Reliance Communications (RCom) is done with telecom business. The declaration came from Anil Ambani, Chairman, who stated in the 14th Annual General Meeting that the firm will now push into real estate sector.
“As we have moved out of the mobile sector, we will monetize at an appropriate stage our enterprise business (which includes enterprise, data, submarine and long distance international voice calls),” Business Standard quoted Ambani as saying. “Reliance Realty (a subsidiary of RCom) will be the engine of growth for the future of this company.”
Ambani made the declaration while addressing the shareholders of all group companies, including RCom, Reliance Infrastructure, Reliance Power, Reliance Capital, Home Finance and Nippon Life AMC. In response to queries on the future of 5G and CapEx requirement for telecom services, he made it clear that these concerns have been so “challenging” that the company has decided not to proceed in this sector and it is “unlikely” for RCom to have any telecom sector exposure in the long run.
RCom is reportedly bidding adieu to the telecom sector owing to the intense slugfest. The firm’s new focus will now be realty sector, especially the development of the 133-acre Dhirubhai Ambani Knowledge City (DAKC) in Navi Mumbai to create 30-million sq ft of commercial space.
DAKC is owned and operated by Reliance Realty, which is a wholly-owned real estate arm of RCom. This project, as per an HDFC Realty study, will be valued at more than Rs. 25,000 crore.
Ambani even claimed at the 14th AGM that the development of DAKC will create an area that is equivalent to 75 Nariman Points (a popular business district in downtown Mumbai) or 10 new Bandra Kurla Complexes (a commercial complex).
Terming the real estate assets as a “huge goldmine”, Ambani further added that RCom intends to build a high-tech smart city, a green city and a green knowledge park at DAKC.