Reliance Jio may gain 10% telecom market share to reach 44% by FY22: Report

Currently, Jio's market share in telecom is around 34 per cent.

Reliance Jio may increase its market share to 44 per cent by the end of the financial year 2021-22 in telecom, a Bernstein report said on Friday. Currently, Jio's market share in telecom is around 34 per cent.

"Over the past three years, Reliance has achieved a leadership position in telecom with a 34 per cent market share. We expect it to reach a 44 per cent share by FY22 and achieve returns above WACC (weighted average cost of capital) for the first time," said the report.

Regarding the company's growth in the retail segment, it said that the "greatest growth opportunity" lies in the organised retail segment.

"We expect India's retail market, which is currently 90 per cent unorganized and ready for digital disruption, to reach $1.2 trillion by 2025. Reliance is the offline leader with $18.5 billion in revenues and 11,000+ stores. The company is best positioned in New Commerce, digitizing neighborhood stores, and e-commerce apps (JioMart and AJIO). Beyond retail, we see opportunities in fintech and media, where there are clear opportunities for synergies with telecom."

The report further said that although energy remains the "cash cow" of the business for RIL, in the near term, it is likely to face margin pressure.

Although Reliance plans to sell down a stake to Aramco, this does not mark a retreat from energy, with India likely to be the fastest-growing market for refined fuel products and petrochemicals over the next 20 years, as per the report.

 



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel