Chinese business tycoon, the founder of Alibaba group Jack Ma took over the crown of Asia’s richest from Mukesh Ambani, head honcho of Reliance Industries Limited (RIL). This news resulted after the oil prices were slashed along with all global stocks, courtesy of Covid 19 as Bloomberg Billionaires Index stated that it reduced $5.8 billion from Ambani’s net worth. It also stated that Alibaba Group regained the top spot as it has $2.6 billion more than Ambani.
Corona crisis took oil to its lowest in past 29 years along with Saudi Arabia and Russia’s decision to take more efforts for getting extra market share. This has surely impacted Reliance’s decision of zero net debt by year 2021, as the decision depends on the deal of selling its stake in oil and petrochemicals to division of Saudi Arabian Oil Co.
Alibaba Group suffered the losses due to corona but gained back, thanks to increased demand for its cloud computing services and mobile apps.
Reduction in RIL’s share prices leads to the impact of company’s decision of zero net debt. Reliance borrowed large funds in order to invest them in various trade activities as telecommunication, technology etc. Most of it yielded for the company as Reliance Jio Infocomm Limited, became top company in India. Almost $50 billion were funded towards its telecom venture.
Although experts state that the Ambani will regain his number one spot as Reliance has deals like Aramco, which was supposed to be completed by March but it has been delayed. This shows that corona crisis has surely impacted everyone right from rags to the riches of the world.