India's Reliance Industries is poised to more than double in size by the end of the decade, according to its billionaire chairman Mukesh Ambani, who addressed shareholders on Thursday. With a market capitalization of $245.44 billion, Reliance is India's most valuable company. Ambani announced plans to double sales and operating profit in the telecom and retail sectors within the next three to four years, while also introducing initiatives to accelerate the adoption of artificial intelligence. The company is developing a set of AI tools and platforms known as 'Jio Brain' and establishing data centers in Gujarat, powered by green energy. Additionally, Reliance will collaborate with international tech firms. Ambani emphasized the company's aim to achieve the world's lowest AI inferencing cost in India, making AI applications more accessible than anywhere else. The stock price of Reliance surged by up to 2.5% following the announcement of a potential 1:1 bonus share issuance to existing shareholders, a move not seen since 2017.
While the AI and cloud initiatives are expected to help Jio maintain its customer base, they are considered standard evolutions already adopted by competitors, according to Balaji Subramanian, a research analyst at IIFL Securities. Retail and telecom are among Reliance's largest operations, with retail accounting for nearly a third of the first-quarter revenue and digital services from Jio contributing 15%. Jio, launched in 2007, has emerged as the leader in the Indian telecom market, surpassing Bharti Airtel and Vodafone Idea. Reliance Retail, encompassing e-commerce platforms like JioMart and various store brands, has become the leading retailer in India by revenue, offering a wide range of products. Reliance also anticipates its new energy business to match the profitability of its oils-to-chemicals division within the next 5-7 years. Furthermore, Ambani welcomed the $8.5 billion merger between Disney and Reliance's media assets, forming India's largest entertainment group, which received approval from the country's antitrust authority on Wednesday.
