Anil Ambani's RCom To Quit Telecom, To Shift Full Focus On Realty
After a prolonged period of slump, India’s real estate market is bouncing back. With that, one can see a marked change in experts’ attitude towards the sector—they forecast realty will regain its past glory soon. They are not alone in their feeling. Stalwarts of the business world share that optimism.
At his company’s general body meet on September 18, Reliance Communications Chairman Anil Ambani said that his firm would be shutting down its telecommunication business and turn its focus on Reliance Realty. The real estate business, said the billionaire businessman, “will be the engine of growth for the future of this company”, once the regulatory approvals for spectrum sales to Mukesh Ambani’s Reliance Jio receive gets an approval.
Ambani clarified that the company would focus on developing the 133-acre Dhirubhai Ambani Knowledge City (DAKC) in Navi Mumbai. The DAKC is a registered information technology and financial technology park, with three million square foot (sqft) of built-up space. Ambani expects the value generation of this park at Rs 25,000 crore.
The company expects to move to a zero-debt status by next year. The current debt stands at Rs 40,000 crore, driving the company to look for greener pastures. Apart from money generator, the DAKC, the company hopes, will also be a source of employment generation, aiding housing development and demand for residential and commercial investment in the vicinity.
At the same time, Anil’s elder brother and Reliance Industries Limited Chief Mukesh Ambani is also planning to enter small cities of India, enabling assisted e-commerce trading through Jio Hubs.
Jio Hubs is expected to be a one-stop shop for consumer items sold by the company, from electronics to grocery. The idea is to bring small cities that are yet cut off from modern-day retail. The move is expected to help small cities become a site for investor interest.