WHAT DOES MEAN JIO-FACEBOOK DEAL TO INDIA?

Recently on 22-April-2020,Facebook(USA) a social networking company invented $5.7 billion(43,574 Cr.INR)in Indian telecommunication company  and owns only 9.99 % stake of Mukesh Ambani’s digital operation "Reliance Jio"which is a arm of Reliance Industry Limited 

Their statements are very clear over this partnership of  FB-JIO.

• founder of facebook & I (Mukesh Ambani) will to all around digital transformation of india & for serving of all Indian.Together our two companies will Accelerate India’s digital economy to Empower you, to Enable you, to Enrich you.                     Mr. Mukesh Ambani(Chair person,RIL)

• India is home to the largest communities on facebook & whatsapp & a lot of entrepreneur.                                                                          Mr. Mark Zuckerberg  (CEO,Facebook).                                                                

Why did this deal happen ?

Suppose, A young Girl & Boy likes each other secretly from very long time ,now its time for get together both have own reasons for it .

 Facebook:

• If you believe in coincidence, then facebook is also owner of Whatsapp & whatapp has huge data of USER BEHAVIOR expect then facebook.

• From very long time facebook trying to add PAYMENT system on whatsapp.

• Facebook brought Instagram $1 billion on 2012,Whatsapp$19 billion on 2014,Oculus $2 billion on 2014 and now facebook took only 9.99% of JIO on 2020 Why?

• According to guidelines of RBI & other agencyi f you want to do business in India then you need to store  data on here,  RBI is very sensitive for Financial yearly data of every Indian which is continuously shearing via whatapp.   

• With the help of facebook’s and whatsapp’s data,one can assume desire of peoples means what do you do, what do you      like,what do you want and many more things that is call        user behavior.

• So facebook was looking a huge data bank for storing their  data,which JIO has that’s why after investing a great amount, facebook still satisfied  only with 9.99% stack of JIO.

• After lunching JIO 4G at sept.2016,within 3years jio occupied almost 34% in network marketing sector. So,now facebook will have already 34% customer for retail business.

• With the help of Jio ,Facebook can fulfill guidelines of    INDIAN GOVERNMENT & government can easily Surveillance all      money transaction of Indians.

Reliance Jio : 

• AFTER a great success of Jio4G,Reliance has two big projects  e-commerce retail(JIO-MART) and Jio 5G.

• In e-commerce industry there are two well established companies Amazon(USA)and Flipcart(wal-Mort).Who will be great compactor for JioMart.

• With the lack of ARTIFICIAL INTELLIGENCY & DATA JIO can’t  enter to the e-commerce sector where facebook will work as      backbone.

• Actually Reliance is very interested to sell his stacks to      different companies for money,because he wants to clear his    Debt which is taken from market.

• According to a report published on 2019 reliance has a debt    near about 1.54 lakh Cr.

• At very soon reliance is going to sell 20% stack to world biggest Oil refinery company Saudi Aramco,in upcoming two years Reliance will not have be any debt,by doing this Jio can easly enter the business of JIO-5G.

   Profit when they work together.   
   As discussed above both are to use full to each other on business   point of view.

• According to Retailers association of india,Indian Grocery  market value is near about $375 billions and together they wants to takeover it with help of JIO mart, JIO TV & WHATSAPP PAY.

• They are planning to give services to all small 3cr.grocery shop and by them, they will empower their neighborhood customer to do Digital transaction via Whatsapp pay.

• Facebook subsidiary company whatsapp has 40cr.Users and JIO has 38.8cr.user in India together they can make a huge e-commerce retail business platform against Amazon, Flipcart, Bigbasket and Google as well.

• They are willing to create a monopoly of e-commerce retails like Jio did at his launching time sept.2016

• After this deal Jio’s market capital will be 4.62 lakh Cr. And on other hand India’s biggest market capital company is only 7.8 lakh Cr. Which is itself Reliance industry Ltd.

• Facebook will get a huge databank which is Jio has already & also can follow the guidelines of Indian government to store transaction details in india. Facebook can easily start own PAYMENT SYSTEM on whatsapp which is interrupted from vey long time by Indian government.

• After investing $5.7 billion on JIO,facebook became the biggest minority shear holder company in Jio which is approx 10%.

• After this deal JIO-FACEBOOK easily can occupy E-commerce &  media industry on India market.

Summery :   

according to experts this partnership will accelerate the Indian digital economy and an Indian company compete with well established  companies like amazon,walmart & bigbasket etc.