Reliance's USD 981 mn acquisition of Hathway Cable marks its biggest deal in 5 years

New Delhi: Reliance Industries has spent USD 13 billion on acquisitions in the past five years across new energy, telecom, retail and media businesses to script a pivot away from core oil and petrochemicals business to clean energy and consumer-facing verticals.

Last week, Reliance bought oncology platform Karkinos Healthcare for Rs 375 crore, adding another stack to its diagnostic and digital healthcare ecosystem, Morgan Stanley said in a report.

"Over the past five years, RIL has announced USD 13 billion in acquisitions with 14% in new energy, 48%in technology, media and telecommunications (TMT), 9% in retail, and increasingly more in healthcare," it said.

Of this, USD 6 billion was in the acquisition of companies and assets in the media and education business and USD 2.6 billion in telecom and internet verticals. It spent USD 1.7 billion on acquisitions in new energy and USD 1.14 billion on retail, according to Morgan Stanley.

RIL's biggest acquisition in the last five years has been the buyout of local cable TV and internet service providers Hathway Cable and Datacom for USD 981 million. 

It spent USD 771 million on buying Norwegian-headquartered solar panel maker REC Solar Holdings and another USD 767 million on buying search and database firm JustDial, the report said.

Last week, it acquired a 100% stake in Karkinos Healthcare, increasing its exposure to the diagnostic and healthcare ecosystem following previous investments like HAGI, Netmeds and Strand Life Science.

Other investors in the company have included Tata Group, Rakuten, Mayo Clinic, and Hero Enterprise.

"RIL aims to leverage its technological expertise and vast distribution networks to create more integrated healthcare system-digital health platforms, telemedicine services and advanced healthcare delivery models," the brokerage said.

Karkinos was incorporated in India on July 24, 2020, and is in the business of providing technology-driven, innovative solutions for the early detection, diagnosis, and management of cancer. It had a turnover of about Rs 22 crore in the 2022-23 fiscal year.

Karkinos has cancelled the existing outstanding 30,075 equity shares held by the erstwhile shareholders of the company. Its previous prominent investors included Ewart Investments (100 per cent subsidiary of Tata Sons), Reliance Digital Health (a subsidiary of Reliance Industries), Mayo Clinic (US), Sundar Raman (Director at Reliance Foundation Youth Sports and former COO of Indian Premier League since 2008), and Ravi Kant (ex-MD of Tata Motors).