Decoding Reliance Industries Future Growth Strategy.

👉Jio has made Investment of 1.5 -2 Lakh crores.

👉Recently JIO Top HR executive has announced for a massive drive to hire 80,000 People which will will increase Employee Expense to Rs.1600-2000 Crs.

A big Question is what work will this 80,000 People do?

Answer is simple these 80,000 People will drive further Growth for JIO. People will be deployed in areas of maintaining and optimising existing Infrastructure , JIO DTH , JIO banking to name a few.

More Investments to the tune of upto Rs.50000 Cr is lined for next 2-3 years.

👉Company with such a huge investment would do anything to ensure customers port to JIO.

👉Company would also make sure that it gives a strong reasons for customers to Switch go JIO.

Majority of Capex has been done in last 5 Years.
Fruits of Capex are vissible in current Year .

👉Total Market size of Telecommunication : Rs.2,50000 cr.
👉Company will do whatever it takes to gain at least 20%-30% Market share in Next 2-3 years.

This Translates to Rs.50,000-75000 Cr Opportunity .

A Simple Math:

For FY 2017-18

Current Subscribers: 18.7 Cr

ARPU/Month=137

Revenues: RS.23,714 Cr (JIO Revenues).

FY 2018-19(Estimated)

Subscribers: 25 Cr (Conservative)

Revenues: Rs.30,800 Cr ( Very Conservative)

Safe to Estimate : RS.33,000 Cr.

Growth

YoY : Minimum 30-35 %

As Reliance is considered for Aggressive growth Company might Launch JIO DTH & JIO Broadband as additional services which can boost bottomline faster.

👉JIO DTH* :
Total Active DTH Connection : 6 Cr.
Even if company Garner’s 1cr Subscribers @ 350 /Month It’s revenue will come to 4000 Cr.

👉JIO Broadband: Total broadband connections in India is 22 cr.
Company will at least Target 5 cr broadband connections.

JIO might Target Broadband through Bulk Enterprise Solutions by making various channel Partners.

Averageg monthly bill of broadband connection lies between 500-1000rs.
On conservative basis Rs.200 rental per month will fetch Rs.12,000 cr per year .

👉Other Potential Revenue Generator Future Strategy ( After Next 2-3 Years)

Saavan Music App , JIO Payment Bank, JIO Education and many others to unfold.

👉Revenue Potential for Next 2 years : RS.50,000-60,000Crs.

👉Note: JIO will be high EBITA business,
this will help in improving Bottom line faster then revenues.

👉This Is Just for Information.Do consult your Financial Advisor before making any decession.

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