Mukesh Ambani, billionaire CEO of Reliance Industries, unveiled plans for dramatic growth to top managers in a meeting at his new skyscraper, Antilia, the world’s largest and most expensive private residence. Over the next eighteen months, Reliance Industries will be moving aggressively into broadband services, concentrating on voice, video, and data.
To launch this new initiative, Reliance Industries expects to spend 5000 crore rupees. Crore is a term Western readers often find confusing. It means ten million in the Indian numbering system, so five thousand crore equals fifty billion rupees, or a little over one billion U.S. dollars at the current exchange rate.
Mukesh Ambani has ruled out any major capital expenditures, and expects current cash reserves of 30,000 crore to rise to 50,000 within the year. At the meeting, the billionaire spoke of future business strategy, specifically what he calls “business transformation.” In line with this, an internal committee will be created, tasked with selecting and training future managers, with a goal of having them in place and ready to handle new challenges within five to ten years.
All offices except the headquarters of Reliance Industries will be moved to a single location in Navi Mumbai.
This meeting clarified Mukesh Ambani’s plans for diversification, expanding on a recent speech to shareholders where he explained why he wants his team to work on a scripted plan. On the surface, most of his plans seem now to be known, but Mukesh Ambani is also known for surprises. He didn’t become India’s richest billionaire by being rigid in his thinking.