Amazon May Invest in Reliance
CBJ Reports indicate that Amazon.com is interested in buying a stake in Reliance Industries of India.
Amazon’s overwhelming online presence could help Reliance’s consumer and private labels business. More importantly, a partnership would help the duo counter Walmart, which last year invested $16 billion in India’s Flipkart, in the battle for a bigger share of India’s fast-growing e-commerce market.
In late December, India modified rules around foreign direct investment (FDI) in e-commerce, creating additional hurdles for companies such as Amazon and Flipkart, and giving companies such as Reliance an edge.
Amazon had made the proposal to Reliance – controlled by Mukesh Ambani, India’s richest man – for the partnership. It is not yet known whether the overtures will lead to a partnership or not.