Mukesh Ambani, billionaire, chairman and managing director of Reliance Industries. (Photographer: Simon Dawson/Bloomberg)

RIL’s 41st AGM: RIL Announces JioGigaFiber, JioPhone 2; Stock Falls

Watch RIL's 41st AGM Live

Key Highlights Of AGM, RIL Stock Falls

The 41st annual general meeting of Reliance Industries saw the launch of broadband services business JioGigaFiber and a higher-end feature phone - JioPhone 2. The stock which was up at least 1.25 percent before the AGM, is now trading in the red.

Here are the key highlights from the RIL AGM:

  • Reliance Jio has 215 million customers within just 22-months
  • It has more than 25 million JioPhone users
  • JioPhone 2 will have horizontal screen and full keyboard
  • YouTube, WhatsApp and Facebook services will be available to JioPhone users from August 15
  • Customers can exchange existing feature phones for JioPhones for Rs 501 starting July 21
  • Existing JioPhone scheme will continue
  • Effective entry cost of JioPhone reduced to Rs 501 from Rs 1,500
  • JioPhone 2 will be available at an introductory price of Rs 2,999
  • Targets 100 million JioPhone users

Ambani Sets 2022 Targets For Gas Production From KG-D6

  • RIL will further maximise oil to chemical upgradation
  • Will upgrade all of our fuels to high-value petrochemicals
  • Hydrocarbon business is poised for robust value creation
  • Continue to pursue to development in KG Basin with joint venture partner British Petroleum
  • RIL targets 30-35 million cubic meters gas production from KG-D6 by 2022

Mukesh Ambani Says

  • RIL is second largest paraxylene producer in the world
  • RIL adding composites, carbon fiber to portfolio
  • Butyl rubber unit will be commissioned soon
  • RIL is now largest recycler of PET bottles in India

Unprecedented Opportunities

Mukesh Ambani said that RIL’s platform business strategy would unlock three "large opportunities" - agriculture, education, and healthcare.

  • India has an unprecedented opportunity to create wealth and new knowledge-rich livelihood opportunities in rural areas
I am sure that if we combine digital technology tools with the innate knowledge and wisdom of Indian farmers, Jio can usher in a smart, new Green Revolution in India.  
Mukesh Ambani, CMD, RIL
  • Jio will connect 58,000 colleges and universities and 1.9 million schools in less than 2 years
  • These educational institutions collectively provide education to nearly 200 million children
  • Jio will attempt to help overcome the deficit of physical infrastructure in healthcare
India can considerably overcome the deficit of physical infrastructure of hospitals and doctors by universalising telemedicine, tele-radiology, eDiagnostics, genomics and other cost-effective cloud-based solutions.  
Mukesh Ambani, CMD, RIL

Reliance Retail + Reliance Jio = Hybrid E-Commerce Platform

Reliance Industries envisions a hybrid online-offline e-commerce platform which will integrate the “power of Reliance Retail & Reliance Jio”, he said. Calling it the Bharat-India Jodo program, he said the hybrid platform will give customers the best value for money.

As Reliance transitions to become a technology platform company, we see our biggest growth opportunity in creating a hybrid, online-to-offline new e-commerce platform. 
Mukesh Ambani, CMD, RIL

Mukesh Ambani On JioGigaFiber

Users can register for JioGigafiber starting Aug. 15, said Ambani.

  • Will prioritise JioGigaFiber rollout to those localities from where there are highest number of registrations
  • Will roll out JioGigafiber in 1,100 centres simultaneously
JioGigaFiber will be the largest greenfield fixed-line broadband rollout anywhere in the world, with rollout happening in 1,100 cities of India simultaneously.   
Mukesh Ambani, CMD, RIL

Ambani Introduces Exchange Offer For JioPhones At Rs 501

Customers will now be able to exchange their feature phones for JioPhones for Rs 501, starting July 21, said Mukesh Ambani today.

  • Customers can exchange existing feature phones for JioPhones for Rs 501 starting July 21
  • Existing Jiophone scheme will continue
  • Effective entry cost of JioPhone reduced to Rs 501 from Rs 1,500
  • JioPhone 2 will be available at an introductory price of Rs 2,999
  • YouTube, WhatsApp and Facebook services will be available to JioPhone users from Aug. 15
With this, the company is aiming to reach the 100 million JioPhone users mark, Ambani said.

Broadband Stocks Fall

Shares of cable TV service providers fell as Reliance announced the launch of JioGigaFiber.

  • Hathway Cable fell 4.13 percent
  • Den Networks down 5.4 percent
  • Dish TV down 0.4 percent
  • SITI networks down 2.9 percent

Akash Ambani On JioGigaFiber

Akash Ambani, Director, Reliance Jio and Isha Ambani, Director, Reliance Jio. (Photographer: Sajeet Manghat/BloombergQuint)
Akash Ambani, Director, Reliance Jio and Isha Ambani, Director, Reliance Jio. (Photographer: Sajeet Manghat/BloombergQuint)
  • Router will give wall-to-wall high-speed WiFi coverage
  • Set-top box will also be clubbed with JioGigaFiber
  • Jio remote will also be voice activated; will accept multiple Indian languages

RIL Announces JioPhone 2

The company launched JioPhone 2 which comes with a horizontal screen feature and a full keyboard. Both the JioPhone and JioPhone 2 will be available in the market going forward, Isha Ambani said.

Akash And Isha Ambani Demonstrate JioPhone

Akash And Isha Ambani demonstrated the JioPhone’s performance, comparing user experience of applications such as YouTube, Facebook and WhatsApp to other android phones.

Akash Ambani, Director, Reliance Jio and Isha Ambani, Director, Reliance Jio. (Photographer: Sajeet Manghat/BloombergQuint)
Akash Ambani, Director, Reliance Jio and Isha Ambani, Director, Reliance Jio. (Photographer: Sajeet Manghat/BloombergQuint)

Ambani Announces JioGigaFibre

Ambani announced a new service called the JioGigaFiber. “We will now use fiber connectivity to provide fixed broadband connectivity,” the Chairman said.

  • Jio to extend fiber connectivity to homes, small and medium enterprises
  • Will roll out broadband connectivity services in 1,100 cities

Jio Doubles Users In Last Year, Says Ambani

Mukesh Ambani, Chairman and Managing Director, Reliance Industries. (Photographer: Sajeet Manghat/BloombergQuint)
Mukesh Ambani, Chairman and Managing Director, Reliance Industries. (Photographer: Sajeet Manghat/BloombergQuint)

Reliance Infocomm Ltd.’s Reliance Jio has witnessed “unprecedented growth”, doubling its users to 215 million customers in the last one year, Ambani said.

  • Doubled customer base to 215 million customers
  • Data usage has grown to 240 crore GBs per month From 125 crore GBs
  • Voice usage on the network hit 530 crore minutes per day from 250 crore minutes per day.
  • Video consumption reached 340 crore hours per month from 165 crore hours per month.
  • Customers actively engaged for 290 minutes per day on average

RIL's Has Entered Its 'Golden Decade', Says Ambani

The company has entered into its "golden decade” backed by Reliance Jio and its consumer business, said Ambani.

  • RIL is one year into its "golden decade"
  • New age consumer businesses have started delivering profits.
  • Our hydrocarbon and consumer businesses have helped RIL scale greater heights than ever before
  • RIL's earning profile has undergone a fundamental change
  • RIL has reached an inflection point
  • Our consumer businesses will contribute as much to overall earnings as petrochem business

Ambani Family Arrives

Chairman and Managing Director Mukesh Ambani has arrived at the venue of the 41st RIL AGM with his wife, Neeta Ambani and son Akash Ambani, who is also a director of Reliance Jio. Awaiting them, is a hall full of shareholders and media personnel.

Shareholders wait for Mukesh Ambani at the 41st RIL AGM. (Photographer: Sajeet Manghat/BloombergQuint)
Shareholders wait for Mukesh Ambani at the 41st RIL AGM. (Photographer: Sajeet Manghat/BloombergQuint)

RIL Stock Up 1%

Here’s how the stock has performed on the days of its annual general meeting, over the last 12 years. RIL is currently trading 1.25 percent higher on the Bombay Stock Exchange at Rs 1002 per share.

Throwback Thursday: What Happened In RIL's Last AGM

The company’s last annual general meeting saw the introduction of the 4G-enabled feature phone—JioPhone. The gadget has since become the top-selling feature phone in India, grabbing 26 percent of the feature phone market on its compelling value proposition when compared to a normal 2G feature phone.

Ambani had also announced his aim for the year, saying “Jio will cover over 99 percent of the country’s population in the next one year”.

As of now, Reliance Jio is the largest telecom operator in India after Bharti Airtel Ltd., Vodafone India and Idea cellular. It has made huge inroads in India’s rural market.

Also Read: Reliance Jio Makes Big Inroads In Rural India 

Here’s a snapshot of the announcements made last year.

What To Watch Out For

All eyes will be on the possible launch of RIL's fiber broadband business and the enterprise solution business. The company has already started trial operations.

Analysts believe that this will be the next major growth catalyst for Reliance Industries and that the launch will fully leverage Jio’s investment in fiber and content, aiding revenue-share gains in the mobile market.

  • Launch of enterprise solutions, broadband.
  • Updates on telecom brand Reliance Jio.
  • Updates on JioPhone.
  • Any monetisation plans of consumer businesses.
  • Commentary on refinery off-gas cracker and petcoke plants.
  • Plans on deleveraging its balance sheet which holds Rs 2,18,763 crore worth of debt. This is the highest total debt held by RIL in at least eight years.

Also Read: $4 Billion Shopping Spree Maps Ambition of India’s Richest Man

RIL Annual General Meeting To Begin Shortly

Mukesh Ambani-led Reliance Industries Ltd. will hold the company’s 41st annual general meeting, starting 11 a.m. where its board members are expected to talk about the company’s past performance and future endeavours.

The stock has risen 39.1 percent over the past year compared to a 15.5 percent rise in the benchmark S&P BSE Sensex. It trades at a 13.8 times estimated forward earning versus 8.9 times for comparable companies.

Also Read: Reliance Industries Profit Misses Estimate In March Quarter

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