friends my name is mukesh ambani welcome to the most prestigious meeting of this year rakesh is [Music] reliance just turned 49 years old this summer and became the first indian company to cross a 150 billion dollar and then a 200 billion dollar market cap the amaris have undoubtedly come a long way since then however their fundamental approach towards reliance has remained constant let me put this in perspective from oil to jio reliance's goal has always been to remain the foundation for all infrastructure in india to be built upon now it's not a coincidence that if you read the jio logo backwards it reads oil mukesh ambani specifically called out the link when jio was launched in 2016. for reliance data is the new oil everyone wants to talk about what reliance and jio mean for india's future but to understand reliance one has to understand their past so let's go back to the year 1948 to the very beginning of reliance it all started when the young dhirubhai armani left for the port of aden to work for french trading house a bessie and go birubai ambani worked for the shell products division of bessie which gave him an understanding of the production linkages of the petroleum industry with an initial capital of just one lakh in india he started a business trading spices and textiles called reliance commercial with his second cousin though the two soon parted ways ambani continued to push forward with reliance focusing on trading synthetic yarns in 1973 he renamed the company reliance industries representing its expanded focus he made most of his fortune though while establishing reliance petroleum to finance its own oil refinery jamnagar which was the world's largest when it opened in 2000. the next point is that realizes playbook relies on the government in the early days of reliance dhirubhai amani formed important relationships with aids to the prime minister indira gandhi in the book the billionaire raj james crabtree wrote dhirubai's philosophy was to cultivate everybody from the door keeper to the head of the house [Music] [Music] okay [Music] thank his relationships paid off early and often in 1971 pm gandhi's government set up a high unit value scheme which allowed the import of polyester filament yarn against exports of nylon reliance accounted for 60 percent of imports and exports under the scheme now reliance wasn't just happy with that it wanted to move forward and make its own polyester fiber this was not permitted by the indian state at that time but it was in the early 1980s that ammani had the benefit of an indira gandhi back in power in 2016 reliance in the state bank of india set up a joint venture to provide banking and remittances through jio and reliance retail another example is modi's government which made it very difficult for bsnl to obtain licenses to upgrade to 4g the denial is seemingly because they use chinese components but many believe it's a bid simply to help jio at the expense of bsnl i think an easier answer to this is that reliance simply knows how to work the system and this is an attribute of the urubai ambani reliance also popularized equity ownerships in india they take huge pride in popularizing this and there's a lot of truth to this statement the company's stocks were listed on the bombay and ahmedabad stock exchanges in november 1977. as indian stock market investors quadrupled between 1980 and 1985 one in four owned reliance shares at the 2017 agm mukesh ambani actually said that 10 000 rupees invested at their ipo would be worth one crore in 2017. a 10 000 x return for context the netflix show bad boy billionaires had the story of sahara which was an indian company it's a pyramid scheme that promised poor indians 6.5 x returns over 15 years on small amounts of money those investors lost everything had they invested in reliance stock instead they would have multiplied their money by 64 times over the same period any story about reliance is not complete without the beef between the brothers in 2002 dhirubhai ambani suffered a stroke at a net worth of 25.6 billion dollars deer by ambani had two sons the older brother was mukesh who graduated from the institute of chemical technology and he dropped out from an mba to assist his father in running reliance on the opposite side anil ambani actually finished his mba from wharton and came back but the war between them as it was referred to got so bad that the brothers lived in the same building in mumbai but coordinated their entry and exit through associates so they don't have to run into each other the battle was one of the reasons that mukesh decided to move into his own house which was until the second most valuable residential property in the world behind buckingham palace which was valued at 2.2 billion after three years of fighting mukesh and anil's mother kokila ben got them to agree to a peace accord which she announced in june 2005. each brother would get half the company which was anil would get reliance group including rile's newer businesses like energy reliance infocom and reliance capital mukesh on the other hand would get reliance industries which included oil refining retail exploration petrochemicals as part of their agreement the brothers agreed to a 10-year non-compete clause so that mukesh would not enter let's say telecommunications until 2015. today mukesh is worth 85 billion dollars but anil who owed erickson a 77 million dollar loan which mukesh had to bail him out of in march 2019 in return declared himself bankrupt in front of a uk court in february in 2020 with assets totaling 82.5 million dollars and liabilities exceeding 300 million dollars [Music] but we are a real world intense transformative learning party and the theme happens to be business management click the link in the description below today he's betting on data it was in 2010 that the indian government began auctioning off 3g and broadband wireless access most bidders focused on 3g while a little known company called infotel won the 4g licenses in all 22 regions after the winners were announced reliance swooped in and bought 95 of infotel for 670 million dollars it was such a smart move that ambani used infotel to keep his deep pockets hidden from other bidders so that no one could even find out what his master plan with jio was till the very ending ladies and gentlemen thank you for having me here it is a pleasure to conduct this auction and i am so happy to announce that today we're gonna be auctioning the 3g spectrum so what are your offers gentlemen there says 2 million 3 million 6 million and that is a mind-boggling offer and we're going once going twice anybody else and sold and it looks like we have another spectrum 4g i don't know what that is does anybody want 4g no no there seems to be somebody there what do you want to buy it for 670 million okay that's going once going twice and so holla habibi who was that guy anyway [Music] between 2010 and 2017 reliance spent 32 billion of its own money and debt to build out a nationwide 4g network focused exclusively on data that particular decision meant that voice voice calls could be handled over the data network for a fraction of the cost of competitors and i remember this right when i was young call somebody else you would have to buy minutes it was very expensive jio changed all of that when it was lost in 2016 the impact was massive by offering three months and even six months of free data and voice jio grew from 1.5 million subscribers in its first quarter to 398 million subscribers in the quarter of june 30 2020. in four years jio acquired more mobile customers than there are people in the united states with room to spare she was also responsible in bringing about a mobile revolution platform with jio platforms they slashed data costs by 95 since 2013 and drove a 20 times increase in india data consumption to 8.3 gb per month per user which is on par with south korea now let's talk about the future at the last annual general meeting reliance announced plans to invest 75 000 crore by 2024 in its new clean energy business and this is very typical of reliance to be ahead of the market in the next decade mukesh ambani is looking very closely at the energy sector he realized that in the next generation abundant solar energy is going to be used to power everything we have knowing that india is a solar abundant country reliance is planning to position itself uniquely to supply the whole country with clean and nearly free energy what they did for jio with dropping prices they're going to do the exact same thing with solar thus again being at the forefront for all infrastructure in india to be built upon [Music] um [Music]