Reliance Industries Retail Ventures has made a significant deal with renowned industrialist Mukesh Ambani. In fact, Reliance Retail Ventures (RRVL) has announced the acquisition of a 40.95 per cent stake in Just Dial for Rs 3,497 crore. In addition, the company will offer a 26 per cent free offer, followed by Just Dial at 66.95 per cent. This move by Reliance in the retail market is seen as a new challenge for the Tata group.
Why the new challenge Tata Group will acquire Reliance Just Dial at the end of this year, when it will launch Super App to bolster its digital business. Under the same expansion plan, Tata Digital also tried to get Just Dial but things did not materialize. However, Tata has taken a step towards strengthening retail by investing in various startups one after another.
Benefits of Investing in Just Dial: Reliance has strengthened its database by investing in Just Dial. Just Dial works on expanding millions of products and services across its platform, thereby promoting transactions. This investment also supports Just Dial’s existing database. As of March 31, 2021, Just Dial had 30.4 million listings in its database and 129.1 million unique users were using the Just Dial platform in the quarter.
What happens to a future group deal? The Singapore International Arbitration Center (SIAC) will also decide on a deal between Reliance and Future Group. In fact, it is worth Rs 24,713 crore between Future Group and Reliance Industries. The verdict on the case is likely to be reached by August. If the judgment goes in favor of Future Group, Reliance’s dominance in the retail market will increase.
In one year, this company changed the fate of investors, one lakh to more than Rs 7 lakh
Why there is controversy: In August 2020, Future Group announced the sale of its retail, warehouse and logistics business to Reliance Industries for approximately Rs 24,000 crore. E-commerce company Amazon has objections to the deal. Amazon says it is a partner in the Future Group company, Future Coupons Limited. That’s why Amazon opposes the deal between Reliance and Future Group.