In this article, we are going to discuss 2 stocks i.e., Reliance Industries and Vedanta Limited which are focused highly on the future business and are investing accordingly. What are the recent investments of these companies and what are the objectives behind such investments, let’s know more about this in the article as we move forward?
1) Reliance Industries:
- the news is directly related to Reliance Jio Platforms which is the subsidiary of Reliance Industries.
- Jio platform has invested in the company called Glance which is backed by Google. This company ‘Glance’ uses algorithms and AI to show the user of a smartphone what they might like to see or surf (recommendation), when the phones are locked.
- Reliance Industries have invested $200 million or Rs. 1,500 Cr.
- On the other hand, Google has also invested in the Jio platform, the next target for Jio is to acquire 50 Cr. customers which currently stands at 42-43 Cr. The Jio platform has also launched a smartphone which will help the integration of this company’s expertise. Personalized Services Software will act as value-added services which might be very crucial for the company to grow its customer base in the future.
- Moving Forward, Reliance Jio has also come into a joint venture (J.V.) with SES S.A. Luxembourg company that focuses on Satellite Internet.
- There are many existing players in the satellite internet segment like Bharti Airtel, Starlink, Telesat, etc. The JV of the company wants to provide 100GBPS of internet speed which is way fast than what is being provided currently. They want to provide this high-speed internet to consumers and enterprises which will also help the company to grow its customer base.
2) Vedanta Limited:
- Vedanta Limited is going to enter into Semiconductor space. The company has done an agreement with FOXXCON for a JV and the majority of the stake will be of Vedanta Ltd.
- The company will be investing $15 Billion in the coming 5 years. The government has also launched Production Linked Incentive (PLI) scheme wherein the Government provides incentives in the form of taxes and other benefits. The scheme size is Rs. 76000 Cr. in the coming 5 years.
- The semiconductor market will be increasing significantly in the future as every instrument or automobile usage is now becoming smart, which requires a semi-conductor to operate that function. The shortage of the product made the opportunity for many such companies to come into this segment.
What Should Investors Do?
Firstly in the case of Reliance Industries where this kind of investment gives long-term visibility of what the company is planning and investing in its money. This also shows the growth potential of the company as the company is focused on future alternatives. Nextly, talk about Vedanta Limited investment is a big thing for the company but the track record of the company for creating value for the investors is not good, especially when the problem created when delisting of the company was going to happen. The company should be focused on straightforward business. Such investments by the companies can prove to be growth drivers for them and hence these stocks should be on the radar of investors.
Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent are commendation to buy or sell stocks or MF.