Mumbai:Bernstein report forecasts Reliance Jio will increase telco market share at the end of 2021-22 to 44%, presently they having around 34% of market share
Report says over the past three years, Reliance has achieved a leadership position in telecom with a 34 per cent market share. We expect it to reach a 44 per cent share till the end of financial year 2021-2022and achieve returns above WACC (weighted average cost of capital) for the first time.
Regarding the company's growth in the retail segment,it says the greatest growth opportunity lies in the organised retail segment.
Reliance expects India's retail market, which is currently 90 per cent unorganized and ready for digital disruption, to reach $1.2 trillion by 2025. Reliance is the offline leader with $18.5 billion in revenues and 11,000+ stores. The company is best positioned in New Commerce, digitizing neighborhood stores, and e-commerce apps (JioMart and AJIO). Beyond retail they sees opportunities in fintech and media, where there are clear opportunities for synergies with telecom.
Although Reliance plans to sell down a stake to Aramco, this does not mark a retreat from energy, with India likely to be the fastest-growing market for refined fuel products and petrochemicals over the next 20 years, as per the report.
