InvestorQ : Is it true that most of the RIL wealth has been created by telecom foray of Reliance Jio?
Dilmini Mercia made post

Is it true that most of the RIL wealth has been created by telecom foray of Reliance Jio?

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Khushi Patel answered.
3 years ago
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Back in late 2016, when Reliance Jio was officially launched by Mukesh Ambani, the company had a market capitalization of Rs.3,25,000 crore. That means; close to 70% of the wealth has been created in the last 3 years and that too in a sector where other players have struggled to even survive; leave alone thrive. Look at what happened to Indian telecom in the last 3 years. Smaller players have either merged out or have been forced to exit. While Bharti picked up smaller telcos, Vodafone and Idea created a behemoth by merging. Despite all these efforts, Reliance Jio has managed to emerge as the largest player in the telecom space with a clear focus and leadership in data. Above all, Jio does not have to worry about huge liabilities like the AGR and outstanding spectrum costs; the way Bharti and Vodafone need to be concerned.

If you were to describe the growth of RIL in one word, it is adaptation. From textiles to petrochemicals to refining and digital technology: RIL has managed to stay ahead of the curve and disrupt the industry as a whole. That is something that positions RIL as a young company despite its size and legacy. One can argue that the size of RIL is still much smaller compared to global giants but that could be unfair. For India, RIL remains the leader of the equity cult! Yes telecom has created a chunk of RIL wealth.

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