Archive for August, 2018

Nita Ambani Visits Flood-affected Regions of Kerala to Offer Support and Reassurance

August 31, 2018

Reliance Foundation Chairperson, Nita Ambani, has visited Kerala to get a first-hand look at the flood-ravaged regions. Reliance Foundation, under her leadership, is spearheading relief and rescue operations in the state. Ambani undertook this visit to understand the precise needs of the devastated people and facilitate long-term rehabilitation efforts.

Donations of Reliance Foundation

Reliance Foundation has donated INR 21 crore to the Chief Minister’s Relief Fund to aid the flood-affected victims of Kerala. Additionally, relief materials worth INR 50 crore have been distributed among the victims.

Efforts of the Reliance Foundation team

On August 14, 2018, Reliance Foundation deployed a team of 30 people to undertake rescue work. The Reliance Foundation Information Services worked in coordination with the State Disaster Management Authority (SDMA) to conduct rescue and relief operations through its toll-free helpline. More than 1,600 people have been successfully rescued as a result.

Reliance Foundation undertook field operations in six districts of Kerala, which are Idukki, Ernakulam, Alappuzha, Wayanad, Thrissur, and Pathanamthitta. The aim was to provide materials, which were immediately required by 160 relief camps operated by the government. This was facilitated through Reliance Retail, which supplied glucose, ready-to-eat foods, and sanitary napkins. In addition to this, around 70,000 people in these areas were given utensil kits, clothing kits, and ration kits.

Realizing the possibility of an epidemic outbreak, Reliance Foundation also supplied medicines to the state government for district authorities, conducted several livestock camps in Alappuzha and Wayanad districts, and set up medical camps in Wayanad.

Pallipad is one of the worst affected villages in the Alappuzha district, with a population of 24,640. Reliance Foundation is currently supporting 3,500 families by providing cloth kits. This is being done in close coordination with the local government representatives in the village.

Across the six affected districts, Reliance Foundation is supporting a family for a period of 15 days with dry ration kits, providing a family of three with bedding kits, and helping a family to restart their kitchen with a utensil kit along with sanitary kits to disinfect and clean the houses. Going forward, Reliance Foundation is also working closely with the community to identify and rebuild critical infrastructure such as schools.

Words of Nita Ambani

In Kerala, Nita Ambani assured the displaced citizens with timely relief and asked them to keep the faith. She stated that Reliance Foundation is committed to helping them in this time of need and crisis. Showing solidarity, Ambani stated that Reliance Foundation is going to help rebuild Kerala and help the state overcome the calamity. Ambani further stated that Kerala, also known as ‘God’s Own Country,’ would soon regain its former grandeur.

A visit to the flood-ravaged regions of Kerala helped Nita Ambani understand the precise needs of the displaced people. Ambani also met Chief Minister Pinarayi Vijayan and pledged to help build critical infrastructure and facilitate long-term rehabilitation operations.

Summary: Nita Ambani has visited the flood-affected areas of Kerala to offer reassurance and support to the devastated people. Reliance Foundation has donated INR 21 crore and deployed a team to help the relief and rescue operations in the state.

RIL’s Market Capitalization Crosses INR 8 Trillion

August 24, 2018

On August 23, 2018, the Mukesh Ambani-led Reliance Industries Limited (RIL) became the first Indian company to reach INR 8 trillion market capitalization. RIL’s share prices increased by 1.86 percent, closing at INR 1,269.70, on the Bombay Stock Exchange (BSE). In 2018, RIL’s shares witnessed a surge of almost 38 percent.

RIL’s market capitalization growth

RIL now has a market capitalization of INR 8.05 trillion. Information from the Telecom Regulatory Authority of India (TRAI) attributed this to Reliance Jio, which is the telecom wing of the RIL and it has continued to acquire subscribers at a strong pace. As a result, the Indian benchmark Sensex Index rose by 0.13 percent to 38,336.76 points.

After the announcement of Reliance JioGigaFiber, Reliance Jio’s broadband service and the JioPhone 2, investors continued to purchase RIL shares. Margins are also strengthened by attractive tariff plans and a larger subscription base.

According to the data from TRAI, Reliance Jio acquired 9.71 million users in June 2018, crossing a 215 million subscriber base. Reliance Jio also showed market share gain from 18.7 percent in May to 18.78 percent in June.

RIL’s results of the June quarter also delighted investors, as it showed that the retail and telecom financials have shown a steady improvement.

Reliance Jio’s performance in 2018

In July 2018, Reliance Jio showed a profit of INR 612 crore, for the quarter ending in June. This represented a 19.9 percent increase on a sequential basis over revenue of INR 8,109 crore from operations.

During the March 2018 quarter, Reliance Jio reported revenue of INR 7,128 crore, with a net profit of INR 510 crore. Supported by rapid store expansion, organized retail also reported a 123.7 percent increase in revenue, at INR 25,890 crore.

Report from Morgan Stanley

On August 16, 2018, Morgan Stanley stated in a report that RIL’s retail business is valued at F20e EV/sales of 0.8x, which is in keeping with the average of another Bloomberg-based consensus of comparable competition in retail. Morgan Stanley values telecom investments at an EV/IC multiple of 0.9x, which is the target. They have based their target multiple on the valuation of Reliance Jio’s F21e Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) at an EV/EBITDA multiple of 7.5x, and then discounting it back by using a 12 percent discount rate. Based on the Bloomberg consensus estimates, Morgan Stanley’s 7.5x multiple is in keeping with where the other telecom companies in India are currently trading.

Opinions of analysts

Industry analysts expect strong earnings growth momentum from RIL. This is thanks to the ramp-up of RIL’s project of petcoke gasification and the recently commissioned off-gas cracker refinery.

On the condition of anonymity, an analyst stated that in line with the analysts’ expectations, Reliance Jio has continued to show a healthy subscriber momentum. The focus will stay on generating more subscribers and driving user engagement.

Summary: RIL has become the first Indian company to reach INR 8 trillion market capitalization. This is due to the strong performance of Reliance Jio, Reliance Retail, and RIL’s newly announced gasification projects.

RIL and BP Invest More Than INR 7,000 Crore in KG-D6 Block

August 17, 2018

Reliance Industries Limited (RIL) and its UK fuel partner BP have spent more than INR 7,000 crore to keep operations ongoing in the D1 and D3 gas fields of the KG-D6 block. This is in preparation of new fields that are expected to begin production in mid-2020.

Details of the D1 and D3 fields

The (Dhirubhai-1 and 3) D1 and D3 gas fields are the first of 18 gas discoveries in KG-D6. They commenced production in April 2009.
RIL and BP have spent more than INR 7,000 crore to sustain production in these gas fields using a combination of complex techniques such as inlet pressure and surfactant. These gas fields would have ceased production much earlier due to sand and water ingress, which was sooner than expected and higher than anticipated. This occurred in the second half of 2010.

Nearing the completion of their production life, these two gas fields are being kept operational to preserve the facility for use by three new projects, which are R-Series, Satellite, and MJ fields. RIL and BP aim to keep D1 and D3 running till the Satellite and R-Series fields in the KG-D6 block can begin production. The plan is to utilize existing facilities to produce 30-35 million metric standard cubic meters per day (mmscmd) of peak output from the three aforementioned new fields.

By the end of 2019, D1 and D3 will cease production.

Progress with three new gas fields

The shutdown of D1 and D3 will coincide with the modification, preparation, and upgradation of facilities and operating systems to connect the new fields. Sources close to the working of this project stated that R-Series might likely give first gas by mid-2020. The output from Satellite and MJ fields may begin in 2021 and 2022 respectively.

RIL’s presence in the Krishna Godavari basin

To date, Reliance Industries has made 19 gas and oil discoveries in the Krishna Godavari basin. The only oil discovery within the block, Dhirubhai-26 (D26) or MA, was the first ever to produce in September 2008. Following this, D1 and D3 went on-stream in April 2009.

Sources have stated that the MA field is expected to end production by September 2018. It had reached its peak of 108,418 tonnes of oil in May 2010. It also started producing gas when D1 and D3 went live in April 2009.  D1 and D3 had their peak in March 2010 with an output of 61.4 mmscmd. The KG-D6 output in April-June saw an average of 4.7 mmscmd. This was from the production at both D1 and D3 and MA fields.

Stakes in the KG-D6 block

As the operator of the KG-D6 block, RIL holds 60 percent interest in it. BP plc of the UK holds a 30 percent stake, while Niko Resources of Canada holds the remaining 10 percent. For the development of D26 or MA oilfield, RIL proposed an investment of USD 1.96 billion in 2012.

Summary: Reliance and BP have spent more than INR 7,000 crore to keep operations ongoing in the D1 and D3 gas fields of the KG-D6 block. The output from these fields will be used to facilitate production is three new fields.

Reliance Jio Announces the JioHealthHub App in India

August 10, 2018

Reliance Jio, the telecom wing of the Mukesh Ambani-led Reliance Industries Limited (RIL), has announced a health and fitness app called JioHealthHub. The purpose of this app is to help users organize their health-related documents and reports in one place, which may later be shared with other people. To help expand its presence in the medical consultation space, Reliance Jio has entered into several partnerships with online platforms like iCliniq and Portea.

Details of the JioHealthHub app

The JioHealthHub app is listed on Reliance Jio’s Google Play listing. However, the app is not released yet. According to the online description, JioHealthHub is an app, which one may use to store medical data in the cloud. This data can be accessed from any location and on any device with secure credentials. This means users may carry electronic copies of their health-related documents with them at all times and dispense with laboratory reports, physical files, test film, and the like.

The company also has tie-ups with medical laboratories and hospitals, which will push medical reports to the JioHealthHub app automatically. The app also has a feature to store medical documents from non-partner hospitals within the app. To do this, users may click a picture of the reports with their smart-phones and store the image in the app.

Partnership with iCliniq

Reliance Jio has collaborated with iCliniq, a Coimbatore-based online doctor consultation platform. This is in an effort to help expand JioHealthHub’s presence in the medical consultation app arena. With the help of this partnership, Jio users will be able to consult various doctors across 60 specialties via chat on an instant basis. The offering is called #icliniq50hrs and will soon provide the facility of video chat as well.

Dhurv Suyamprakasam, the CEO of iCliniq, stated that JioHealthHub has major capabilities and Reliance Jio may transform the Indian healthcare market space with it.

Partnership with Portea

Reliance Jio has also partnered-up with Portea to introduce a home healthcare angle to JioHealthHub.

Opinions of industry sources

According to industry sources, JioHealthHub will add more providers across the fitness and healthcare areas to build its ‘360-degree’ healthcare platform. Industry sources have also stated that Reliance Jio can make a strong push into healthcare with its experience and cash reserves. This may make India’s online healthcare ecosystem a competitive and responsive market.

Vaibhav Agarwal, Partner at Lightspeed India, stated that technology companies face challenges of expenditure, scaling, trust, and distribution. He further stated that Reliance Jio’s entry into the healthcare ecosystem may help startups grow without having to face high expenditures. Agarwal added that Reliance Jio may introduce an open garden type of strategy, wherein different vendors may compete. Alternatively, the company may wish to have one preferred vendor.

Reliance Jio’s foray into other sectors

It is reported that Reliance Jio may also cover ground in several other sectors like content and education. Recently, the telecom company Jio secured a majority stake in Embibe, an online education platform.

Summary: Reliance Jio announces JioHealthHub, its new health and fitness app. The company has entered into several partnerships to expand the reach and usability of the app across India.

Reliance Jio and SBI to Widen Their Digital Partnership

August 3, 2018

Reliance Jio, the telecom division of Reliance Industries Limited (RIL), and the State Bank of India (SBI) have recently agreed to broaden the scope of their existing digital partnership. This involves a strong focus on the accessibility of online banking services and better loyalty programmes. The customers of SBI, Reliance Jio, and Jio Payments Bank will reap the benefits of this widened joint venture.

Existing partnership between Reliance Jio and SBI

In April 2018, RIL and SBI entered into a joint venture of 70:30, to develop the Jio Payments Bank. After the success of this app, the commercial bank and the telecom company have decided to broaden their partnership.

Details of the extended partnership

Under this new agreement, Reliance Jio plans to integrate SBI YONO into the MyJio mobile application. SBI YONO is a digital platform that offers digital banking, commerce, and financial services, all in one place. Once the integration is complete, customers of the bank can access these features through the MyJio app.

With regards to the customer loyalty programme, SBI and Jio customers will benefit from Jio Prime. Jio Prime will soon offer exclusive deals from Reliance Retail, Jio, and other partner brands and merchants. Under the extended partnership, Jio Prime will also be integrated with SBI Rewardz, which is SBI’s loyalty programme. This will offer SBI customers opportunities to earn additional loyalty rewards and also wider redemption within Reliance, Jio, and more online and physical partner platforms.

Additionally, a joint statement between the bank and the telecom company stated that Reliance Jio will be SBI’s preferred partner for the bank’s design, network, and connectivity needs. With the help of Jio’s broad network in rural and urban areas, SBI plans to facilitate video-banking and other on-demand services.

Comments from both sides of the partnership

While commenting on the extended digital agreement, SBI Chairman Rajnish Kumar stated that the partnership is mutually beneficial for both parties. He stated that a digital bank like SBI is very pleased to partner up with Reliance Jio, which is a popular and successful network provider. Kumar further stated that the co-operation of both sides is expected to enhance the digital foot-print for the customers of SBI. This will be achieved by offering the best and most rewarding customer experiences possible.

When commenting on the extended partnership deal, Mukesh Ambani, the Chairman and Managing Director of RIL, stated that Reliance Jio intends to bolster SBI’s customer base, which is unmatched around the world. To make this possible, Jio will commit its network and platforms. Reliance Retail will also commit its ecosystem. This combination will aim to help SBI and Reliance Jio customers to adopt digital services to meet their consumer needs.


Reliance Jio and SBI have entered into an agreement to broaden the scope of their digital partnership. This involves a focus on online banking services and loyalty programmes to enhance customer experience and help accelerate the growth of the Indian digital atmosphere