Asia's Richest Man is ready to take on Amazon and Walmart’s Flipkart in India
Mukesh Ambani, the richest person in Asia is going to compete with Amazon and Walmart, the two powerful business entities in the world as launching a new e-commerce platform. He is the chairman of Reliance Industries, a multinational company in India which plays in the sectors of energy, petrochemicals, textiles, natural resources, retail and telecommunications. Reliance is one of the most profitable company across India with highest performances. As Alibaba in China, Ambani’s objective is to build an online shopping platform for people in India since Indians have got used to go with online sales and shopping. According to Morgan Stanley, (the American multinational investment bank and financial services company) in next seven years it could be reached for $200 billion of worth with the growth of online retails.
Reliance Jio Infocomm as a mobile broadband company which was established three years back by Ambani also has processed a revolution to the Indian Internet. “Reliance Jio introduced nearly free mobile broadband a couple years ago and that really created an environment where everyone was really beginning to get addicted to using the internet on the go” said by Dinesh Moorjani of Comcast Ventures to CNBC.
Ambani’s aim is to transform these bunch of retail shops all over India to digitalized shops through this new e-commerce market. However, at the moment both Amazon and Walmart have spent billions with the attempt of entering to the Indian Market. Walmart has invested $16 billion on Flipkart, an Indian e-commerce company based in Bengaluru, India. Amazon has provided more job opportunities for Indians committing over $5 billion on Indian operations. Amazon announces that, it’s planning to acquire Future Retail, which having a prominent value in Indian retail and fashion industry. An Amazon Spokesperson expressed his view on rising of Reliance’s e-commerce platform, “It’s early days for e-commerce in India with several companies pursuing different strategies, and this competition is good for customers.”
Nisha Biswal, president of U.S.-India Business Council at the U.S. Chamber of Commerce expressed,” Within the last nine months, we have seen a significant shift towards more protectionist policies, data localization, and preferential treatment towards domestic companies. This is a worrisome trend that we hope will reverse course in the next term,” to CNBC.
People who live in big cities like New Delhi, Mumbai already tend to go with online shopping. So that opportunity exists on other regions as to introduce the e-commerce. The view of Kumar Sha, an Indian technology Investor is Reliance’s e-commerce platform will grab the benefit of customer relationships with small and medium scale businesses. “The company built out the connection layer first, providing affordable data and even selling phones for consumers to go online, and is now developing the marketplace by providing hardware,” said by Kumar Shah.
Reliance’s plan is to spread over 10,415 retail shops through 6,600 cities with aid of 307 million of Jio subscribers. Since, this is a massive and not a cheap project Reliance is possibly going for a deal with Saudi Aramco (a Saudi Arabian oil company) to sell its oil and refinery stake in order to earn the external capital.