Mukesh Ambani announces plans for Reliance Industries to double in size by 2030, with significant growth expected in telecom, retail, and AI sectors, alongside a major media merger with Disney.
Bollywood Fever: India’s Reliance Industries is set to more than double in size by the end of the decade, according to its billionaire-chairman Mukesh Ambani. Speaking at the company’s annual general meeting on Thursday, Ambani revealed ambitious plans for India’s most valuable company, which boasts a market capitalization of $245.44 billion.
Reliance plans to double sales and operating profits in its telecom and retail businesses over the next three to four years, with a focus on adopting cutting-edge artificial intelligence (AI) technologies. The company is developing a suite of AI tools and platforms under the brand ‘Jio Brain’ and is establishing data centers in Gujarat, which will be powered by green energy. Additionally, Reliance is set to partner with global tech firms to enhance its AI capabilities.
“Our goal is to create the world’s lowest AI inferencing cost, right here in India. This will make AI applications in India more affordable than anywhere else,” Ambani stated during the meeting. AI inferencing refers to the process of running live data through a trained AI model to make predictions or solve tasks.
Following the announcement, Reliance shares rose by 2.5%, buoyed by the news that the company plans to consider issuing bonus shares to its existing shareholders at a 1:1 ratio, a move it hasn’t made since 2017.
While the AI initiatives are seen as positive developments, some analysts believe they are expected evolutions rather than groundbreaking changes. “These are all incrementally positive, but the AGM today, at least from a Jio perspective, was not groundbreaking,” noted Balaji Subramanian, a research analyst at IIFL Securities.
Reliance’s retail and telecom businesses are among its largest revenue drivers, with retail contributing nearly a third of its first-quarter revenue and digital services provided by Jio accounting for 15%. Jio, which launched in 2007, has become the market leader in Indian telecoms, surpassing Bharti Airtel and Vodafone Idea to amass the largest subscriber base.
Reliance Retail has also become India’s largest retailer by revenue, offering a vast array of products through platforms like JioMart and store brands such as Reliance Digital and Smart Bazaar.
Looking ahead, Reliance expects its new energy business to match the profitability of its oil-to-chemicals unit within the next 5-7 years.
Ambani also highlighted the significance of Disney’s $8.5 billion merger with Reliance’s media assets, which was recently approved by India’s antitrust authority. The merger forms the country’s largest entertainment group. “Just like Jio and Retail, our expanded Media business will be an invaluable growth centre in the Reliance ecosystem,” Ambani said.
With these strategic moves, Reliance Industries is positioning itself for substantial growth across multiple sectors, reinforcing its leadership in the Indian market.
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