Is Reliance jio about to create monopoly in telecom industry ?

img. source google

Several years ago, India had one of the world’s most competitive telecom markets, with numerous players vying for business. Now, there is a serious risk of monopoly. when reliance jio enter in the telecom business in 2016 , with in short period of time jio about to create monopoly in INDIAN telecom industery , with the more than 398.3 million subscribers , as of june 30th 2020 , it was reported that jio is the fastest growing telecom company .

The Indian conglomerate Reliance Industries is using its newly minted telecom monopoly to expand into other sectors of the Indian economy in partnership with multinational companies including Google, Facebook and Microsoft. Its 5G claims are a signal that it is now a part of the US-led global alliance against China’s tech companies. 

The combined market cap of the Reliance oil and telecom empire is US$189 billion, making it the only Indian company in the top 50 global list and 10th in Asia. In four years, Reliance Jio used its parent’s oil and gas revenues to power its way into telecom and become the leading Indian player. It bled the others with its initial low, predatory pricing rates, until  they surrendered, accepting Jio as the undisputed market leader. 

Since Jio’s arrival, India’s competition authorities have waved through a succession of takeovers and mergers that would have set off alarms in just about any other democratic country. Consolidation usually means the disappearance of perhaps two or three players. India’s list of casualties is long enough to pin to an industry memorial. They include names such as Aircel, MTS, Reliance Communications, Telenor . Vodafone India and Idea Cellular, two former titans, have merged.

No doubt, India was ripe for change. When Jio rocked up, it looked grossly inefficient and had fallen behind other parts of the world on the rollout of high-speed mobile data networks. The catalyst provided by a new operator, taking advantage of the latest technologies, was welcome.

jio Investors

image source jio website ,

in this image it is clearley shown all the investor of the jio and ammount of stake in jio .

In the latest development, India has been forced to postpone a 5G spectrum auction that was supposed to happen this April. Neither Bharti Airtel nor Vodafone Idea is in a position to buy new spectrum licenses at the high prices the government wants to charge. Only Jio could realistically afford those rates. only because of using the money of Rel. oil and a huge amount of FDI , in last 3 month jio raised 115693.95 crore from leading global investors including Facebook, Silver Lake , General Atlantic, KKR , mubadala, ADIA, Vista equity partners TPG and Catterton .

India desperately needs a U-turn. It is reportedly preparing a rescue package for stressed telecom companies and could offer relief to companies that owe licensing fees. But it will have to go far to persuade the international community it upholds fair play. Otherwise, India’s smartphone addicts may eventually find Jio is their only option.

jio competitor

image source : google

India’s telecom industry has made massive strides in the last few year with the roll- out of national 4g and increasing subscriber base , with the more than 100s million users, India is a hotspot for companies , still this industry barely has 4 players left, ( vodaphon, idea, Airtel, BSNL, mtnl ) jio can afford discount rates because of its cash rich parent Reliance . but the same ist’s true for others , the current avereage rate for 1GB of 4G data in India is $0.26 while it cost $12.37 in US, $6.66 in UK , and global average of $8..53 , last year when 2 largest subscriber base( more than 400 million ) compnay come together to fight with jio that is Vodaphon and Idea , but dose’t work and by the time both companies lost alot of subscribers (combined loss 120 million ) and their invester lost 50% of money , on the other hand Airtel shifted its focus and want to improve its ARPU (Average revenue per user, sometimes known as average revenue per unit, is a measure used primarily by consumer communications, digital media, and networking companies, defined as the total revenue divided by the number of subscribers.) instead of adding subscribers , according to OpenSignal, Airtel lead the Chart with the an average download speed of 8.7 Mbps, followed by jio at 6.3 Mbps . vodafone and idea werw 5.9 and 5.4 respectively .

jio comparison with Airtel (with the title of 2nd most suscriber )according to market CAP, market share , subscriber, and revenue .

by – Deshdeepak yadav

source :

google , news web site , newspaper, TRAI website .

Impact of COVID-19 on India Business Industry

This is bad time for the entire business world even a small shop owner suffer crises due to this global pendemic . While there’s no slew of tried-and-true best practices for dealing with this global pandemic, the are some business which are going to be changed after covid-19 , these business ideas can help you emerge out as a leader through this crisis.

Moreover, it is equally essential to understand that the concept of the online marketplace comes with a futuristic approach. I truly believe that there will be a solution to this pandemic very soon. The world will be a healthier and safer place once again. And the businesses will be gaining their momentum. but after pendemic their is a new era of doing business, in which internet play a major role for making business easy .

We have been forced to adopt digitalization in our everyday life. These new habits have created new business opportunities but at the cost of huge economic losses. Enterprises had to adopt new normals and smartly diverse their operations. Other industries like tourism, travel, real estate have also been impacted. In these adverse times, the role of decision-makers to implement smart and sustainable business models is very important

1.Education Industry:

The 1st industry which is going to change Education , Children are missing their school/collage , as they have been inside at home for a long period of time. Digital education has experienced new growth in these periods. Many schools have tried different online teaching platforms to fulfill their requirements. The assessment of assignments and taking online exams are the newest challenges these schools are facing. Home tution and coaching centers are out of market , somehow big coaching center able to go online and hardly fulfill requirement and provide material to student because have fewer resources and facilities to avail these tools, but it’s very hard for them too, but small coaching and tution center are out. Their place is taken by some new internet era their is a lot of educational-Tech Platforms like Byju’s, Extra marks, Vedantu etc. are eating up their market.

Besides these, teachers are struggling to make their students understand the concepts. Therefore, recorded videos are frequently being used, which contain more options and animations to represent the concepts. but still it’s not enought for students

2.Health Care\medical Industry:

The most affected industry in the covid -19 is the health care industry.The impact of the coronavirus pandemic and the lockdown it triggered is clearly visible in financial markets. But there is still no clarity on the deeper impact that it is having across businesses and industrial sectors. Here is an impact analysis in healthcare sector.

The healthcare sector is at the epicentre of this unprecedented global pandemic challenge, and the private sector has risen to the occasion, by offering to the government all the support it needs, be it testing support, preparing isolation beds for the treatment of Covid-19 positive patients or deploying equipment and staff in identified nodal hospitals.

Just because of covid -19 all the global health care industry only focous on only COVID-19 , and all the other disease medicen on demand , all hospital are only about to check covid -19, putting on hold of a large number of patient of less harmfull disease , and all clinic are closed . their are also some online site / app’s which are providing home delivery of medicines and home service of doctor , but it’s not fulfill of requirement , and these are very expensive so poor people are not able to get medicine and doctors.

What is the impact on India’s medical devices industry?

  • The medical devices industry has also taken a hit. The country imports consumables, disposables and capital equipment including orthopaedic implants, gloves, syringes, bandages, computed tomography and magnetic resonance imaging devices from China. Due to the current crisis in China, the medical device manufacturers across India are finding it difficult to source important raw materials and electronic components from Chinese factories.

3. Self-Care Industry:

This pandemic has shown us the importance of self-care during negative times. We got to know, to lead a stable and efficient life, keeping our mind stable is essential. This has resulted in a boost of self-care content consumption online.

Consumptions for motivational contents, exercises, healthy diets, mind management etc. has increased exponentially. Subscriptions for the online webinars of established trainers has increased hugely.

Minimalist mindset adoption has seen higher growth numbers, which suggests, people now care to stick with essential items than luxuries. We have realised we require a fairly minimal number of items daily and the rest of the items are actually blocking our cupboard spaces.

4. Entertainment Industry:

we miss the cinema halls, a cheers from the crowd and we enjoying the ridiculously priced popcorn looking at the big screen. We are unsure when we can experience this again, as people are preferring to maintain social distances and cinema halls seats can be an easy prop to transmit the virus. Therefore, some yet to be released movies are releasing online, through the partnerships with media streaming applications.

In the covid-19 lock down all shooting , editing , composing etc are closed all artiest are in house thair is no prodction house working, but soon as we expecting end of pendemic and all these start again and we enjoy it. but in this digital era, platforms like Netflix, Amazon prime etc. have capitalised hugely and have become a necessity for many entertainment seekers than a luxury.

Meanwhile, we realised that authentic and valuable contents can win hearts even after a quarter of the century. Mythological series like Ramayan, Mahabharat etc. were adored hugely by everyone, which showed us, true contents can hold the attention of any age group. The nostalgic feeling and throwback to old days kept the TV channels alive.

5.Hospitality Industry:

All Hotels and restaurants have been shut down across globe and in India since last 3-4 months which is hugely impacting the pockets of owners. Many owners had to fire workers to sustain the period, though the future revenue figures are uncertain.

 With leisure and business tourism coming to a standstill because of the Covid-19 pandemic, India’s hospitality sector is facing its biggest crises ever,  pandemic and the containment measures introduced by Governments globally and in India resulted in a severe drop in foreign and domestic travel across the world, in both the business and leisure travel segment. This will leave a lasting impact on the credit profile of airlines and hospitality companies. Globally, hotels have acknowledged the depth of this decline with recovery stated two to three years from now.

THANKS !

Deshdeepak

Image source : google

DEADLY INCIDENT AS INDIA IN NATIONAL LOCKDOWN

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Sixteen migrant workers were crushed to death by a freight train in central India  in Aurangabad Mahrestra as they were traveling home, becase of lack of food and work due to national lockdown , in covid-19 pendamic, In  tragic incident yesterday, a train ran over 16 migrant workers while they were sleeping on a railway track near Aurangabad, Maharashtra. The workers hailed from Madhya Pradesh and were travelling back to their hometowns on foot along the railway tracks. “We all from Madhya Pradesh and we work for SRG Company, Jalna. We were going to our native villages. We left our rooms at 7 PM on Thursday and reached the incident spot at around 4 AM in the morning on Friday.” said bye a eyewitness who is hospitlized .

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Just the day before, a diaster at a plastics factory that was reopening after a lockdown killed 11 people and sickened hundreds. Officials said that workers at a plant owned by the South Korean industrial giant LG had mishandled a valve on a styrene tank that sent a cloud of deadly vapor floating over the outskirts of Visakhapatnam, a city of several million people, that left people choking to death in the streets.

The moral of those stories for the Indian government, which imposed one of the world’s strictest lockdowns six weeks ago and is now trying to restart its economy, and did’t focous on the safty major in openieng of factory , bussiness, and all .

 

Many of the country’s struggles in the pandemic — including mass internal migration, unsafe workplaces and industrial disasters — have been amplified by the lockdown and the subsequent move to reopen businesses. And with millions of its citizens working overseas to send money home, and many of their lives now destroy by the pandemic, India is also undertaking a giant repatriation effort.

The gas leak and train incident wasn’t the only accident as Indian businesses began resuming operations. On Wednesday, half a dozen worker who had not been given safety gear  wear hospitaliz after inhaling dangerous fumes at a paper mill in Chhattisgarh, that was trying to restart operations after weeks of inactivity. And on Thursday, several hundred miles to the south, in Tamil Nadu, a boiler exploded at a thermal power plant, badly burning several workers.

The migrants killed on Friday along the railway tracks were  depressing wave. In recent days, India’s government, which initially blocked migrants from moving state to state, has eased the lockdown rules to allow some to travel. Over all, Mr. Modi’s government has been decided to give some relief in the lockdown, deeply concerned about the economic hit on a country by the so long national lockdown .

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The news of the migrants’ deaths disturbed an Indian public already rattled by the accident at the LG plastics factory. investigations indicate that the accident was caused by a leak in a styrene tank that had been neglected for weeks.

Officials said that dangerous pressure had been building in the tank during the lockdown and that factory workers had improperly opened a valve, releasing a huge cloud of toxic vapor.

On Friday, police officers put up more barricades around the factory and were not letting anyone near it. With many of the evacuated villagers being housed in government shelters, the entire area bore a deserted look. this incident focused people to remember painful memories of industrial accident in Bhopal in 1984 in which a pesticide plant released toxic gas that killed more than 4000 people in Bhopal.

 Apart from indesterial incident and train incident number of fatal car accidents is way down — no surprise, perhaps, given that roads across India were deserted until this week till modi govt. give a little relief in  lockdown. A recent report found that 140 people died in car accidents nationwide from March 24 to May 3 — an average of 3.4 deaths per day, as of due to national lockdown other incident like killing, snatching, curreption , burning of people  decreased .

THANKS!

Deshdeepak

data source- google and other news agency

EFFECT OF COVID-19 ON INDIA CHINA TRADE

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As COVID-19 has play a very bad impact on the world economy. Almost  every economy shutdown due to implimentation of  national lockdown across the world , and   Access to the outside world has shrunk; almost every county has severed their supply chains with China. Lockdown has shrunken our business , work ,education,  social life, evening previously spent with friends are now passed plugged into laptops and mobile phones. The lockdown by India imposed has affected the domestic trade too. in India lockdown extend by Modi government till 19 may , and in this long period entire nation  shut down almost each and every business, every job, startup , even small business  effected by this lockdown , each and every person of the nation are in their house  doing nothing , using mobile and laptop.

In China their is also lockdown which is now open as China is a big exporter  of a large amount of commodity across world, and to India  because  a large number of manufacturing unit in China. and all the manufacturing unit are shutdown either closed the product due to global pendamic  .

As per the official Chinese data, a 12.4% decline in India- China trade was seen for the month of January and February 2020. China’s export during this period was about 67.1 billion Yuan.

Many sectors have suffered huge losses due to the imposition of the lockdown. The medicines imported from China have seen a huge jump in their prices. Paracetamol imported from china has seen a hike in its price by up to 40%. India imports 70% of its medicines and medical raw material from China. Due to which we will soon see a price jump in medicines.

China has been a leading exporter of electronic products. Televisions and mobile phones whose 75% and 85% of the components respectively are Chinese made, are going to be hit. Supply from China is shut since December 2019, which caused a shortage of cheaper basic products. DAIKIN, a Japanese air-conditioner manufacturing company has already informed its retailers that the company is going to be increasing prices by 5% to 7%. Products which can be made easily in our own country are imported from China because they are cheaper. Discounts earlier received on mobile phones and other electronic items will be cut off and are expected to hike in price, there are expectations that there will be a 10%-20% increase in the price of electronic products.

As India has shut down the exports, it will make the textile industry suffer. India is one of the largest producers and exporters of cotton yarn. India exports about 25% of its annual cotton and cotton yarn to China. The cotton export is being held up completely.  The fabric export has seen a sharp decline. The cost of raw cotton has been reduced by Rs.200 to Rs.300, because there is no demand from China.

Toys will get costlier because the toys imported from China which cost about Rs.10, if made in India costs around Rs.17, this is due to machinery. China manufactures toys on a larger scale. Whereas in India the production is on a smaller scale as compared to China, and without the advance machinery as in China.

Out of every 15 diamonds of the world 14 are cut and polished in India. India exports 36% of its diamonds to China, this will cause India to lose around $1.05-1.3 million. India’s gold market saw a 92% decline in demand for this Akshaya Tritiya, the annual spring festival Hindus  for which, consider it to buy gold and demand of yellow mettle is very high during this festival.The alloy is mixed with gold to give it strength and durability, and  the platinum used to gold rhodium polish are imported from China; this will force the retailers to increase their making charges, resulting in an overall increase in the price of gold and silver jewellery.

As China is the largest exporter of iron and steel in 2019 having exported 87.3 million metric tons which equals approximately 15.8 % of global exports and its expected to increase in the price of the production after covid -19 As regards steel, although Chinese export prices of steel do influence Indian export realisation, imports from China of pipes (Chinese share 32.0% of total imports of this category in April-January’20), GP/coated products (Chinese share 14.3%), electrical sheets

India faced a similar slowdown back in 2008 which caused the GDP growth to fall from 9.8% to 3.9%. The Great Recession of 2008 made China the economic powerhouse. This slowdown is due to the lockdown where all the factories and workplaces are closed. It is expected that after the lockdown opens the demand will be back on track, but it will take time because people have suffered a pay cut and are left with lesser money to spend on wants, and due to the shortage of imports from China, people will have to pay more for the same than they paid earlier. Japan has earmarked $2.2 billion to help its manufacturers shift production out of China. India can be the next best location after  China; because India has a lower labour cost and is easily accessible to other countries. and ,India is working MNC’s planning to shift their production units from China in the post coronavirus world. The Finance Ministry has asked a select group of industry representatives to send “implementable” suggestions on an urgent basis to make the country a global manufacturing hub

THANKS !

Deshdeepak

 

 

 

Data source- google and govt. of India and china official website.

 

 

 

 

 

 

 

 

 

 

 

Vista Equity Partners to invest $1.5B in India’s Reliance Jio Platforms

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A U.S. base private equity farm Vista Equity Partner is agree to invest in jio ltd., vista agree to buy  2.32% stake in jio for some of ₹ 11,367 crore rupees for 2.32% stake in jio platform  ltd., this agrement  will lead to new high of jio ltd.,  In its third transaction in less than three weeks, the Mukesh Ambani-led Reliance Industries (RIL) has struck a deal with US private equity firm Vista Equity Partners for another stake sale in Jio Platforms. 3 week ago world largest investment made by Facebook in jio for 9.99% stake in jio platform ltd., On April 22 social one of largest social media platform Facebook buy 9.99% stake in jio for ₹ 43,574 crore rupees . and early this week silver lake agree to invest in jio Platfrom ₹ 5,655.75 crore rupees , for 12.5% stake in jio .

Reliance Jio Infocomm Ltd. which provides connectivity platform to more than 388 million   subscribers, will continue to remain a wholly owned subsidiary of jio platform .

Commenting on the transaction,Mukesh Ambani, Chairman and Managing Director, said, “Like our other partners, Vista also shares with us the same vision of continuing to grow  and transform the Indian digital ecosystem for the benefit of all Indian . we are exited to leverage the profession expertise and multi – level support that Vista has been offering to its investment globally for benefit for Jio ltd.”
Robert F. Smith, founder, chairman and CEO, Vista, said,  “We believe in the potential of the digital society that Jio is building for India. We are thrilled to join Jio Platforms to deliver exponential growth in connectivity across India, providing modern consumer, small  business and enterprise software to fuel the future of one of the world’s fastest growing digital economies. ”
Transaction values the Reliance Industries’ arm at ₹ 4.91 lakh crore after the vista agree to Invest in jio ltd. , this make jio ltd at a new high. valuing the company at ₹ 9.9 lakh crore in the  market.

Vista Equity Partners

Vista is an American private equity and venture  capital firm focused on financing and forwarding software and technology-enabled startup businesses, as well as passive equity investments.

The firm was founded in 2000 by American businessman and investor Robert F. Smith and Brian Sheth. Vista Equity has offices in Austin, Texas; Chicago, Illinois; and San Fraxncisco, Calofornia . In 2018, Vista had over US$43 billion in cumulative capital commitments and owned over 50 software companies which combined, employed 65,000 people worldwide.In 2016, Vista operated with approximately $10 billion in their VI fund.

Vista has more than $57 billion in cumulative capital commitments and  it’s global network of companies collectively represent the fifth largest enterprise software company in the  world.  With 20 years of investing experience exclusively in enterprise software, Vista believes the transformative power of technology is the key to an even better future — a healthier planet, a smarter economy, a diverse and inclusive community, and a broader path to prosperity. Currently, Vista portfolio companies have a significant presence in India with over 13,000 employees.