Archive for the ‘Mukesh Ambani’ Category

Mukesh Ambani’s Vision for India’s Digital Revolution

October 26, 2018

Mukesh Ambani, the Chairman and Managing Director of Reliance Industries Limited (RIL), stated that by 2020 all mobile phones in India would be connected via the 4G network. During the inaugural session of the India Mobile Congress 2018, he also stated that India would soon be one of the “top three nations in fixed broadband”. He further stated that India would be among the first countries to adopt ultrafast 5G services.

Mukesh Ambani’s statement

Mukesh Ambani stated that by 2020, every Indian citizen would have access to 4G connectivity. India has risen from its 155th position in mobile broadband penetration. Currently, it is the number one country in the world in mobile data consumption. India has achieved this feat in less than two years. Ambani stated that this is the fastest transition globally from 2G and 3G to 4G.

Ambani also stated that India has the 135th position in fixed broadband. However, it will rise from this rank at a pace that “would surprise” the world.

According to Mukesh Ambani, the “digital connectivity revolution” will transform the rural parts of the country. In the past eight months, approximately 50 million villagers have received affordable smartphones. He also stated that Reliance Jio’s JioGigaFiber service would offer complete “fixed-mobile convergence”. This means that users will be able to move seamlessly between both networks. Therefore, Reliance Jio’s objective is to offer Wi-Fi when indoors and 4G and 5G coverage while on the go. Ambani stated that he is excited for India’s digital revolution to transform villages, especially in areas like rural enterprises and agriculture. This will empower marginalized communities and women in particular.

Ambani called on businesses and enterprises to adopt “an India First vision” to help make the country one of the world’s largest digital markets. With this, India would lead the “Fourth Industrial Revolution”.

The growth of Reliance Jio

Reliance Jio, the telecom wing of RIL, began operations in 2016. Currently, it has more than 250 million subscribers. The company has more than 50 percent market share and is India’s largest mobile broadband company. To facilitate its entry into the home broadband space with the Reliance JioGigaFiber fiber-to-the-home (FTTH) service it recently acquired majority stakes in Hathway Cable and DEN Networks.

Mukesh Ambani stated that Reliance Jio is committed to building a network of deep-fiber across India to enable connectivity between every premise with high-quality network services.

The digital future of India

Mukesh Ambani stated that India’s digital future envisions 1.3 billion connected Indians. This future will be built on the pillars of data, computing, and connectivity. Additionally, according to Ambani, the future will be created and powered by a range of path-breaking digital technologies such as blockchain, robotics, artificial intelligence (AI), virtual reality, Internet of Things (IoT), and augmented reality.

Summary: Mukesh Ambani has stated that every Indian will have access to a 4G-enabled mobile phone by 2020. He also stated that India will be one of the top three countries in fixed broadband and will adopt 5G services before other countries.

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.

Summary

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

Reliance Jio Received 83 Million Rural 4G Subscriptions in 2017 and is Gearing Up for IPL 2018

April 6, 2018

Reliance Jio, the telecom division of the Mukesh Ambani-led Reliance Industries Limited (RIL), had received 238 million 4G subscriptions in 2017. Out of these, 83 million subscribers comprised rural population, according to a new report.

Reliance Jio acquired 160 million users by the end of December 2017, which in itself is an increase of 122 percent from the previous year.

Predictions and analysis by CyberMedia Research

Noted market research firm CyberMedia Research (CMR) has forecasted that by the year 2020, 35 percent of the Indian 4G subscribers will have a 4G-enabled feature phone, which would take the total number of 4G subscribers in the country to 432 million.

The market research firm added that out of three 4G subscribers, one is from the rural area. Faisal Kawoosa, the Head of New Initiatives at CMR stated that Jio had leveraged the early adaptors in the urban space first, and subsequently focused on rural markets for more growth.

CMR anticipates that JioPhone will play an integral role in the rise of Jio 4G services in the rural areas of India. As per CMR’s estimates, there would be 300 million Indian 4G subscribers, out of which 58 million subscribers would have a 4G feature phone, by the end of 2018. The report also stated that the other 81 percent subscribers would prefer using 4G on a smartphone, which includes the ones based on ‘Android Oreo Go’—an Android OS that is optimized for smartphones with lower configuration.

Reliance Jio’s INR 251 IPL 2018 pack offer

In line with the upcoming Indian Premier League (IPL) 2018, Reliance Jio has announced its ‘Cricket Season Pack.’ This pack is priced at INR 251, and cricket fans can use it to stream live matches on their mobile phones. They will receive 102GB data in all, throughout the entire IPL season, which would span over 51 days.

‘Jio Cricket Play Along’ mobile game

In order to encourage engagement among cricket lovers, Reliance Jio has launched a live mobile game named ‘Jio Cricket Play Along’, which gives participants an opportunity to win rewards worth crores. The users will have to download the MyJio mobile app to play this game. The MyJio app can be accessed by users in 11 different languages. This virtual game will have 60 matches over a span of seven weeks. Participants have a great chance to win lucrative prizes such as cash, cars, and a house in Mumbai, among various other rewards.

Reliance Jio’s cricket comedy show

Reliance Jio has made an official announcement about its cricket comedy show – ‘Jio Dhan Dhana Dhan LIVE: Never ‘Run-Out’ of Laughter.’ Both Jio and non-Jio customers will be able to watch it. Famous sports anchors such as Samir Kochhar and noted comedian Sunil Grover will host it. It will debut on Saturday, 7th April 2018 at 7.30 PM. Live episodes of the show will release every Friday, Saturday, and Sunday featuring well-known anchors and comedians.

Summary

Reliance Jio acquired 83 million rural 4G subscribers in 2017. It is looking to generate more user engagement during IPL 2018 via an INR 251 pack offer.

Reliance Jio to Launch 100 Gbps Submarine Network

June 30, 2017

Reliance Jio, the telecom arm of Mukesh Ambani owned Reliance Industries Limited (RIL) has more than 100 million subscribers in India. It has announced the launch of its new submarine cable system linking Asia-Africa-Europe (AAE-1).

Geography of the submarine network

In a press statement, Reliance Jio has revealed that the AAE-1 is the longest 100 Gbps technology-based submarine system. This network will stretch over a distance of 25,000 km.

The cable system will be connected from Marseille in France to Hong Kong. It will have 21 cable landings spread across Europe and Asia. There will be Points of Presence (PoP) in Hong Kong and Singapore, and onward connectivity options in France, Italy, and Greece.

The cable will terminate in Singapore but will continue further into Asia taking a route through Thailand and connecting Vietnam, Cambodia, and Hong Kong.

Features of the network

The President of Reliance Jio, Mathew Oommen said that this network has terabit capacity as well as 100 Gbps direct connectivity, which will enable Jio to connect with global content hubs and interconnection points. He further stated that taking this step will ensure Jio continues to offer its customers exceptional high-speed Internet and digital services.

The AAE-1 will connect with other cable systems and fiber networks in order to deliver direct and uninterrupted access to global markets.

Jio has claimed that the design and route of the AAE-1 will ensure least amount of latency between the Middle East, Europe, Hong Kong, and India. The AAE-1 cable system will work on 100 Gbps transmission technology and will boast of a minimum design capacity of 40 Tbps.

AAE-1 cable system

According to Jio, the AAE-1 project will be done in coordination with other telecom providers from Europe, the Middle East, and Asia in order to have a quality and extensive cable network.

The company said that the new cable system will be transiting between several critical hubs and connection points that lie far away from each other. One of the best things about this cable system according to Jio is that it will help deal with the rapidly increasing demand for data bandwidth for videos, offering support to all types of applications, content, and communications. Apart from this, Jio also stated that the bandwidth has been growing exponentially in India, especially after the company entered into the telecom market.

Role of Reliance Jio

Mukesh Ambani led Reliance Jio will provide the Network Operations & Management for the AAE-1 cable system. The network will enhance the state-of-the-art facility in Navi Mumbai.

Mathew Oommen has shared that Jio is excited to participate in the launch of this network and to deliver the cable landing in Mumbai.  He also shared that it is a great time to undertake a project like this because India’s data traffic is continuing its accelerated data consumption and growth.

Summary

Reliance Jio is going to launch a submarine network which will connect Asia, Africa, and Europe. It is the longest network of its kind based on 100 Gbps technology.

Reliance Jio Introduces Transaction Option on JioChat and Plans to Integrate JioMoney with Uber

February 21, 2017

Mukesh Ambani led Reliance Jio has joined hands with Uber to integrate its mobile wallet app, JioMoney, with the cab service. Users will soon be able to use JioMoney to pay for their Uber rides. The companies announced the partnership in a prepared statement. Currently, only Paytm is used for making Uber payments, which will continue even after JioMoney is integrated.

The Business Head of JioMoney, Anirban S. Mukherjee stated that JioMoney is an important addition to the Jio ecosystem, with the app becoming one of the most preferred options for facilitating digital transactions. According to him, JioMoney’s integration with Uber will increase the number of transactions made via the digital platform.

Madhu Kannan, Chief Business Officer (CBO) for Uber India and emerging markets said that the new JioMoney payment option will enable users to enjoy a familiar and consistent payment experience. He stated that Uber aims to boost digital solutions for Indian users through the partnership.

JioMoney’s integration with JioChat

Reliance Jio has simplified the digital payment process with the introduction of a new feature on its wallet application. The company integrated the JioMoney app with its messaging service, JioChat. Reliance Jio users will now be able to make instant online payments using JioChat.

Mukesh Ambani led Reliance Jio announced the launch of the new feature on its official Twitter handle with a short video explaining how the service functions. The feature can be accessed by JioMoney users only.

With the integration of these two apps, JioChat has become one of the few messaging services that offer money transfer facilities via chat in India. Apps like Facebook Messenger, WeChat Pay, and SnapCash offer such services outside India.

Process of using the feature

Once the JioMoney wallet is integrated with the JioChat app, users will be able to transfer money to any of their contacts. To send money, users will have to open the chat window of the person they want to transfer money to and then click on the Rupee icon to enter the amount that needs to be transferred. Users will see their JioMoney balance below the text box. A tap on the send button will complete the transaction.

Linking JioMoney with JioChat 

To enjoy the new money transfer feature, a user has to link JioMoney and JioChat. Both the apps need to have the same mobile number registered. To link the apps, the user needs to go to the account section of the JioMoney app and select ‘Payments’ option. Thereafter, he will have to click on ‘More’ and then on ‘Link’. An OTP will be sent to the registered number. The accounts will be linked once the OTP is verified.

Alternatively, a user may link the accounts directly while transferring money. After entering the amount and tapping send, an OTP will be generated. Once the OTP is authenticated, the transfer will be made and the accounts will be linked.

Users also have an option to unlink the accounts if they want to. They can do so by tapping the ‘Payments’ section of the JioMoney app and selecting ‘Unlink Account’. A click on ‘JioMoney Account’ will then unlink the services. 

Summary

Reliance Jio users will soon be able to make payments for Uber rides using the JioMoney app. Besides, the company has introduced a new feature to enable digital payments through chat by linking JioMoney and JioChat.

Mukesh Ambani Offers Advice to Entrepreneurs at the Nasscom Forum and Also Highlights Corporate Lessons Taught by His Father

February 20, 2017

The Nasscom Leadership Forum, 2017 held in Mumbai witnessed a number of well-known personalities in attendance. Among them was the Chairman of Reliance Industries Limited (RIL), Mukesh Ambani. He took the opportunity to share his views on entrepreneurship at the event.

Ways to operate a successful business

The well-known industrialist spoke about the importance of being more careful while handling investors’ money compared to one’s own. He also stated that receiving support from the right team and focusing on long-term growth instead of immediate financial returns could contribute towards successful entrepreneurship.

Mukesh Ambani’s corporate journey

At the Nasscom Forum, Mukesh Ambani shed light on his journey as an entrepreneur besides sharing with the audience important factors that helped shape him into a successful industrialist. Mukesh Ambani mentioned that it was his father, Dhirubhai Ambani, who taught him the first lesson in business. He elaborated that his father emphasized on managerial skills. He recalled his father telling him that entrepreneurs always figure out what they eventually wish to do.

Importance of emphasizing on societal benefits

Mukesh Ambani further spoke on how an entrepreneur should first focus on identifying problems that concern them. He stated that once such issues have been identified, the solutions to the same could be found. Besides this, he emphasized that solutions to a specific problem must impact the society in a positive way instead of being solely focused on the financial returns. Mukesh Ambani added that RIL constantly aims to direct its operations in a way that benefits society. According to him, concentrating mainly on financial gains may not help an entrepreneur find solutions to problems that he is truly passionate about.

Using failures as stepping stones to success

Mukesh Ambani also gave advice on how failure in business should be used as a means to learning from past mistakes. He added that failures are completely normal and one should not be disheartened over them or go to the extent of giving up on a long-cherished dream.

With regard to running a business successfully, Mukesh Ambani stated that ensuring a team realizes the leader’s vision is important. Since an entrepreneur influences the team to a large extent, Mukesh Ambani believes that it is crucial for the leader to be optimistic. He added that entrepreneurs play an important role by spreading positive energy, which is a mark of a good corporate leader.

Reliance Industries Limited is making news with its massive telecom venture, Reliance Jio. Exemplary for its customer-centric approach, Jio focuses on empowering Indians with the power of data. The telecom operator’s budget-friendly 4G services have managed to reach out to a large part of India’s population. In just a few months of its launch, Jio managed to garner more 72.4 million customers, with its subscriber-base still growing at an exponential rate.

Summary

At the Nasscom Leadership Forum, 2017, Mukesh Ambani spoke about entrepreneurial lessons he learnt from his father. He also gave advice to entrepreneurs regarding ways through which they could make their business succeed.

Jio Has Contributed over 16.2 Million Users to India’s Telecom Subscriber Base

February 3, 2017

India is experiencing a revolutionary transformation in the digital sector. The country even recorded a growth in telecom subscriber base by 21.02 million towards the end of November 2016, owing to Reliance Jio’s massive telecom venture.

Jio responsible for boost in country’s telecom subscriber base

While the number of subscribers in October 2016 was 1,102.94 million, in November 2016, this number shot up to 1,123.96 million, according to a Telecom Regulatory Authority of India (TRAI) report. Therefore, as per the increase in subscribers, the monthly growth rate was recorded at 1.91%. The number of mobile subscribers in India also rose to 1,099.51 million in November 2016 as compared to the previous month’s 1,078.42 million. This large-scale increase in the number of subscribers was attributed to Jio’s active operations in the telecom sector. Mukesh Ambani led Jio has been regarded as one of the biggest contributors to the growing number of telecom customers in India, with the brand adding more than 16.2 million users in November 2016. In only three post its launch, Jio managed to increase its subscriber base to a whopping 51.87 million, owing to its effective marketing strategy and superior 4G services. The company is now a leading brand in the mobile broadband sector.

Social networking platform, Facebook, benefits from Jio

Leading social networking platform, Facebook has also benefitted from Jio’s massive 4G roll out, which was evident in the former’s fourth quarter earnings. Jio’s free 4G services led to a large number of subscribers adopting the facilities and consequently increasing their usage of apps like Facebook. In terms of user base, Facebook stated that India has been the social networking app’s strongest growth market.

David Wehner, the CFO of Facebook, revealed that the company’s growth in Asia mainly witnessed a boost because of the free data services offered by Jio in India. He stated that the promotional free offer launched by the telecom brand considerably impacted Facebook’s revenues. Jio, which was launched in September 2016, made its foray with a preview offer that gave users access to free data services and apps for three months. These services were then extended for another three months with the Jio Happy New Year Offer.  Additionally, the brand even made voice calling free for a lifetime. Jio’s marketing strategy even compelled incumbent operators to reduce their tariff plans as well.

Towards the end of the fourth quarter, Facebook recorded 165 million monthly users in India. This is being considered as the largest user base of the platform anywhere in the world after the United States. Facebook witnessed a year on year consumer base growth rate of 18%. In this regard, out of the 1.23 billion active users worldwide, 396 million have been from Asia.

Recently, a study by mobile analysis application, Smartapp, revealed that platforms like Facebook have profited the most from Mukesh Ambani led Reliance Jio’s telecom services. The analysis even found that ever since Jio’s free promotional offer was rolled out, the login rate for Facebook rose to 467%.

Summary

Reliance Jio’s performance in the industry has contributed largely to the total number of telecom subscribers in India, according to TRAI.

42% of Users Have Made Jio Their Primary Data Connection

January 30, 2017

Since Reliance Jio’s launch in September 2016, it has been marching forward in the telecom industry. The brand immediately established itself in the market with its free data, apps, and voice calling services, which provided users the freedom to test the Jio network before subscribing to the brand’s paid services. After the free welcome offer, the telecom operator went on to extend the same services until the end of March 2017 with the Jio Happy New Year Offer. This not only gave users additional time to enjoy Jio’s superior 4G services but also contributed to the brand’s expanding customer base.

Primary data network of several consumers

Recently, research conducted by a consumer mobile analysis application revealed that Jio is now the preferred choice as the primary data network carrier for about 42% of customers. In comparison, other leading operators have only managed to garner less than 18% of consumers each. Apart from this, Jio has also surpassed data consumption rates of incumbent operators by recording an average of 6.54 GB per user. The app attributed this success to Jio’s free offers, which granted users access to free data and applications. Mukesh Ambani led Reliance Jio also became the first telecom provider in India to remove all charges associated with voice calling for a lifetime.

Impact on content consumption

According to the findings in the analysis, the data consumption in metros and non-metros have grown by 6 GB and 5 GB respectively in the past months, owing to the affordable services available across the country. Users have been motivated to adopt these facilities mainly to access platforms like YouTube and Facebook, among other reasons. Reports have indicated that social apps are the most popular amongst consumers. This segment has received a 467% boost. Video streaming apps have also experienced a large demand, with a growth of 336%. The findings of the report even stated that music, sports, and news content consumption has received an impetus since the launch of Jio’s 4G services.

Change in India’s digital scenario

Chief Operating Officer of Smartapp, Gaurav Sarin elaborated on the data consumption habits and usage of users in recent times. According to him, the easy availability of affordable data services could bring about digital transformation in the country on a large scale. This will not only enable a wide segment of the population to access such services but also propel the growth of the government’s Digital India initiative.

Mukesh Ambani led Reliance Jio has starkly transformed the digital sector across India. With its range of achievements since the launch, the telecom operator is now on its way to dominating the market. Its reliable and affordable services have largely affected the data usage habits of millions across the country. The brand now has around 72 million users who access its extensive pool of services on a daily basis.

Summary

About 42% of consumers across India have opted for Reliance Jio as their main data network carrier, according to a report by a mobile analysis app.

Jio Set to Enter the Automobile Telematics Industry with the Launch of a New Device

January 20, 2017

Mukesh Ambani led Reliance Jio’s 4G services have garnered a positive response across the country, with the brand drawing close to 72.4 million customers on its network. The telecom operator, however, intends to keep up the progress and continue to develop its services. Jio will now be making a foray into automobiles telematics by launching a device, which will be capable of sending alerts to the driver and controlling certain functions of a vehicle.

Device to control functions in car

The device to be launched by Jio could update the driver about details like battery and fuel with the help of a mobile application. The device will also have a host of other features. It would be capable of immobilizing a car during a theft, creating Wi-Fi access within the vehicle, locating its whereabouts, and even alerting the car’s owner about movements. Additionally, the owner will be able to control the car’s AC from any remote location and also receive information on how the driver is steering the vehicle. As per an industry source, the device will function on a Jio SIM card.

Jio has already initiated preparations for the device’s launch by talking to several automobile companies.  As per a source, the expected price of this Jio device will either be the same as the brand’s Rs. 2,000 worth portable Wi-Fi device or lesser than that. However, various other factors are also likely to determine its pricing.

Manufacturing of the device

Initially, the hardware device is expected to be imported from China. However, Jio itself has internally developed the mobile app as well as the device. Jio’s device vendor will be manufacturing more of these devices in India post the initial roll-out.

About the JioHealthHub app

Recently, Jio launched its health and fitness app called JioHealthHub. This app will allow users to keep a check on their health by uploading data concerning their health. Additionally, they could share their lab reports, medical bills, and prescriptions with family members and care providers. Users would be able to maintain their personal medical profile as well and gain access to their health charts.

Jio has partnered with several hospitals and labs for this app. Therefore, through this app, users are able to gain access to information concerning their specific test reports for reference at any time. To further enhance the functionality of the app’s health charts, Jio will be adding more support in order to track several parameters. As per Google Play data, JioHealthHub has already witnessed around 5,000 to 10,000 downloads.

Mukesh Ambani led Jio is currently offering free data services and apps through the Jio Happy New Year Offer until 31st March 2017. Apart from JioHealthHub, the brand also has a range of other applications like JioMoney and JioMusic. JioMoney allows users to make cashless transactions, while JioMusic facilitates live music streaming and downloading.

Jio is also testing its fiber-to-the-home (FTTH) services in a pilot test across cities like Mumbai and New Delhi. Through this service, customers may enable home surveillance, utility management, and entertainment in an automated way.

Summary

Reliance Jio is set to launch a device, which could control various functions of a car, send alerts to the owner, locate the car, and even safeguard it during thefts.

Reliance-Sibur JV Plans to Set up South Asia’s first Halogenated Butyl Rubber Unit at Jamnagar

January 18, 2017

Reliance Industries Limited (RIL) and Russian petrochemical giant SIBUR signed an MoU at the recently-concluded Vibrant Gujarat Summit at Gandhinagar to set up South Asia’s first butyl rubber halogenation unit at RIL’s integrated petrochemical site in Jamnagar, Gujarat.

The unit will produce 60,000 MT of halogenated butyl rubber every year under Reliance Sibur Elastomers Private Limited (RSEPL) – a joint venture (JV) of which RIL owns 74.9%, and SIBUR 25.1%.

Apart from the planned halogenation unit, the JV owns a 1,20,000 MT per annum butyl rubber plant, currently under construction at the same venue which will provide the necessary butyl rubber feed to the halogenation unit.

Commenting on the halogenated butyl rubber unit, Mr Nikhil Meswani, Executive Director, RIL, said, “RSEPL’s halogenated butyl rubber plant will be well-poised to capitalise on the significant surge in regional demand in tyre and pharmaceutical industries. India is expected to see a quantum jump in tyre production, with Indian and International tyre majors gearing up to make capital investments of Rs. 15,000 crore. The halogenated butyl rubber demand is expected to grow at a rapid pace of 8- 10% CAGR over the next few years, driven by increasing customer preference for tubeless tyres in India and neighbouring countries, and significant investments in the manufacture of pharmaceutical closures and tank inner liners.”

“India offers attractive investment opportunities given the growing local demand for synthetic rubbers and Gujarat’s favourable investment environment coupled with the well-developed infrastructure and raw material availability at a world-class Industrial site owned by RIL. SIBUR has a long track record of successful cooperation with RIL and Gujarat’s government, which has provided us with a solid basis for expanding our footprint in India,” said Mr. Dmitry Konov, Chairman of SIBUR’s Management Board.   Halogenated butyl rubber is a key ingredient for manufacturing inner liner of tubeless tyre. With the Indian automobile trend aligning with global trends, penetration of tubeless tyres is expected to accelerate in the Indian market, resulting in an increased demand of halogenated butyl rubber. The ingredient is also used in the manufacture of pharma stoppers, inner liner of storage tanks, etc.   Construction of the butyl rubber plant is in full swing at Jamnagar, its commissioning targeted for 2018.

Production from RSEPL will substitute imports and reduce outflow of valuable foreign exchange from India, providing impetus to the government’s Make in India initiative.

RSEPL is a joint venture formed between Reliance Industries and SIBUR in February 2012 to produce 1,20,000 tonnes of butyl rubber per year at RIL’s integrated petrochemical site in Jamnagar, India. RIL owns 74.9% stakes, and SIBUR 25.1% in the joint venture.

About Reliance Industries Limited (RIL): 

Reliance Industries Limited (RIL) is India’s largest private sector company, with a consolidated turnover of INR 296,091 crore ($44.7 billion), cash profit of INR 40,737 crore ($6.1 billion), and net profit of INR 27,630 crore ($4.2 billion) for the year ended March 31, 2016.

Mukesh Ambani led RIL is the first private sector company from India to feature in Fortune’s Global 500 list of ‘World’s Largest Corporations’ – currently ranking 215th in terms of revenues, and 126th in terms of profits. RIL ranks 238th in the Financial Times’ FT Global 500 list (2015) of world’s largest companies. RIL ranks 121st on the Forbes Global 2000 list (2016), continuing to be the top-ranked Indian company. RIL’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and 4G digital services.

About SIBUR:  

SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. It owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes, and is a leader in the Russian petrochemicals industry.

SIBUR operates 26 production sites located all over Russia, serving over 1,400 large customers engaged in the energy, chemical, fast moving consumer goods (FMCG), automotive, construction and other industries in approximately 75 countries worldwide, and employs over 27,000 personnel.

Summary:

Reliance Industries and SIBUR have planned to set up South Asia’s first halogenated butyl rubber unit at Jamnagar.