In the 21st century, the most notable words in any man’s day to day life is ‘business’, ‘economy’, ‘emerging markets’ or ‘investments’. Why do these words often ring in our heads? If you switch on the television or pick up a daily newspaper, there is always some news about startups coming up or some multinational company overtaking the business of another. Even a layman who hasn’t had a proper education is well-versed with how the economy is functioning today, or what kinds of business strategies are required to set-up a successful, long-term business. The genesis of all this can be traced to one important tool that emerged in the early ’90s and has grappled the entire system operating the world- ‘Globalization’.
Globalization, as a concept, is very vast; it does not exist in a physical form, but its effect can be observed and felt. It is a theory, as has been defined in various subjects like sociology or economics, which has been conceptualized into a systematic pattern of interaction between economies across the globe. To understand how multinational companies like Reliance industries, Amazon, etc. are growing rapidly and the future of developing economies, globalization is the key concept to answer such questions. Can we conclude from this that one of India’s multinational companies, Reliance Industries, is a product of a globalized market and is furthering its interest based on that concept? We can look for the answer through a systematic-analytical approach based on its chronological developments.
One of the largest and fastest-growing industries in the Indian market, Reliance Industries is a multinational conglomerate company founded by Dhirubhai Ambani in 1973. The current CEO of the company is Mukesh Ambani. The company is diversified in its line of manufacturing, ranging from energy, petrochemicals, textiles, retail, and telecommunications to natural resources. Mukesh Ambani is the current richest man of Asia with a net value of worth $8 billion; and he has contributed extensively in expanding the range of his business beyond the territory of India.
India is a developing economy; its territorial reach spans across three major water bodies (namely, the Arabian Sea, the Bay of Bengal, and the Indian Ocean); and it geographically falls in South-East Asia, surrounded by rich-oil Central Asian countries. The population inhabiting India mostly comprises the middle-income & below poverty line people, and only 1% or even less of its population belongs to the rich class. What makes India the most appealing to investors across the globe are these aforementioned factors coupled with its high ratio of the youth population and its fastest-growing service sector.
An industry for common people
Interestingly, if one goes and asks a person from any village as to which brand do you trust the most, then Reliance is one of the most commonly heard. Why? Because of its well-established goodwill created over the years. Currently we are in the third phase where the world is experiencing the ‘rise of the rest’ against the historical domination of America. The ‘rise of the rest’ essentially means that the countries which were once considered to be incompetent to rule the world, economically or politically, are now rising from the darkness that they were once pushed into. India is a developing nation that is considered to be a part of the ‘rise of the rest’, and this is because of its rapid advancements made in the service, the economy, and the technology sector. The relevance of this lies in the context of the ever-growing industries in India, such as the Reliance industries.
Strategic planning of Reliance for market investments
To rule over a country like India, you need to win over its masses. Several multinational companies have established themselves over the years. But if we look around, a common name that would flash at our eyes almost everywhere is ‘Reliance’. Initially, the reliance industry started with its main function focussed around energy production and slowly reaching its arms toward the petro-chemical industry. Toward the beginning of the 21st century, it started venturing into different fields. The advantage that it acquired from this is that Reliance is now recognized to be a multinational company, investing not just in energy and petroleum products, but also in education, service, and technology sector.
Reliance is playing its big game in the Indian market by having changed its perception toward consumer services. This is where the implication of globalization leeches. In order to capture the growing market and establish one’s goodwill, reliance has diversified its industries to meet the needs of the people. Emerging from the energy sector, it has laid its arms toward education, telecom, health care, essentials, petrochemical, retail, communication, and natural resources. Knowing your target audience is a must, and reliance has, time and again, successfully reached its audience. Investing in the right sector, at the possible opportunity available has enabled reliance industries to accelerate in their growth.
For instance, in the last three years, Reliance successfully managed to acquire acquisitions worth $3 billion to invest in its telecom and retail sector. The telecom, retail, and entertainment sector are some of the delicate industries; companies are eyeing to invest in such industries where the common man’s social life is dependant. Well, India cannot always remain an isolated service sector; it needs to adapt to the changing world, and technology plays a key role in this. With rapid advancements taking place in the development of Artificial Intelligence, Reliance seems to have chanced upon this opportunity to capture 51.78% share in the world’s renowned Asteria Aerospace.
Through this, it is planning to find a solution for the intelligence sectors, such as the military and the industrial sector, by producing drones to enhance their field of communication and surveillance via aerial data. Further, the CEO and several other members of the Reliance Company have expressed their interest in wanting to collaborate with the small kirana shops through the Jio network. This is a very smart step that reliance has decided to act upon in order to marshal into the digital world. By owning the world’s largest single-site oil refining complex, and having multiple established petrochemical plans, Reliance is ruling the market in India.
Unlike the USA, India has a single private entity that is ruling all the three sectors of oil & gas, telecommunications, and the retail sector- the Reliance Company. Having not limited itself, Reliance Company has branched out into several sectors as well. Its systematic approach toward disrupting the telecom and retail through technology has provided it with gargantuan success to reap.
Noteworthy to direct to reliance’s active response toward the prevailing COVID-19 pandemic; having created easy access to essentials at a reasonable price, both via offline and online means, only contributes to its growth and development. A business does not grow merely on profits; its success is a combination of strategic planning with welfare policies, effectively channelized to the masses. In conclusion, the economy is developing, and there lies a brighter future for the Indian economy with such developments taking place