This was the 'biggest risk' of Mukesh Ambani's life
What's the story
Mukesh Ambani, the billionaire industrialist and Chairman of Reliance Industries, has called the launch of Reliance Jio in 2016 as the "biggest risk" of his life. In an interview with McKinsey & Company, he said that even if analysts had predicted financial failure for Jio, it would have been worth it for its role in digitizing India.
Strategic decision
'Best philanthropy done for India'
Ambani revealed that Reliance Industries invested its own billions in setting up 4G mobile networks, despite some analysts doubting India's readiness for such advanced digital technology. He told his board, "In the worst case, we will not earn much return. That's okay because it's our own money. But then, as Reliance, this will be the best philanthropy that we will have ever done in India."
Market disruption
Jio disrupted India's telecom market
Since its launch, Jio has completely transformed the Indian telecom market with free voice calls and cheap data. This forced rivals to cut prices and accelerated digital adoption across India. Before Jio, mobile internet was expensive and inaccessible to many Indians. Its entry triggered a price war, making internet access affordable for millions, including those in rural areas.
Digital growth
Jio is now India's largest telecom operator
Jio's entry has led to a surge in internet penetration, with over 800 million internet users in India today. This has made the country one of the biggest online markets globally. Ambani said, "We've always taken big risks because, for us, scale is important. The biggest risk we have taken so far was Jio." Today, Jio is India's biggest telecom operator with over 470 million subscribers and a growing presence in 5G, cloud services.
Legacy planning
Reliance should serve humanity even after 100 years: Ambani
Ambani shared his vision for Reliance's future, inspired by his father Dhirubhai Ambani. He said, "Reliance is a process. It's an institution that should last." He wants Reliance to continue serving India and humanity even after 100 years. Ambani also stressed the importance of embracing future business opportunities, saying, "What has also happened is that as we chase the opportunities of technology into the future some of these opportunities become bigger than our existing opportunities."