(NDTV)
Billionaire Anil Ambani announced on Tuesday that the cash-strapped Reliance Communications will be completely exiting the telecom business to concentrate on real estate in future. The first priority for RCom, which is credited for democratising telecom services through cheaper offers in early 2000s, is to resolve its debt worth over Rs. 40,000 crore, he told shareholders at the company’s 14th annual general meeting (AGM) in Mumbai.
“We have decided that we will not proceed in this sector. And many other companies have taken a similar call. This is very much a writing on the wall, the future… As we have moved out of the mobile sector, we will monetise at an appropriate stage our enterprise business. Reliance Realty will be the engine of growth for the future of this company,” Mr Ambani said.
Pointing out to the 133-acre Dhirubhai Ambani Knowledge City (DAKC) on the outskirts of the financial capital, he said there is a huge realty play opportunity that RCom’s erstwhile corporate headquarters possesses, and pegged the potential value creation at the site at Rs.25,000 crore. RCom owes over Rs. 40,000 crore to a group of 38 lenders, including Chinese banks, and was resolving the debt through a strategic debt restructuring (SDR) process.
