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Reliance Industries currently has net debt of around $22bn – something which is stunting Jio’s ability to grow
Reliance Industries is set to spin off its mobile network division, Reliance Jio, and invest over 1 trillion rupees ($15 billion) to allow the company to accelerate growth.
A report in the Financial Times also suggested that Reliance Industry’s chairman, Mukesh Ambani, had taken the decision to cut Jio’s sizable debt pile. Mr Ambani has stated that he wants Jio to be almost completely debt free by the end of the current tax year.
“Jio has been heralding the digital services revolution in India and will continue to do so in the years to come,” Ambani said in a statement.
“Given the reach and scale of our digital ecosystem, we have received strong interest from potential strategic partners,” he added.
Reliance Jio is now India’s biggest mobile network operator with over 330 million subscribers across the country. The company has seen exponential growth since it launched its range of ultra-low cost 4G data and handset tariffs in 2016. The launch of at scale, affordable 4G connectivity by Jio is often attributed as a key catalyst in India’s digital revolution.
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