InvestorQ : Do you see any impact of Mukesh Ambani handing over the reins of Jio Infocomm to Akash Ambani?
Angel dcosta made post

Do you see any impact of Mukesh Ambani handing over the reins of Jio Infocomm to Akash Ambani?

Juvina Maggie answered.
2 months ago

The shift was always on the cards and it has just about been formalized now. For instance, in the previous AGM of Reliance Industries, Mukesh Ambani had specifically invited Akash and Isha to present on the outlook for Jio Infocomm. It was also an eloquent signal that the Reliance group was carving out demarcated roles for the next generation in the future shape of Reliance. Going ahead, the IT and digital related business will be driven by Akash while Isha will drive the retail and other related consumer branding businesses.

Now, there has been a formal announcement from the Reliance group that Mukesh Ambani had resigned from the board of Reliance Jio. He also handed over reins to his son Akash Ambani and the decision was also ratified by the board. Reliance counts energy, digital and retail as its 3 major wings and Akash will head Reliance Jio Infocomm, which drives the digital initiatives. It is estimated that the digital business of Reliance drives approximately 30-35% of the market capitalization of the Reliance group overall.

Akash is an old hand in the company. He first got inducted into the group telecom and digital business 8 years back and was part of the launch of Jio in 2017, an even that made a big difference to value creation at Reliance group. To support Akash, there will be a sterling board including old timer Pankaj Mohan Pawar as the managing director of Jio. In addition, Industry veterans, Raminder Singh Gujral and K V Chowdary have also been designated independent directors. Akash will have able advisors to help him in the journey.

It is not that Mukesh Ambani will hang up his boots at Reliance Jio. He will continue to be the chairman of Jio Platforms; which is the flagship company owning all the Jio digital properties. In a sense, the larger than life presence of Mukesh Ambani would continue to pervade the initiatives of Reliance for now.