Reliance, to launch subsidiary for digital platform initiatives, opening this way a whole world of opportunities in India for tech peers and investors

Reliance Industries Limited is to set up the largest digital services platform company in India. it is going to invest RS 1,08,000 crore in the capital equity of this wholy owned subsidiary.
Thsi subsidiary will alsoo acquire RIL’s equitey investment (Rs. 65.000 crore in RJIL (Reliance Jio Limited).

The total capitalisation in digital platform services is RS 1,73,000 crore including the new investment and the alreadiy invested RS 65,000 crore.

The new company will hold all the digital platforms already developed and operated by the Group (listed below) including RJIL, the digital connectivity platform.

Reliance Industries Limited (“RIL”), through its digital platform and connectivity initiatives including Reliance Jio Infocomm Limited (“RJIL”), has transformed the digital eco-system in the country, pushing India from 155th rank in broadband penetration to the 1st rank in mobile data consumption within a span of less than three years.

Reliance Jio has built world class digital infrastructure and ecosystem, comprising of: best in class end-to-end all IP network; tower and fiber infrastructure; content delivery network; digital applications and platforms; and cloud infrastructure; and technology capabilities.

The new subsidiary will seek multiple growth opportunities across the digital tech landscape as well as enable access to world class technology platforms across healthcare, education and agriculture (listed below).

Other objectives to be pursued by the new subsidiary are : Fostering inclusive Digital Society through collaborations & partnerships; capital and organization structure that is benchmarked to global digital technology players; carry out a compelling investment plan with unencumbered capital structure, and enabling early monetization opportunities through the platforms.

A bunch of new opportunities for strategic and financial investor-partners

Commenting on the formation of the Platform Company, Shri Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “This new Company will be a truly transformational and disruptive digital services platform. It will bring together India’s No.1 connectivity platform, leading digital app ecosystem and world’s best tech capabilities globally, to create a truly Digital Society for each Indian. Jio has been heralding the digital services revolution in India and will continue to do so in the years to come.

Shri Mukesh D. Ambani, Chairman and Managing Director, Reliance.© Reliance Industries.

“Given the reach and scale of our digital ecosystem, we have received strong interest from potential strategic partners. We will induct the right partners in our Platform Company, creating and unlocking meaningful value for RIL shareholders,” Ambani ended.

Reliance Industries official communication assures that like global technology peers, the Digital Platform Company with negligible leverage makes a compelling investment proposition for both strategic and financial investors, many of whom have evinced strong interest in partnering with us. It will have significant financial strength to address the Digital Services opportunity in India.

The proposed consolidated structure will be compliant with all statutory requirements.

Digital Platforms already operated by the group

As relates to Digital Platforms, Reliance Group has been developing and fostering a vibrant digital ecosystem through various digital applications, tools and platforms (Digital Platforms) spanning self-care, information, entertainment, chat, utility tools etc.

Most of these Platforms are best in class with high customer engagement metrics anddifferentiated features in their respective categories. Those are:

a) MyJio: An omni and self-care through single login app, ranks amongst the largest selfcare apps in the world;

b) JioTV: India’s #1 live TV app; with wide offer of channels (over 600) spanning 16 languages, 11 genres, 630+ channels, 135+ HD channels;

Jio TV app. © Reliance Industries

c) JioCinema: Amongst the top video entertainment apps in the country; built on state-ofthe-art tech platform;

d) JioNews: India’s leading news and magazines app with the best-in-class content bouquet covering 900+ magazines, 300+ newspaper editions; varied contents formats including Live TV, Short videos, News articles;

e) JioSaavn: #1 music app in the country; continues to be the fastest growing streamingplatform, with 45+ million tracks under license across 16 languages with differentiationthrough Artist Originals Program.

Emerging platforms to come

Reliance Group keeps on focussing on the development and launch of digital platforms thatenable and accelerate digital society with, frictionless and seamless universal access and adoption in the fields of: healthcare, education, agriculture, commerce, government-to-Citizen services, gaming, manufacturing, etc.

Shri Mukesh D. Ambani, Chairman and Managing Director, Reliance, receiving Othmer Gold Medal. © Reliance Industries.

These Platforms are also backed by investment in following emerging and next generation technologies, such as: blockchain, artificial intelligence & Machine Learning, virtual, augmented/mixed realty, computer Vision, high performance and edge computing, and natural language processing and voice enabled services.

Plan to make RJIL become a net debt free business

The Board of Directors of RJIL approved the following plan to achieve a net debt free status:
a)A scheme of arrangement between RJIL and certain classes of its creditors including debenture holders for transfer of identified liabilities of up to Rs. 1,08,000 crore to RIL;
b) Rights Issue of Optionally Convertible Preference Shares (‘OCPS’) aggregating up to Rs. 1,08,000 crore for the purpose of payment of consideration for transfer of identified liabilities – the new subsidiary is to subscribe to this issue-.

Consequent to the above, RJIL will become virtually net debt free company by 31st Marchv2020, with exception of spectrum related liabilities.

Image over the headline.- Jio TV app. © Reliance Industries

Note for the indian measure units: 1 crore= 100 lakhs / 1 lakh= 100.000

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