To feed its consumer businesses that are contributing an increasing share of profits to the retail-to-refining conglomerate, Reliance Industries Ltd, will create a financial services unit. It will also restructure the engineering and projects divisions as it sets about carrying out large infrastructure investments along with rolling out an ambitious 5G network in India.
Jio Financial Services will be spun off and listed in India. It will lend to consumers and merchants according to proprietary data analytics and will eventually branch out to insurance, payments, digital broking and asset management. One share of the new firm will be issued to every Reliance shareholder for every share held in the parent.
Reliance Chairman Mukesh Ambani’s consumer businesses will be complemented by the spinoff, which includes India’s largest wireless operator with almost 428 million users, and a top retail chain with over 16,000 stores.
When it comes to Rejigs Engineering, the group will separate the engineering and infrastructure segments of its unit Reliance projects and property Management Services Ltd and merge them with the parent company.
The company is known for its project execution skills and has built the world’s biggest oil refining complex in western India.Billionaire Ambani was promised to invest $75 billion in renewables infrastructure, $25 billion in introducing 5G services across the country and another $9 billion in its oil-to-chemical business in next 5 years.