Mukesh Dhirubhai Ambani is an Indian billionaire and businessman, and the chairman, managing director, and largest shareholder of Reliance industries, a fortune 500 company and India's most valuable company. He is the richest person in Asia with a net worth of US$81.1 billion, and as of October 2020, the 6th richest in the world.
Have you guys noticed that in the recent years from 2017, Ambani is buying a number of companies in various fields. Is Ambani on a shopping spree to conquer India’s market? is this bad or good for Indians as an Indian is buying a lot of companies to give competition to the foreign companies? Will this be an advantage to the Indians? To learn this read this full article.
Companies brought by Mukesh Ambani in recent years,
2017
1. RIL acquired 25 per cent stake in Balaji Telefilms, one of the largest content production houses in Asia and the Middle East, which delivers Hindi and regional content for Rs 413 crore.
2018
1. Eros International (5 per cent stake for $48.75 million).
2. Genesis Luxury Fashion (5.3 per cent stake for Rs 35.39 crore).
3. Saavn streaming app ($100 million for partial stake).
4. Edtech start-up Embibe (73 per cent for $180 million).
5. Apparel firm Future 101 Design (12.5 per cent for Rs 9.5 crore).
6. Cable networks Den Networks and Hathway (58.92 per cent and 51.34 per cent, respectively).
7. US-based telecom solution provider Radisys Corp (100 per cent stake).
2019
1. Industrial Investment and Holdings (RIIHL) bought majority stakes in two companies - logistics firm Grab A Grub Services and software company C-Square Info Solutions - for over Rs 146 crore in March 2019.
2. Language technology solutions company Reverie (majority stake for Rs 190 crore).
3. AI-firm Haptik (Rs 700 crore).
4. Deep-tech start-up Tesseract (80-85 per cent for Rs 10.25 crore).
5. Fynd (87.6 per cent for Rs 295.25 crore).
6. SaaS solutions company NowFloats (85 per cent stake for Rs 141.63 crore).
7. Robotics and AI solutions firm Asteria Aerospace (51 per cent for Rs 23.12 crore).
2020
In 2020, despite the coronavirus pandemic wreaking havoc for businesses across the world,
1. RIL increased its shareholding in Saavn to 94.4 per cent in February.
2. 37.7 per cent stake in Alok Industries Limited .
3. Kannan Departmental Store for Rs 152.5 crore.
4. Passenger transit services tech firm SkyTran Inc (17.37 per cent stake).
5. Majority stake Netmeds for Rs 620 crore.
6. Retail & Wholesale Business and the Logistics & Warehousing Business from the Future Group in a mega transaction for Rs 24,713 crore (big bazaar as we all know).
Deals on the way
1. Amid controversy around Chinese social media giant TikTok, its owner ByteDance is seeking investment from RIL to financially back its India business.
Milkbasket, which earlier held discussions with Amazon and Bigbasket, is also negotiating its valuation and talks with RIL are at an advanced stage.
2. RIL is planning to acquire online furniture brand Urban Ladder, talks with whom are at an advanced stage.
3. Ambani is also working on the sale of 49 per cent stake in Jio-BP fuel retailing business to British oil giant BP plc for Rs 7,000 crore.
Conclusion
Ambani has become no less than a wall street private equity firm, Buying companies over these last few years. This is an advantage for us as our markets are growing, parallelly to this our economy because of these deals and takeovers. This also may become a disadvantage for us if Ambani increases the price of goods and services offered by these companies. Ambani may be up to conquering all the sectors of India’s markets and establishing a “warren buffet” company in India. So, guys the conclusion here is Ambani is up to something big and we should wait to see what it would be.
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