September 7, 2024
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Stock Market

Everything you need to know about RIL 47th AGM; Future plans and Growth prospects explained

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Stock Market

Everything you need to know about RIL 47th AGM; Future plans and Growth prospects explained

Reliance Industries Limited (RIL) recently outlined its future strategies at its Annual General Meeting (AGM). As a leading force in India’s business sector, RIL highlighted its plans for growth across retail, digital services, and energy. The company’s innovative approaches and strategic investments underscore its commitment to driving substantial value. With a strong performance in recent years and a focus on sustainability, RIL is well-positioned to enhance its role in India’s dynamic economic landscape.

This article examines Reliance Industries Limited’s (RIL) growth strategies from its recent AGM, covering plans for retail, digital services, and energy. It highlights RIL’s financial performance, innovation, and sustainability focus, positioning it as a leader in India’s economic landscape amid a backdrop of strong economic growth.

Company Overview Of Reliance Industries

Dhirubhai Ambani founded Reliance Industries Limited (RIL) in 1957 as a textile trading company, which has since evolved into India’s largest private sector conglomerate. RIL now dominates diverse sectors including energy, petrochemicals, retail, telecommunications, and digital services, cementing its position as a cornerstone of the Indian economy.

The Ambani family, led by Chairman and Managing Director Mukesh Ambani, holds the majority stake in RIL. Institutional investors and the public also own significant portions, demonstrating the company’s broad market appeal.

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RIL’s history is filled with transformative moments. The company established India’s largest refinery complex in Jamnagar and revolutionised the telecom sector with Jio, consistently pushing boundaries. RIL’s recent forays into retail and new energy highlight its adaptability and forward-thinking approach.

AGM Highlights

Reliance Industries has achieved a milestone as the first Indian company to reach a $250 billion market cap. It also ranks among the world’s top 50 companies. The conglomerate aims to double its value by 2027. Jio and Retail are expected to double revenues and EBITDA within 2-3 years.

RIL also plans to grow its New Energy business to match O2C’s scale in 5-7 years. This ambitious growth strategy demonstrates RIL’s commitment to diversification and innovation across sectors, positioning it as a leader in India’s economic landscape.

Shareholder Benefits

Since its IPO, RIL has issued four rights issues and five bonus shares, consistently rewarding its investors. The 2020 rights issue investments have grown nearly 2.5 times, showcasing the company’s strong performance. The company plans to consider a 1:1 bonus share issuance on September 5, 2024.

This follows the significant value unlocking through Jio Financial Services’ demerger. These moves reflect RIL’s commitment to creating and distributing value to its shareholders, enhancing their long-term returns.

AGM 2024 Takeaways

1. RIL achieved a milestone by becoming India’s first company to surpass ₹10 lakh crore ($119.9 billion) in annual revenue. This astronomical figure underscores RIL’s dominance in the Indian market and its significant contribution to the national economy.

2. The company’s exports reached ₹2,99,832 crore ($35.9 billion), accounting for 8.2% of India’s total merchandise exports. This highlights RIL’s crucial role in boosting India’s global trade presence.

3. RIL invested heavily in R&D, spending ₹3,643 crore ($437 million) in FY24 alone. Over the past four years, the company has poured over ₹11,000 crore ($1.5 billion) into research, demonstrating its commitment to innovation and technological advancement.

4. In a testament to its innovative spirit, RIL filed over 2,555 patents last year. These patents cover cutting-edge areas such as bio-energy, solar power, green energy sources, and high-value chemicals.

5. RIL has embraced AI and digital technologies across its businesses. The company has developed an AI-native digital infrastructure and a comprehensive software stack, integrating end-to-end workflows and real-time dashboards.

6. RIL is actively contributing to India’s transformation into a Deep-Tech Nation. The company has filed patents in advanced technologies like 6G, 5G, AI-Large Language Models, and Internet of Things, positioning itself at the forefront of technological innovation.

7. RIL’s operations are guided by a ‘We Care’ philosophy, instilled by its founder, Dhirubhai Ambani. This approach emphasises doing business with a broader and noble purpose, beyond just profit-making.

Segment wise Highlights from AGM

Reliance Retail

Now among the top 10 global retailers by market cap and top 30 by revenue, Reliance Retail boasts over 300 million registered customers. It operates 19,000+ stores across 7000+ cities, covering 80 million sq.ft. With 4 million+ merchant partnerships, the company aims to double its business in 3-4 years.

Its brand portfolio includes Avaasa and Netplay (>₹2,000 crore annual sales) and John Players (>₹1,000 crore annual sales). The company has also ventured into fast fashion with Yousta and Azorte, and formed partnerships with ASOS and Shein to offer trendy fashion, catering to diverse consumer preferences.

Digital Services

Jio’s customer base has reached 490 million, handling 8% of global mobile traffic. With 30GB+ monthly data consumption per user, Jio leads in 5G deployment (85% of India’s 5G cells). It targets 100 million homes and 20 million SMBs, focusing on AI infrastructure development.

Jio has also emerged as the largest digital home provider with nearly 30 million customers, revolutionising internet connectivity across India. The company’s future plans include incorporating advanced AI infrastructure, further solidifying its position as a tech leader.

Media & Entertainment

JioCinema achieved 620 million IPL 2024 views and 15 million paid subscribers in 100 days, marking a significant milestone in digital streaming. News18 brands lead in general and business news, while Moneycontrol Pro boasts 850,000+ paid subscribers, ranking among the top 10 subscription sites globally.

A partnership with Disney marks a new era in Indian entertainment, promising to bring world-class content to Indian audiences. This segment’s growth underscores RIL’s strong presence in the evolving media landscape.

O2C and Upstream

RIL operates India’s largest industrial assets, expanding vinyl and polyester chains to meet domestic demand. It plans 1.5 MMTPA PVC facilities by 2026-27 and 1 MMTPA specialty polyester capacity. The company is also expanding its virtual ethane pipeline from North America by ~50%, adding three more VLECs to its existing fleet of six ethane carriers.

RIL is developing a world-class integrated carbon fibre plant at Hazira to provide new versatile materials and composites for infrastructure applications, showcasing its commitment to advanced materials and sustainability.

New Energy

Committing ₹75,000 crores, RIL is building an integrated ecosystem for solar, BESS, and electrolysers. It plans a 30 GWh battery facility by next year’s second half, with modular designs for scalability. The company aims for multi-GW electrolyser production by 2026 and targets 55 Compressed Biogas plants by 2025.

RIL is also developing RE-RTC at GW scale and green fuels to provide pathways to Net Zero by 2035. The company has secured land at Kandla port to facilitate production and evacuation of green fuels to international markets, positioning itself as a key player in the global transition to clean energy.