Case 3: Reliance Jio – From 4G to Digital Innovation

Abstract

While enjoying his morning tea with his wife from his luxurious penthouse, Mukesh Ambani receives his daily morning call from his Chief Financial Officer Alok Agarwal. There has been no stopping for Mukesh Ambani, the Chairman and Managing Director of the Indian conglomerate Reliance Industries Limited (RIL). Despite the challenges that COVID-19 offers, Mr. Ambani has been able to make blockbuster agreements with multinational and private equity firms worldwide. It all started on April 22, 2020, when RIL decided to sell a 10% stake of Reliance Jio to Facebook for $5.7B [1, 2]. Subsequently, the management team of Reliance Jio made independent deals with global investors such as Silver Lake, Vista, General Atlantic, Mubadala, Abu Dhabi Investment Authority (ADIA), TPG Capital, and L. Catterton. This is followed by a $4.5B-dollar investment in Reliance Jio by Google and an earlier $2.5B-dollar investment by Microsoft [1, 2]. Having successfully completed these mega deals, the astute Mukesh Ambani is feeling good that he has partnered with the right organizations to achieve his vision of a “Digital India.” Mr. Ambani asks Mr. Agarwal to call a virtual meeting of the core management team to discuss their next steps. At this meeting, the group discuss RIL’s strategy to move from oil to digital, and what steps Reliance Jio needs to take to ensure success.