Reliance Industries Owner Mukesh Ambani has recently disclosed his plans to set up a digital-services holding company worth $24 billion. This venture will allow Ambani to dominate the country’s online shopping space too.
The company said that the board of Reliance Industries has already approved to invest INR 1.08 lakh crore ($15 billion) in the digital services company. This company will in turn invest the same amount in Reliance Jio Infocomm Ltd., which will make the company’s telecommunications venture debt-free by March 2020.
Ambani has been gathering up a group of partners through stake purchases and acquisitions to support his e-commerce plans. According to him, given the reach and scale of our digital eco-system, they 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,” adds Ambani.
According to Reliance Industries, the company will invest the money in the holding company likely on the lines of Alibaba Group Holding Ltd. and Alphabet Inc through optional convertible preference shares. The unit will acquire the parent’s equity investment of INR 65,000 crore in Jio, adds the company.