Reliance Industries might not be India’s largest conglomerate but it surely is India’s most famous company. Reliance owns businesses across almost every sector in India. It has businesses in energy, petrochemicals, textiles, natural resources, retail, telecommunications, and now there is going to be another addition to these businesses and that is e-commerce. Reliance is the second largest company in India and could have been the first if it was not for the Indian government-owned Indian Oil Corporation. The Indian company is ranked 203rd on the Fortune Global 500.
The revenue of the Mumbai-based company is more than $60 billion. The operating income as of 2018 stands at $10 billion and the net income is around $5 billion. The company assets are over $110 billion and 44.7% of all this is owned by Mukesh Ambani who happens to be the 8th richest man in the world. That said, the company is looking to get into another business and is planning to disrupt a well-settled market which is e-commerce.
There was a recent study carried out by Deloitte India and Retailers Association of India (RAI). The study showed that the Indian e-commerce market which was supposed to reach $200 billion till 2026 has managed to reach the same number in 2019. The study further revealed that the Indian e-commerce market will hit $1.2 trillion in 2021 if the current run rate is considered.
Reliance has considered this and is entering the market now. The company is looking at the new market and has already planned out the entire thing. It is behind certain businesses which will bolster its e-commerce business in many ways. That said, Grab is one such business or a company that has caught the eye of Reliance industries. It is a Mumbai based logistic startup which is doing good business given the areas it is working in.
Grab is present in 49 cities and has major clients like McDonald’s, Myntra, Amazon Now, Swiggy, Bigbasket. The company raised $8 million from SIDBI Venture Capital Limited in the month of February last year. Reliance is interested in acquiring a majority stake in this startup. It is looking to add to its already large weaponry by acquiring Indian startups and not just any Indian startups, the company is behind the most promising ones.
The deal with Reliance is in the final stages and might be announced anytime in the next few weeks. Apart from this, the e-commerce market is flourishing and Reliance’s plans are en route to glory. The company has a brilliant plan which goes hand in hand with the Jio stores which are 5100 in number, spread across all of India.
Reliance and its subsidiary Reliance Jio is planning to use all these stores to get its e-commerce platform all over India which is something Amazon and Flipkart cannot do. The reach of Reliance is already there for the taking, only the execution matters and there is a little chance of Reliance faltering given the history.