Reliance Industries Chairman Mukesh Ambani is now preparing to make a significant investment in AI and FMCG sectors, moving away from oil. RCPL is targeting a revenue of ₹1 lakh crore in the next 5 years, while Reliance is building high-tech infrastructure in Jamnagar in collaboration with Meta and Google for AI.
New Delhi: Mukesh Ambani recently signaled at the RIL AGM that the company will now focus on Artificial Intelligence and the FMCG sector. For its FMCG business, RCPL is aiming for a revenue target of ₹1 lakh crore in the next 5 years. In the AI sector, Reliance has announced a partnership with Meta and Google Cloud to build an AI Cloud Zone in Jamnagar. Market experts believe this strategy can provide Reliance with a new growth engine, similar to Jio and Retail.
Reliance's FMCG Company Target
Reliance Consumer Products Limited (RCPL) is currently the company's new venture. Its current annual revenue is approximately ₹11,500 crore. The company has set a target to increase this to ₹1 lakh crore within the next five years, which would be a leap of about nine times. If this target is achieved, RCPL could become the largest FMCG company in the country.
New Horizons Beyond Oil
Mukesh Ambani has always steered Reliance towards new paths. Previously, by introducing Jio in the telecom sector, he revolutionized the entire market. Now, his focus is on Artificial Intelligence and FMCG. It is estimated that he plans to invest a total of around ₹2 lakh crore in these two sectors.
Campaa Cola Received a Strong Response
When Reliance launched the Campaa Cola brand, many believed it would not be easy to compete with giants like Coke and Pepsi. However, Campaa Cola has achieved double-digit market share in several states. Its hold is continuously strengthening in smaller cities and towns.
Reliance's Independence brand manufactures everyday essentials. This brand has already surpassed ₹1,000 crore in revenue. Significantly, this brand is now expanding beyond India. The company has already taken it to the Middle East, Sri Lanka, Nepal, and West Africa. It plans to sell its products in 25 countries within the next 12 months.
Reach to Over 10 Lakh Stores
Reliance Consumer Products has so far established a reach of over 10 lakh stores, predominantly small grocery and retail outlets. The company aims to expand this network even faster in the coming years. Additionally, the company is set to build mega food parks, investing $4.7 billion, or approximately ₹39,000 crore, over three years. These will enable large-scale production and increase competition in the FMCG business.
Significant Investment in Artificial Intelligence
Alongside FMCG, Reliance is now venturing into the field of Artificial Intelligence. Under the name Reliance Intelligence, the company is preparing to build India's most ambitious AI project. Partnerships have been formed with two major companies for this endeavor.
Partnership with Meta and Google
Reliance has entered into a 70:30 joint venture with Meta, with an initial investment of $100 million. This deal is expected to be completed by December 2025. Furthermore, in collaboration with Google Cloud, a high-tech AI-centric cloud zone is being established in Jamnagar, Gujarat.
AI projects require substantial computing power. According to data, operating a 1 GW data center would require 678,000 B100 chips. If Reliance utilizes 200 MW initially, approximately 135,000 chips would be needed. Reaching full capacity over the next 4 to 5 years will necessitate 1.3 GW of power.
