Posts Tagged ‘Reliance Industries Limited’

Mukesh Ambani Appreciates Reliance Jio’s Employees for its Achievements

September 15, 2017

Mukesh Ambani is proud of Reliance Jio’s achievements and its employees and hopes to create many more records with the company.

Mukesh Ambani’s letter

On completion of one year of Reliance Jio’s commercial service, Ambani wrote a letter congratulating his employees. In the letter, he mentioned the achievements of Reliance Jio and praised his employees. Ambani stated that Jio has received 130 million customers in this one year. It has also broken several records at the national as well as global level. Adding to this, Ambani said that the biggest personal satisfactory factor for him is the myth that Jio busted. He believes that Reliance Jio has broken the myth that India is not prepared for advanced technology.

Ambani said that the ways in which India adopted 4G technology and is utilizing it are noteworthy. He told his team that they have overcome the challenge of not only launching a new technology but also making the offer simple, compelling, and convenient. Every city, town, village, and Indian would benefit from this, he added.

Reliance Jio’s plans and growth

The initial phase of Reliance Jio was focused on acquiring customers. As per company officials, the next phase will be focused on launching services. The company will roll out services related to media and entertainment, healthcare, education, and payments banking in the coming few months.

In 2016, Mukesh Ambani launched Jio with two clear objectives. The first one was to offer affordable data services to the masses. The second aim was to disrupt the telecom sector by making the Internet accessible to everyone. However, Reliance Jio has achieved much more than just these.

According to a company official, Reliance Jio subscribers consume more data that the users of Verizon, T-Mobile, and AT&T combined in the United States (US). The official stated that the telecom company did not expect such an overwhelming response and that this was just the beginning.

In a presentation given to the Telecom Regulatory Authority of India (TRAI), Reliance Jio said that the investments it made before 2010 have all surpassed the recovery level. It stated that the company has received excessive returns due to the Interconnection Usage Charges (IUC).

Reliance Jio’s data service

A report from CRISIL mentioned that between the Financial Year (FY) 2012 and 2017, the mobile data usage per subscriber in India jumped to 80 percent per year. The increasing adoption of 3G and 4G services, 40 percent reduction in tariffs, and Reliance Jio’s free data services in the past year have contributed towards the rise in mobile data usage to 1.25GB per month per user.

Reliance Jio official said that Jio is receiving a good response from consumers due to the increasing demand for data. Even though customers have retained their existing operator’s SIM cards, they have shifted to Reliance Jio; and this is very encouraging.

Post its launch, Reliance Jio has disrupted the telecom sector and affected businesses of other major telecom operators in the country. However, the company’s official believes that this impact is short-term and, eventually, the whole industry will benefit from the rise in data consumption.

Summary

Chairman Mukesh Ambani praises Reliance Jio’s employees for its one-year achievements.

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Reliance Jio Launches a Massive Rollout for JioPhone

August 23, 2017

The opening for the JioPhone pre-bookings, the feature phone manufactured by Reliance Jio, the telecom arm of Mukesh Ambani led Reliance Industries Limited (RIL), is coming near. With this, the company is gearing up to supply the required number of phones to dealers.

Pre-booking and beta testing

The phone was available for beta testing from 15th August 2017 to 23rd August 2017. The pre-booking slot for the JioPhone will begin from 24th August 2017. This will be on a first come first serve basis.

Reliance’s efforts to market the JioPhone

The JioPhone is going to be marketed under the conglomerate’s LYF brand. The company is planning to reach out to around 10 lakh retailers. Through this, RIL expects to be delivering around 5 million handsets every week. This is expected to continue on for the next five or six months.

It has already started educating dealers on how to avail of the vouchers as well as the pre-booking process. The transactions for the above will be done via the BHIM app. Mukesh Ambani led RIL is also expected to roll out a Jio point of sale (PoS) version that will come with the pre-booking option for the voucher facility.

The retailers who wish to sell the JioPhone will need to download this app in order to make the required payments for the vouchers and for booking the phone.

Distribution of JioPhone

The JioPhones are going to be imported from Taiwan. These phones will then be brought into the cities of Mumbai, Delhi, Ahmedabad, Kolkata, and Hyderabad. The devices will then be sent to the Reliance Digital stores and Jio outlets. Reliance Digital currently owns a chain of consumer electronic stores. This includes a network of around 1,996 outlets in approximately 700 cities. The company also has close to 1,072 Jio Centers. These outlets will distribute the handsets to the retailers.

First round of JioPhone sales

In the first round, the telecom operator is going to provide dealers with 40 JioPhones. These phones will be available only through the Jio vouchers and on a first come first serve basis. The dealers may purchase these phones by paying the company INR 500 for each voucher which means INR 20,000 in total. Once the dealer sells the phones, he/she will be reimbursed. Of the INR 1,500 security deposit the buyer pays, the dealer will retain INR 500 while the rest INR 1,000 will go to the company. In order to sell its phones, RIL is making use not only of its own work force but also of the services by other logistics companies.

About the JioPhone

The JioPhone is a 4G VoLTE supported feature phone. Here are some of its specifications:

  • A 2 MP rear camera
  • A front VGA camera
  • 512 RAM
  • 4GB internal memory
  • Expandable memory is 128 GB via a microSD card
  • 2,000 mAh battery
  • 4-inch screen
  • Alphanumeric keypad
  • Jio app suite

This phone is also known to be effectively free as the customer will only have to pay an INR 1,500 security deposit which is refundable after three years.

Summary

To promote its new JioPhone, RIL has launched a massive rollout.

Digital Payment Apps Offer Cashback on Reliance Jio Recharge

August 17, 2017

Mukesh Ambani’s Reliance Jio began commercial operations in September 2016. It gained a subscriber base of over 100 million in a record time of six months. The company has always been offering attractive 4G data and voice calling packs to its users.

Cashback offers

A number of smartphone companies have joined hands with Jio to offer additional data. Now, several payment portals have announced cashback offers for Jio users. These portals include Amazon Pay, Paytm, MobiKwik, and PhonePe. Each of them is giving different cashback offers on recharge of Reliance Jio accounts. This move is aimed to attract other users apart from the users of MyJio app.

Most of the cashback given by these digital payment apps are on plans priced more than INR 300. Reliance Jio plans for this range cost INR 309, INR 349, INR 399, INR 509, INR 999, INR 1,999, INR 4,999, and INR 9,999.

Here is a list of all the cashback offers provided by these digital payment portals:

  • Paytm

Paytm’s cashback offer starts from a recharge of INR 100. The app is giving a minimum cashback of INR 15 on a recharge of INR 100 or more. For recharges above INR 300, the cashback is of INR 76. Paytm will credit the money in the user’s account within 24 hours of recharge. To avail of the cashback, users will need to use the promo code, PAYTMJIO while making the recharge from the app. The promo code is listed on the app, so that users may just select it instead of manually typing. Selecting from the list adds the promo code automatically.

  • PhonePe

PhonePe, a Flipkart app is giving INR 75 cashback on a Reliance Jio recharge of INR 300 and more. This offer is available from 14th August to 21st August exclusively for prepaid users. It is applicable on just one Jio recharge transaction. Similar to Paytm, the app will credit the cashback into the user’s PhonePe account.

  • MobiKwik

MobiKwik is offering cashback as high as INR 159. This offer is for new users who have never recharged through MobiKwik. The code of this offer is NEWJIO. Cashback for other users is of INR 59 with code JIOMBK. Both these offers are available for Jio users recharging with the INR 399 plan only.

  • Amazon Pay

Amazon’s cashback offer is of INR 99 for Jio recharges of or above INR 309. This offer is exclusively available on first Jio recharge through Amazon Pay. It is valid from 14th August to 19th August. On subsequent recharges, Amazon is offering cashback up to INR 20 valid till 30th November. This means a user may get a total cashback of up to INR 300 until November. The cashback will be credited to the Amazon Pay account within seven days post the recharge.

Mukesh Ambani led Reliance Jio prepaid plans start from INR 19 while the postpaid plans start from INR 309.

Summary

Digital payment apps like Paytm, PhonePe, Amazon Pay, and MobiKwik have announced different

Mukesh Ambani to Challenge Employees to Come Up with Innovative Ideas

August 11, 2017

Chairman of Reliance Industries Limited (RIL), Mukesh Ambani is all set to throw a “grand challenge” at his employees. As a part of the Mission Kurukshetra (MK), the chairman will challenge 1.43 lakh employees belonging to the Reliance family.

The aim of the challenge is to get innovative ideas that will drive the company’s next engines of growth. The challenge would have reached the employees earlier but Ambani did not want to distract his team’s focus from the telecom business.

About Mission Kurukshetra

MK was first launched in the year 2009-2010 and then again in May 2014. It is Ambani’s dream project. He envisions making RIL the most innovative company in the world through this project. MK covers a wide range of RIL’s businesses. It motivates employees to think and suggest ideas that may transform the way RIL does business.

The benefits of this project are enjoyed by all stakeholders in the form of surprising dividends. And the fruitful results have encouraged the team to strive for more.

Views of Raghunath Mashelkar

Raghunath A. Mashelkar is an academic on RIL board and a mentor of MK. He is also the Chairman of Reliance Innovation Council (RIC). He said that around ten years back, Ambani inspired him to take on the innovation project.

Mashelkar revealed that Ambani has a peculiar style of dealing with a crisis. He sees it through a different lens. He encourages the team to face challenges and achieve the impossible. Mashelkar informed that after every board meeting, Ambani conducts brainstorming sessions that last from half an hour to two hours. These sessions help everyone to come out charged and energized.

Mashelkar said that Ambani actively participates in all the matters. Ambani knows everything that is happening in the Reliance factory even more than what the factory manager would know, he added.

Views of Sushil Borde

Sushil Borde is a key facilitator of RIC. He laid the ground for MK. He defines the project as a war against complacency and status quo. He informed that MK has been very popular among the people of RIL since its inception. The project has given birth to 17,800 ideas till date with an average of 500 ideas per month since the re-launch. Borde also informed that 3,350 ideas out of these have been adopted and 64 percent of them are at different stages of implementation.

Mukesh Ambani’s inclination towards learning

Ambani lays a special focus on learning. While venturing into the telecom business, he took an online course on the subject. People working with him say that he takes such courses regularly to learn new things.

Mashelkar believes that nobody can defeat Mukesh Ambani in terms of granular thinking because he involves himself deeply in any topic. He said that Ambani is not an expert of life sciences; but, the way he reads scholars is incredible. Ambani has surprised everyone with his knowledge and questions on the latest life sciences technology.

Summary

Under Mission Kurukshetra, Mukesh Ambani will throw a “grand challenge” at his employees and encourage them to come up with innovative ideas.

Jio Releases New 4G Packs and Feature Phone

August 9, 2017

The Summer Surprise Offer by Mukesh Ambani led Reliance Jio, the telecom subsidiary of Reliance Industries Limited (RIL) is soon going to come to an end. Many Jio users have also got recharge reminders for the same.

Jio’s 4G plans

To recharge their accounts, Jio Prime users will have to choose from the available plans. Following are the plans for prepaid users:

  • INR 19 for 1 day with a benefit of 200 MB 4G data
  • INR 49 for 3 days with a benefit of 600 MB 4G data
  • INR 96 for 7 days with a benefit of 7 GB 4G data (1 GB per day)
  • INR 149 for 28 days with a benefit of 2 GB 4G data
  • INR 309 for 56 days with a benefit of 56 GB 4G data (1 GB per day)
  • INR 349 for 56 days with a benefit of 20 GB 4G data
  • INR 399 for 84 days with a benefit of 84 GB 4G data (1 GB per day)
  • INR 509 for 56 days with a benefit of 112 GB 4G data (2 GB per day)
  • INR 999 for 90 days with a benefit of 90 GB 4G data
  • INR 1,999 for 120 days with a benefit of 155 GB 4G data
  • INR 4,999 for 210 days with a benefit of 380 GB 4G data
  • INR 9,999 for 390 days with a benefit of 780 GB 4G data

Following are the plans for postpaid users:

  • INR 309 for 2 months with a benefit of 60 GB 4G data (1 GB per day)
  • INR 349 for 2 months with a benefit of 20 GB 4G data
  • INR 399 for 3 months with a benefit of 90 GB 4G data (1 GB per day)
  • INR 509 for 2 months with a benefit of 120 GB 4G data (2 GB per day)
  • INR 999 for 2 months with a benefit of 90 GB 4G data

All these packs offer free local and STD calls.

JioPhone

The recently launched JioPhone is a 4G feature phone aimed to target the 50 crore customers, who still use such phones. The phone is effectively free with a fully refundable security deposit of INR 1,500. The phone also comes with the INR 153 plan.

It will be available for beta testing from 15th August 2017 and users may pre-book the same from 24th August 2017. The pre-booked phones will be given in September on a first come, first served basis. Here are some steps on how to pre-book the JioPhone:

  1. Click on the ‘Keep me posted’ button on the JioPhone banner on jio.com.
  2. Individuals will have to fill in their name, phone number, email ID, and pin code in the form given.
  3. Businesses will have to fill the contact person’s name, the name of the company, phone number, email ID, GSTN or PAN information, and the number of JioFi and JioPhone devices needed.
  4. The registration is completed after the person clicks on the ‘Submit’ button.

Summary

With the Jio Summer Surprise Offer coming to an end, users may recharge their phones with one of the Jio’s new plans. They may also register interest for the new JioPhone.

Separate Registration of JioPhone for Business Users

August 3, 2017

Reliance Industries Limited’s telecom arm, Reliance Jio has introduced the new feature phone, which has 4G connectivity. This phone, called the JioPhone, was unveiled by Chairman Mukesh Ambani at the company’s Annual General Meeting (AGM) held on 21st July 2017.

JioPhone registration for business purposes

Reliance Jio is gearing up to make JioPhone reach great heights. The official website of Jio has introduced a separate form for registering users who want to purchase JioPhone for their businesses. Jio has specially added this section to promote the JioPhone and make it easier for people and businesses to buy it.

The form may be found in the ‘Keep me posted’ section on Jio’s official website. Given below are the steps to fill it:

  • Go to the ‘Keep me posted’ button on Jio.com
  • The form will ask you to register your interest in JioPhone
  • Select ‘Business’ in the form
  • Fill in the required details that include name, name of the company, pincode, PAN or GSTN information, email ID, and phone number.
  • You will also have to specify the number of JioPhone handsets you need for your business.

‘Keep me posted’ section

Jio has added to its website, a button called ‘Keep me posted’ that takes one to a new page. The button may be seen on the banner that introduces the JioPhone on the homepage of Jio’s website. If you wish to keep up with the launch of the phone, you may register yourself through this page and you will get the necessary information.

To fill the form and keep up with news on JioPhone, follow the steps given below:

  • Click on the ‘Keep me posted’ option to register interest
  • Fill up the basic information like your full name, email ID, and phone number. Jio will ensure that your private information is not misused and you do not get any spam
  • Read through the terms and conditions to understand the ‘Keep me posted’ service better and click on the checkbox
  • Hit the submit button and you will see a thank you message

On completing the registration for this service, you will get an email from Mukesh Ambani Jio that will thank you for registering your interest and acknowledge that Jio has your details. The Jio team will get in touch with you shortly after you receive the email.

About JioPhone 

JioPhone will undergo beta testing from August 15. You will be able to book this phone in advance from August 24. However, the device will become available on a first come first serve basis from September 2017. The tariff plan on this phone will cost INR 153 per month and will provide unlimited 4G data.

It is likely that the company will bring forward about 5 million handsets per week. All the devices will be manufactured in India from the last quarter of this year. The JioPhone is effectively free because you may buy it at a cost of INR 1,500, which is a refundable amount. You will get your money back once you return the phone after a period of 36 months.

Summary

Reliance Jio has introduced a special registration form for users who want the JioPhone for their business.

Mukesh Ambani Supersedes Li Ka-shing to Become Asia’s Second Richest Man

August 2, 2017

Thanks to Reliance Jio and Reliance Industries Limited’s (RIL’s) petrochemical and refining units, Chairman Mukesh Ambani has become the second richest man in Asia.

Mukesh Ambani’s position

According to the Bloomberg Billionaires Index, this year, Mukesh Ambani added around USD 12.5 billion or about INR 80,000 crore to his existing wealth. His current net worth is USD 35.2 billion or around INR 2.2 lakh crore. This surge made him increase his position from being the 29th richest man in the world at the end of 2016 to being the 19th richest man, currently.

Mukesh Ambani overtook Hong Kong real estate magnate Li Ka-shing, who was previously the second richest Asian. At present, the richest Asian is Jack Ma, Founder of Alibaba Group with a net worth of USD 43.7 billion.

RIL’s earnings and investments

RIL has invested more than USD 31 billion in Reliance Jio, its telecom business. Investors have an optimistic view of this venture, especially after the launch of the new JioPhone on 21st July. Earlier in February, when the Chairman announced Reliance Jio’s initial pricing, RIL’s shares saw an almost 50 percent boost.

At present, around 90 percent of RIL’s revenues come from its petrochemicals and refining business, a Bloomberg report stated. Besides, Mukesh Ambani expects the business to reach an EBITDA of around INR 1 trillion in the next few years.

About Reliance Jio

Reliance Jio is the telecom subsidiary of RIL. It was launched in September 2016 and within nine months, it managed to get 117.3 million subscribers, which made it India’s fourth largest telecom operator.

At the company’s 40th Annual General Meeting (AGM), Mukesh Ambani described Jio as a jewel among RIL assets. He also voiced his expectations that the business and societal value of the telecom company will increase and it will become the largest provider of data services, application platforms, and other products during the next decade.

The company is extending its scope of business by offering fixed-line Internet connections as well as releasing a new feature phone known as the JioPhone. This is an effectively free phone as users may buy it with a deposit of INR 1,500, which is fully refundable after three years.

Jiophone will offer customers unlimited voice calls, SMS, and data for a mere INR 153 per month. It is also supposed to have smartphone-like features like voice assistance, 22 languages support, and the Jio app suite. The phone is expected to reach the market by 15th August 2017.

Apart from all this, Reliance Jio has partnered with AirWire Technologies to offer a special device for cars. This device will be able to connect to a user’s car and provide Wi-Fi, diagnostics, and other services.

About Bloomberg Billionaires Index

Bloomberg Billionaires Index is ranking of the richest people in the world. At the end of every trading day in New York, the net worth of each billionaire is calculated and then updated on its website.

Summary

As per the Bloomberg Billionaires Index, Mukesh Ambani became the second richest man in Asia leaving Li Ka-shing behind.

RIL: Golden Decade has Begun

July 28, 2017

Reliance Industries Limited (RIL) is one of the leading conglomerates in India and is led by Mukesh Ambani. RIL is optimistic about its future and has called its next ten years, the golden decade.

RIL’s growth  

The retail and telecom arms of RIL are regarded as “hyper growth platforms” by the company. RIL has been witnessing consistent growth in both these consumer sectors.

The company, apart from having a strong annual cash flow from its petrochemical and energy core businesses, is reaping benefits of its recent huge capital expenditures. RIL’s net profit has crossed the INR 9,000 crore-mark in the first quarter of the Financial Year (FY) 2017-2018.

The company has been relying on its main businesses of refining and petrochemicals that have high margins. However, its retail arm has now been making significant contributions to the total turnover.

Reliance Jio’s growth

The telecom arm of RIL, Reliance Jio offers affordable services to its subscribers. The company predicts a tremendous growth in the future because of the increase in the use of wireless Internet.

It said that Jio has more than 100 million paid subscribers and most of them opt for a tariff plan of INR 349 or higher. Jio has stated that the penetration of smartphones in the market will increase to 60 percent from the current 30 percent in the coming three to four years. Apart from this, Jio also believes that there is a huge scope of growth for high-speed data services as 50 percent of users stream videos and 40 percent consume eSports.

Jio has a wide subscriber base and the users already consume more than 125 crore GB of data with 165 crore hours of video streaming every month. All of this is in addition to the 250 crore minutes of daily voice traffic.

According to the company, an average Indian spends approximately seven times more time on their cell phones every week than on television. This has led to the redefinition of main sectors like entertainment, healthcare, education, and marketplaces. Middlemen are slowly being replaced while direct-to-customer markets are witnessing growth, it added.

RIL’s energy and retail business

According to RIL, its fuel retail business is growing at a rapid rate and enjoys average sales that are higher than competitors. There is no complaint of any malpractice like tampering of fuel pumps and thus RIL has a good credibility in the market.

RIL’s retail sale of diesel has increased by 82 percent in FY 2016-2017. It is because of automation of daily fuel prices at all its fuel retail outlets. This ensures customers that the fuel they are paying for is priced correctly and the prices are updated on time.

The overall sale of retail products by Mukesh Ambani led RIL has a key contribution from the sales proceeds of petroleum products, consumer electronics, and connectivity services. These sectors have observed a strong and sustainable growth, according to the company. Apart from this, the company also revealed that around 66 percent of its retail business is transacted by non-cash modes.

Summary

RIL commented that its “golden decade has begun” owing to high growth expected in its retail and telecom arms.

Reliance Digital to Head to an INR 40,000 Crore Goal by 2020

July 27, 2017

Reliance Industries Limited (RIL) has set a goal to make its subsidiary Reliance Digital an INR 40,000 crore entity by the year 2020. Reliance Digital currently handles the company’s mobile phone and consumer electronics sector.

Reliance Digital’s expansion plans

At a business meeting held to celebrate the company’s ten year anniversary, senior executives and company officials of Reliance Digital revealed the business plans. In this meeting, the target for INR 40,000 crore was set.

Current business share of Reliance Digital

Reliance Digital occupies 4 percent of India’s mobile phone and consumer electronics retailing market. In the previous fiscal year, it achieved around INR 11,200 crore sales. This made it the largest contributor of Reliance Retail.

Reliance Digital accounted for 34 percent of the total sales and overtook even the food and groceries retail. In the quarter between April and June, its share in the retail business increased to 41 percent and it outperformed the industry growth in categories like washing machines, air care, microwave ovens, TVs, and mobile phones. Besides, its like-for-like growth in the last financial year was over 21 percent while Reliance Retail’s overall like-for-like growth was 16 percent.

Reliance Digital stores

At present, Reliance Digital operates around 2,000 digital stores in over 700 cities. Of these, 270 are large-format outlets and the rest are smaller-format Jio stores. These Jio stores sell Jio mobile connection, smartphones, and tablets.

As per company officials, the large format stores of Reliance Digital achieved billion-dollar sales last fiscal. Mukesh Ambani, Chairman of RIL said that due to the increasing demand for entertainment, data, and connected consumer appliances, eight smartphones are sold in a minute while 68 TVs and 42 laptops are sold in an hour at Reliance Digital stores.

After achieving a 90 percent increase in the consumer electronics business last year, Reliance Digital is expecting the market to grow even more and is making plans on capturing most of this growth.

Way forward for Reliance Digital

To achieve the target of INR 40,000 crores, Reliance Digital will need to increase its market share to 12 percent in the next three years. Here are some of its future plans for achieving this target:

  • For the next three years, Reliance Digital is planning to set up 50 large-format stores every year.
  • The company is also planning on selling large appliances like TVs and ACs via the Jio stores.

About Reliance Digital

Reliance Digital is a subsidiary of Reliance Retail, which is owned by RIL. It offers a wide range of electronic products from top brands. It also offers after sales service and support. This includes product installation, maintenance, repair, and customer services.

About RIL

RIL-led by Mukesh Ambani is a conglomerate of companies whose activities range from petrochemicals to electronic products and retail to hydrocarbon exploration. It is a Fortune 500 company. It is also the largest private sector corporation in India.

Summary

Reliance Digital has set a target of becoming an INR 40,000 crore entity by the year 2020.

After an Increase in Profit, RIL to Buy Stake in Balaji Telefilms

July 21, 2017

Recently, Mukesh Ambani led Reliance Industries Limited (RIL) announced its net profit for the quarter, which ended on 30th June 2017. The company claimed that it earned a net profit of INR 9,108 crore with a year-on-year rise of 28 percent, beating even the Street estimates.

RIL’s earnings and performance

According to RIL’s earning statement, it earned higher operating profits and revenue through the increase in volume, margins, and prices of its petrochemical and refining products. RIL’s Gross Refining Margin (GRM) exceeded that of Singapore’s GRM by USD 5.5 per barrel. The Singapore GRM is known as the benchmark for the region.

RIL gained an amount of INR 1,087 crore due to the sale of its stake in Gulf Africa Petroleum Corp (GAPCO). The favorable product deltas and volume growth caused the company’s segment earnings before interests and tax (Ebit) to rise by 43.7 percent and reach INR 4,031 crore. The new Para-xylene (PX) manufacturing facilities at its Jamnagar complex in Gujarat is also expected to increase earnings as with this plant, RIL has doubled its PX capacity to become the second largest PX producer in the world.

The oil and gas business of RIL saw its revenue decline by 1.2 percent to INR 1,324 crore while the operating losses were at INR 373 crore. The previous year’s operating losses were INR 312 crore.

The retail business of the company saw a rise in the revenue by almost 74 percent to reach INR 11,571 crore with an Ebit of around INR 292 crore.

While RIL’s net debts amounted to a total of INR 128,567 crore as of 30th June 2017, its cash and cash equivalents amounted to around INR 72,107 crore.

A surprise to analysts

As per a research report by Motilal Oswal, in the April to June quarter, RIL was expected to see a decline in its refining business. However, the company’s GRM rose to a nine-year high of USD 11.9 per barrel in comparison to the previous quarter’s USD 11.5 per barrel.

Balaji Telefilms stake

RIL’s Board of Directors has recently approved a plan to buy a 24.92 percent stake in Balaji Telefilms. This will cost the company INR 413 crore. With this acquisition, RIL will be able to secure content for the digital service of its telecom subsidiary, Reliance Jio.

Jeetendra Kapoor, the Chairman of Balaji Telefilms stated that RIL’s investment is a vote of confidence for the company as it is making its move to own viewers and IP of Balaji Telefilms. Balaji Telefilms is also happy to have RIL as a growth partner in becoming the preferred content producer across all geographies as well as across all means of video consumption, he added.

As of now, the promoters of Balaji Telefilms own a 43.29 percent stake in the company. After the issue of new shares to RIL, this will decrease to 32.6 percent. The investment banker responsible for this transaction is Axis Capital.

About Balaji Telefilms

Balaji Telefilms is promoted by Ms. Ekta Kapoor and her family. It produces content for TV. It also produces and distributes films. Besides, the company handles an over-the-top video subscription platform called ALT Balaji.

Summary

Mukesh Ambani led RIL reported a 28 percent year-on-year increase in its net profit and has planned to buy a 24.92 percent stake in Balaji Telefilms.