E-Commerce

Reliance to invest more than INR 10,000 crore in West Bengal to fund their e-commerce platform

Indian e-commerce market flourishing

Reliance, one of the most successful conglomerates of India, is trying to disrupt another Indian market with their aggressive strategies. The company manages to do this because of the strong base it has. The owner of the company is Asia’s richest man, Mukesh Ambani. The Mumbai-based businessman is known for his pole-vaulting methods in businesses. He doesn’t like to be afraid of his competitors but eats their markets up with out of the box strategies.

At this moment, when all the e-commerce websites are so weak and the new policy has just kicked in, Reliance has an open field to attack. There was news last month about the same as Mukesh Ambani announced his e-commerce plans which will begin from April in the state of Gujarat. The company already has a vast infrastructure in place. It is going to join hands with Reliance Jio, another subsidiary which is towered by Mukesh Ambani’s son Akash Ambani.

There are 5100 Jio joints spread across 5,000 cities across the country. These joints of Jio would act as delivery points for their e-commerce website which will totally hit every corner of India, something which giants like Amazon and Flipkart cannot do. That said, the e-commerce market is young right now and Reliance can only bite a huge piece of this juicy pie that is available in the name of e-commerce.

Recently, during the Bengal Global Business Summit, Mukesh Ambani stressed on the fact that Reliance has about 3 million sq. ft. of space in the form of warehouses in Kolkata. This space can act as the logistics hub for the whole of the East side of India as the company can skyrocket their deliveries from there on. They don’t need to build their own warehouses and buy space as they already have it.

West Bengal, because of such humongous space, will attract a lot of investments from Reliance. By the time this world hits 2020, Reliance is planning to invest INR 5,000 crore in that region. This will help to power the business in the eastern part of India. The fact that this project will create around 50,000 jobs for the people in India is enough for the government to support this venture of Reliance. It is also going to partner with more than 3 crore small businesses in the state.

The most major disclosure that happened during the summit was that Reliance will invest around INR 10,000 crore which is about $1.4 billion in the eastern state of West Bengal. This is how Mukesh Ambani and Reliance will now pole-vault into the business of e-commerce.

The timing of this launch is the key to Reliance. This is because the current e-commerce market has suddenly become unstable as the major companies have incurred huge losses in the Indian market. This is because the government has implemented the new e-commerce policy and Reliance can enter with their strategies which comply with the same.

-Unmesh Phule

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