TOKYO — India’s struggle against the coronavirus pandemic has not stopped a dealmaking whirlwind at Reliance Industries. As the country has slowed down, its biggest corporation by sales and market capitalization has only seemed to speed up. Since Facebook said on April 22 that it would invest $5.7 billion to buy 9.99% of Jio Platforms, Reliance’s wholly owned digital business unit, a string of global tech companies and financial investors have followed suit.
“Mukesh Ambani has had this vision to vertically integrate multiple sectors and do digital cross selling across those sectors since long before he launched Jio,” Sanchit Vir Gogia, chief analyst and chief executive of Greyhound Research, an independent technology industry research firm, told the Nikkei Asian Review. “What they are trying to do is connecting each vertical built with physical assets onto the digital platforms, and then connecting different verticals through the digital platforms. I call it ‘phygitization’ — a combination of physical assets and digitization.”
“Mukesh Ambani’s next big thing will most likely be the financial sector,” Gogia predicts. “With that accomplished, Reliance will look bigger than Alibaba.”
P.S.: For more information on the recent investments, value that each investor brings to Jio Platforms, engagement with Microsoft, impact on Bharti Airtel, and the challenges the company can expect, read this research report by Greyhound Research.
Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.
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