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Home > Industry > Focus

Open Sesame
Running an innovative business model, Reliance WebWorld stores are turning into digital lifestyle statements through a host of interesting broadband applications
Sunday, May 21, 2006
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Sangeeta Ahuja of Lajpat Nagar, Delhi had just got married when her husband Naveen got transferred to Mumbai. As Sangeeta was working with a large software company in Noida, it was not easy for her to follow Naveen immediately to Mumbai. However, within three months of her marriage it was time for Karva Chauth when both Sangeeta and Naveen landed in a piquant situation. As both of them had important meetings in their offices it was not possible for either to meet, but Sangeeta's in-laws were keen that she celebrate her first Karva Chauth. As Sangeeta was wondering what to do, her friend suggested video conferencing from Reliance WebWorld. Acting on her friend's advice she walked into the large WebWorld in South Extension, where for a charge of Rs 250 she was able to perform the entire ritual-chalni and all. Only Naveen too had to book a slot at same time at the Juhu WebWorld in Mumbai and the Ahuja's first Karva Chauth was complete via video conferencing.

Skip to Diptesh and Jasmine Banerjee with their one-year old kid Saumya in Hyderabad. As Saumya was celebrating his first birthday, both his grandparents from Kolkata were keen to attend the celebrations. Again as it was not possible for either the Banerjees to take leave and come to Kolkata to celebrate, what they organized was a video conferencing session between two WebWorlds in the two cities, where the grandparents saw Saumya cutting the cake.

Digital Lifestyle Stores
Welcome to the world of Reliance WebWorld-a network of 240 stores across 105 cities throughout the country. Thanks to the abundance of bandwidth today, a host of video conferencing applications are in popular demand. The Reliance (Anil Dhirubhai Ambani Enterprise-ADAE) group is no doubt, betting big on the digital future through these front-end lifestyle stores, Reliance WebWorld. Of the 240 current WebWorlds, the bulk is currently located in Mumbai (25) and Delhi (about 20). The company is now looking at even smaller cities for its expansion plan, thanks to the availability of abundant bandwidth now. It already has centers in most of the Tier II and III cities, for instance, even small towns such as Saharanpur, Meerut, and Akola. Says Sarup Chowdhary, director and CEO, Reliance WebWorld; "We intend to add another 80 WebWorlds in the coming year. And we will be looking closely at small towns and cities for growth. We are not big city boys anymore."

Karva Chauth via video conferencing between Mumbai and Delhi; only moon is the limit for WebWorlds The Hyderabad toddler celebrates his first birthday, while his grandparents look on from a Kolkata WebWorld
Youngsters are busy with Counter Strike, Half Life or Need for Speed; oldies keep in touch with children abroad via video chats, Webworld has become India's largest chain of broadband experience Nicholas Piramal organized a training program across 192 locations through WebWorld-even Guinness Book is acknowledging it as the largest video conferencing session ever

Despite the Baristas and Cafe Coffee Days, Java Green co-located in the WebWorlds, have become India's largest retail coffee shop chains Product launches and demos by companies like Gillette are today a regular phenomenon in WebWorlds

Gillette Duracell launch was powered across multiple locations through Reliance WebWorld

WebWorld was started as a point of contact for Reliance customers a few years ago, typically selling Reliance mobile and landline connections besides offering Internet surfing. Now, WebWorlds have evolved into a lifestyle store with three distinct services to offer: C3 or customer convenience center that offers Reliance products besides airline bookings for Air Deccan and Kingfisher Airlines; Broadband center, offering services such as video-conferencing, gaming, and Internet café; and lastly Java Green, an exclusive gourmet services for WebWorld users in 110 out of the 240 stores.

While Chowdhary and Darayus Mehta, who heads video conferencing operations of WebWorld, do take pride of instances such as birthday or Karva Chauth, the fact of the matter is that WebWorld has also opened up new frontiers in tele-medicine and e-learning by means of alliances with prestigious institutions. It has tied up with institutes such as XLRI (Jamshedpur), Xavier Institute of Management (Bhubhaneshwar), and IIM (Bangalore) to offer three management and other programs in 21 cities simultaneously via video conferencing. On the anvil, are plans to extend virtual classrooms to Knowledge Management Institute, US, as Deepak Chopra discourses. Informs Chowdhary, "We need at least 5 students in each town to bring it into the video conference fold, and thanks to Reliance WebWorld, both XLRI and XIMB have doubled their capacity for distance learning."

The company has also launched a pilot tele-medicine program in association with Apollo Hospitals. Primarily, this is being currently used by patients in 21 cities for either specialized or a second consultation. A telemedicine portal has been created for Apollo where patients can upload all their case histories and then accordingly, appropriate consultation are provided via video conferencing. While tele-medicine is still in its early stages, Digital Electronic News Gathering has become a big hit for WebWorld coming as 'manna' for electronic journalists covering news in locations without OB vans. Informs Mehta, "This facility is being utilized by 47 news channels and 23 news gathering studios across 105 WebWorlds in 86 cities." Impressive numbers indeed!

Another aspect where WebWorlds have gathered tremendous steam, is training for doctors and medical conferences. Recently, Nicholas Piramal organized a training program across 192 locations via videoconferencing-this feat by WebWorld is likely to get recognition from Guinness Book for being the biggest video conferencing session in the world. Even complex eye surgeries have been transmitted live through WebWorld. Chowdhary informs that besides MR training, large organizations such as Gillette have arranged product launches as well as MNCs have recruited personnel in India through their video conferencing programs. The business model is simple-while Reliance has a 70:30 revenue sharing with the WebWorld franchisees in most cities, the proportion goes to 60:40 for Delhi and Mumbai. The franchisee owners only need to pay a hefty initial deposit ranging from Rs 18-34 lakh plus a non-refundable sign-up fee of Rs 4 lakh-choice and ownership of location, operating expenditure are all borne by Reliance, while they also pay 8% interest on the franchisee deposit amount. Of the 240 stores, 120 are owned by franchisees now, a number likely to increase by 80 in 2006, informs Chowdhary.

While games such as Counter Strike, Half Life, and Need for Speed have been popular in the Broadband center; WebWorld has also started offering e-ticketing services for Air Deccan and Kingfisher.

"We are in the process of identifying more airlines company for the e-ticketing initiative," says Chowdhary.

WebWorld would also be launching personal financial services from May 1, 2006, "There will be a separate counter at WebWorlds offering Reliance Capital and mutual funds," he adds.

Small BPOs
However, the most unique initiative of WebWorld has been the fillip given to budding entrepreneurs through the scheme whereby they can start operating a small-time BPO from a WebWorld store from 10 p.m. to 8 a.m. As the WebWorlds are already equipped with computers, headsets, etc., all the entrepreneur needs is purchasing VoIP minutes. Chowdhary elaborated on the innovative strategy employed by his company. "Call centers are highly successful in India and with this venture we allow small entrepreneurs to
open up shops with limited capital. We already have world-class infrastructure in place, all it needs to do is get the people and start operations. This facility is best for 12-20 seater outbound call center ventures," he said.

Reliance WebWorld has already struck five deals in diverse parts of India, from metros such as Hyderabad to smaller cities and towns such as Meerut, Saharanpur, Agra, and Bhubhaneshwar. The company charges Rs 8000 per seat per month, "So a person can operate a 12 seater call center for less than a lakh of rupees per month," said Chowdhary. Since the WebWorlds are registered under special provisions of the Shops and Establishment Act, they can operate 24x7 and even have female workers taking nightshifts.
Chowdhary is excited about the fact that new entrepreneurs are making the best of this business opportunity, "Of the five deals, four are new entrepreneurs and the one in Hyderabad, is an existing operator who wants to make use of additional capacity," he said. "We are targeting 50 deals this year, four per circle. That should be fine with us. Obviously most of these initiatives would not have been possible without adequate bandwidth," he added.

-Rajneesh De

 

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