The Indian tycoon Mukesh Ambani saw his wealth surge $18 billion in 2019 taking his net worth reaching $61 billion. This massive increase has left behind Alibaba Group founder Jack Ma’s net worth grew $11.3 billion, while Jeff Bezos lost $13.2 billion
The year 2019 has been a fortunate year for Mukesh Ambani, Asia’s richest man as his increased wealth surge has led to a 40% jump in shares of Reliance Industries Ltd. Reliance Industries is known to work more towards consumer offerings than core oil refining and petrochemicals businesses.
This increase has attracted more investors to invest in Reliance, betting new business such as telecommunications and retail could soon unlock value. Ambani has spent $50 million to become an online giant and challenge the increasing numbers of Amazon likes which in three years of its starting has topped India’s online giants.
As said Chakri Lokapriya, chief investment officer at TCG Asset Management, the Reliance has not only excelled in oil and gas but has made its mark in the telecom and retails industry soon. The excellence is expected to cover the eCommerce too.
Lokapriya further said that Mukesh Ambani changed the narrative for Reliance Industries and has successfully invested and executed rapidly to create a new narrative. They believe that this can double the value of shareholders over the next four years.
Ambani said in August this year, the new businesses are contributing 32% currently and are expected to contribute 50% shortly.
The success as a phone operator was no doubt mind-blowing, the business mogul’s plans to reduce reliance debt has made Reliance stocks rising to create a record.
Net-debt Zero
Ambani has vowed to bring the net-debt to zero by early 2021. To fulfill this, systematic planning that includes the sale of a stake in Reliance’s oil-to-chemicals business to Saudi Arabian Oil Co., listings of the telecommunications and retail units within five years, selling of tower assets and strategic partners to the phone company, Reliance Jio Infocomm Ltd for a digital platform was done.
Value of reliance shares tripled
When Jio entered the market with free calls and cheap data plans shaking the business of other operators reducing their chances of survival, the value of reliance shares tripled since 2016. Having 350 million users, jio reported a net income of $9.96 billion while the rivals amassed record losses.
The spending $76 billion in the last five years left the investors in worry. Ambani told the shareholders in August that Reliance industries have a net debt of $1.54 trillion at the end of March 31.
$15 billion deal between RIL-Aramco Deal
Reliance to cut its massive debt and to make its supply of crude oil secured announced to sell its 20% stake in the company’s flagship chemicals and refining business to Saudi Aramco in a deal valued at $15 billion in August this year. But after the government took the unusual step of asking the court to stop this $15 billion deal in an unrelated arbitration lawsuit, the debt paring plans of Ambani have been threatened.
Ambani is still vowed to its promise that investors are expecting.