Mukesh Ambani hands over Jio reins to son Akash. Who heads what at Reliance Industries now

Reliance Industries, which is still led by Mukesh Ambani, has 5 main components - retail, digital services, media, oil to consumer (O2C), and oil & gas. Digital services includes digital media and telecom services which operate under ''Jio Platforms Ltd''. 

Jio Platforms has multiple subsidiary companies and one of these is called Jio Infocomm, which solely looks after telecom. Akash Ambani will be the new chairman of Jio Infocomm from June 28, 2022.

A BIT OF CONTEXT

Mukesh Ambani seems to be a better and a proactive role model in matters of the succession of his vast empire as compared to his father Dhirubhai Ambani. Mukesh Ambani's vast empire - Reliance Industries - is witnessing a succession with the 65-year-old handing over the reins of his telecom business to his 30-year-old son Akash Ambani. 

Mukesh Ambani has resigned as director of Reliance Jio Infocomm Ltd, while his son Akash, who was formerly a non-executive director, is now the chairman of Reliance Jio Infocomm's board of directors.

SO, WHO LEADS WHAT?

A quick look at Reliance Industries' Annual Report for the FY 2020-21 will tell you how India's largest private sector company is divided into 5 major parts:

1. Reliance Retail - This refers to Reliance's retail businesses where multiple domestic and foreign brands are housed. Basically, when you see news about Reliance acquiring retail businesses, know that these are the masterminds. For eg: When Reliance acquired Hamleys, Netmeds, Urban Ladder, Zivame, and even Future Group's retail and wholesale business along with logistics and warehousing business, these were looked after by the retail team. Isha Ambani is said to be promoted to be the chairman of the Reliance Retail in the coming months. 

   

    

2. Digital services: Reliance runs its digital services under the entity Jio Platforms Ltd. When you hear news of Reliance Jio disrupting the internet industry, Jio phones creating a revolution, Facebook and Google investing in Reliance, or news of Reliance collaborating with Microsoft to widen its reach in data analytics, Artificial Intelligence (AI), cognitive services, and blockchain, know that this falls under this team. Akash Ambani, who has been a non-executive director all this while, helped  Reliance disrupt the telecom industry with 4G technology and key international acquisitions. As the Chairman, he will now helm the transition to 5G in 2022 and is also expected to create more services using AI and Bitcoin. 

   

3. Media and entertainment: Reliance has major investments in media and entertainment channels ( ie TV and digital mediums) like CNBC, News18, Network18 Media, Moneycontrol, Voot, Colors TV, Bookmyshow, and much more. But this is managed by independent members. 

   

    

4. Oil to consumer (O2C) - Reliance's O2C business deals with traditional oil and chemical products like transportation fuels, polymers, polyesters, and elastomers. This includes Reliance's refining, petrochemicals plants, and manufacturing assets located at Jamnagar, Hazira, Dahej, Nagothane, Vadodara etc. In July 2021, Anant Ambani was inducted as the director of Reliance's renewable energy ventures (Reliance New Energy Solar and Reliance New Solar Energy). He is the only Ambani kid on this team and this indicates how Reliance might plan to pivot this industry from non-renewable to renewable energy through Anant. 

   

    

5. Oil and gas production: During 2020-21, Reliance successfully commissioned Asia’s deepest gas field and India’s first ultra-deepwater gas field. Reliance is expected to use this as a way to help India transition to a cleaner and greener gas-based economy. As per the annual report, none of the Ambani kids are directors on this team.