Mukesh Ambani's bet on India's rising middle class is paying off
There are many things to learn from the Indian Billionaire Mukesh Ambani, it is all about the hard work, determination to continue father’s business and a strong business sense that the Indian empire became a a global conglomerate.
Knowing the customer and consumer is an art, which comes when you interact directly or with the fully trusted employees and this absolutely a team work. After Mukesh bhai has seen the success in Petrochemicals, refining, digital services and the most talked opportunity that is retail sector. Now the aim is to address the Indian consumers in true Indian style. Hence, Ambani has pencilled his ambitions to take on Amazon, Walmart Inc. in India, where the target is middle class, which is growing fast adopting for taking products through the for e-commerce.
Mukesh told in an interview, “It’s not solving problems, but it is finding the problems. Once you find the problem, then you solve it.” Reliance Jio changed the entire landscape of India’s telecom industry with its low-cost data plans. The project Jio turned the industry so disruptive, the competitors had to rework on their all existing offers and the cost has come up so affordable, and probably no one could ever think about it. At the same time the retail and telecommunications businesses contributing an increasing share of revenue and profit to his $87 billion empire.
The two divisions accounted for a combined 23 percent of revenue for the year ended March, up from 17 percent in the previous year, according to data compiled by Bloomberg. That growth has come at the expense of the conglomerate’s energy-related arms, which have been the bedrock of Ambani’s business for more than a decade. Their revenue share dropped to 77 percent from 83 percent, the data show.
With a strong ambition to stand-up against the global giant Amazon and Walmart, to bring the offer to the growing middle class in India ,by offering various solution through online shopping platform and e-commerce solutions. This online shopping market that Morgan Stanley estimates will grow to $200 billion by 2028, from about $30 billion last year. Faster adoption into business opportunity with strong business acumen is what we can see with Mukesh Ambani and his team.
The push into e-commerce shows how the billionaire is trying to put his mark on an empire that he largely inherited. Ambani, whose father Dhirubhai founded Reliance in 1959, agreed to split the businesses with his brother Anil three years after their father died without leaving a will. Mukesh got control of the flagship oil refining and petrochemicals arms.
Mukesh Ambani might be looking to raise more cash to fund his expansion plans, which include a proposal to add capacity to Reliance Industries’ oil refining operations. His recent sign up for selling 25 percent of the refinery business to Arabian Oil Co. and Abu Dhabi National Oil Co. in a deal that could fetch at least $10 to $15 billion.