How do you see Just Dial and Reliance Retail gaining from the Reliance acquisition deal?

Let me talk about Just Dial first. They can take on competition with confidence. The local search engine was becoming commoditized and Just Dial needed capital buffers and a large balance sheet to take on the might of Google and Wal-Mart in this business. The RRVL balance sheet gives the heft to Just Dial. RRVL, being India’s largest retailer, can monetize the intangible digital franchise of Just Dial more effectively with its strong sales proposition.

Let me now turn to RRVL. Although RRVL is paying a control premium, it is worth the cost. RRVL has another digital plug-in for its retail-cum-digital offering. Just Dial also comes with a high-quality customer database of 12 crore customers as well as over 3.2 crore verified listings of small and medium-sized businesses. These fit well into RRVL’s larger plan to create a retail digital ecosystem for the business, covering from farm to fork.