One of the largest Indian Multinational conglomerate companies, Reliance Industries is again in headlines as it has jumped 10 places to break into the world’s top 100 global companies on the Fortune Global 500 List. The company is ranked 96th in the recently released 2020 ranking by Fortune and has become the highest ranked Indian company on the list. Indian Oil Corporation (IOC), Oil and Natural Gas Corporation (ONGC), State Bank of India (SBI), Bharat Petroleum Corp Ltd. (BPCL), Tata Motors, and Rajesh Exports are the other Indian companies featuring on the list.
However, this is not the first time Reliance made it into the top 100 as it was ranked 99th in the 2012 rankings. The company slipped in the subsequent years to rank 215th in 2016. Since 2016, the company has risen steadily. Especially, the past few months have been revolutionary for Reliance as it has grown leaps and bounds.
Here are the four major factors that have been vital in Reliance’s prowess.
1.Growth of Reliance Jio
Since its inception in 2016, Reliance Jio has been a revolution in the Indian telecommunication market. Over the short period of 4 years, Jio has become India’s biggest telecom network. Presently, Jio dominates the Indian telecom market with 32.1 per cent market share, which is expected to reach 48 per cent by FY25.
2.Diversification of Services
Apart from being a telecom giant, Reliance is broadening its array of services. Digital services such as Jio Cinema, Jio Giga Fibre, Jio Music, Jio TV, Jio Health Club, Jio News, Jio Cloud, Jio Switch, etc. are gaining ground at a rapid pace. Moreover, the launch of Jio Mart which recently began in 200 towns and cities has announced Reliance’s arrival in the retail market as well.
3.The Future Scope
Presently, there are 696 million internet users in India and the number is expected to increase to 1 billion by 2025. Thus, the smartphone penetration is expected to increase significantly in the near future giving rise to technologies such as 5G, Internet of Things (IoT), etc. Reliance is addressing this need by increasing its portfolio of services and is prepared to exploit the opportunities provided by the digital transformation.
4.Whopping Investments
This perhaps is the most notable reason behind Reliance’s rapid growth over past few months. Starting with Facebook’s investment of $5.7 billion in April 2020 – many global giants such as Google, Amazon, Qualcomm, KKR, Mubadla, Silver Lake, General Atlantic, Abu Dhabi Investment Authority, Vista Equity Partners, and TPG Capital have invested heavily in Reliance over the past few months – taking the total investment to more than $15 billion.
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