Dream, Says Anil Ambani
- Agencies
- Sep 27, 2016
- 2 min read
Billionaire Anil Ambani celebrated family today, introducing his son Anmol as a new director on the board of his company Reliance Capital and announcing that a "virtual merger" of his Reliance Communications with older brother Mukesh Ambani's Reliance Jio has now been effected.
Anil Ambani was addressing shareholders today at Mumbai's Birla Matushri, where four of his companies held their Annual General Meetings or AGMs one after the other.
"Both brothers are now working together to fulfill Dhirubhai's dreams," said Mr Ambani, 57, to a standing ovation. He was referring to their father Dhirubhai Ambani who built the Reliance empire. For many years after their father's death Anil Ambani was estranged from brother Mukesh, India's richest man.
Speaking at the annual shareholders' meeting of Reliance Communications, Anil Ambani said, "We have all the spectrum we need for 2G, 3G and 4G services plus spectrum trading and sharing agreements with Reliance Jio...For all practical purposes, we have accomplished a virtual merger between Reliance Communications and Reliance Jio."
He added that his company had crossed 1 million 4G subscribers within 90 days of starting the services.
Reliance Jio Infocomm, the new telecom venture of his brother, and Reliance Communications have agreed to share their mobile spectrum. Jio also has an agreement to use Reliance Communications' mobile towers.
The deal with Jio would help Reliance Communications cut costs, while other telecom companies would have to spend heavily on spectrum to survive, Mr Ambani said, also vowing to aim at cutting his company's mammoth debt by more than 75 per cent in a year's time.
After the merger of smaller rival Aircel with Reliance Communications announced earlier this month, he said, the combined entity will be among the top operators in 12 circles in India.
Mr Ambani introduced son Anmol, 24, at the AGM of Reliance Capital, saying the latter had brought "tremendous luck" with a 40 per cent surge in share price since he was appointed director. (Watch)
The "Anmol Effect", Mr Ambani said he hoped, will continue.
Reliance Jio started commercial services this month and is giving away free calls and data services until the end of December. That has triggered a price war in the country's highly-competitive wireless sector, forcing market leaders Bharti Airtel and Vodafone India to cut rates.
Reliance Jio and Reliance Communication do not have ownership stakes in each other after a split in 2005 carved up the Reliance business empire among the two brothers.
Story first published on: September 27, 2016 17:15 (IST)
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