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Isha Ambani's marriage will benefit the common man; know the impact of Ambani-Piramal alliance on the country's economy

Speed News Desk | Updated on: 9 December 2018, 16:53 IST

The Ambani-Piramal union, the two-gigantic soon to be alliance that would not only concoct personal ties after Isha Ambani’s marriage with Anand Piramal, but also create a conglomerate of the country’s biggest professional synergies.

The marriage of veteran business man Mukesh Ambani's daughter Isha is due on December 12 to Anand Piramal, son of Ajay Piramal. Prior to this marriage, there is a pre-wedding ceremony in Udaipur, where big celebrities from the homeland and foreign countries are joining the merriment. Being one of the two families, the two great ace entepreneurs of the business world will be together and their shared decisions can play an effective role in deciding the direction and condition of the country's economy.

Mukesh Ambani is the MD and Chairman of Reliance Industries while Ajay Piramal of Piramal Group is the Chairman of Shriram Capital. The market cap of Reliance Industries Limited (RIL) is 7.17 trillion, or 71.7 thousand crores, while the revenues of the company are 4.31 lakh crores. RIL's subsidiaries include several companies including Reliance Jio, Reliance Infrastructure, Reliance Petroleum, Network18, Reliance Retail.

The market cap of Ajay Piramal's Piramal Enterprises is Rs 38, 242 crores. The total valuation of Piramal’s company is about 70 thousand crore rupees. Piramal Group has offices in more than 30 countries around the world. Ajay Piramal is also the chairman of finance company Shriram Capital. Ajay Piramal's Net Worth (net worth) is $ 430 million i.e. Rs 30, 700 crore. Piramal Group is doing successful business in many sectors, including pharmaceuticals, real estate, health care. Ajay Piramal is also a non-executive director in Tata Sons.

Impact on the country's economy and benefits to the common man

If Ambani and Piramal determine their business policy by looking at each other's business interests, the challenge for other companies of the concerned sector will increase and a new round of competency may start. Mukesh Ambani is the owner of world-wide 500 companies and is known for leading marketing. Their decision makes it difficult for competitive companies to save their market.

When Mukesh Ambani launched Reliance Jio, it made a splash in the telecom sector and gave AirTel the toughest of competition with the highest number of customers. Jio dethroned Airtel, which once ruled the telecom industry. Also, Jio’s strong presence in the market hatched merger of the existing Idea and Vodafone.

After joining Piramal, many sectors, including real estate, pharmaceuticals and finance, may have to face the tough decisions of Mukesh. It will have a positive effect on the economy of the country and the goods (goods/services) will be available to the common people at affordable prices, as the 3G data was available at the first expensive prices. But now consumers enjoy the fastest speed of 4G at cheaper prices. However, the other companies in competetion will have to bear the brunt.

First published: 9 December 2018, 16:52 IST
 
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