Son Overshadows The Father: Revenues Of Jio And Reliance Retail Overtake Petrochemical Business

Son Overshadows The Father: Revenues Of Jio And Reliance Retail Overtake Petrochemical BusinessDhirubhai Ambani with his son, Mukesh. (Shah Ashesh/The India Today Group/Getty Images)

In the July-September quarter of 2018, the combined revenues from Reliance Jio and Reliance Retail surpassed those of Reliance’s petrochemical business, as reported by Mint. While the former duo recorded revenues of ₹44,615 crore, the latter brought in only around ₹43,745. Though the difference isn’t materially substantial, it represents a vast psychological break for the company from its past.

“This is a marked change for a company, which was identified by its refining and petrochemicals businesses,” said an analyst of Mint. Reliance Industries Limited (RIL) founded by the legendary business icon of India, Dhirubhai Ambani, has its first beginnings in the polyester industry. Later it added the closely-related petrochemical business to its portfolio, and this had remained as a significant revenue-churner for the conglomerate over the last two decades.

However, under the leadership of Mukesh Ambani, son of the late founder, the corporation ventured out of its traditional businesses. In 2006, it ventured into the retail space with the launch of the first Reliance Fresh store in Hyderabad. But when Reliance Jio was thrown open to the public in September 2016, it was a pivotal moment in the company's recent history. To become a dominant player in the highly competitive Indian telecom market, Mukesh Ambani has invested around Rs. 2 lakh crore in the business.

The results are showing. Apart from earning record revenues, Jio has already become the third-largest mobile network in India in a short period. He also recently became the wealthiest man in Asia.