Mukesh Ambani's Lecture on Reliance's History and Future

Introduction

• Speaker: Mukesh Ambani
• Event: Prestigious annual meeting

Milestones and Achievements

• Reliance's 49th Anniversary: Crossed $150 billion and $200 billion market cap marks.
• Core Goal: To serve as the foundation for infrastructure in India.
• Jio's Connection to Oil: Jio logo reads 'oil' backwards; data seen as the new oil.

Historical Background

Early Beginnings (1948)

• Dhirubhai Ambani: Worked at French trading house A Besse & Co in Aden, Shell Products Division.
• 1950s: Started Reliance Commercial trading spices and textiles with initial capital of 1 lakh INR.

Expansion and Growth (1970s-1980s)

• Reliance Industries Formation (1973): Expanded to synthetic yarns.
• Establishment of Reliance Petroleum: Financed world's largest oil refinery in Jamnagar (2000).
• Government Relations: Cultivated relationships with key aides and PM Indira Gandhi.
• High Unit Value Scheme (1971): Allowed import/export of polyester filament yarn.

Impact on Stock Market

• Popularized Equity Ownership: Listed on Bombay and Ahmedabad Stock Exchanges (1977).
• Returns: 10,000 INR in IPO in 1977 worth 1 crore in 2017. Significant positive impact on ordinary investors.

Reliance's Strategy and Influence

• Government Collaboration: Reliance State Bank of India joint venture (2016); Modi government policies favoring Jio over BSNL.
• Equity Market Influence: Significant contribution to the growth of the Indian stock market.

Family Feud

Conflict Between Brothers

• Dhirubhai's Death (2002): Mukesh and Anil Ambani's conflict.
• Resolution (2005): Split the company: Mukesh received Reliance Industries; Anil got newer businesses.
• Non-Compete Clause: 10-year agreement where Mukesh would not enter telecommunications till 2015.

Financial Standing

• Mukesh Ambani: Net worth $85 billion (current).
• Anil Ambani: Declared bankrupt in 2020 with significant debts.

Jio's Launch and Impact

• Auctioning 3G & 4G (2010): Acquired 4G licenses through Infotel; built a nationwide 4G network by 2017.
• Jio's Revolutionary Offer: Free data and voice calls initially, leading to huge subscriber base and market disruption.
• Data Revolution: Major reduction in data costs; increased consumption.

Future Plans

• Clean Energy Investment: Reliance plans 75,000 crore investment by 2024 in clean energy.
• Solar Energy Focus: Aiming to provide affordable, renewable energy similar to the model used for Jio.

Conclusion

• Vision: Leveraging abundant solar energy to power the future and maintain a leading role in India's infrastructure.