Reliance Industries To Invest Rs 10,000 Crores In West Bengal
Mukesh Ambani, the chairman of Reliance Industries is investing around Rs. 1,700 crores In West Bengal. This will mark the E-commerce venture of the company. The company has announced its plans to diversify its retail store business at a time when the foreign investment changes of the country have affected two of the major e-commerce players, Flipkart and Amazon.
Ambani later added that his company’s investment in Bengal has grown from Rs 4500 crores to Rs 28000 crores. This is approximately one-tenth of the investment that Reliance Industries has made in India. At the Bengal Global Business Summit at Kolkata, he said that Jio has become the largest investor in digital space in West Bengal and they are keen on adding another Rs 10000 crores. This will be used to boost the 4G network coverage in the state by 2019 by adding more fibers to carry high-quality broadcasting and high-speed internet. The footprint of warehouses and retail stores were increasing gradually.
To manage the inventories efficiently, the company is planning on connecting the small merchants to its warehouses and retail stores. Ambani said, “Jio and Reliance Retail will shortly launch a unique New Commerce platform, which will bring win-win benefits to consumers, retailers and producers. Across the country, this platform will enrich and empower as many as 3 crore small shopkeepers”. He said that the company has set up Jio Points that will be served as direct distribution channels for the rural market. Its aim is to increase the number of Jio Points from 350 to 1000 by the end of 2019.
Reliance Industries already operates nearly 3 million sq. ft of the warehouses present in the state and this will increase dramatically with the new commerce initiative. According to Ambani, West Bengal has the potential to become the logistics center of the east which can attract over Rs 5000 Crores investment by the end of 2020. The GDP of the state has crossed Rs 10 lakh crores. At the beginning of the decade, the GDP was around Rs 4 Lakh crores. The income of the farmers are rising and the agricultural department is booming which has made the state one of the fastest growing states in India. The GDP of the state is increasing by 9.1% which is more than the national average GDP.
At the Summit, Ambani said, “Bengal was the cradle of industrialization in India over a century ago. Now, the time has come for your state to become a leader to the Fourth Industrial Revolution.” He added, “In about a decade, India will become the third-largest economy with a GDP of over USD 10 trillion, which is about four times the size of our economy today. We are ahead of all countries except the United States, China, Japan and Germany.” He is confident that the country will become the second largest economy in 2 decades and become the top economic power by 2047.
In 2018, Reliance Industries announced that it is going to enter the E-commerce business with a hybrid model. With the help of Reliance Jio (the online platform of RIL), the company is planning on creating more shared profitability by bringing together 3 crore small retail offline stiores.
Ambani ended his speech by saying that the commitment of Reliance will be essential in making the dream of Shonar Bangla come true. The relationship between Reliance and Bengal will broaden and continue in the coming years.