The multi system platform is of strategic importance to Reliance Industries Ltd. In H2 FY19, RIL, through group entities, acquired a 72% stake in Hathway for a total consideration of Rs 41.2 billion. The acquisition is part of RIL’s core strategy to increase the share of its consumer business in overall profitability closer to the share of its energy business over the next decade.
As per Ind-Ra, Hathway gives RJio direct access to 6 million digital cable households, which represents about 12% of RIL’s targeted FTTH client base of 50.0 million. Through Hathway, RJio can address the last-mile connectivity challenge for its FTTH network and explore additional revenue streams beyond cable TV subscriptions.
Hathway’s core strategic initiatives such as go-to-market plan and customer-acquisition objectives would now be aligned with those of RJio, as per agency.
Hathway’s cable TV and broadband business is operationally integral and core to RJio’s FTTH business. In Ind-Ra’s view, the core business functions of Hathway and RIL are integrated, with RJio having a close oversight on Hathway’s strategy, debt and liquidity management functions. The 10-member board of Hathway includes three representatives from RIL and two members from the Raheja family.