BlackRock (NYSE:BLK) CEO Larry Fink met with Mukesh Ambani of Reliance Industries Limited (RIL) and Prime Minister Narendra Modi in India on Tuesday, following the recent announcement of a $300 million joint venture between Jio Financial Services and BlackRock. The partnership is a digital-first initiative aimed at capitalizing on India's burgeoning investor base amidst a post-COVID-19 surge in retail investors.
The joint venture leverages BlackRock's Aladdin platform, a move that aligns with Ambani's tech-driven plans. This collaboration comes after the recent demerger of Jio Financial Services from RIL, with both companies investing $150 million each. According to InvestingPro, BlackRock has been profitable over the last twelve months, and has a history of maintaining dividend payments for 21 consecutive years, indicating a strong financial foundation for this venture.
Despite facing backlash over environmental, social, and governance (ESG) issues and accusations of greenwashing, Fink continues to expand BlackRock's footprint in India. The firm manages 15% of its Asian assets in the country, despite a previously failed alliance with the DSP Group (NASDAQ:DSPG). The company's market cap stands at a staggering 91.53B USD according to InvestingPro data.
Fink sold his stake in DSP Group back in 2018 and had discussed potential partnerships with HDFC Group. Currently, BlackRock manages $13 billion in direct Indian exposure. The company has seen a high return on invested capital, as per InvestingPro Tips, which may have contributed to its robust financial performance in India.
The meeting also served as a platform to underscore both firms' commitment to clean energy. Reliance has pledged to achieve net-zero emissions by 2035. BlackRock's past investment in Tata Power's renewable arm suggests potential backing for Ambani's new energy initiatives. Reliance, a prominent player in the Oil, Gas, and consumable Fuels industry, has raised its dividend for 3 consecutive years and has been profitable over the last twelve months, as per InvestingPro Tips.
The visit to India precedes the COP28 summit, where Fink is expected to lead Wall Street CEOs. The summit is hosted by Abu Dhabi National Oil Co., highlighting the global push towards sustainable practices.
Following his India visit, Fink is set to attend the 'Davos in the desert' event, where he will likely be joined by top CEOs like Jamie Dimon of JP Morgan Chase (NYSE:JPM), Jane Fraser of Citigroup (NYSE:C), and David Solomon of Goldman Sachs (NYSE:GS). For more insights and tips, consider checking out InvestingPro which offers a wealth of additional tips and real-time metrics for companies like BlackRock and Reliance.
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