Wrong Number?

What went wrong with RCom? When it started out as Reliance Infocomm in 2002, it
chose CDMA (Code Division Multiple Access), an emerging technology that promised
similar output to the GSM (Global System for Mobile) platform, used by rival operators
such as Airtel and Hutchison Max.
However, CDMA was limited to 2G and 3G (second and third generation) telephony.
When the tide turned in favour of 4G in India and 5G for the future, RCom began to lose
out. With the company now planning to exit telecom, the group will focus on real estate,
enterprise business and the submarine cable unit Global Cloud Xchange.
The latest trigger for RCom’s troubles was the failure of a potential deal Anil struck to
sell the telecom assets to Mukesh’s Reliance Jio for Rs 18,000 crore.
The deal collapsed after the Department of Telecommunications insisted that Jio accept
RCom’s arrears too, which Jio was unwilling to do.

The Debt Pile-up

Cornered in his telecom business and challenged by a tough business environment in his
other ventures, Anil had no option but to start selling assets. He was forced to consider
selling off Reliance Power assets because huge projects worth thousands of crores were
left hanging fire either for lack of financial closure or availability of raw material.
The firm’s 24,000 MW of power generation plants are shut due to non-availability of gas.
Investments to the tune of nearly Rs 1.2 lakh crore are stuck, Anil told Reliance Power
shareholders in September 2018.
The defence business he entered in 2015 by buying Pipavav Defence and Offshore
Engineering for Rs 2,082 crore is mired in controversy. The opposition Congress has
accused Anil of having unduly benefitted in the $8 billion Rafale fighter jet offsets deal.
The only business that seems to be doing relatively well is the financial services business
under Reliance Capital, consisting of firms dealing with asset management, life and
general insurance, home finance and wealth management.
The real trouble started around 2014, when the group companies began to feel the brunt
of its gargantuan debt (total group companies’ debt stood at Rs 1.72 lakh crore as on
September 2018).
It then began to sell off assets and sometimes entire businesses. In August 2018, Reliance
Infrastructure, which had prestigious projects including the airport express metro corridor
in New Delhi under its belt, sold the Mumbai city power distribution business to fellow
industrialist Adani for Rs 18,800 crore.
This transaction was expected to bolster Reliance Infra’s financials by repaying part of its
over Rs 23,000 crore debt.
Although Reliance Power had been awarded contracts to build three plants, it could build
only one at Sasan in MP. It has argued in the courts that it needs permission to mine more
coal for the project, without which it may incur losses and may have to abandon the
project. In 2014, Reliance Entertainment sold its once acclaimed multiplex chain Big
Cinemas to pare its debt
They are facing intense competition in the telecom industry. The situation
goes very bad when JIo enters the market and a lot of the customer base
shifts to JIO from Reliance communication.
Due to all this, their business is not growing so much and they need more
cases to survive in this venture. As a result in 2019 Reliance
communication had to declare bankruptcy. The other reason for failure is
wrong diversification.
Anil Ambani Net-worth
Once when Anil Ambani was the Richest Businessman. Anil Ambani has
$1.7 Billion net worth on 3 April 2019. He is #1349 on Forbes billionaires
list and #68 is India’s richest person but In 2020, he says “My net worth is
zero after taking into account my liabilities. In summary, I do not hold any
meaningful assets which can be liquidated for the purposes of these
proceedings.” 
Is Anil Ambani still a billionaire?
No, Anil Ambani is no longer a billionaire.
Why is Anil Ambani net worth zero?
He has taken many loans to grow his business but he failed to make this
business debt-free.