Now Mukesh Ambani will change the face of the retail business. | Will AMBANI be able to beat ADANI in the business world?

Now Mukesh Ambani will change the face of the retail business:

There is going to be a big stir in the work of the FMCG sector i.e. retail and they will create a stir, Mukesh Ambani, the head of Reliance. Recently, during Reliance's AGM, Mukesh Ambani announced to make a big step in the FMCG business, and now what Ambani is going to do while moving forward on that step, he can change the FMCG sector.

Let us know, what Mukesh Ambani is going to do to increase his penetration in India's retail empire. Ambani has put a question before the shareholders of Reliance Retail or rather has made a proposal and that is whether the borrowing limit of the company can be increased from ₹ 50,000 crore to ₹1,00,000 crore.

However, Reliance Retail has taken a loan of ₹ 40,000 crore only till March 31 this year. That is, if the shareholders of Reliance Retail allow the company to increase the borrowing limit, then Reliance Retail will get an opportunity to raise another ₹ 60,000 crore. As you are now aware, Reliance Retail is making tremendous plans for future business growth and expansion.

If we look at this plan, then the company wants to open many new stores in smaller cities. The company plans to open more than 2000 physical stores within a year. Work is also underway in Reliance Consumer Electronics to open 8700 stores in 7000 cities of the country. Currently, Reliance Jio mart, AJIO, and Reliance Digital are already present in the company's portfolio.

However, apart from all this, the company also wants to create a new platform that will be dedicated to third-party sellers. That is, Reliance is working very aggressively to spread the business on a large scale in the FMCG sector. Mukesh Ambani is trying his best to transform this sector by taking the borrowing capacity from 50,000 crores to 1,00,000 crores.

The company has already taken several concrete steps to make a strong hold on this sector. Like Meta's WhatsApp is going to play an important role in Ambani's FMCG business. This means, that to make it easier to meet the everyday needs of Indians, there will be an agreement between WhatsApp and Jio Mart, under which the facility of WhatsApp Pay will be available for Jio Mart.

Customers will be able to shop in Jio Mart by going to WhatsApp. Along with this, you will also be able to make payments easily by completing shopping without coming out of WhatsApp. Where does Reliance's business empire stand in the retail sector today? Now take a look at that. Reliance Retail has created a record turnover of ₹ 2,00,000 crore and EBITDA of ₹ 12,000 crore. Reliance Retail has become one of the top 10 retailers in Asia.

Apart from this, Reliance Retail has also invested 30,000 crores in 2021-22 to increase the number of existing stores. Reliance Retail's annual report states that as of March 31, 2022, its total borrowings had reached ₹40756 crores. In this, the loan of more than 12 thousand crores is a long-term loan, while the loan of 28730 crores is a short-term loan. That is, July is beginning to establish its dominance over the Indian FMCG sector in a big way.

However, as you know, with the announcement of the FMCG business, the company will have to compete with players like Hindustan Unilever, Nestle, Britannia, and Adani Wilmar, on the other hand, Amazon and Flipkart in digital. All of these are already kings in this sector. So it will be very interesting to see how Mukesh Ambani beats all of these companies in retail and digital business and how he saves.

These two deals will pave the way for AMBANI:

A growth lifeline means development is life. Mukesh Ambani, the chairman of Reliance, has been proving this in the true sense. More recently, Campa Cola was a well-known soft drink of the 70s. Mukesh Ambani is preparing to bring him back on Diwali. Mukesh Ambani did not stop here after acquiring the Campa Cola brand. Ambani is constantly busy expanding his business.

Now Ambani is going to step into the textile manufacturing business. For this Ambani has acquired a company. Now which company is this and what is its business? We are going to tell you all this in this article. The list of companies acquired by Mukesh Ambani is very long. After acquiring Campa Cola and American company Senshawk, Ambani's eyes have fallen on the polyester chip and yarn maker.

The name of this company is Shubhalakshmi Polyesters Ltd. Reliance Petroleum Retail Limited is a wholly owned subsidiary of Reliance, formerly known as Reliance Polyester Limited. The cost of this entire deal is being said to be around ₹ 1600 crore. Reliance has given ₹1522 crore for SPL while ₹70 crores for SP tax. Now you also know about the company acquired by Reliance. 

Shubhalakshmi Polyesters Ltd. manufactures Polyester Fiber Yarn and Textile Grate Chips through Direct Polymer Injection. The polymer injection capacity of this company is 2, 52,000 tones per annum. Shubhalakshmi Polyesters Ltd. Firm has two manufacturing units, from where the entire production work is done.

If we talk about the business of these companies in the first manufacturing unit Sahaj in Gujarat and the second in Silvassa Dadar Nagar Haveli, SPL made ₹2702 crore in the year 2019. At the same time, it did a business of ₹ 2249 crore in the year 2020 and ₹ 1768 crore in the year 2021. Anyway, if we look at the turnover of tax, it did a business of ₹ 337 crores in the year 2019, 338 crores in the year 2020, and ₹ 267 crores in the year 2021.

Let us tell you that this deal is yet to get approval from the Competition Commission of India (CCI). There is also a plan to increase the business in the Reliance Energy sector. For this, Reliance has made a deal with the American company. This deal has been done with Senshawk, a software maker for solar power in California. If we talk about the whole deal, then it is close to $ 32 million i.e. around ₹ 256 crores.

Reliance will get the coal fossil's stake in the sulfur company in return. Mukesh Ambani has just dropped out of the top ten list of billionaires. At present, Mukesh Ambani is maintaining his presence on the 11th rank. At the same time, his net worth is $ 91 billion. So it seems that the speed with which Mukesh Ambani is taking over the company, that day is not far away. When he will again be included in the list of top ten and top five Billionaires.

Will AMBANI be able to beat ADANI?

Adani Group's Gautam Adani and Reliance Chairman Mukesh Ambani have come face to face. This battle is about whose business empire will be bigger. The speed with which Adani has spread its business in the last few years has taken everyone by surprise and when Ambani's throne as the country's biggest businessman started shaking.

Adani is already busy buying companies in a hurry. Ambani is now increasing his speed in this race. Brokerage houses are also indicating this. A report by global firm Morgan Stanley said that Reliance's current investment cycle is less aggressive. The brokerage said this would reduce the company's cost of equity.

Morgan Stanley has increased its price target for Reliance Industries Limited from ₹3015 earlier to ₹3085 and has named the stock as its top pick. In an attempt to win the business war, now Ambani is also engaged in buying companies in a hurry. On Tuesday, news came that Reliance has bought American company Senshawk to increase its renewable energy business, and then bought a 79.4% stake in Light Season for $ 32 million.

This company manufactures software-based management tools for the solar energy generation industry. On Tuesday, the stock of Reliance Industries closed at ₹2594, up 0.94%. The energy sector is where both Mukesh Ambani and Gautam Adani are making big bets. However, Morgan Stanley said that the competition in Reliance's future growth areas will remain low and this will also encourage more growth.

The brokerage has also said that Reliance has invested about $ 4 billion in the past for inorganic growth, but is this expenditure of Ambani's purchase of companies enough to beat Adani? Guess that in May this year itself, the Adani Group announced to invest $10.5 billion in the purchase of Holcim's business in India, which is present in the cement business.

Adani has made money at rocket speed in 2022 and the shares of their listed companies are also giving hefty returns to investors. Recently Adani has become the third richest person in the world. This year his net worth has increased to $ 137.4 billion. In the same year, his wealth increased by $ 60.9 billion. In contrast, Ambani's net worth is around $94.5 billion. So far in 2014, Adani has bought around 30 companies.

These include companies in the cement, port, and energy airport sectors. Recently, he announced taking a stake in NDTV. In contrast, Reliance is consolidating its reach in the FMCG and retail sector by exclusively buying older and smaller brands in the retail sector. Reliance's big bet is also on data with 5G. Adani Group has also acquired the 5G spectrum and may enter this sector in the coming times.

Apart from this, energy is one such sector where both the giant businessmen can come face to face. That is, this war in the business world of India may become more interesting in the coming times. But the big question is whether they will be able to beat the very aggressive Adani at this sluggish pace.

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