1 00:00:01,590 --> 00:00:05,160 Speaker 1: this is the morning brief from the Economic Times 2 00:00:12,289 --> 00:00:15,330 Speaker 1: for a company that started the equity cult in India. 3 00:00:15,680 --> 00:00:18,880 Speaker 1: Its annual general meeting with shareholders has always been an 4 00:00:18,880 --> 00:00:21,600 Speaker 1: event as large as its operations, 5 00:00:24,100 --> 00:00:25,920 Speaker 1: always a family affair. 6 00:00:27,370 --> 00:00:28,300 Speaker 1: It is 7 00:00:29,010 --> 00:00:34,550 Speaker 1: his vision by rabbis vision and values that have guided 8 00:00:34,550 --> 00:00:38,390 Speaker 1: us in this magnificent journey of reliance 9 00:00:41,470 --> 00:00:44,540 Speaker 1: where every member of the family plays a critical role 10 00:00:44,550 --> 00:00:47,740 Speaker 1: from the adults to even the gen. Next 11 00:00:48,300 --> 00:00:53,020 Speaker 1: good afternoon everyone, I am Isha Ambani and I am 12 00:00:55,840 --> 00:00:59,770 Speaker 1: always dramatic with even some of the top global c 13 00:00:59,770 --> 00:01:01,160 Speaker 1: E o. S making cameos 14 00:01:01,950 --> 00:01:05,910 Speaker 1: we have with us a special guest, the ceo of 15 00:01:05,920 --> 00:01:08,910 Speaker 1: google indian icon Sundar Pichai 16 00:01:09,800 --> 00:01:14,810 Speaker 1: I have with me today the Ceo of qualcomm mr 17 00:01:14,810 --> 00:01:16,250 Speaker 1: Christiano Amon 18 00:01:17,110 --> 00:01:22,390 Speaker 1: I am delighted to welcome Yasser al Romanian, chairman of 19 00:01:22,390 --> 00:01:23,220 Speaker 1: Saudi Aramco. 20 00:01:25,060 --> 00:01:29,450 Speaker 1: A trip down the memory lane nostalgic sometimes high with 21 00:01:29,450 --> 00:01:34,260 Speaker 1: melodrama and value systems for the 1st 25 years. I 22 00:01:34,260 --> 00:01:37,770 Speaker 1: sat by the side of my father who tutored me 23 00:01:37,780 --> 00:01:43,450 Speaker 1: with boundless affection attention and hope I can feel as 24 00:01:43,450 --> 00:01:48,080 Speaker 1: if he is sitting here smiling and talking to me 25 00:01:48,090 --> 00:01:49,310 Speaker 1: and to all of you 26 00:01:50,710 --> 00:01:54,830 Speaker 1: and of late a platform to make mega announcements. A 27 00:01:54,830 --> 00:01:57,610 Speaker 1: GMS have never been so high voltage for any indian 28 00:01:57,610 --> 00:02:02,400 Speaker 1: corporate it's thursday four september from the Economic times, I 29 00:02:02,400 --> 00:02:05,610 Speaker 1: am your host Kalpana Pathak and you are listening to 30 00:02:05,620 --> 00:02:09,000 Speaker 1: reliance a GM 2022 the morning brief takeaways. 31 00:02:16,800 --> 00:02:19,820 Speaker 1: In this episode we asked three of our colleagues tanker, 32 00:02:19,820 --> 00:02:24,690 Speaker 1: mukherjee Kalyan Parbat and origin barman, what's their key imports 33 00:02:24,690 --> 00:02:28,250 Speaker 1: from the ADM announcements for the three main verticals, retail 34 00:02:28,260 --> 00:02:29,850 Speaker 1: telecom and energy. 35 00:02:30,370 --> 00:02:33,809 Speaker 1: The tankers it is in house, expert on retail. Welcome 36 00:02:33,810 --> 00:02:37,420 Speaker 1: to the morning brief. What does Israel's announcement about expanding 37 00:02:37,419 --> 00:02:40,110 Speaker 1: into the Fmc G segment mean for the company and 38 00:02:40,110 --> 00:02:41,310 Speaker 1: the sector. So 39 00:02:41,310 --> 00:02:45,579 Speaker 2: Reliance has been trying to expand the retail business beyond 40 00:02:45,580 --> 00:02:48,760 Speaker 2: the core area of organized retail. They have been telling 41 00:02:48,760 --> 00:02:51,800 Speaker 2: us that organized retail is just 8-10% of the Indian 42 00:02:51,800 --> 00:02:55,920 Speaker 2: retail market and they have that much space to grow. 43 00:02:55,930 --> 00:02:57,190 Speaker 2: Whereas if they can 44 00:02:57,200 --> 00:03:02,180 Speaker 2: enter into the wholesale business or eventually F. M. C. G. 45 00:03:02,180 --> 00:03:04,150 Speaker 2: That would be a much bigger part of the market. 46 00:03:04,160 --> 00:03:06,660 Speaker 2: So as you know, they have already tried to make 47 00:03:06,660 --> 00:03:10,149 Speaker 2: an entry into the wholesale segment and they've already started 48 00:03:10,150 --> 00:03:14,579 Speaker 2: with Tirana's and also for electronics and apparel so that by, 49 00:03:14,580 --> 00:03:17,750 Speaker 2: they have already done in the last two years and 50 00:03:17,760 --> 00:03:19,890 Speaker 2: F M C G is going to be the focus 51 00:03:19,889 --> 00:03:24,090 Speaker 2: area now. So they would initially sell through their own 52 00:03:24,090 --> 00:03:24,950 Speaker 2: stores 53 00:03:25,130 --> 00:03:28,730 Speaker 2: And also they have around 15 Lakh Tirana's into the 54 00:03:28,730 --> 00:03:32,930 Speaker 2: network right now who source products from their network. So 55 00:03:32,930 --> 00:03:35,540 Speaker 2: they would return to them and eventually they would have 56 00:03:35,540 --> 00:03:39,440 Speaker 2: a proper distribution set up, reaching out to multiple Tirana's 57 00:03:39,450 --> 00:03:42,720 Speaker 2: but that is still work in progress. So it's basically 58 00:03:42,720 --> 00:03:45,760 Speaker 2: a strategy to scale up the retail business and maybe 59 00:03:45,760 --> 00:03:50,120 Speaker 2: have a larger party of the market than just organized retail. 60 00:03:50,510 --> 00:03:50,750 Speaker 2: So 61 00:03:50,750 --> 00:03:53,410 Speaker 1: what is reliance, retail's market share right now 62 00:03:53,620 --> 00:03:56,559 Speaker 2: going by the revenue? They are no doubt the largest 63 00:03:56,560 --> 00:03:59,309 Speaker 2: and the nearest competitor would be D. Mark, which is 64 00:03:59,310 --> 00:04:03,380 Speaker 2: Avinu supermarkets, there would be around one third the size 65 00:04:03,380 --> 00:04:06,810 Speaker 2: of a rail in the core retail business. So they 66 00:04:06,810 --> 00:04:09,780 Speaker 2: are three times bigger than the nearest competitor. And the 67 00:04:09,780 --> 00:04:12,730 Speaker 2: rest of the companies are much, much smaller in terms 68 00:04:12,730 --> 00:04:13,200 Speaker 2: of revenue, 69 00:04:13,216 --> 00:04:13,926 Speaker 2: profit. 70 00:04:14,126 --> 00:04:17,776 Speaker 1: And what does reliance, retail's FmC expansion mean for the 71 00:04:18,096 --> 00:04:19,416 Speaker 1: end of the world 72 00:04:19,516 --> 00:04:23,126 Speaker 2: now getting into F. M. C. G. And competition with 73 00:04:23,166 --> 00:04:27,926 Speaker 2: your preference cD players like or portrait consumer would be 74 00:04:27,936 --> 00:04:31,315 Speaker 2: too far fetched to compare right now because he is 75 00:04:31,315 --> 00:04:34,536 Speaker 2: a very different business. It requires a distribution network, it 76 00:04:34,536 --> 00:04:35,909 Speaker 2: requires understanding 77 00:04:35,922 --> 00:04:40,212 Speaker 2: consumer behavior as well as investments in marketing and brand building. 78 00:04:40,222 --> 00:04:42,862 Speaker 2: So it's a long term play as we know that 79 00:04:42,862 --> 00:04:46,432 Speaker 2: EITC has tried to do that in the last 10, 80 00:04:46,432 --> 00:04:51,532 Speaker 2: 15 years and they are just still now just 50,000 81 00:04:51,532 --> 00:04:55,712 Speaker 2: crore company FMc G far behind the target to reach 82 00:04:55,712 --> 00:04:58,630 Speaker 2: one lakh crore revenue by 2030. 83 00:04:58,839 --> 00:05:02,020 Speaker 2: Even if the pandemic was not the, I think that 84 00:05:02,020 --> 00:05:05,260 Speaker 2: was an ambitious target. So it's a very different ballgame. 85 00:05:05,270 --> 00:05:08,810 Speaker 2: There are already players like hulu which are here for 86 00:05:08,810 --> 00:05:12,450 Speaker 2: lots of years, nestle and all these companies have a 87 00:05:12,450 --> 00:05:16,360 Speaker 2: far deeper distribution system and these distributors are very loyal. 88 00:05:16,370 --> 00:05:20,140 Speaker 2: So they're unlikely to change brands. So we should not 89 00:05:20,150 --> 00:05:23,660 Speaker 2: compare their city play with some of these large brands. 90 00:05:23,660 --> 00:05:26,020 Speaker 2: I mean the reliance is obviously going to be aggressive, 91 00:05:26,029 --> 00:05:27,849 Speaker 2: but it's a different Ballgame. 92 00:05:28,460 --> 00:05:30,800 Speaker 1: So what do you think would be a real strategy 93 00:05:30,800 --> 00:05:34,580 Speaker 1: for the FMC G space given its formidable private labels presence. 94 00:05:34,779 --> 00:05:38,240 Speaker 2: So what we understand from the management is that they 95 00:05:38,240 --> 00:05:41,330 Speaker 2: have a private level presence which they would take out 96 00:05:41,339 --> 00:05:44,930 Speaker 2: to the open market to Tirana's and that apart, they 97 00:05:44,930 --> 00:05:49,500 Speaker 2: are looking at multiple accusations which would be a local 98 00:05:49,500 --> 00:05:52,860 Speaker 2: regional brands or brands which were popular at one time 99 00:05:52,860 --> 00:05:56,110 Speaker 2: and now has probably died or not that relevant. 100 00:05:56,370 --> 00:05:59,420 Speaker 2: They have tried that in electronics. They have license to 101 00:05:59,420 --> 00:06:02,810 Speaker 2: brands which were very popular at one time. Bpl and illuminator. 102 00:06:02,820 --> 00:06:06,500 Speaker 2: It's their own licensed brand and they have relaunched the 103 00:06:06,500 --> 00:06:08,400 Speaker 2: brands with a lot of new products and they have 104 00:06:08,400 --> 00:06:11,310 Speaker 2: been quite successful and now they've also started selling those 105 00:06:11,310 --> 00:06:15,300 Speaker 2: in other electronics stores. So they have tried and tested 106 00:06:15,300 --> 00:06:17,380 Speaker 2: that model and they're going to replicate that in the 107 00:06:17,589 --> 00:06:19,990 Speaker 2: city as well. What we understand is that they are 108 00:06:19,990 --> 00:06:20,840 Speaker 2: already negotiate 109 00:06:20,853 --> 00:06:25,722 Speaker 2: Station with two dozen such local and regional brands and 110 00:06:25,723 --> 00:06:28,823 Speaker 2: they have already signed the deal with at least three 111 00:06:28,823 --> 00:06:33,092 Speaker 2: of them including one of the legendary King Brand Tampa 112 00:06:33,213 --> 00:06:37,783 Speaker 2: or camp popular to remember in the 70s. And so 113 00:06:37,783 --> 00:06:40,233 Speaker 2: they've already signed that brand that they have acquired the 114 00:06:40,233 --> 00:06:42,723 Speaker 2: brand and they will be launching the brand and they're 115 00:06:42,723 --> 00:06:45,320 Speaker 2: in negotiation with multiple such brands. So they, 116 00:06:45,336 --> 00:06:48,116 Speaker 2: That's a strategy, they would look at apart from taking 117 00:06:48,116 --> 00:06:52,376 Speaker 2: their own private levels which are doing reasonably good in 118 00:06:52,376 --> 00:06:58,275 Speaker 2: their own stores, accounting for 20-30% of category says be 119 00:06:58,286 --> 00:07:04,746 Speaker 2: your groceries, your soaps or shampoo or even your grooming products. 120 00:07:04,755 --> 00:07:08,306 Speaker 2: So it will be interesting to see how they do it. 121 00:07:08,306 --> 00:07:09,816 Speaker 2: But again 122 00:07:10,040 --> 00:07:17,000 Speaker 2: whether a consumer would prefer luck, soap or soap reliance, 123 00:07:17,000 --> 00:07:19,470 Speaker 2: that's something we need to watch out for unless they 124 00:07:19,470 --> 00:07:23,950 Speaker 2: acquire soap which is popular in the market and which 125 00:07:23,950 --> 00:07:27,190 Speaker 2: consumers are aware of. So it will take some time 126 00:07:27,190 --> 00:07:29,400 Speaker 2: till they build a proper portfolio and take it to 127 00:07:29,400 --> 00:07:32,250 Speaker 2: the market. So it won't be just private level. But 128 00:07:32,250 --> 00:07:35,620 Speaker 2: even third party brands and that would be very critical 129 00:07:35,620 --> 00:07:36,640 Speaker 2: for their success. 130 00:07:37,040 --> 00:07:39,860 Speaker 1: Mr Ambani told shareholders that he will share an update 131 00:07:39,860 --> 00:07:42,630 Speaker 1: on the planned I. P. O. Of reliance retail. NGO 132 00:07:42,630 --> 00:07:45,370 Speaker 1: in the annual general meeting next year. How do you 133 00:07:45,370 --> 00:07:48,920 Speaker 1: think these strategies will strengthen reliance retail when it hits 134 00:07:48,920 --> 00:07:50,520 Speaker 1: the market for an I. P. O. In future? 135 00:07:51,250 --> 00:07:55,380 Speaker 2: So these strategies of whether it's the B. Two B 136 00:07:55,390 --> 00:07:58,150 Speaker 2: retail which they're looking at which they call new commerce 137 00:07:58,160 --> 00:08:01,300 Speaker 2: or F. M. C. G. Will be vital because that 138 00:08:01,300 --> 00:08:04,180 Speaker 2: will add scale to the company. So we know that 139 00:08:04,180 --> 00:08:07,440 Speaker 2: the new commerce and E commerce as in both B 140 00:08:07,440 --> 00:08:10,220 Speaker 2: two B and B. Two C. Commerce together accounts for 141 00:08:10,220 --> 00:08:13,100 Speaker 2: around 20% of the revenue and this is just in 142 00:08:13,100 --> 00:08:16,880 Speaker 2: 1.5 years. So FM CD will again play a role 143 00:08:16,880 --> 00:08:18,390 Speaker 2: in scaling up but FM CD, 144 00:08:18,405 --> 00:08:20,495 Speaker 2: it's also a business where you need to do a 145 00:08:20,495 --> 00:08:23,025 Speaker 2: lot of category investment in the beginning so a lot 146 00:08:23,025 --> 00:08:26,935 Speaker 2: of money is required for investment that impacts your margins. 147 00:08:26,945 --> 00:08:29,645 Speaker 2: So it would be interesting thing how they balance the 148 00:08:29,645 --> 00:08:32,815 Speaker 2: margin play whereas trying to get a higher share of 149 00:08:32,815 --> 00:08:35,655 Speaker 2: the top line but they might be postponing it for 150 00:08:35,655 --> 00:08:38,695 Speaker 2: one or two years just to ensure that the scale 151 00:08:38,695 --> 00:08:42,175 Speaker 2: of the business increases much more with both the F. M. C. G. 152 00:08:42,175 --> 00:08:45,405 Speaker 2: And new commerce or holes elastic quality. 153 00:08:46,929 --> 00:08:50,630 Speaker 1: Another Corgan reliance's growth wheel is reliance to you which 154 00:08:50,630 --> 00:08:52,950 Speaker 1: is betting big on the five G. Segment 155 00:08:53,929 --> 00:08:57,800 Speaker 1: reliance will invest rupees two lakh crore NGO by 2025 156 00:08:58,280 --> 00:09:02,260 Speaker 1: deploy the latest version of five G. Called standalone five G. 157 00:09:03,420 --> 00:09:06,290 Speaker 1: Kalyan par. But who has been tracking telecom for two 158 00:09:06,290 --> 00:09:10,089 Speaker 1: decades tells us how important is five G. And standalone 159 00:09:10,090 --> 00:09:11,490 Speaker 1: five G. Four alliance, 160 00:09:16,990 --> 00:09:20,590 Speaker 1: Killian, welcome to the morning brief pleasure pleasure. If you 161 00:09:20,590 --> 00:09:23,280 Speaker 1: could help me understand why is Geo betting so big 162 00:09:23,280 --> 00:09:28,130 Speaker 1: on five G. So basically the industry is down to 163 00:09:28,190 --> 00:09:31,770 Speaker 1: essentially two strong players and one 164 00:09:32,420 --> 00:09:38,540 Speaker 1: week struggling telco the opportunities are enormous. The use cases 165 00:09:38,540 --> 00:09:41,750 Speaker 1: are just starting to develop the handset ecosystem for five G. 166 00:09:41,750 --> 00:09:45,520 Speaker 1: Is also developing pretty rapidly so it's a perfect time 167 00:09:45,520 --> 00:09:49,550 Speaker 1: to get into five G to you know launch networks 168 00:09:49,700 --> 00:09:52,170 Speaker 1: and make the most of the use cases and the 169 00:09:52,170 --> 00:09:55,550 Speaker 1: ecosystem that's evolving and Geo as 170 00:09:55,760 --> 00:10:01,030 Speaker 1: the undisputed telecom market leader with an over 40% revenue 171 00:10:01,030 --> 00:10:06,170 Speaker 1: market share with a country wide arsenal of over 400,000,004 172 00:10:06,170 --> 00:10:10,740 Speaker 1: G customers is just perfectly geared to take the plunge 173 00:10:10,750 --> 00:10:14,270 Speaker 1: and further consolidate its, you know, mobile broadband play. 174 00:10:14,800 --> 00:10:17,360 Speaker 1: Could you help us understand what is a standalone launch 175 00:10:17,360 --> 00:10:19,609 Speaker 1: and what is the difference between stand alone versus a 176 00:10:19,610 --> 00:10:22,250 Speaker 1: non stand alone In this case, a standalone five G 177 00:10:22,250 --> 00:10:27,380 Speaker 1: network is one that purely runs that is not dependent 178 00:10:27,390 --> 00:10:30,370 Speaker 1: on existing four G network infrastructure 179 00:10:30,770 --> 00:10:33,530 Speaker 1: or spectrum or any of that. It is a network 180 00:10:33,530 --> 00:10:38,030 Speaker 1: which is totally dedicated to five G mobile broadband communications. 181 00:10:38,040 --> 00:10:40,320 Speaker 1: So that's what a standalone network is. But as a 182 00:10:40,320 --> 00:10:44,819 Speaker 1: non standalone network typically writes on existing four G infrastructure 183 00:10:44,820 --> 00:10:49,090 Speaker 1: and spectrum and uses some five G airwaves as a 184 00:10:49,090 --> 00:10:52,220 Speaker 1: combination as an add on to generate the kind of 185 00:10:52,220 --> 00:10:56,260 Speaker 1: five G like speeds on a basic five G infrastructure. 186 00:10:56,270 --> 00:10:57,989 Speaker 1: So that's what non standalone is 187 00:10:58,200 --> 00:11:01,209 Speaker 1: and world wide majority of the five G action that 188 00:11:01,210 --> 00:11:05,130 Speaker 1: you're seeing currently is on through the non standalone mode 189 00:11:05,140 --> 00:11:08,559 Speaker 1: which is popularly known as N. S. A. In the sense, 190 00:11:08,570 --> 00:11:11,949 Speaker 1: over 90% of the five G traffic that you have 191 00:11:11,950 --> 00:11:15,760 Speaker 1: worldwide is all passing through non standalone five G networks. 192 00:11:15,770 --> 00:11:19,100 Speaker 1: So that way stand alone is still in its infancy 193 00:11:19,179 --> 00:11:21,910 Speaker 1: and will take some time to really catch on. Although 194 00:11:21,910 --> 00:11:25,420 Speaker 1: it is reckoned to be a superior form of five G. 195 00:11:25,790 --> 00:11:28,330 Speaker 1: And how will it be a standout feature for Alliance 196 00:11:28,330 --> 00:11:31,760 Speaker 1: to you? They are the guys who have invested in 197 00:11:31,820 --> 00:11:34,929 Speaker 1: a pan India 700 megahertz spectrum which they're planning to 198 00:11:34,929 --> 00:11:39,280 Speaker 1: use purely for their standalone net five G network Geo 199 00:11:39,290 --> 00:11:42,940 Speaker 1: is of the view that with 700 pan India spectrum 200 00:11:42,950 --> 00:11:46,600 Speaker 1: they would be able to offer a real 201 00:11:46,809 --> 00:11:52,410 Speaker 1: five G kind of an experience speeds superior in building coverage, 202 00:11:52,420 --> 00:11:56,959 Speaker 1: superior coverage and rural areas which would typically, and since 203 00:11:56,960 --> 00:11:59,520 Speaker 1: you would require a fewer number of towers in rural 204 00:11:59,520 --> 00:12:04,229 Speaker 1: India to rollout of five G networks which would be effective, 205 00:12:04,240 --> 00:12:06,250 Speaker 1: you know, from a cost perspective 206 00:12:06,809 --> 00:12:09,440 Speaker 1: And on top of that they've got Pan India 700. 207 00:12:09,450 --> 00:12:12,540 Speaker 1: So they are in a position to do what they 208 00:12:12,540 --> 00:12:16,170 Speaker 1: call carrier aggregation, which is you know, they can combine 209 00:12:16,179 --> 00:12:20,160 Speaker 1: all the airwaves, the disparate airwave brands that they have 210 00:12:20,170 --> 00:12:23,890 Speaker 1: to offer a cocktail, a unified, you know, high octane 211 00:12:23,890 --> 00:12:25,699 Speaker 1: data highway offering. 212 00:12:26,540 --> 00:12:30,240 Speaker 1: It is important to mention here that when reliance announced 213 00:12:30,250 --> 00:12:34,280 Speaker 1: its intent to venture into telecom, the industry was skeptical. 214 00:12:35,200 --> 00:12:37,990 Speaker 1: After four years of scrapping the non compete agreement with 215 00:12:37,990 --> 00:12:41,820 Speaker 1: his younger brother, Anil Mukesh Ambani in 2014 founded the 216 00:12:41,820 --> 00:12:43,510 Speaker 1: telecom startup reliance to you 217 00:12:44,480 --> 00:12:48,600 Speaker 1: JIA launch services into September 2016 and within a year 218 00:12:48,610 --> 00:12:50,850 Speaker 1: had 100 million paying customers. 219 00:12:52,330 --> 00:12:55,630 Speaker 1: Ambani told the shareholders that Geo has broken one world 220 00:12:55,630 --> 00:12:58,840 Speaker 1: record after another and proved the skeptics wrong 221 00:13:00,000 --> 00:13:02,490 Speaker 1: Colin Do you see a similar script being played out 222 00:13:02,490 --> 00:13:04,350 Speaker 1: with reliance is 5G bet here 223 00:13:05,110 --> 00:13:08,790 Speaker 1: will s a help Geo gain more market share. And 224 00:13:08,790 --> 00:13:09,830 Speaker 1: what about competition? 225 00:13:10,720 --> 00:13:14,510 Speaker 1: Clearly essay is expected to be a superior form of 226 00:13:14,510 --> 00:13:18,750 Speaker 1: five G which will allow Geo to offer real low 227 00:13:18,750 --> 00:13:24,560 Speaker 1: latency applications particularly and very strong in building coverage in 228 00:13:24,559 --> 00:13:27,000 Speaker 1: urban zones, which would obviously 229 00:13:27,015 --> 00:13:31,705 Speaker 1: give any telco ahead, started acquiring top end customers because 230 00:13:31,705 --> 00:13:35,804 Speaker 1: if you can offer superior broadband coverage in building broadband 231 00:13:35,804 --> 00:13:40,595 Speaker 1: coverage inside buildings, intensely populated zones, that is a huge, 232 00:13:40,595 --> 00:13:43,304 Speaker 1: you know, driver for market share expansion. 233 00:13:43,670 --> 00:13:46,560 Speaker 1: So when Mr Ambani says that five G, standalone is 234 00:13:46,559 --> 00:13:50,200 Speaker 1: the best. Do we have the handset ecosystem to match 235 00:13:50,200 --> 00:13:52,780 Speaker 1: that or is there a disconnect there? It's not going 236 00:13:52,780 --> 00:13:56,890 Speaker 1: to happen overnight. The devices ecosystem around 700 is still 237 00:13:56,900 --> 00:14:01,750 Speaker 1: developing the handset ecosystem does not exist as of now. Yeah, 238 00:14:02,460 --> 00:14:06,010 Speaker 1: if the devices ecosystem, you know, sort of matures it 239 00:14:06,010 --> 00:14:10,530 Speaker 1: would be if it evolves rapidly standalone, you on the 240 00:14:10,530 --> 00:14:15,550 Speaker 1: 700 band can become a very powerful value proposition in 241 00:14:15,550 --> 00:14:18,880 Speaker 1: the five G sweepstakes, can you give me some color 242 00:14:18,880 --> 00:14:22,400 Speaker 1: on what is the competition doing with regard to five 243 00:14:22,400 --> 00:14:25,130 Speaker 1: G and what is the Geo X factor? The Geo 244 00:14:25,440 --> 00:14:30,060 Speaker 1: is typically looking at using a standalone network to do 245 00:14:30,060 --> 00:14:31,710 Speaker 1: machine to machine communications 246 00:14:31,910 --> 00:14:36,180 Speaker 1: network slicing metaverse metaverse as you know, is going to 247 00:14:36,180 --> 00:14:38,690 Speaker 1: be the new age business and a virtual world, which 248 00:14:38,690 --> 00:14:41,780 Speaker 1: is going to be driven by five G technologies such 249 00:14:41,780 --> 00:14:46,130 Speaker 1: as augmented reality virtual reality Blockchain and 250 00:14:46,470 --> 00:14:50,130 Speaker 1: insofar as what competition is doing. Airtel has announced, Pan 251 00:14:50,130 --> 00:14:52,340 Speaker 1: India plans, the first wave of launches will happen in 252 00:14:52,340 --> 00:14:56,350 Speaker 1: october and the pan India launch is expected by March 253 00:14:56,360 --> 00:14:58,460 Speaker 1: but I would say a little is keeping the faith 254 00:14:58,460 --> 00:15:01,940 Speaker 1: on the N. S. A non standalone mode because that 255 00:15:01,940 --> 00:15:03,110 Speaker 1: is the one which is more evil 256 00:15:03,255 --> 00:15:06,835 Speaker 1: globally with over 90% of worldwide five G traffic running 257 00:15:06,835 --> 00:15:10,395 Speaker 1: on such networks, it'll is also convinced that S a 258 00:15:10,395 --> 00:15:14,035 Speaker 1: five G architecture would be more cost efficient. It would 259 00:15:14,255 --> 00:15:17,395 Speaker 1: it would, you know, typically offer the advantages of sweating, 260 00:15:17,395 --> 00:15:19,775 Speaker 1: it's four G assets better. 261 00:15:19,950 --> 00:15:24,320 Speaker 1: It would also leverage a more globally established network of 262 00:15:24,320 --> 00:15:27,110 Speaker 1: gear makers to be the early bird in the five 263 00:15:27,110 --> 00:15:30,640 Speaker 1: G space because you have the benefit of the ecosystem 264 00:15:30,650 --> 00:15:35,650 Speaker 1: unlike a 700 system which is still to mature from 265 00:15:35,650 --> 00:15:39,690 Speaker 1: a handset ecosystem perspective. But you know, the Geo has 266 00:15:39,690 --> 00:15:43,860 Speaker 1: always been a disruptor and there are very strong parallels 267 00:15:43,860 --> 00:15:47,180 Speaker 1: with their four G entry. If you remember when they 268 00:15:47,180 --> 00:15:49,590 Speaker 1: came in with four G in 2016, 269 00:15:50,230 --> 00:15:54,860 Speaker 1: older players like to tell than the standalone vodafone idea 270 00:15:54,910 --> 00:15:57,540 Speaker 1: and standalone idea cellular, they were all doing two G 271 00:15:57,540 --> 00:16:00,620 Speaker 1: and three G. But Geo went ahead and came in 272 00:16:00,620 --> 00:16:04,030 Speaker 1: with a parent of four G network, they came out 273 00:16:04,040 --> 00:16:06,040 Speaker 1: with a completely different technology 274 00:16:06,390 --> 00:16:09,240 Speaker 1: and regardless of the fact that there were over 300 275 00:16:09,240 --> 00:16:12,880 Speaker 1: to 400,000,002 G users at that point of time. So 276 00:16:12,880 --> 00:16:16,160 Speaker 1: they didn't really care. So they took a very contrarian stance. 277 00:16:16,350 --> 00:16:20,120 Speaker 1: Now we see similar parallels emanating this time round two, 278 00:16:20,120 --> 00:16:23,880 Speaker 1: they're coming out with a standalone five G network, they're 279 00:16:23,880 --> 00:16:26,670 Speaker 1: betting big on a standalone five G network. So, so 280 00:16:26,670 --> 00:16:30,010 Speaker 1: which is why they are betting on a technology of 281 00:16:30,010 --> 00:16:30,810 Speaker 1: the future. 282 00:16:31,110 --> 00:16:35,720 Speaker 1: They have a very integrated, holistic 5G game plan. So 283 00:16:35,720 --> 00:16:37,660 Speaker 1: obviously it's totally thought out. 284 00:16:38,240 --> 00:16:41,580 Speaker 1: Mr Ambani mentioned private networks in the speech and that's 285 00:16:41,580 --> 00:16:45,000 Speaker 1: where Adani is also making plans to take players to 286 00:16:45,000 --> 00:16:47,450 Speaker 1: warn the same so will stand alone fight. She gives 287 00:16:47,450 --> 00:16:50,060 Speaker 1: you an edge in this particular segment. 288 00:16:50,430 --> 00:16:54,700 Speaker 1: Yeah, so definitely private networks, smart factories is going to 289 00:16:54,700 --> 00:16:58,940 Speaker 1: be a huge use case one standalone networks truly evolve 290 00:16:58,950 --> 00:17:02,540 Speaker 1: and the ecosystem matures. So like I said, all these 291 00:17:02,540 --> 00:17:07,070 Speaker 1: things including machine to machine communications or driverless cars within 292 00:17:07,260 --> 00:17:10,820 Speaker 1: complexes like ports, which Adani is typically looking at all 293 00:17:10,820 --> 00:17:11,510 Speaker 1: these things 294 00:17:11,619 --> 00:17:17,890 Speaker 1: would become very realistic use case once the ecosystems around 295 00:17:17,900 --> 00:17:20,680 Speaker 1: standalone five G matures, that is like I said, that 296 00:17:20,680 --> 00:17:24,310 Speaker 1: is still some distance away. Right point taken Geo has 297 00:17:24,310 --> 00:17:27,720 Speaker 1: taken digital mandate to the villages no doubt. But what 298 00:17:27,720 --> 00:17:31,740 Speaker 1: about the Archos to sustain one's five reinvestments? That's a 299 00:17:31,740 --> 00:17:32,780 Speaker 1: great question. 300 00:17:33,040 --> 00:17:36,550 Speaker 1: In fact Geo is putting in two lakh crores and 301 00:17:36,550 --> 00:17:40,709 Speaker 1: that's what Mukesh Ambani reliance Chairman announced. Now Goldman Sachs 302 00:17:40,720 --> 00:17:44,899 Speaker 1: has apparently said that G. O. Will need to boost 303 00:17:44,910 --> 00:17:49,199 Speaker 1: its annual operating income and revenue to the extent of 304 00:17:49,200 --> 00:17:55,210 Speaker 1: 32,000 crores and 50,000 crores to generate double digit returns 305 00:17:55,210 --> 00:17:57,800 Speaker 1: post tax. So now that's not going to be a 306 00:17:57,800 --> 00:17:59,760 Speaker 1: very that's not gonna be a cakewalk right? 307 00:18:00,160 --> 00:18:03,430 Speaker 1: And Goldman Sachs also estimates that Geo would need to 308 00:18:03,430 --> 00:18:07,280 Speaker 1: boost its monthly are produced by at least another ₹100 309 00:18:07,280 --> 00:18:12,100 Speaker 1: a month. They need to rise from 176 to 276. 310 00:18:12,140 --> 00:18:17,060 Speaker 1: Geo will be facing a tough opponent in Airtel which 311 00:18:17,060 --> 00:18:20,330 Speaker 1: has a strong balance sheet with a low leverage ratio. 312 00:18:20,350 --> 00:18:25,960 Speaker 1: So tell Geo actually increases the who cross subsidizes the 313 00:18:26,830 --> 00:18:30,340 Speaker 1: clearly one of the biggest challenges for G. O. Is 314 00:18:30,340 --> 00:18:34,859 Speaker 1: going to be to monetize to generate double digit returns 315 00:18:34,869 --> 00:18:39,810 Speaker 1: on its two lakh crore five G. Investment worldwide. Five 316 00:18:39,810 --> 00:18:44,270 Speaker 1: G mobile hasn't really generated meaningful, incremental our booze for 317 00:18:44,270 --> 00:18:49,640 Speaker 1: telcos telcos around the world are banking on enterprise solutions. 318 00:18:49,650 --> 00:18:54,310 Speaker 1: So I don't see very dramatic our poo 319 00:18:54,850 --> 00:18:59,300 Speaker 1: you know, growth in the near term happening my senses 320 00:18:59,310 --> 00:19:04,770 Speaker 1: unless the five G. Enterprise revenues turn meaningful. All the 321 00:19:04,770 --> 00:19:08,550 Speaker 1: telcos are gonna be looking out for regular opportunities to 322 00:19:08,550 --> 00:19:13,100 Speaker 1: hike mobile, five G. Mobile broadband tariffs so consumers like 323 00:19:13,100 --> 00:19:16,830 Speaker 1: you and I will end up paying more to you 324 00:19:16,830 --> 00:19:19,510 Speaker 1: know generate the our purpose for the telcos 325 00:19:20,260 --> 00:19:23,990 Speaker 1: as part of reliance's pivot from fossil fuels to new energy. 326 00:19:24,050 --> 00:19:28,430 Speaker 1: Last june the company decided to spend rupees 75,000 crore 327 00:19:28,440 --> 00:19:31,710 Speaker 1: in setting up four giant factories in the renewable energy 328 00:19:31,710 --> 00:19:32,430 Speaker 1: segment 329 00:19:33,200 --> 00:19:37,990 Speaker 1: This year, it committed another through P 75,000 crore and petrochemicals. 330 00:19:39,380 --> 00:19:42,040 Speaker 1: What does it mean for the company? Let us hear 331 00:19:42,040 --> 00:19:42,630 Speaker 1: from origin. 332 00:19:44,650 --> 00:19:45,950 Speaker 1: Welcome to the morning brief. 333 00:19:46,619 --> 00:19:49,120 Speaker 1: Let me begin by asking you, how do you see 334 00:19:49,119 --> 00:19:51,149 Speaker 1: this year's announcements on the energy front? 335 00:19:57,000 --> 00:20:02,110 Speaker 1: Good morning. Thank you for having me. Well this year's 336 00:20:02,109 --> 00:20:06,250 Speaker 1: announcements on new energy, I would say where merely top 337 00:20:06,250 --> 00:20:09,920 Speaker 1: ups the foundation has already been laid or was late 338 00:20:09,920 --> 00:20:10,740 Speaker 1: last year. 339 00:20:10,920 --> 00:20:14,430 Speaker 1: So these would be, you know, the additional toppings to 340 00:20:14,430 --> 00:20:18,280 Speaker 1: a pizza. So there is one more gigafactory now for 341 00:20:18,280 --> 00:20:24,590 Speaker 1: power electronics clearly to offset the overwhelming influence of china 342 00:20:24,600 --> 00:20:28,320 Speaker 1: in the global supply chain. So one more gigafactory. In 343 00:20:28,320 --> 00:20:32,790 Speaker 1: addition to the four giga factories. The management also came 344 00:20:32,800 --> 00:20:36,390 Speaker 1: Up with some timelines such as production of battery packs 345 00:20:36,390 --> 00:20:43,090 Speaker 1: by 2023 and up to 50 gigawatt per our capacity 346 00:20:43,090 --> 00:20:48,149 Speaker 1: by 2027 Stiff timelines. But now we have more clarity 347 00:20:48,150 --> 00:20:52,140 Speaker 1: that the clock is really ticking and ticking fast. Finally, 348 00:20:52,140 --> 00:20:54,669 Speaker 1: they also made an announcement, which I would say. 349 00:20:54,690 --> 00:20:58,810 Speaker 1: again more of a top up that the commencement at 350 00:20:58,810 --> 00:21:02,780 Speaker 1: the beginning of the transition from gray to green hydrogen, 351 00:21:02,780 --> 00:21:06,570 Speaker 1: which is gray means hydrogen, which is comes out of 352 00:21:06,580 --> 00:21:11,090 Speaker 1: Lng or gas to green hydrogen which is hydrogen which 353 00:21:11,100 --> 00:21:16,619 Speaker 1: is fired from renewable sources that will begin by 2025. 354 00:21:16,630 --> 00:21:20,639 Speaker 1: So all in all I would say more incremental 355 00:21:20,970 --> 00:21:24,940 Speaker 1: How do you see Ariel's new energy push versus peers 356 00:21:24,940 --> 00:21:29,200 Speaker 1: and especially when Ariel is talking about a manufacturing ecosystem 357 00:21:29,200 --> 00:21:32,950 Speaker 1: being in place. That's the difference you yourself said it 358 00:21:32,960 --> 00:21:38,240 Speaker 1: that so far in India most of the renewable companies 359 00:21:38,250 --> 00:21:42,780 Speaker 1: have been, I Peeps or independent power producers look at renew. 360 00:21:42,790 --> 00:21:45,950 Speaker 1: Look at green co look at even Adani first 361 00:21:45,960 --> 00:21:50,970 Speaker 1: Bush was to generate solar or wind power. Now here 362 00:21:50,970 --> 00:21:55,420 Speaker 1: was reliant that was actually talking about manufacturing now I 363 00:21:55,420 --> 00:21:59,290 Speaker 1: would guess. And they haven't openly said that the reason 364 00:21:59,290 --> 00:22:02,150 Speaker 1: why they were talking about manufacturing and not so much 365 00:22:02,150 --> 00:22:06,490 Speaker 1: of generation and generation only for captive requirements is because 366 00:22:06,510 --> 00:22:12,889 Speaker 1: generation means tremendous government overlays whether it's a central government, 367 00:22:13,040 --> 00:22:16,010 Speaker 1: whether it's a state government, remember power is a concurrent subject. 368 00:22:16,010 --> 00:22:18,909 Speaker 1: So state, as I say, the center also has a 369 00:22:18,910 --> 00:22:21,889 Speaker 1: say and often we've seen the state and the center 370 00:22:21,900 --> 00:22:25,640 Speaker 1: has been at loggerheads. Dis comes a key buyer of 371 00:22:25,640 --> 00:22:30,990 Speaker 1: power from this generation companies are all bankrupt. So why 372 00:22:30,990 --> 00:22:34,520 Speaker 1: get into PPS which could potentially get reneged, Why get 373 00:22:34,520 --> 00:22:37,910 Speaker 1: into this tussle of free power and the politics involved 374 00:22:37,910 --> 00:22:39,160 Speaker 1: around power inst 375 00:22:39,170 --> 00:22:43,550 Speaker 1: said focus on manufacturing because that was also coinciding with 376 00:22:43,550 --> 00:22:48,300 Speaker 1: the manufacturing push that the prime minister modi's government was 377 00:22:48,410 --> 00:22:53,820 Speaker 1: actually catalyzing. So the difference fundamental difference is not so 378 00:22:53,820 --> 00:22:59,400 Speaker 1: much generation, but more manufacturing and at the same time 379 00:22:59,410 --> 00:23:02,220 Speaker 1: as I said, it's not shying away from a generation 380 00:23:02,270 --> 00:23:05,290 Speaker 1: 20 gigawatts it is still generating. 381 00:23:05,300 --> 00:23:09,730 Speaker 1: That's a huge amount of solar power generation. But as 382 00:23:09,730 --> 00:23:13,250 Speaker 1: of now all that they're saying is it's only for 383 00:23:13,250 --> 00:23:16,760 Speaker 1: their own needs at Jamnagar which is the mega refinery 384 00:23:16,770 --> 00:23:20,520 Speaker 1: and for the mega or the giga factories very well. 385 00:23:20,530 --> 00:23:25,230 Speaker 1: But do you think it lacks expertise because I mean 386 00:23:25,240 --> 00:23:28,860 Speaker 1: a real spreading itself too thin with solar green hydrogen 387 00:23:28,859 --> 00:23:33,330 Speaker 1: battery biology and now offshore wind as well. Yes, that indeed, 388 00:23:33,859 --> 00:23:37,810 Speaker 1: if you ask me is a challenge, although nobody can 389 00:23:37,810 --> 00:23:43,659 Speaker 1: doubt reliance's ability to execute mega complex projects. But still 390 00:23:43,820 --> 00:23:48,690 Speaker 1: this is virgin territory also because the technologies involved at 391 00:23:48,690 --> 00:23:51,060 Speaker 1: the back end to make it all work, they are 392 00:23:51,060 --> 00:23:56,130 Speaker 1: fast changing. So unlike telecom where it had some experience 393 00:23:56,130 --> 00:23:59,920 Speaker 1: in the past, this is more like they followed something 394 00:23:59,920 --> 00:24:02,800 Speaker 1: very similar to retail which is you build 395 00:24:03,020 --> 00:24:08,139 Speaker 1: but you also by its taking divergent bets cutting across 396 00:24:08,140 --> 00:24:12,830 Speaker 1: technologies buying and investing in companies with competing technologies. So 397 00:24:12,830 --> 00:24:16,600 Speaker 1: it's investing in lithium companies which are into lithium ion batteries. 398 00:24:16,850 --> 00:24:20,149 Speaker 1: It's also investing in companies like for alien which is 399 00:24:20,150 --> 00:24:24,790 Speaker 1: into sodium cell, sodium and lithium, they compete. So it's 400 00:24:24,790 --> 00:24:28,190 Speaker 1: more like a venture capital play, you spray and you 401 00:24:28,190 --> 00:24:31,510 Speaker 1: pray multiple punts but if one clicks 402 00:24:31,790 --> 00:24:35,639 Speaker 1: it's bonanza. So talking of batteries or that you've already 403 00:24:35,640 --> 00:24:38,170 Speaker 1: touched upon that. But I wanted to ask you of 404 00:24:38,180 --> 00:24:41,610 Speaker 1: all the technologies and battery that Ariel is backing which 405 00:24:41,609 --> 00:24:44,580 Speaker 1: one do you think is the most exciting and why? 406 00:24:44,590 --> 00:24:47,840 Speaker 1: Well to me the most exciting is sodium. So the 407 00:24:47,840 --> 00:24:51,410 Speaker 1: reliance is expecting to start production of battery packs from 408 00:24:51,410 --> 00:24:57,070 Speaker 1: next year onwards. Now, why sodium so exciting? lithium iron 409 00:24:57,070 --> 00:24:59,600 Speaker 1: battery is ubiquitous. 410 00:24:59,890 --> 00:25:06,590 Speaker 1: An omnipresent. It's from smartphones to Tesla's cars. lithium iron 411 00:25:06,590 --> 00:25:11,929 Speaker 1: batteries are everywhere. So here is mixed. Ambani, one of 412 00:25:11,930 --> 00:25:14,169 Speaker 1: the richest man in the world who made a small 413 00:25:14,170 --> 00:25:20,810 Speaker 1: bet 136 million to back a startup from Oxford UK. 414 00:25:20,820 --> 00:25:26,800 Speaker 1: That is working with the humble sodium sodium say no Magnante. 415 00:25:27,170 --> 00:25:31,800 Speaker 1: It's the basic chemistry behind salt. So it's it can't 416 00:25:31,800 --> 00:25:35,500 Speaker 1: get more basic than that. Now, why do I say 417 00:25:35,500 --> 00:25:40,470 Speaker 1: it's more interesting is because for one thing sodium is 418 00:25:40,480 --> 00:25:45,080 Speaker 1: abundantly available. I was reading in a Bernstein research that 419 00:25:45,080 --> 00:25:51,670 Speaker 1: the earth's crust has 300 times more sodium than lithium. Now, 420 00:25:52,290 --> 00:25:57,330 Speaker 1: the global adoption rate of electric vehicles is currently so 421 00:25:57,330 --> 00:26:01,629 Speaker 1: high and it's so fast that it's not just lithium, 422 00:26:01,640 --> 00:26:06,399 Speaker 1: but high grade nickel cobalt, practically anything that goes into 423 00:26:06,400 --> 00:26:09,869 Speaker 1: the E V battery ecosystem is getting scarce. So the 424 00:26:09,869 --> 00:26:17,120 Speaker 1: first time ever battery packs are more expensive in 2022. 425 00:26:17,130 --> 00:26:19,500 Speaker 1: So coming back to sodium, it make 426 00:26:19,510 --> 00:26:23,570 Speaker 1: sense to back a technology that's as cheap as a 427 00:26:23,570 --> 00:26:28,050 Speaker 1: traditional lead acid batteries and requires ingredients that are so 428 00:26:28,050 --> 00:26:31,600 Speaker 1: easily available easy to source to put it simply Mr 429 00:26:31,600 --> 00:26:36,290 Speaker 1: Ambani is not getting into a space whether chinese are 430 00:26:36,300 --> 00:26:42,820 Speaker 1: already up, he's getting into a relatively newer play where 431 00:26:42,820 --> 00:26:43,760 Speaker 1: the chinese 432 00:26:44,070 --> 00:26:47,970 Speaker 1: have not yet mastered or cracked the formula and there 433 00:26:47,970 --> 00:26:52,770 Speaker 1: are no other serious deep pocket players anywhere in the world, 434 00:26:52,780 --> 00:26:58,450 Speaker 1: including in India. This is why sodium is strategic and 435 00:26:58,450 --> 00:27:02,350 Speaker 1: this is why sodium is to me the most exciting 436 00:27:02,350 --> 00:27:02,869 Speaker 1: story 437 00:27:04,070 --> 00:27:07,280 Speaker 1: as aliens aims to grow. Ambani and his team is 438 00:27:07,280 --> 00:27:10,840 Speaker 1: leaving no stone unturned in, grooming daughter isha and two 439 00:27:10,840 --> 00:27:14,700 Speaker 1: sons akash AnAnd. And even as the three learned the ropes, 440 00:27:14,990 --> 00:27:17,100 Speaker 1: the company and the family are set to be putting 441 00:27:17,100 --> 00:27:21,990 Speaker 1: in place a limited liability partnership structure considered an efficient 442 00:27:21,990 --> 00:27:25,850 Speaker 1: way of succession planning, tax planning and wealth preservation 443 00:27:26,510 --> 00:27:30,220 Speaker 1: orgy. For the first time, Mr Ambani officially indicated what 444 00:27:30,220 --> 00:27:32,960 Speaker 1: the rules for next year will be at reliance. How 445 00:27:32,960 --> 00:27:33,950 Speaker 1: do you read that? 446 00:27:34,430 --> 00:27:37,060 Speaker 1: Well, there was a lot of speculation that this time 447 00:27:37,060 --> 00:27:40,550 Speaker 1: not only really spell out the succession plan, but he 448 00:27:40,550 --> 00:27:44,040 Speaker 1: will also give enough indication of a demerger. I would 449 00:27:44,040 --> 00:27:47,150 Speaker 1: say they were in both cases, there were enough and 450 00:27:47,150 --> 00:27:52,190 Speaker 1: more hints, but the dice was already rolled way back 451 00:27:52,190 --> 00:27:55,750 Speaker 1: in june. You know, if you remember end june Mukesh 452 00:27:55,750 --> 00:28:01,040 Speaker 1: Ambani actually stepped down from the board of reliance infocom LTD, 453 00:28:01,230 --> 00:28:04,510 Speaker 1: which is the group's telecom arm to make way for 454 00:28:04,510 --> 00:28:08,310 Speaker 1: his son akash right to take over as chairman. So 455 00:28:08,310 --> 00:28:13,840 Speaker 1: that to me was the first chapter now this time around, 456 00:28:13,840 --> 00:28:18,820 Speaker 1: he's clearly said, akash was the first amongst equal, very 457 00:28:18,820 --> 00:28:22,300 Speaker 1: carefully worded speech. He was very, very clearly there. They 458 00:28:22,300 --> 00:28:26,010 Speaker 1: are the first amongst equal because reliance is also trying 459 00:28:26,010 --> 00:28:30,500 Speaker 1: to portray itself as a professionally run company. Daughter, IsHA 460 00:28:30,560 --> 00:28:36,260 Speaker 1: more the super boss of retail and youngest of them all, 461 00:28:36,270 --> 00:28:41,719 Speaker 1: Ananth to spearhead the new energy business. The old legacy 462 00:28:41,720 --> 00:28:45,510 Speaker 1: oil to chemical business basically now runs on autopilot Ananth 463 00:28:45,510 --> 00:28:49,230 Speaker 1: already overseas. That new energy will be the additional one. 464 00:28:49,240 --> 00:28:52,790 Speaker 1: But he didn't go all out to, you know, give 465 00:28:52,790 --> 00:28:55,290 Speaker 1: the brass tacks or go granular 466 00:28:55,890 --> 00:29:00,490 Speaker 1: and it's unlikely that Isha Ambani is going to take 467 00:29:00,490 --> 00:29:06,180 Speaker 1: over as the chairman immediately. Probably, maybe towards the end 468 00:29:06,180 --> 00:29:10,370 Speaker 1: of this fiscal ISHA definitely will get straight into the 469 00:29:10,370 --> 00:29:15,840 Speaker 1: holding company of retail because retails corporate structure is similar 470 00:29:15,840 --> 00:29:20,890 Speaker 1: to that of telecom since october 2014, akash and IsHA 471 00:29:20,900 --> 00:29:24,740 Speaker 1: are formally given the business roles, but 472 00:29:25,350 --> 00:29:29,270 Speaker 1: there is no Ambani family member on the board of 473 00:29:29,280 --> 00:29:33,000 Speaker 1: the operating retail company. I'm not saying this. R. O. C. 474 00:29:33,000 --> 00:29:36,320 Speaker 1: Data says this and that is unlikely to change in 475 00:29:36,320 --> 00:29:39,290 Speaker 1: the future as well. There are people who are close 476 00:29:39,300 --> 00:29:43,290 Speaker 1: aides of Mr Ambani, Mr Subramaniam Venkata Callum 477 00:29:43,630 --> 00:29:47,560 Speaker 1: who's the M. D. The MD of reliance, retail ventures 478 00:29:47,570 --> 00:29:51,420 Speaker 1: doubles up as the whole time Director of reliance retail limited. 479 00:29:51,430 --> 00:29:56,600 Speaker 1: Now it's unlikely that Isha Ambani will become the boss 480 00:29:56,610 --> 00:30:02,530 Speaker 1: of the operating company. Why? Because according to reliance is 481 00:30:02,540 --> 00:30:06,730 Speaker 1: officials and people we spoke to. They feel retail is 482 00:30:06,740 --> 00:30:09,580 Speaker 1: a more sensitive, politically sensitive. 483 00:30:09,790 --> 00:30:13,150 Speaker 1: There could be lawsuits, there could be several other issues 484 00:30:13,160 --> 00:30:17,310 Speaker 1: so they want to keep the family insulated. So as 485 00:30:17,310 --> 00:30:21,220 Speaker 1: per the companies act, one cannot become the chairperson of 486 00:30:21,220 --> 00:30:24,550 Speaker 1: a company without first being a director of the company 487 00:30:25,310 --> 00:30:29,310 Speaker 1: and shareholders decided their board of directors and the board 488 00:30:29,310 --> 00:30:32,400 Speaker 1: of directors in turn decide the chairman of the board. 489 00:30:32,530 --> 00:30:35,540 Speaker 1: So what that means you have to become a member 490 00:30:35,540 --> 00:30:39,480 Speaker 1: of the board first to become a chairman. So that 491 00:30:39,480 --> 00:30:44,110 Speaker 1: means IsHA is unlikely to become a chairperson of reliance 492 00:30:44,110 --> 00:30:47,900 Speaker 1: retail limited, which is the operating company instead. Over the 493 00:30:47,900 --> 00:30:50,650 Speaker 1: next few years, you will see both Akash and Isha 494 00:30:50,660 --> 00:30:55,030 Speaker 1: getting elevated straight as chairpersons of the telecom and the 495 00:30:55,030 --> 00:31:00,660 Speaker 1: retail holding companies simultaneously. While Mukesh Ambani takes a more 496 00:31:00,660 --> 00:31:05,110 Speaker 1: strategic role, he's still learning on the job and that's 497 00:31:05,110 --> 00:31:08,140 Speaker 1: something that Mr Ambani also said in his speech Oil 498 00:31:08,140 --> 00:31:11,510 Speaker 1: and Gas has always been his forte, his passion. He 499 00:31:11,510 --> 00:31:16,010 Speaker 1: spends half the time in Jamnagar. So naturally as a corollary, 500 00:31:16,190 --> 00:31:20,060 Speaker 1: he is also getting involved in the new energy because 501 00:31:20,060 --> 00:31:22,850 Speaker 1: that's an extension of the legacy business. 502 00:31:25,570 --> 00:31:28,300 Speaker 1: It is said that when Mr Ambani inherited the oil 503 00:31:28,300 --> 00:31:31,300 Speaker 1: and gas business from his father over two decades ago, 504 00:31:31,650 --> 00:31:34,670 Speaker 1: the blueprint of the expansion into retail and telecom were 505 00:31:34,680 --> 00:31:38,690 Speaker 1: already laid out and as India's most valued company charts 506 00:31:38,690 --> 00:31:43,110 Speaker 1: out the next course, Ambani isn't retiring yet. He has 507 00:31:43,110 --> 00:31:46,780 Speaker 1: been emphasizing on his vision for the internationalization of reliance 508 00:31:47,200 --> 00:31:51,210 Speaker 1: possibly why reliance has been making bids for overseas deals 509 00:31:51,280 --> 00:31:54,430 Speaker 1: like it recently did for the british chemist chain boots. 510 00:31:55,180 --> 00:31:58,180 Speaker 1: And of course not to forget his call for top 511 00:31:58,180 --> 00:32:00,900 Speaker 1: notch talent from India and around the world at the 512 00:32:00,900 --> 00:32:01,950 Speaker 1: A G M on monday. 513 00:32:03,020 --> 00:32:06,390 Speaker 1: It however, remains to be seen. How far will reliance 514 00:32:06,390 --> 00:32:08,010 Speaker 1: go with jen next at the help 515 00:32:09,090 --> 00:32:12,250 Speaker 1: you were listening to reliance A GM 2022. The morning 516 00:32:12,250 --> 00:32:13,690 Speaker 1: brief takeaways with me called 517 00:32:15,200 --> 00:32:19,860 Speaker 1: Thank you banker Kalyan and orgy for your insights. Producers 518 00:32:19,860 --> 00:32:23,050 Speaker 1: for this episode are Sarabi modi and Anu Priya bahadur, 519 00:32:23,060 --> 00:32:25,900 Speaker 1: sound editor Andrew Neil Bhattacharjee. 520 00:32:26,550 --> 00:32:30,750 Speaker 1: Executive producers are an Oprea bahadur and origin barman. If 521 00:32:30,750 --> 00:32:34,350 Speaker 1: you like this episode, please share it on your social media. 522 00:32:34,360 --> 00:32:37,740 Speaker 1: Morning brief is every Tuesday thursday and friday 523 00:32:38,340 --> 00:32:40,960 Speaker 1: do tune into E. T. Play our latest platform for 524 00:32:40,970 --> 00:32:44,120 Speaker 1: all audio content including the morning brief. Thank you for 525 00:32:44,120 --> 00:32:44,790 Speaker 1: tuning in.