BIG change for Jio: Mukesh Ambani steps down as director

Reliance Jio Infocomm Ltd has made a surprise announcement today. The digital arm of Indian conglomerate led by Mukesh Ambani's Reliance Industries said on Tuesday that Ambani would resign as director of the unit. No reason behind this has been given yet but the company has already announced who will takeover for the time being.

In a statement to the media, Jio said it had appointed non-executive director and Mukesh's son Akash Ambani as the chairman of the board. Mukesh Ambani's resignation stands in effect from June 27. Pankaj Mohan Pawar will take over as the Managing Director of the company from 27 June, according to the decisions taken by Jio's Board of Directors in a meeting held on Monday, 27 June, 2022.

Jio oversees massive change in management

In the board meeting conducted on Monday, it was decided that board “approved the appointment of Raminder Singh Gujral and K.V. Chowdary as Additional Directors of the Company, designated as Independent Directors for a period of 5 years commencing from June 27, 2022, subject to approval of the shareholders."

The board also approved the appointment of Pankaj Mohan Pawar as Managing Director of the Company for a period of five years commencing from June 27, 2022, subject to approval of the shareholders.

The resignation of Mukesh D. Ambani as Director of the Company has been in effect from close of working hours on June 27, 2022; and his son Akash M. Ambani will assume the role of a Non-executive Director as Chairman of the Board of Directors of the Company.

Note that Mukesh Ambani will continue to be the Chairman of Jio Platforms Ltd, the flagship company that owns all Jio digital services brands including Reliance Jio Infocomm. Meanwhile, Akash Ambani has been closely involved with the creation of the digital ecosystem around Jio’s 4G ecosystem. He was involved with the Jiophone team in 2017.

The change comes at a time when the auction for the 5G spectrum begins in a few weeks. Jio is one of the key contenders in the 5G race in India, competing with Airtel and Vi (Vodafone Idea).