- For Reliance Industries & Ambanis, JIO has not only been a game-changer but lucky as well.
- RIL’s retail division is known as JioMart.
- Its education venture is called Jio University.
- RIL’s entertainment verticals are called JioTV/Cinema and likewise.
Many of us know JIO as Reliance JIO – India’s most preferred telecom service that not only allowed us to call freely but offered internet at modest prices.
Before Ambanis & Jio, we used to be very much concerned about our data limit. Once exhausted, recharging was expensive! But Ambanis and JIO came like a savage and allowed us to surf the internet without being worried about exhaustion.
But one thing to notice about Ambanis and JIO is that both of them are not limited to the telecom sector. After the phenomenal success of Reliance JIO, Ambanis became a little more solicitous towards the name JIO.
What Is So Special About Ambanis & JIO. Are They Being Superstitious Here?
Superstition or not, but numbers speak a lot about it. Nothing remains a superstitious belief if it comes with explanation, logic and if it’s measurable.
The oil-to-telecom giant has taken such a liking to the name that it has been extending it to almost every segment the company is expanding into.
And Reliance Industries is not doing just like that, results have been as interesting as the name itself is. The perception of RIL’s consumer services has improved after Jio’s launch with 66% of them considering it as a more consumer-friendly brand and 60% stating that they may try more Reliance consumer products and services in the future.
In December quarter, RIL’s consumer business – Reliance Jio Infocom Ltd. And Reliance Retail contributed a combined 37% of EBITDA as compared to 32% in FY19 and 13% in FY18.
If we talk about EBITDA across all its verticals, then it’s EBITDA stands at approx. INR 23500 crore in October-December period. EBITDA for organized retail rose to INR 2727 crore from INR 2322 crore year-on-year, while for digital services it rose to INR 5833 crore (from INR 4066 crore.)
Here is another report from Bank of America Securities that states “A combined 33% surveyed users prefer buying grocery from RIL – of which 20% buy from Reliance Fresh, 13% shop from Reliance Smart while 24% shop from Big Bazaar. Interestingly Reliance Digital is preferred after Amazon and before Flipkart in terms of consumer preference amongst surveyed users”.
According to Credit Suisse, RIL’s grocery business has already topped $4 billion in sales. To make the offering even strong, Ambanis launched SMART Point, a smaller version of SMART store with a presence in a residential neighborhood.
Consumers on the JIOMart app will have the option to choose delivery through a nearby Kirana store or a SMART Point.
Ambani & JIO – Still A Long Way to Go!
RIL’s growth, expansion, and diversification have not stopped. But its willingness and dedication to uplift the markets they are entering is never-ending. With more business segments to expand into, like diagnostics and healthcare – Reliance may get more room to play with their JIO brand.
JIO means “To live” basically. The word sounds energetic, positive and worth saying it again and again.
We are sure you’ll not be able to point out one commonality. Reliance’s journey as a successful conglomerate started with its oil business. If you take oil and Jio together, it feels like JIO is the mirror image of oil!
Superstitious or not, Ambanis and JIO have a strong relationship and they are taking the name quite seriously. With almost every sector of the business having moderately upwards growth, even if Ambanis and JIO are sharing superstitious relations it doesn’t matter much.
This might not be all for our behemoth conglomerate. Nothing seems impossible for Reliance Industries to achieve supernova growth.
But it will be interesting to watch how Reliance and JIO would shape the country with its vision, mission, and abilities.