Anil Ambani on Tuesday announced that impoverished Reliance Communications will be fully exiting the telecom business to focus on real estate in the coming future. While addressing the shareholder at company’s 14th annual general meeting the billionaire mentioned company’s first priority to resolve a debt of ₹40,000 crores.
“We have decided that we will not proceed in this sector. And many other companies have taken a similar call. This is very much a writing on the wall, the future… “As we have moved out of the mobile sector, we will monetize at an appropriate stage our enterprise business. Reliance Realty will be the engine of growth for the future of this company.” Ambani said.
Key points stated by Anil Ambani :
- There is a huge opportunity for realty play owned by RCom’s corporate headquarters.It can set a value creation worth ₹25,000 crore on site.
- He is assured of resolving the debt of ₹40,000 crores in the coming weeks. The alternative measures for monetisation constitute sale of telecom infrastructure and fibre to Jio.
- The real estate company is waiting for permission for spectrum sharing and trading from the Department of Telecom
- A “creative destruction” had led to emergence of oligopoly which is going to convert to duopoly or may be monopoly in the near future.
- Financial turmoil have led to loss of 20 lakh jobs and Banks are burdened with debt of ₹7.7 lakh.
The response from the shareholder were mixed as some of them cheered for the effort and some criticized the move. The meeting was held at Dhirubhai Ambani Knowledge City (DAKC) on the outskirts of the financial capital