[pankajdoharey]

Well that billionaire raised a loan of $14 Billion from the Indian Banks to start Jio and recently he again raised additional $500 Million, such huge investments rarely recover if at all. Previous 5 quarters are showing a loss.

[kamaal]

Jio was never profitable from start. It won't be profitable anytime soon either.

Please note this isn't first time Mukesh Ambani is dipping his feet into telecommunications. He did before too, but he lost that business to Anil Ambani.

Apparently Jio is like his dream project.

[sbmthakur]

> Jio was never profitable from start. It won't be profitable anytime soon either.

I don't get this. Jio has been posting profits for a while[1].

1. https://economictimes.indiatimes.com/markets/stocks/news/rel...

[kamaal]

Its profit if you completely discount away the debt they have :) Or if you think they started at 0 investment. Or if you thinking on lines of completely discounting their initial capital 'investment' by not calling it Debt.

It is debt nevertheless.

Its like say took like a crore to start a business, and you are making like a profit of 50000 a month. Its profit, but it isn't exactly profit in an absolute sense, given you have to pay back 1 cr.

The thing about companies like Reliance is they can afford to do this. They have debt of $37 billion(https://telecom.economictimes.indiatimes.com/news/cash-rich-...) and they want to raise another $3 billion.

So yes, they post profits. Based on what your definition of profit is.

[rohan1024]

It's like people gave him money to build the required infrastructure. I wonder if this is possible in other sectors.

The infrastructure he built is sure going to be used for years to come.

But then you realize he is a business man. duh.

[kamaal]

>>I wonder if this is possible in other sectors.

It is.

Some of the ideas that has clicked in India in the recent past are things like PPP(Public private partnership), BOP(Build and operate) models. Basically you build out highways and other national infrastructure and then you recover the money from toll.

These days you can exit Bangalore in any direction, and have access to darn good highways. I typically travel to districts around Bangalore to see my relatives, and the highway infrastructure is almost on par with international standards. And this is with every single exit route from Bangalore. Karnataka in general has good infrastructure.

Even inside Bangalore, the NICE road and elevated highway reminded me of US freeways. Very clean, and high quality roads.

You have to pay toll though. It largely works. Ultimately if you have enough economic activity, things will pay for themselves.

[fooker]

>such huge investments rarely recover if at all

Citation needed. Most of the large businesses you see in the world today have, over their lifetime, raised much more than that in investments.