Reliance Industries in India to set up a financial services unit for its consumer businesses | Techno Glob


Reliance Industries Ltd., will create a financial services unit to power its consumer businesses that contribute a growing share of profits to the retail-to-refining conglomerate.

It will also restructure the engineering and project divisions as it sets out to make major infrastructure investments, including the rollout of an ambitious 5G network in the country.

Jio Financial Services will be spun off and listed on India’s stock exchange, Reliance said in an exchange filing on Friday. It will lend to consumers and merchants based on proprietary data analytics and eventually expand to insurance, payments, digital brokerage and asset management.

Each Reliance shareholder will receive one share of the new company for each share held in the parent company.

The spin-off will complement Reliance Chairman Mukesh Ambani’s consumer businesses, which include India’s largest wireless operator with nearly 428 million users, No. 1 retail chain with over 16 000 stores. Possessing the levers of credit in a country with more than a billion consumers could also help the billionaire mogul boost his ambitions to take on Amazon.com Inc. in e-commerce.

“Single Stance”

Jio Financial “will be a technology-driven company, delivering financial products digitally by leveraging Reliance’s national omnichannel consumer business presence,” Ambani said in the release. He is “in a unique position” to seize opportunities and bring “millions of Indians into formal financial institutions”.

No timeframe has been announced by the company for Jio Financial’s listing. Regulatory licenses for key activities are in place, according to the filing that followed the flagship’s quarterly results.

Rejigs Engineering

The group will separate the engineering and infrastructure departments from its Reliance Projects unit and Property Management Services Ltd. and merge them with the parent company.

Reliance seeks to leverage its engineering strength through this restructuring for the implementation of major projects in the areas of petroleum to chemicals, new energies and the deployment of 5G, the company said in a separate statement. Friday night.

Billionaire Ambani has pledged to invest $75 billion in renewable energy infrastructure, $25 billion in rolling out 5G services across India and another $9 billion in his oil-chemicals business over the course of of the next five years.

The company is known for its project execution skills and has built the world’s largest oil refining complex in western India.

Reliance, India’s largest company by market value, posted a better-than-expected quarterly profit as strong performance in its consumer units offset weakness in its traditional energy business. Its refining business has been hit by a new windfall local tax on fuel exports.

–With help from Debjit Chakraborty and Anirban Nag.

Photograph: The logo of Reliance Jio, the mobile network of Reliance Industries Ltd., is displayed at a store in Mumbai, India, Sunday, January 19, 2020. Photo credit: Dhiraj Singh/Bloomberg

Copyright 2022 Bloomberg.

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