BusinessE-Commerce

Mukesh Ambani’s keen eye on middle class has helped him exploit the biggest market in India

Reliance Digital Paper Bag with Jio Sim

Reliance is a company which has the potential to disrupt any market in the world. It is a company which has had a lot of successes in the past and the failures were not so huge. The company has been around for a good three decades and it has only grown. Mukesh Ambani, the owner of Reliance Group is the seventh richest man in the world. He has a net worth of $54.6 billion dollars. This tells us the magnitude of the company.

The Reliance group right now is best known for offering the cheapest internet plans in the world. India has the cheapest internet plans but Reliance Jio is cheaper than that as well. It disrupted the entire telecom market in India overnight. The company did it by offering free 4G internet for three months and then charging a minimal fee after that. Ever since Jio has entered the market, it has gained popularity like wildfire.

That being said, Mukesh Ambani has managed to, yet again, win in a business game with customers. He bet on a market which everybody was ignoring and looked at it with a different perspective. The billionaire has a different way to look at things and instead of looking at the market in India as one, he divided the 1.3 billion based on their earnings.

That perspective mentioned above informed him about something which no one was aware of. The middle class of India is on the rise. There are people entering from lower class income to middle-class income and this is where Mukesh Ambani targeted his business. He struck a masterpiece with Jio, downing his own brother’s Reliance Communication which went bankrupt and Anil Ambani needed rescuing from his elder brother.

That being said, the 62-year-old billionaire is right now planning to raise funds for his e-commerce bid in India. He is looking to sell a good 25% part of his Reliance Industries’ oil refining operations to investors. This would raise around $10 billion which would drastically increase the war chest. Reliance and Ambani would need deep pockets if they are to compete against Flipkart and Amazon.

The billionaire has huge expectations form the consumer divisions and is looking to increase its market. The telecommunications and retail business has increased the revenue of Reliance Industries and has added to his already bulky $87 billion empire.

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