Hurrah, Reliance is now a Consumer Company: Angel Broking

Vews of Mr. Mayuresh Joshi (Fund Manager, Angel Broking):

"The Reliance Industries 41st AGM was always going to be an important AGM considering that the group is in the midst of a major shift. But what emanated from the AGM was that Reliance Industries was well and truly becoming a Consumer Company. In the last 40 years, Reliance Industries has gradually transformed its core focus business through backward integration. First it was textiles, then it was polyester, then petrochemicals and then refining and extraction. In the last few years, a major lateral shift has happened with a massive shift towards, telecom, data, broadband and retail. The big shift was best summed by Mr. Mukesh Ambani himself in his speech, "As our Golden Decade rolls on, our consumer business will nearly contribute as much as our energy and petrochemicals business" That was obviously unthinkable even 5 years back.

Sine the last AGM, Reliance Jio's subscription based has doubled to 21.5 crore subscribers. Now Jio has the second largest number of subscribers after Bharti. A few months back Jio had overtaken Idea Cellular and now it has overtaken Vodafone India also. But the growth in Jio was not the thrust of the AGM. The big story for Reliance Jio from here on is going to Fiber Connectivity.

The big game plan for Jio in the coming months is to extend fiber connectivity to homes, small businesses, traders and SMEs. Leveraging on its advanced fiber bandwidth network, Jio will be offering this service in over 1100 cities and towns across India. As Mukesh Ambani himself summed it up, "When you combine fiber connectivity with the agility and hunger of small business owners, they will be empowered to compete with larger competitors on a level playing field."

The theme of the AGM has been that Jio will help to position the Reliance Group as a technology platform company and the retail business will be one of the bricks that will complete the Reliance consumer offering. Isha Ambani best captured the shift "The future of India will not be in megabytes but in gigabytes". That is both literally and metaphorically true."

Shares of RELIANCE INDUSTRIES LTD. was last trading in BSE at Rs.965 as compared to the previous close of Rs. 990.05. The total number of shares traded during the day was 1290356 in over 25652 trades.

The stock hit an intraday high of Rs. 1008.5 and intraday low of 960.1. The net turnover during the day was Rs. 1273409007.

Source : Equity Bulls

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