Mr. Mukesh Ambani, a man who needs no introduction, is the Chairman and Managing Director of Reliance Industries Limited. The company has interests in petrochemicals, oil and gas, telecom, retail and financial services. Given his business acumen, long-term investors are always keen on investing in RIL.
Not only his company, retail and institutional clients are always on the hunt for the companies with which Mukesh Ambani might form an alliance. This is because they believe that these companies have a strong growth potential over the long-term.
Mr. Mukesh Ambani has plans to enter consumer electronic market. Therefore, right now, there are experts which continue to track companies with which Mukesh Ambani might form an alliance to give a head start to his new venture.
Wyzr- What is it?
Wyzr is the new brand launched by Reliance Retail, which is a retail arm of Reliance Industries Limited. The focus of the company is to disrupt dominance of multinational companies (MNCs) in the country’s consumer electronics and home appliances industry.
Brand was launched with introduction of Wyzr air coolers, and there are plans to expand product range to televisions, washing machines, refrigerators, etc. Products sold by Wyzr should be more affordable in comparison to established brands like LG, Samsung, and Whirlpool. The companies hold a dominant position in categories such as TVs, refrigerators, and washing machines.
How Reliance plans to gain market share?
Reliance Retail has plans to design and develop products internally, which should help in creating homegrown brand. This will give tough competition to international labels. Reliance Retail plans to replicate success it saw in disrupting MNC-dominated feature phone market. The company launched its product, JioPhone, catering to electronics sector.
Per some of the reports, Reliance Retail will sign manufacturing contracts with some of the local firms. This should help the company in establishing its own manufacturing facilities after brand taps significant market share.
Earlier, Reliance Retail sold televisions and other appliances in its brand name “Reconnect.” Such products were designed and manufactured in the domestic markets through companies like Dixon, MIRC and PG Electroplast. However, some were even imported from China and Indonesia. These were produced by TCL, Midea and Toshiba.
Companies with which Mukesh Ambani might form an alliance
1. Dixon Technologies (India) Ltd
Dixon Technologies (India) Limited continues to lead electronic manufacturing services (EMS) space in the country. Founded in 1993, the company has now expanded operations to numerous sub-segments of electronics.
It gives manufacturing and design focused solutions pertaining to products such as consumer durables, home appliances, lighting, etc.
The company’s revenue fell 2.5% from INR 4,943 crores during the quarter ended September to INR 4,818 crores for quarter ended December. Apart from this, it’s net profit fell 14% from INR 113 crores to INR 97 crores during the same period. The company has a significant market share in CFL, LED bulbs, LED TVs, etc.
2. MIRC Electronics Ltd
Mirc Electronics Ltd started its journey in 1981. With time, the company has transformed to complete consumer durable company. It has a wide product portfolio which includes flat panel TVs (LED LCD TVs), Air Conditioners, Washing Machines, etc.
The company’s revenue shot up by ~52% from INR 193.23 crores during the quarter ended September to INR 294.51 crores for the quarter ended December. Net profits of the company exhibited a transition from the net loss of INR 6.43 crores to the net profit of INR 1.55 crores in similar period.
Reliance Retail’s strategies
While above are the companies with which Mukesh Ambani might form an alliance, Reliance Retail will distribute products its Reliance Digital Stores. Apart from this, other channel partners will include regional retail chains, independent dealers along with e-commerce platforms which includes Amazon and Flipkart.
In 2022, Reliance Retail joined hands with the US-based electronics manufacturing services provider named Sanmina Corporation. This was for creating electronic devices along with manufacturing hubs in the country. Experts and analysts believe that Reliance Retail will take this route to manufacture Wyzr’s products.
Over the previous few years, Reliance Retail released several other consumer-related products. The brand for processed food and an FMCG brand, Independence, a drink in Campa Cola, and finally market chain in Freshpik.
There the company is well-positioned to released own products. Apart from this, the company can make sure that its products are well-received by end consumers. Apart from this, the company has deep pockets and financial expertise to outdo competition on price and enhance its business.
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