Reliance Industries: Shaking Up Markets From Media to Green Energy

Reliance Industries has always been a game-changer, and its latest moves show that the company isn’t slowing down anytime soon. Whether it’s shaking up the soft drink market by bringing back the beloved Campa Cola, expanding Jio’s digital reach, or making strides in green energy, Reliance continues to lead in various sectors.

Let’s break it down and explore what’s happening in Reliance’s key businesses.

• Oil-to-Chemicals (O2C): Navigating Global Pressures

Reliance’s Oil-to-Chemicals segment is still its largest business, but it’s facing some challenges. While revenue grew by 4.8% to ₹1,58,300 crore, profits dropped significantly, with EBITDA down by 22.5%. This drop is due to shrinking profit margins, a common problem in the global oil market.

One key issue is the fall in “fuel cracks,” which refers to the difference between crude oil prices and refined products like petrol or diesel. These margins fell by a massive 45% compared to last year due to lower global demand and an oversupply of oil products. Add to that the slowdown in China’s economy and the rapid rise of electric vehicles (EVs), and you have a perfect storm hitting oil profits hard.

While O2C is facing these challenges, Reliance isn’t standing still. They’re pushing ahead with other growth areas, especially digital services and green energy, to compensate for the dip in oil profits.

• Jio: Steady Growth Despite Losing Subscribers

Jio is one of Reliance’s crown jewels, and it continues to grow steadily. This quarter, Jio’s average revenue per user (ARPU) increased by 7.2% to ₹197.5, mainly due to recent price hikes. While Jio lost about 1.1 crore subscribers—mostly price-sensitive users—it’s focusing on attracting customers willing to pay more for better services. This strategy has helped increase ARPU despite the drop in user numbers.

Jio’s 5G rollout is also moving fast. With 15 crore users now on the 5G network, which makes up 35% of their total data traffic, Jio has also launched JioAirFiber, a broadband service that’s already reached 3 million homes in just six months. This could be a game-changer for areas in India where internet access is limited.

• Reliance Retail: Expanding Even in Tough Times

Reliance Retail’s revenue dipped slightly, down 1.3% to ₹76,000 crore, due to weaker consumer demand in fashion and lifestyle. However, the retail business as a whole remains strong, with Reliance continuing to expand aggressively. They opened 470 new stores this quarter, bringing their total to 19,000 stores across India.

AJIO, Reliance’s online fashion platform, is growing rapidly, adding 20 lakh new customers and expanding its product range by 30%. Popular international brands like H&M and Zara have joined the platform, attracting younger shoppers. With a focus on both big cities and smaller towns, Reliance Retail is positioning itself for long-term growth.

• Green Energy: Betting Big on the Future

Green energy is where Reliance is making some of its boldest moves. The company is investing ₹75,000 crore into its new energy business, aiming to make it as profitable as its oil business within 5 to 7 years. Reliance plans to start producing solar photovoltaic modules by the end of this year, with a capacity of 10 gigawatts.

But that’s just the beginning. They’re building a massive battery manufacturing facility in Jamnagar, with a capacity of 30 gigawatt-hours, which will start operations next year. They’re also working on a green hydrogen project, with an electrolyser plant set to begin production by 2026.

These investments show Reliance’s commitment to becoming a major player in renewable energy. They’re not just dabbling in green energy—they’re betting big on it, and they plan to dominate this sector like they’ve done in others.

• Media Business: JioCinema and Disney Merger

In the media space, Reliance is making headlines with its merger deal with Disney. This $8.5 billion merger will combine JioCinema and Hotstar into a unified platform, creating the largest media entity in India.

For users, this means one platform for all their favourite content, including IPL matches, ICC tournaments, and HBO shows. The merger is set to be completed by January, and while there’s no word yet on whether the platform will be rebranded, it’s clear that this move will shake up India’s streaming market.

JioCinema’s rapid growth has been impressive. Just 100 days after launching its paid subscription model, the platform added 1.5 crore subscribers. With the new Disney deal, JioCinema is poised to become an even bigger player in India’s competitive streaming market.

• Campa Cola: A Blast from the Past

Now, let’s talk about Campa-Cola, the iconic soft drink that Reliance is bringing back through its FMCG arm, Reliance Consumer Products Ltd. Campa-Cola was hugely popular in India before global giants like Pepsi and Coca-Cola took over the market. By reviving Campa Cola, Reliance is set to challenge these established players.

Their competitive pricing approach—selling a bottle for just ₹10—and offering higher margins to retailers are already making waves. Campa Cola is securing valuable shelf space in local Kirana stores and small retailers, who are happy to push a product that offers them better profits.

This move isn’t just about selling soft drinks—it’s a strategic play to disrupt the FMCG market. With Reliance’s vast financial strength and extensive distribution network, Campa Cola could become a familiar, yet fresh, choice for consumers across India.

What’s Next for Reliance Industries?

While Reliance faces challenges in some areas, especially in its traditional oil business, the company is adapting quickly. By investing heavily in digital services, retail, and green energy, Reliance is positioning itself for long-term growth.

The company is pouring ₹35,000 crore into expansion this quarter alone, showing its commitment to future growth. However, it’s worth noting that Reliance’s debt has increased to ₹1,17,000 crore. This is something to keep an eye on as the company expands.

In summary, Reliance navigates global market pressures while making bold bets on new growth areas like green energy and digital services. Whether it’s reviving Campa Cola, rolling out 5G, or building massive solar and battery plants, Reliance is always on the move, and its actions are shaping not just India’s market but also influencing global trends.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.