E-Commerce giant Amazon has added nearly $99 billion in market capitalization in a span of one month alone, which is more than total market value of India’s most valued & richest Indian-controlled company Reliance Industries Limited. Amazon.com share price has been continuously surging since October last year, following which the fortunes of founder and CEO of Amazon.com, Jeff Bezos, breached the psychological mark of $100 billion in 2018.
Between 13 Feb – 12 March, Amazon’s share price has surged from $1414.51 to $1598.39. Amazon’s market value also surged 14.8% from $671 billion on February 12 to whopping $770 billion on March 12. On the other hand, as at the time of writing this article, Reliance Industries market cap is Rs 570,435.32 crore or ~ $83.67 billion (compare it to Amazon’s $671 billion). Market capitalization is the aggregate valuation of the company based on its current share price and the total number of outstanding stocks. It is calculated by multiplying the current market price of the company’s share with the total outstanding shares of the company.
It is to be noted here that, while Amazon Inc is a 24 year old company, Reliance Industries is relatively old with 41 years of its existence. In other words, Amazon founder Jeff Bezos was 13-year-old teenager when Reliance Industries was founded in 1977.
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In last one year, Reliance is also ramping up quickly but not as fast as Amazon. Shares of Reliance Industries have been on a rising spree since February 2017, taking the last one year’s gains to over 70%. This January, Reliance Jio, the telecommunications arm of Reliance Industries Ltd, turned profitable for the first time and making it one of the few or probably the only startup to become profitable within just 17 months of its launch.
Reliance Industries was ranked at 25th position across the world, on the basis of sales, in the ICIS Top 100 Chemicals Companies list in 2012. In India, the Reliance Industries is the second most valuable brand.
Amazon, on other hand, is the largest Internet retailer in the world as measured by revenue and market capitalization, and second largest after Alibaba Group in terms of total sales. Going forward, It is the fourth most valuable public company in the world, the largest Internet company by revenue in the world, and the eighth largest employer in the United States.
Technically speaking, business models of Reliance Industries and Jeff Bezos-led Amazon are different in nature of operations and the counter-party to which they cater to. Reliance Industries is primarily involved in petrochemical products, textile, telecommunications etc, while Amazon is essentially a new-age tech company involved primarily in e-commerce across the world along with internet services, cloud infrastructure services, consumer electronics as well as robotics. And now, with acquisition of Whole Foods Market for $13.4 billion in 2017, the company has also entered brick-and-mortar retailer.
To recall, early this year it was reported that Amazon, through a wholly-owned subsidiary, is all set to sell locally made food items in India as last year it got $500 million Indian government approval for food retailing in the country. Notably, Reliance Industries will give head to head to Amazon in food retailing as it is also reportedly planning to make entry into India’s online grocery market by linking manufacturers, kirana stores and corner shops to its Reliance Jio customers and mint money. In fact according to industry veteran T V Mohandas Pai, Reliance Retail will pose the biggest challenge to both Amazon and homegrown Flipkart, due to its wider reach and tremendous penetration of Reliance Jio.
It may also be recalled that a panel of venture capitalists at the 2017’s Silicon Dragon event in New York City picked Amazon as a leader in the future tech landscape. Considering Amazon and Flipkart are currently going head to head in the Indian e-commerce market, this global recognition can really raise the former’s stake in the Indian subcontinent.
Via – Financial Express