Addressing the shareholders at the company's 40th annual general meeting, Ambani said that the company will invest in new sources of energy, aiming for leading positions in renewables
In yet another move to make the company future ready, Reliance Industries (RIL) plans to invest in new sources of energy like renewable and in materials having multiple new applications. Sharing Reliance’s value-creation strategy for both its existing and new businesses, Mukesh Ambani, chairman, RIL said, “India’s energy and materials demand will grow steadily to meet the needs of a fast-growing economy and the rapidly increasing aspirations of people.” Addressing the shareholders at the company’s 40th Annual General Meeting, Ambani said that the company will invest in new sources of energy, aiming for leading positions in renewables, as also in new materials which will have “dramatic and multiple new applications.”
“Our energy and materials businesses constitute a strong platform to generate stable, annuity-like cash flows with a potential to reach EBITDA of Rs 1 lakh crore within the next few years,” he added. The company over the last five years, has made capital investment of Rs 3.3 lakh crore, of which Rs 1.3 lakh crore were in its energy and material businesses and the remaining Rs 2 lakh crore in digital services.
In refining and petrochemicals, Ambani said the company’s goal is to be fully integrated producer of refining and petrochemical products serving the Indian and global markets. In petrochemicals, RIL’s Off-gas Cracker complex will be fully operational in a few weeks and production in less than six months from mechanical completion. The refinery Off-gas Cracker at Jamnagar is among the world’s largest and fully integrated crackers. The project was mechanically completed last quarter. Under the petroleum refining and marketing business, company’s Petcoke gasification project at Jamnagar has also made significant progress in the past year and is in an advanced stage of commissioning.
“This project will convert low value petroleum coke to high value fuels and Hydrogen and ensure energy self-sufficiency at Jamnagar. The benefits of the project will be immediately visible in lower energy cost and higher gross refining margins,” Ambani said. The company is also making efforts to make its domestic E&P (exploration and production) business economically viable in the coming years, he said. Additionally, RIL’s US Shale Gas business continues to face challenges due to lower prices, the company and its partners are making efforts to improve efficiency and rationalise these portfolio investments, he added. While the company has commenced commercial gas production from the CBM Blocks in Madhya Pradesh, RILand BP have recently approved an investment plan to monetize over 3 trillion cubic feet of gas from new fields in KG D6 block. “First gas from these fields is expected in mid-2020,” Ambani said.
Meanwhile, in the organised retail space, over the next 12 months, company aims to scale up the penetration of its stores into tier 2 and tier 3 cities of India. “Reliance Retail is a business with significant growth possibilities—I have set our leadership a target of 30% growth each year over the next decade,” he said.”