Reliance Jio, RCom enter virtual merger, Anil Ambani's son made exec director of Reliance Capital
Jai Anmol Ambani, 24, son of Reliance chairman Anil Ambani, was appointed as an executive director of Reliance Capital Ltd on Tuesday by shareholders, amid speculations that he will succeed his father at the parent Reliance Anil Dhirubhai Ambani Group
Chairman Anil Ambani on Tuesday said his telecom company RCom will collaborate with his brother Mukesh Ambani's Reliance Jio, and termed the arrangement a “virtual merger". The duo will share their telecom infrastructure like spectrum, network, towers, and fiber under the merger.
Last January, they made an agreement under which Jio would buy spectrum from Anil's RCom in nine circles.
“There are two committed brothers, Mukesh Ambani and Anil Ambani, both working relentlessly to fulfill Dhirubhai Ambani’s telecom dream for India,” Anil was quoted as saying at RCom AGM.
He stated: “What we have accomplished is a virtual merger between RCom and RJio (Reliance Jio).” Earlier in September, RCom made an announcement to merge its wireless operations with Aircel, creating country's third-largest cellular carrier having more than 180 million subscribers.
Jai Anmol Ambani, 24, son of Reliance chairman Anil Ambani, was appointed as an executive director of Reliance Capital Ltd on Tuesday by shareholders, amid speculations that he will succeed his father at the parent Reliance Anil Dhirubhai Ambani Group.
Anmol will be paid a huge salary of Rs 12 million a year ($180,000), along with many perks and other allowances.
He will also receive a commission based on profit, according to a stock exchange filing by the company. Reliance Capital currently runs the country's third-biggest mutual fund.
"Across the board at family-run businesses, the next generation is stepping up and groups are transitioning to the next generation," Sanjiv Bhasin, executive vice-president at brokerage India infoline Ltd., told NDTV in an interview. "Anmol Ambani will now learn the ropes as he prepares to succeed his father," added the expert.
Anmol has an undergraduate degree in management from the Warwick Business School in the United Kingdom.
According to Reliance sources, he also has two years of experience in financial services. He will now assume the role of executive director along with chief executive officer Soumen Ghosh, added Reliance.
Anmol was earlier made the an additional director by the Reliance board in August. However, a resolution for his appointment was opposed by most of the Reliance's institutional investors (who have 27 per cent of Reliance Capital shares), as per exchange filing released on Wednesday.
His twin cousins Isha and Akash, are already board members of the newest entrant to India's telecommunication sector Reliance Jio Infocomm Ltd and Reliance Retail Ventures Ltd.
Industry sources say as most of India's industrial tycoons are nearing the age of 60 and beyond, succession issues have plagued most of the family-run enterprises.