India’s Reliance Industries, led by billionaire-chairman Mukesh Ambani, is poised to double in size by the end of the decade. The company, which is currently the most valuable in India with a market capitalisation of $245.44 billion, aims to double its sales and operating profit in its telecom and retail businesses within the next three to four years. As part of its growth strategy, Reliance plans to enhance its adoption of artificial intelligence technologies by introducing a suite of AI tools and platforms called ‘Jio Brain,’ setting up data centres in Gujarat powered by green energy, and collaborating with global tech firms. The goal is to create the world’s lowest AI inferencing cost, making AI applications in India more affordable than anywhere else.
In addition to its AI and cloud-related initiatives, Reliance also announced plans to consider issuing bonus shares to its existing shareholders at a 1:1 ratio, marking its first such move since 2017. While these efforts are expected to help Reliance’s telecom arm Jio retain customers, some industry analysts view them as evolutionary steps that have already been adopted by competitors. Despite this, Reliance’s shares rose by as much as 2.5% following the announcements made at the company’s annual general meeting.
Reliance’s retail and telecom businesses are among the largest in the company, with retail accounting for nearly a third of its first-quarter revenue and Jio’s digital services contributing 15%. Jio, which was launched in 2007, has emerged as the market leader in Indian telecoms, overtaking competitors like Bharti Airtel and Vodafone Idea to become the largest subscriber base in the country. Similarly, Reliance Retail has established itself as India’s top retailer by revenue, offering a wide range of products through platforms like JioMart and stores under various labels. The company also expects its new energy business to become as profitable as its oils-to-chemicals unit in the next 5-7 years.
Furthermore, Reliance recently received approval for Disney’s $8.5 billion merger with its media assets, forming India’s largest entertainment group. Ambani expressed optimism about the expanded Media business, noting that it will be a key growth centre within the Reliance ecosystem. While the AGM announcements may not have been groundbreaking from a Jio perspective, they signify Reliance’s commitment to leveraging technology, innovation, and strategic partnerships to drive growth across its various businesses. Overall, Reliance Industries is poised for significant expansion and development in the coming years, solidifying its position as a major player in India’s corporate landscape.
