Mukesh Ambani has elbowed past Li Ka-shing to become Asia’s second-richest man as investors rallied behind his efforts to arm India’s poor with cheap data-loaded phones. Some analysts are beginning to focus on the costs of his ambition.
The chairman of Reliance Industries Ltd. has added $12.1 billion to his wealth this year, according to the Bloomberg Billionaires Index, as shares of his refining-to-telecom company surged to a record. Spurring the rally on is optimism that a new $23 phone launched last month will expand the market for Ambani’s fourth-generation mobile network into India’s hinterland. The whistles and applause that greeted the JioPhone obscured the fact that by one measure the company’s debt has climbed to at least a 15-year high.
The telecom business, Ambani’s seven-year labor of love, has sucked in more than $31 billion in investments and is yet to earn him and his shareholders any profits. It’s contributed to a near tripling of the group’s total debt since March 2012 and sparked a vicious price war in the world’s second-largest mobile-phone market. About 90 percent of Reliance’s revenues continue to come from its legacy refining and petrochemicals units, with retail, media and energy exploration contributing the rest. Read More…
Credit By: ET Energy World
Latest posts by ET Energy World (see all)
- ONGC to invest Rs 4,254 crore to drill 656 wells in Gujarat - September 17, 2019
- How should India manage its dietary patters to tackle climate change - September 17, 2019
- Saudi oil attack: Petrol, diesel rates may increase by Rs 5-6 - September 17, 2019