Mumbai, Addressing an annual meeting of shareholders, Mukesh Ambani, the worlds fourth-richest man, said Reliance Industries will continue to invest in the development of shale gas in North America as part of its strategy to become a significant player in the business.
Reliance Industries said it will foray into the electricity business and re-enter telecommunications as it sets out to diversify after the recent scrapping of a non-compete pact between its billionaire founder, Mukesh Ambani, and his younger brother, Anil.
Mukesh Ambani said the cancellation of the agreement and the signing of a new pact with Anil has opened up the full range of power business for Reliance except non-captive gas-based power plants until 2022.
This paves the way for Reliance to participate in the whole value chain of the power business spanning generation, transmission and distribution, Ambani said. We are ready to bring into full play our investment mobilization capabilities into a sector that is crying out for transformational mega-initiative.
He said Reliance Industries is preparing specific plans for mega-investment in this sector with clean coal-based power generation projects, hydel projects and also in nuclear power as and when it is opened up (to private companies).
Reliance Industries is also focusing on alternative energy, he added.
Key Takeaways from Mukesh Ambanis AGM Speech:
- Supply of gas to ADAG power plants subject to Government allocation; Look forward to a harmonious and constructive relationship with ADAG
- Investment in Capex of Rs. 21,943 crore in difficult operating environment and paid Rs. 17,972 crore in taxes and duties an increase of 55%
- To embark on largest capacity addition in polyester
- To also make new investments in petrochemicals including a gas cracker; largest investment in this sector anywhere in the world
- RIL to build one of the largest coke gasification facilities making the Jamnagar refinery a bottomless refinery in terms of value creation
- E&P to focus on growth, production assurance and reserves accretion; Accelerated development in KG, Mahanadi, Cambay and Coal Bed Methane blocks
- India to pole vault from 1G and 2G to 4G and beyond; Wireless Innovation Centre in Mumbai to develop products for 4G; Infocomm could potentially be as big an opportunity as energy business
- Reliance Foundation to develop World Class University, Sir HN Hospital and innovative low cost high output efforts in Sustainable Agriculture, Will also aim at preserving and promoting Indian art and culture
- RIL to double enterprise value of USD 80bn within the next decade
Notes to Editor
Reliance Group
The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is Indias largest private sector enterprise, with businesses in the energy and materials value chain. Groups annual revenues are in excess of US$ 44 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India.
