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“Opportunities are like sunrises, if you wait too long , you miss them.“
This quote aptly describes the current scenario. At present , the entire world is drenched in fear and pessimism and due to this no one is able to see the ocean of opportunities that have arisen due to this COVID-19 lockdown.
But there are people like Mukesh Ambani – the Chairman and MD of Reliance Industries Limited (RIL) and Mark Zuckerberg-Chairman and CEO of Facebook who very well know that such opportunities never knock twice .
On April 22, when the entire world was busy in fighting the battle against corona virus, the world’s largest social media group Facebook declared that it will be investing 43,574 crores for a 9.99% stake in Reliance’s fast growing telecommunications and digital services business platform - Jio .
But there are people like Mukesh Ambani – the Chairman and MD of Reliance Industries Limited (RIL) and Mark Zuckerberg-Chairman and CEO of Facebook who very well know that such opportunities never knock twice .
On April 22, when the entire world was busy in fighting the battle against corona virus, the world’s largest social media group Facebook declared that it will be investing 43,574 crores for a 9.99% stake in Reliance’s fast growing telecommunications and digital services business platform - Jio .
Simultaneously, a commercial partnership was signed between Jio, Reliance retail and Whatsapp for Reliance's new E-commerce venture - “JIOMART”
Reliance’s Trump Card
Alibaba’s Jack Ma was knocked off his perch as Asia’s richest person by India’s Mukesh Ambani, all thanks to the mega deal signed between Facebook and Reliance. This deal has set several new milestones, the investment made by Facebook is by far the largest investment for a minority stake by a technology company anywhere in the world and is also the largest Foreign Direct Investment (FDI) in the technological sector in India.
This deal values the Jio platforms at an enterprise value of Rs 4.62 lakh crore, including it amongst the top 5 listed companies in India by market capitalization. This partnership will help reduce Reliance's debt of Rs 1.53 lakh crore, strengthening the position of this oil-to-retail conglomerate in the stock market .
On the day when the news of this collaboration broke out in the market, RIL‘s shares closed 10.3% higher at Rs 1363.35 , having surged more than 12% in intraday trade , whereas Amazon shares saw a drop in prices in the American market .
This deal values the Jio platforms at an enterprise value of Rs 4.62 lakh crore, including it amongst the top 5 listed companies in India by market capitalization. This partnership will help reduce Reliance's debt of Rs 1.53 lakh crore, strengthening the position of this oil-to-retail conglomerate in the stock market .
On the day when the news of this collaboration broke out in the market, RIL‘s shares closed 10.3% higher at Rs 1363.35 , having surged more than 12% in intraday trade , whereas Amazon shares saw a drop in prices in the American market .
This deal without any doubt is a win-win position for both the parties . This alliance has proven as trump card for Reliance in this crisis.
The Ray of Hope - JioMart
“When it rains, look for rainbows and when it is dark, look for stars.“
Each citizen of the country is currently in a miserable state due to the loss incurred because of this global lockdown, but as it is always said, each problem brings along with it its own solution. Similarly, the coming together of these two superpowers has brought a ray of hope in the dark and gloomy life of millions of people across the country.
Mukesh Ambani while addressing this merger said - "We welcome Facebook as our long term partner to grow and transform India’s digital ecosystem. “
It is quite obvious that after this lockdown, everything is going to be digital and with India slated to have 900 million internet users in the coming years, this new digital ecosystem disguised in the name of JioMart is surely to see an upsurge.
Wake up Call
“JioMart, a new E-commerce platform, aims to provide new business opportunities to around 60 million small businesses across the nation “– said Mark Zuckerberg while discussing about the outcomes of this cooperation. JioMart allows users to place orders through Whatsapp and this is the USP of this new business venture which will surely turns the cards in the market.
JioMart is an alarming call for Amazon, Walmart and Flipkart, who, for long time have been dominating India’s E-commerce business. Jio has a base of around 388 million subscribers. Whatsapp, an integral part of Facebook, has a loyal fan following of 400 million users and Facebook has its largest audience in India.
When these three megapowers along with their customers will come together through JioMart, it will become very difficult for Amazon,Flipkart and Walmart to even sustain in the market.
When these three megapowers along with their customers will come together through JioMart, it will become very difficult for Amazon,Flipkart and Walmart to even sustain in the market.
The collaboration of Reliance and Facebook and the launch of Jiomart are foundation stones of India’s economic journey through the digital platform.
Written by - Siddhi Khandelwal
Edited by - Arnav Mehra
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