the form of capital expenditure to expand its number of fuel retail outlets.

In a press statement, Mukesh Ambani led Reliance Industries Limited (RIL) revealed that in the third quarter of FY 2016-2017, it had a throughput of 300 kiloliters per month (klpm) which is 85 klpm more than the previous quarter.

Till date, RIL has 448 outlets which are completely operated and owned by the company. According to the company’s plans, these outlets are set to be increased by 52 more in this financial year.

About RIL

RIL is an oil refinery company with its main plant located at Jamnagar. The twin refineries at Jamnagar export fuel and also supply it to Indian retailers.

Summary

RIL is planning to increase its market share in the fuel retail segment by twice to acquire 10 percent of the total market share.

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Reliance Industries’ GenNext Hub Organizes a Roadshow in Bengaluru

May 8, 2017

‘Startup India’ initiative by the government has seen a lot of progress in making India a country having the ecosystem to support startups. The number of startups in India is expected to increase in the next few years. To help this growth, Mukesh Ambani led Reliance Industries Limited (RIL) and Microsoft Ventures came together to form the GenNext Hub program.

GenNext Hub program

GenNext Hub program is a four-month long initiative aimed to accelerate the startup community in India. It helps startups to scale-up from a product or an idea to a successful company. It provides access to funding opportunities, technical experts, and mentors. GenNext Hub also launched a facilitating program, ‘Scalerator’ targeted to present the high-growth startups with growth opportunities.

GenNext Hub has its focus on technology startups working in the areas of retail, healthcare, telecom, media, mobile apps, messaging, financial technology, cloud services, Industrial Internet of Things (IoT), or Consumer IoT. Further importance is given to technologies like machine learning, analytics, Virtual Reality (VR), deep learning, Software as a Service (SaaS), and Augmented Reality (AR).

GenNext Hub Roadshow

On 26th April 2017, the third GenNext Hub Roadshow was organized in Bengaluru. The event was organized in three tracks according to the different growth stages of the startup companies. The event saw 24 startups pitching to a panel of 11 experts across different tracks.

The first track had 15 alumni of the GenNext Hub program staging a pitch to various angel investors and venture capitalists. These companies were addressed by Naveen Asrani, Director of Startups at Microsoft, who urged them to keep customers close to the business as they are the first investors who believe in the product.

The second track consisted of RIL executives, who were pitched by high-growth startups. Senior executives from Reliance Retail, Reliance Jio, and RIL Enterprise IT and Digital Transformation were present. The startups in this track were focused in the areas of Artificial Intelligence (AI), logistics, financial technology, nanotechnology, drones, and other technologies.

The third track saw young startups wishing to secure admission in the Summer Cohort 2017 program. These startups pitched to the experts and mentors of the GenNext Hub team.

The purpose of the GenNext Hub Roadshow was to recognize startups with potential and help them increase scalability, build a strong foundation, and expand knowledge and resources. GenNext Hub has planned to organize more roadshows in the future.

Statements of Sushil Borde

Sushil Borde, Vice President at Reliance Innovation Leadership Centre, is of the opinion that one should always challenge the norm. According to him, Mukesh Ambani led Reliance is a company that has reinvented global industries. More than just a growth story, it is an innovation story, he said. He stated that Reliance started challenging the conventional wisdom and startups should also do the same. He added that startups should remember that India is a value conscious economy and like Reliance they should develop affordable products targeted to the masses.

Summary

GenNext Hub, a partnership program between Reliance Industries and Microsoft Accelerator, helps startups boost their scalability. It recently organized a GenNext Hub Roadshow in Bengaluru to identify the potential of the startups.

Reliance Jio to Launch Advanced Products and Services in 2017

May 2, 2017

Mukesh Ambani-led Reliance Jio has hugely impacted the telecom industry since its launch in September 2016. With its free services, the company gained over 100 million subscribers in just 170 days of its launch.

The telecom company has always surprised everyone with its new offers and services. Some more services and products that Reliance Jio is likely to roll out this year are:

  1. JioMoney

The JioMoney app is already available. However, it is expected that the company will heavily promote the app, this year. Users use JioMoney for online payments and at some retail stores. According to sources, users will soon be able to use the app for metro tickets and at convenience stores. Moreover, the company will also allow users to manage all the payment receipts over the cloud.

  1. Broadband service

Reliance Jio is working to establish a Fiber-to-the-Home (FTTH) broadband service. It has already begun pilot project for the same. The company stated that the project would soon be expanded into other cities as well. The FTTH service will offer a speed as high as 1 Gbps to the users. As per a report, users are getting a speed ranging from 70 MB/s to 100 MB/s under the pilot project.

  1. DTH service

Reliance Jio will be launching a Direct-to-Home (DTH) TV service. The service will have more than 350 channels, including 50 HD channels. Users having Jio SIM, JioTV app, and Jio home broadband connection will be able to use the DTH service. The Reliance Jio DTH set-top box will be a hybrid device that will enable users to enjoy streaming services along with cable channels. The content will be stored on Jio’s cloud platform and subscribers will be able to watch old programs. The DTH service may also come with features like voice controls, and ability to play games on the cloud.

  1. 4G VoLTE feature phone 

Reliance Jio will be unveiling a 4G VoLTE-enabled feature phone. It is expected that the phone will have hardware buttons for varied Jio apps like JioMusic, MyJio, JioCinema, and JioTV. It is also expected that the phones will be priced between INR 999 and INR 1500.

  1. Home automation products 

Under the Reconnect brand, Reliance group will introduce a number of accessories. The company will be working on home automation products integrated with the Jio network. The technology will enable users to control the products from anywhere.

  1. Other smart products

Reliance Jio is working on the feature of watching content on one screen and continuing it on another one, seamlessly. It is making devices for the same. Moreover, the company is developing an app called Jio MediaShare, which will let users stream content on mobile phones from PC or laptop.

It is predicted that Mukesh Ambani led Reliance Jio will launch all the first four services and products, this year; while only some home automation and other smart products will be unveiled in 2017.

Summary

It is expected that Reliance Jio will launch advanced products and services like JioMoney upgradation, DTH service, broadband service, 4G VoLTE feature phone, home automation and other smart products in 2017.