Reliance Communications (RCom) on Tuesday said it will exit the telecom business completely and will focus on real estate going forward.  Reliance Communications has obtained approval of 100% Indian and foreign lenders on its asset monetisation plan for overall debt resolution, company’s chairman Anil Ambani said at the annual general meeting on Tuesday.

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At present,  Reliance Communications is serving 35,000 businesses through the enterprise, data centres, undersea cables and international voice calling verticals and will get half of its revenues from abroad.

Reliance Realty, a wholly-owned subsidiary of Reliance Communications, at present owns and operates DAKC, a 133-acre registered IT park in Navi Mumbai. DAKC will be developed to create a commercial space of 30 million square feet and the valuation of this development project, as per HDFC Realty, is estimated to be over Rs 25,000 crore.

The company already has 3 million sq ft of built-up space, which will be leased out to multi-nationals and the company expects revenue accruals through it from this financial year itself.

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The telecom sector is saddled with a debt burden of over Rs 7.7 lakh crore and employment in the sector has halved over the last two years. The hyper-competition in the industry has led to over 20 lakh job losses.

“There has been a creative destruction of the telecom sector resulting in creation of oligopoly, which is going towards a duopoly and maybe even a monopoly in the future,” Ambani said.

Reliance Communications owes about Rs 45,000 crore to a group of 38 lenders, including Chinese banks. 

Source: DNA Money