Logistics to Strengthen Mukesh Ambani’s Strategy

As one of the top four Billionaires in the world, Mukesh Ambani faces difficulties the other three can’t imagine. Billionaire Mukesh Ambani, principle owner of Reliance Industries is playing a huge roll in pulling India back into its rightful place as a major world economic power. Reliance Industries owns oil refineries, but is also involved in many other industries including textiles, polyester, computer technology, petrochemicals, petroleum refining and oil and gas exploration and production. Reliance Industries is growing very fast and so is the rest of India. Billionaire Mukesh Ambani faces logistics problems on a daily basis.

One of the greatest problems with running a business in India is logistics. India is growing at an incredible rate from its status during the seventies as a third world country, into a major economic power and center for industry and technology in the 21st century. Logistics development is struggling to keep up with growth. Reliance Industries must rely on shipping by oil tankers, trains, trucks and planes. So must all businesses in India.

Logistics is the biggest problem in India right now. In India shipping is expensive and not very well organized. Logistics amounts to 21 to 23 percent of all production expenses in India. Small trucking companies with fleets of no more than five trucks each dominate the trucking industry. Train freight service is not keeping up with demand. Capacity limits are being pushed but India just doesn’t have enough trains and rails to meet the demand yet. India is working hard to build airports and plans to have 200 airports by 2020 however right now there is a huge demand for cargo airports which do not yet exist. India also has 12 major sea ports and about 180 smaller ports.

Mukesh Ambani and Deccan 360 founder G.R. Gopinath team together to straighten out India’s logistic problems. Billionaire Mukesh Ambani recently invested heavily in Deccan 360 no doubt in order to facilitate Reliance Industries as much as to make a direct profit, though the potential for profit is huge. The efforts of Deccan will be to provide air shipping, co-ordinate the efforts of small trucking enterprises and increase the speed and reliability of logistics in India. Billionaire Mukesh Ambani and G. R. Gopinath are doing exactly what India needs to help it grow.

As billionaire tycoon Mukesh Ambani tackles improving logistics in India by picking up over 26 percent of Deccan 360 stock, and becoming involved in the business advising Gopinath on strategy, he is definitely working towards a goal to benefit all of India, as well as Reliance Industries. Reliance Industries is a has a diversified structure which no doubt accounts for a large percentage of the logistics of India. Thus Reliance Industries will benefit both directly and indirectly by its investment in Deccan 360.

3 Comments

  1. joseph January 6, 2011
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