RCom to exit telecom fully to focus on realty: Anil Ambani2 min read . Updated: 18 Sep 2018, 04:57 PM IST
Reliance Communications's first priority is to resolve its over 40,000 crore debt, says Reliance Group chairman Anil Ambani at the RCom AGM
Mumbai: Reliance Communications Ltd will completely exit the telecom business to concentrate on real estate in future, said Reliance Group chairman Anil Ambani at the company’s annual general meeting (AGM) today. RCom’s first priority is to resolve its over ₹ 40,000 crore debt, he added.
“We have decided that we will not proceed in this sector. And many other companies have taken a similar call. This is very much a writing on the wall... As we have moved out of the mobile sector, we will monetise at an appropriate stage our enterprise business," Ambani said.
“Reliance Realty will be the engine of growth for the future of this company," Ambani said.
Reliance Realty, a wholly-owned subsidiary of RCom will develop Dhirubhai Ambani Knowledge City in Navi Mumbai. said Ambani, adding that it is an already registered IT and fintech park. The company has 3 million sq. ft of built-up space, which will be leased out to multinationals. The Reliance Group chairman expects revenue accruals through it this year itself, pegging the potential value creation at the site at ₹ 25,000 crore.
According to Ambani, RCom will serve 35,000 businesses through enterprise, data centres, undersea cables and international voice calling verticals and will get half of its revenues from abroad. The company is “committed" to exit these verticals as well to pay off bank debt and will take a call on the same at an appropriate time.
At the RCom AGM, Ambani also thanked his elder brother and Reliance Industries Ltd chairman Mukesh Ambani, whose telecom venture—Reliance Jio Infocomm Ltd—bought RCom assets. “It would be most appropriate for me to thank and acknowledge the support (and) guidance extended to RCom, and me personally, by my brother Mukeshbhai Ambani," Ambani told shareholders.
Speaking of RCom’s debt, Ambani said he is confident of getting a resolution in the next few months, and added that other monetisation measures, including sale of telecom infrastructure and fibre to Reliance Jio, are at an advanced stage of closure. The company is awaiting final approvals for spectrum-sharing and trading from the department of telecommunications.
Some of the shareholders appreciated efforts taken by RCom to service its debt, but a few were critical as well. When one such shareholder persisted, a company official patted him on the back, probably pointing to the time constraints. When he complained, Anil Ambani said this is a pat and not a stab, and asked him to continue with the question.
But the mention of the controversy surrounding the Rafale fighter jet deal prompted Ambani to stop him from speaking further. “Shaileshbhai, who is a very educated person and comes with non-facts, half-baked facts, untruth, lies, is in my father’s words, a true well-wisher of all of you. I do respect, in a democratic world, his comments. But none of them have any relevance to what is in front of us today as a company and for all of you shareholders," Ambani said.