Reliance on an acquisition spree, spends USD 13 billion in 5 years

Billionaire Mukesh Ambani-led Reliance Industries Ltd (RIL) has significantly broadened its business horizons in the past five years, investing over USD 13 billion in acquisitions that span diverse sectors including clean energy, technology, media, telecom, retail, and healthcare. This strategic shift marks a decisive pivot from RIL's core oil and petrochemical businesses toward a more diversified future, focusing on cleaner energy solutions and consumer-facing industries.

A recent report by Morgan Stanley revealed that of the total investment, 14% has been directed toward new energy, 48% into technology, media, and telecommunications (TMT), 9% into retail, and a growing percentage into healthcare. RIL has been particularly active in media and education, spending USD 6 billion, and also made substantial investments in telecom and internet ventures with USD 2.6 billion. The company also allocated USD 1.7 billion towards new energy and USD 1.14 billion in retail acquisitions.

One of RIL’s largest recent moves was the acquisition of Hathway Cable and Datacom Ltd, a major local cable TV and internet service provider, for USD 981 million. The company also made a strategic purchase of REC Solar Holdings, a Norwegian solar panel manufacturer, for USD 771 million. Another noteworthy acquisition was the purchase of JustDial, a leading search and database firm, for USD 767 million.

RIL's latest acquisition, announced last week, was the complete buyout of Karkinos Healthcare for ₹375 crore. This acquisition enhances RIL’s presence in the growing healthcare sector, particularly in diagnostics and digital healthcare. Karkinos is known for its innovative, technology-driven solutions in the early detection, diagnosis, and management of cancer. Other investors in Karkinos have included Tata Group, Rakuten, and Mayo Clinic.

Karkinos, founded in 2020, has already partnered with around 60 hospitals as of December 2023 and is expanding its footprint with a 150-bed multispecialty cancer hospital under development in Imphal, Manipur. The company’s focus is on providing affordable cancer care, including diagnostics and treatments, at much lower costs than prevailing market rates while maintaining profitability.

Reliance's acquisition of Karkinos reflects its strategic vision to create an integrated healthcare system using digital platforms, telemedicine services, and advanced healthcare delivery models. With this latest move, RIL is positioning itself as a significant player in India’s evolving healthcare landscape, using its technological expertise and expansive distribution networks to further expand its reach in the sector.