The Indian billionaire Mukesh Ambani-led Reliance Industries is offering stakes worth $20 billion in its retails wing to Amazon.
The tech giant has already made talks about investing in the Reliance Retail Ventures unit and has shown its interest in negotiating the deal.
Reports say that the Indian conglomerate is willing to sell 40 percent of its stake in the retail unit to Amazon.
If the deal becomes successful it would bring the world’s richest man and Asia’s richest man into one among the fastest-growing consumer markets in the world and if the deal happens in the current offer of $20 billion it would be the biggest deal ever happened in India as well as for Amazon.
The shares of Reliance Industries have reached its all-time high after this deal was reported in Indian media. The Indian rupee rose as much as 0.5 percent to 73.1588 per dollar with the expectation of more capital inflow.
Last day, Reliance already made a deal of $1 billion from the US private equity firm Silver Lakes and KKR &.Co another US firm is also in discussion to invest at least $1billion.
A deal with Amazon will help the Indian billionaire to fulfill his dream to create an e-commerce giant in India similar to Alibaba Holdings Ltd. of China and also to span the Reliance retail empire with 14,000 brick-and-mortar stores which makes it seven times larger in terms revenue than its rival Avenue Supermarts by D’Mart.
These investment deals come following the Jio Platforms Ltd- technology venture of Reliance achieved a $20 billion investment from investors including Facebook, Google and Intel.
The Reliance runs Indian’s largest electronic store, cash and carry wholesalers, fashion outlets and online grocery store named JioMart. The business operates nearly 12,000 stores across 7,000 towns. As per reports, the group has made $22 billion in revenue in the year through March 2020.