Ambani outlines roles of Reliance heirs to $220 billion Empire | Techno Glob


(Bloomberg) – Billionaire Mukesh Ambani has outlined the businesses each of his three children will oversee at Reliance Industries Ltd.’s annual shareholders meeting, setting out a clear succession path for the $220 billion Indian conglomerate for the first time. dollars who became mired in a bitter brotherly feud nearly twenty years ago.

“The next generation leaders of Reliance are confidently taking the reins of all businesses,” Ambani, 65, said on Monday, referring to his son Akash, daughter Isha and youngest son Anant. “Akash and Isha have taken on leadership roles in Jio and Retail respectively. They have been passionately involved in our consumer businesses from the start. Anant has also joined our New Energy business with great zeal.

While Akash took over as head of wireless operator Reliance Jio Infocomm Ltd. in June – the first concrete sign of the leadership transition in the conglomerate from retail to refining – the roles of his other two children have still not been publicly announced. With Ambani giving clear direction to Isha as head of the group’s retail businesses and Anant as head of renewable energy, Asia’s second-richest person is looking to avoid a repeat of the succession battle in which he was immersed.

His father and Reliance founder, Dhirubhai Ambani, died without a will in 2002, sparking an ugly and very public power struggle between Mukesh and his younger brother, Anil, who were both involved in the business at the time. This fight eventually snowballed and three years after Dhirubhai’s death, their mother was forced to step in and divide the affairs between the two brothers as part of a truce pact.

Ambani, with a net worth of nearly $93 billion, made Reliance India’s largest company by market value and diversified the corporate giant beyond its fossil fuel-focused origins into technology and renewable energies. With Reliance much more exposed to global headwinds – thanks to marquee investors who injected $27 billion in 2020 – Ambani will be careful to avoid any leadership friction.

His twins, Akash and Isha, have been pivotal in the company’s evolution into retail and technology, including talks with Meta Platforms Inc., which secured a $5.7 billion investment. dollars in Jio Platforms Ltd. of Reliance, the vessel of Ambani’s e-commerce ambitions.

“Be framed”

The three heirs are “part of a young team of leaders and professionals who are already doing amazing things at Reliance,” he said. “Of course, all are mentored daily by our senior leaders, including myself and the board.”

Ambani reassured investors on Monday that he will continue to provide “practical leadership” to Reliance as it navigates a world potentially primed for a global recession.

“The succession plan responds to market concerns about the sustainability of the company during the leadership transition,” said Horace Chan, principal analyst at Bloomberg Intelligence.

But Ambani’s speech “lacks in-depth discussions of a long-term restructuring plan for the group, including spin-offs from each business arm”, he said, referring to investors’ expectations for IPOs of Reliance Jio and Reliance Retail Ltd.

Succession, fallout in brief in the great speech of billionaire Ambani

Here are some of the big announcements that were part of Ambani’s speech:

Telecom

  • Plans to invest 2 trillion rupees ($25 billion) to roll out its 5G services in October in India’s biggest cities, with service to be rolled out nationwide in December 2023
  • Deploy the “standalone 5G” version that does not depend on the previous 4G network
  • Reliance Jio partners include Meta, Google, Intel, Microsoft; will partner with Qualcomm
  • Reliance is also working with Google to develop ultra-affordable 5G smartphones for India
  • Ability to create Jio platform on digital ecosystem

Detail

  • Plans to start a consumer goods business
  • Launched an in-app purchase product with WhatsApp in which users can purchase from JioMart from their WhatsApp chat

Energy

  • Plans to switch from gray hydrogen to green hydrogen by 2025
  • Launch of a new gigafactory for “power electronics”
  • Aims to set up 20 gigawatts of solar generation capacity
  • Reliance will invest 750 billion rupees in its oil-chemicals business over the next five years
  • Plans to construct the largest single-train purified terephthalic acid plant with an annual capacity of 3 million tons and a one-million-ton annual polyethylene terephthalate plant in Gujarat

(Updates with further announcements at the shareholder meeting.)

©2022 Bloomberg LP



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