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India’s Reliance bets on tech for growth, announced it will ring in sales of Aramco

MUMBAI (Reuters) – Reliance Industries said it would launch high-speed internet access in India next month, in spite of the fact that partnerships would be the way to growth as it announced a relationship with Microsoft and, to a share of a sale of the oil, a unit of Saudi Aramco.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, is responsible for the company’s annual general meeting in Mumbai, India, on 12th August, 2019. REUTERS/Francis Mascarenhas

The group also plans to launch a fibre optic broadband is likely to see rivals who are struggling to keep up with Jio, billionaire Chairman Mukesh Ambani’s telco upstart, which has upended the market with cheap data plans, and become India’s top mobile operator by subscribers, in less than three years of age.

The tech press as well as the planned stake sale will be used as a Trust in India, it is the second-largest company by market value, seems to strengthen the companies and to diversify its core oil and petroleum business.

The cloud-based services in partnership with Microsoft Corp. (a). stresses Ambani’s ambitions to go toe-to-toe with Amazon’s cloud services in India is one of the world’s largest online retailers.

“We have received strong interest from strategic and financial investors in our companies, Jio and Reliance Retail,” Ambani said in a statement at the annual general meeting on Monday.

“Well, We’ll still share with leading global partners in these firms in the coming quarters, and will have to come up with a list of these companies over the next five years,” he said.

Consumer-oriented companies to jointly contribute to nearly one-third of the company’s consolidated EBITDA, Ambani said. Five years ago, they have contributed more than 2%, and Ambani are expected to account for 50% soon.

Ambani was accompanied by Microsoft’s Chief Executive Satya Nadella by video-conference before the general meeting of shareholders shall be held on a public stock exchange holidays in India and many countries.

Microsoft and Jio will be the launch of a cloud data centre in India, the two executives said. Jio will provide free cloud services for start-ups for as little as 1,500 rupees ($21) a month, Ambani said it was less than one-tenth of the global rates.

“The strategy continues to grab a lion’s share of the market, through the integration of different channels of entertainment and communication,” said Hemant Joshi, a technology, media and telecoms consultant with Deloitte.

“They seem to be back in the high-speed of what they have done in telecom, it,” he said.

Jio, which has more than 340 million subscribers, said its GigaFiber high-speed services to include access to tv, fixed voice calls and video conferencing with fares as low as 700 rupees a-month.

A ZERO-DEBT BET

Ambani, Asia’s richest man, said on Monday, the Trust intends to sell a fifth of the world’s oil and chemicals company Aramco, in what would be one of the largest foreign investments in the country.

“We want to build innovative new partnerships, whether it is in the kirana (grocery) merchant in the new market area or in the B2B space, with giants such as Aramco or BP,” said the Trust’s Executive Director, PMS Prasad.

The company said earlier this month it would deepen their relationships with the oil major BP, in the generation of fuel and retail sales joint venture.

FILE PHOTO: The logo of Reliance Industries, is pictured in a booth at the Vibrant Gujarat Global Trade Show-Resorts, India, on January 17, 2019 at the latest. REUTERS/Amit Dave

In the ring, selling the plan to investors to consumers and to businesses, is a part of the use of the ” push to zero the net debt of the business, Ambani said, will be done by March 2021.

Reliance had outstanding debt of almost $42 billion as at 30 June cash and cash equivalents-cash and cash equivalents of approximately $18.5 billion.

The deal with Aramco, the value of the company at $75 billion, including debt, and also includes a contract to Aramco to sell up to 500,000 barrels per day (bpd) to the Trust is the Jamnagar refinery in the western Indian state of Gujarat.

Reporting Promit Mukherjee, Alexandra Ulmer and Euan Rocha; Writing by Sayantani Ghosh; Editing by Himani sarkar and David Evans

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