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Will investment in Reliance cause any problem to other companies and economy?

 

  • Mukesh Ambani Own Reliance industries has seen many ups and down on the stock market. Mostly ups when the investments comes from foreign companies. now the questions has rise that will this investment in Reliance causes any problem to other companies or not and how it will affect the Indian economy. well the answer is not directly but indirectly it will affect both to the Indian economy as well as other companies in India. well lets get deeper in to this. all the foreign companies own some percent of the Reliance and when company makes profits they have to share it with everyone with their profit share and Mukesh Ambani takes very good care of their investor we have seen it many times in the past. so Mukesh Ambani will give extra to their investor to motivate them to invest more and indirectly he will tempt them. so here the initial money goes to foreign land in form of profit share hence it will affect the Indian economy and rupee value will get decreased and dollar or Euro price will increased. this is one reason why RBI is buying more and more dollars these days.
  • now lets talk about the how it will affect the Indian companies. Mukesh Ambani is known as a clever business man. he has acquired many companies and merged down many entities in to one, the recent acquisition of Urban clap is perfect example of how Ambani cleverly turns down the valuation of good company and at the end buys it out at low price.so this can happen to any indian companies who are or who will get in the path of Reliance company or directly or indirectly tries to give competition to reliance industries. Relience directly doesn't have branches in foreign countires but it owns stacks in many of the foreign companies across Europe, Middle east  and North America,
  • Conclusion 
  • well, the final conclusion here is to wait for the next move of Mr.Mukesh Ambani.he can make new acquisition or buys out new startup which can come across the reliance path but one thing is for sure that the foreign investment is good for India but the outgoing of profits in not good. investment in reliance doesn't cost ant problem but it will create some confusion and fluctuation in the companies
  •  his son Akash Ambani is doing quite well in Jio platforms and soon his younger son, Anant Ambani will also take over some responsibility of some of the subsidiaries of Reliance Industries.The petro chemicle bussiness is highest profit making business for ambanis and Jio platforms is on the rise of the profit making in this digital economy and soon will see many developments in this company. i'm thinking of the day when Mukesh ambani retires from the business and the legacies will come to their kids and it will be a treat to watch that who will handle which business of Mukesh Ambani. his 3 children's are very clever and as per the current situation let me guess this way. Isha Ambani will handle the Reliance retail business, Akash Ambani will handle the Digital business through Jio Platforms and the petro chemicle business can go to the younger son Anant Ambani. or you never know since Anil Ambani is bankrupt and if mukesh shows his big heart to the his younger brother then he can give away his petro Chemicals business to Anil Amnani. you never know anything can happen as mrs.Kokila ben Ambani is Alive.

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