Mukesh Ambani has become the 9th richest person in the world, surpassing American Larry Ellison of Oracle Corp. and French Francoise Bettencourt Meyers (the world’s richest woman). His company Reliance Ltd. has reached a total valuation of ₹11.44 lakh crore ($150 billion), propelling his own net worth to $64 billion, which was just around $50 billion in March this year. With a rise in his position from 11th to the 9th, Mukesh Ambani has become the only Asian man to join in the exclusive club of top 10 wealthiest people.
Around ₹1.7 lac crore ($22 billion) has been invested in Reliance in less than two months. With a surge in investments, Mukesh Ambani is most likely to be able to pay off Reliance’s debts worth $41 billion by the next fiscal year, i.e. 30 March 2021, way earlier. Also in India, there is a high scope of Jio capturing 48 percent of India’s mobile subscriber market share by the year 2025, predicts Bernstein.
The shares of Reliance Ltd. have seen an increase of 18% since the start of the year and are still rising. Other companies such as Facebook, Sony, Aramco, and the Saudi Arabian sovereign fund have invested in the company as well. The amount invested in Jio from the start of the year to now is more than the amount invested in all the other global telecom companies combined.
While the economy of India has seen a down turn due to coronavirus pandemic, Reliance continues to grow primarily due to its shift towards the digital world with Jio predicted to become the company’s biggest revenue earner by 2021. As other companies (and even Reliance’s units) that are based on physical products, continue to suffer the economic consequences of coronavirus. Reliance’s Jio has been on the advance towards taking over the Indian telecom market.