Mumbai: Mukesh Ambani-controlled Reliance Industries Ltd (RIL), India’s largest listed entity, is planning a tie-up with Himachal Futuristic Communications Ltd (HFCL) to roll out a 7,000km fibre optic cable project at a cost of Rs1,200 crore. HFCL will lay the cable connecting RIL’s retail outlets.
The company is also said to be in talks with Railtel, PowerGrid and BSNL for leasing additional fibre lines. These lines will be used for the company’s internal data traffic, sources close to the development said.
HFCL’s shares rose 12.79% on the Bombay Stock Exchange to Rs26.90 each; RIL’s shares closed at Rs2,321.95 a share, down 3.24% on Wednesday. RIL executives declined comment on the proposed tie-up but said that under the demerger agreement between the two Ambani brothers, Anil and Mukesh, it was free to provide any service to its staff for internal consumption.
“They are trying to create a retail experience around malls and multiplexes. A fibre optic line would help them in downloading movies as well as managing the back-end of their retail operations,” Rajesh Jain, national leader media practice at consulting firm KPMG said.
Reliance Retail, a unit of RIL, plans to set up around 4,000 theatres as part of its retail roll-out. Staff writers