Reliance Industries Limited’s (RIL) digital and telecom arm Reliance Jio Infocomm claims that it is now present in all 29 states in India and has a direct physical presence in nearly 18,000 cities and towns. The company said this in an earnings release for the quarter ended June 30. It has also built an optical fibre network consisting nearly 250,000 route kilometres.
Reliance Jio will be rolling out its complete commercial operations by December this year, Mukesh Ambani, RIL chairman, said in his speech to investors in the company’s annual general meeting. “I am glad to announce that financial year 2016-17 will be the first full year of commercial operations for Jio,” he added.
Reliance added that it is currently conducting pre-launch testing and stabilisation of the telecom network. An extensive beta program will be initiated over the next few weeks to further test the network, prior to full commercial launch of operations. Distribution network will include 0.5 million connectivity outlets and 1 million additional recharge outlets at launch.
Reliance Jio also said that it had successfully demonstrated lawful intercept and monitoring (LIM) facilities for LTE data and voice, video & messaging services in all circles to the DoT. Jio also said it has demonstrated its capabilities of Aadhaar based e-KYC for issuing mobile connections as part of Proof-Of-Concept as per the directives of DoT. It has participated in the acceptance testing of its network in all circles with DoT for intra circle and inter circle mobile number portability.
The company also mentioned in its presentation that there will be over 75,000 eNodeB towers at the services launch across the country. It also added that 0.65 millionn sq ft of data center capacity across three locations to be operational by launch and will be expanded to over 1.5 million sq ft in the next 3 years.
4G devices push: The company also said that it has a two pronged strategy for ensuring 4G device availability when it launches operations– open market devices and self branded devices through Reliance Retail. Reliance said that it is engaged with the following OEM firms and chipset companies:
Jio reported operating revenues of Rs 415 crore for FY15, down 24% from Rs 546 crore operating revenues in FY14. The company’s ‘other revenues’ stood at Rs 42 crore for FY15, down 12.5% from Rs 48 crore in FY14. Other financial highlights:
– In FY15, RIL loaned Reliance Jio Infocomm Rs 5076 crore. As of March 31, 2015, the total amount loaned to Jio is Rs 16,813 crore.
– Reliance Jio Infocomm’s net assets are worth Rs 30,074 crore (as of March 31, 2015).
– Reliance Jio Infocomm has debt of Rs 22,305 crore.
E-commerce push for Reliance Retail
Reliance Retail has several e-commerce initiatives planned for the current fiscal year. “Before the end of year, the Fashion and Lifestyle formats of Reliance Retail will roll out its e-commerce initiative,” RIL chairman & MD Mukesh Ambani said during the company’s annual general meeting. Ambani also mentioned that they’ll be launching another e-commerce initiative to build “on the successful experience of our physical B2B business.” Reliance Market, RIL’s B2B wholesale cash-and-carry business claims to have over 15 lakh small businesses and kirana stores as registered members. He added that RIL will be rolling out a Reliance Digital Marketplace for small retailers.
Reliance Retail reported revenues of Rs 4,968 crore for Q1 FY16, showing a growth of 17.5% from Rs 3,999 crore in the same quarter last year. However, on a sequential basis, the segment’s revenues fell 1.9% from Rs 4,788 crore.
The business delivered profit before deprecation, interest and taxes (PBDIT) of Rs 203 crore in Q1 FY16 as against Rs 171 crore in the corresponding period of the previous year. The segment reported an EBIT of Rs 111 crore growing 37% from Rs 81 crore in the same quarter last year. On a quarter-on-quarter basis, EBIT grew 6.7% from Rs 104 crore.