Many of you might not be interested in the amounts I am going to list down here today but they are of huge importance to a Businessman like Mr. Mukesh Ambani and also very important for a country like India; But before we move on to the amounts there is some small basic information which many need to know.
Jio Platforms Ltd. Is a subsidiary company of Reliance Industries Ltd, owned by Mr. Mukesh Ambani and the same company, Jio Platforms Ltd is the parent company of other important companies such as Reliance Jio Infocomm Ltd ( Very popularly known as Jio in the telecom sector), JioSaavn ( India based Music Streaming App), JioCinema ( Jio based Streaming App) and JioMart( New upcoming E-commerce platform).
So, doing up with the basic
information we proceed with the amounts:
The main point that puts every businessman to sit down and think is that at the time when many businesses and industries were shutting down due to the lockdown, this man and company was making history by making India the largest-ever tech FDI( Foreign Direct Investments) in India. For sure this wasn’t one day’s work, and this was the success of a long-term deal. There are many aspects behind Facebook Deal which will be explained in this article.
No.1- WhatsApp Pays entry in India
This is a long battle won by WhatsApp (Subsidiary Of Facebook). The Indian Government wanted something from WhatsApp which was against their Privacy Policies. They wanted WhatsApp to give them access to Decrypt any user’s Encrypted Messages. And when denied by WhatsApp they were somehow not letting WhatsApp Pay (Payment System by WhatsApp) enter the Indian Market. And after the Facebook- Jio Deal they directly enter the market with the help of Jio. WhatsApp has 40 crore users in India and a Great Policy of not displaying and earning by advertisements on the App( And Spoiling User Experience) and that is the reason they want to earn something called “Transaction Based Revenue” through WhatsApp Pay without spoiling user experience.
No.2 Entry of Jio in The E-Commerce Industry
You might Think That Jio has got everything now due to so many investments, but it lacks one very important thing in today’s world. And that is what was stopping Jio’s Entry into E-Commerce.
Its Technology.
Facebook is one of the few competitors leading the tech-race which includes big names such as Google, Amazon, and Microsoft. And this investment will open doors to many technological things which not only Jio but our country lacks. Soon We might get to see an Indian Version of Artificial Intelligence such as Alexa Or Siri!
Coming to the point that right now there is no Indian Company that can give competition to American Giants like Amazon and Flipkart (now owned by Walmart) and so there is a need for it and that Mr. Mukesh Ambani has understood very well. He has plans to launch JioMart by which he plans to create a network of the Unorganized Kirana (Grocery) Sector which is estimated to have a value of USD 375 Billion(INR 28342 Crore).
The Working of JioMart Involves interaction and Payment Between Grocery Store and the Consumer by WhatsApp and WhatsApp Pay. JioMart might Charge the Grocery Stores a One Time Registration Fee and WhatsApp will earn their Transaction Based Revenue from every order or transaction on JioMart, and Consumers will get the Item Home-Delivered by The Kirana Store.
With this Entry, Jio will directly give competition to Amazon Pantry, BigBasket, Grofers Etc.
No.3 Advantages to Both Companies
The biggest advantage is the consumer base which both these companies hold. Jio Infocomm Ltd has a user base of 38.8 crore users and Facebook in India has 32.8 crores and WhatsApp alone has 40 crore users. Just think about a large amount of data and advertisement play that is going to happen in India!
One Big Advantage of Reliance Industries Ltd is that it has become “debt-free” after the all-cash deal that happened in the past 3 months.
No. 4 Creating a Monopoly or Duopoly in the market.
According to the Retailer's Association India the Kirana Industry is valued to be around 375 Billion Dollars in India. And that is why all big players want to run this race. Recently even Amazon invested around 10 crores into its subsidiary 'Amazon Pantry' to stay head to head in the race. Other struggling players includes Grofers, BigBasket etc.
Many players such as Bharti Airtel, Vodafone and Idea have lost their ground after Jio was launched back in 2016. This deal is going to leave only 2( maybe 1) players in the telecom industry. Bharti Airtel is already going through a lot of debt but yet is trying to retain its customers by giving valuable offers. Not only this but there are chances that to enter India, Amazon might invest in Bharti Airtel so as to give a nice competition to Facebook in India.
But no official announcement has been made yet regarding Amazon’s investment in Airtel but one thing is for sure that if Amazon also decides to invest in Airtel then We as a country will be moving on the right track for the future. These deals also depict how much of FDI ( Foreign Direct Investment) India lacks and it’s a sign for the government to ease down on the regulations a little bit for the benefit of the country.
Reports have also come up that Kishore Biyani led Future Group's Retail business may be sold to Jio Platforms giving an easier access to the E-Commerce world as well as retail world as all resources and assets of Future Group's retail chain will be like the icing on top of the cake. Who knows soon we might see Big Bazaar renamed something under Jio eg. 'Jio Bazaar','Jio Big Bazaar' or even as"Jio Mart."
"India's E-Commerce World is going to grow Exciting now"
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