In order to prepare the company for its next growth phase and double the group’s worth by 2027, or the conclusion of what it called its “golden decade,” Reliance Industries Ltd. chairman Mukesh Ambani presented major investment plans totaling 2.75 trillion and established a succession plan.
The investments include $2 trillion for the nationwide rollout of 5G services, $75,000 crore for the oils-to-chemicals (O2C) company, increased investments in the new energy business, and development into the fast-moving consumer goods sector.
“Together with our board, we are committed to making Reliance more robust, resilient, purposeful and truly future-proof,” Ambani said in an address to shareholders at the annual shareholder meeting on Monday. “In the short term, Reliance will more than double in value by the end of its Golden Decade in 2027, and then grow at an accelerated pace.”
Ambani stated his intention to double the group’s value by 2027, but he omitted to mention the value unlocking process through the initial public offerings of its retail and telecom companies, which investors were eager to hear about.
RIL’s stock price on Monday dropped 0.84% to 2,596.8 on the BSE, valuing the business at $17.56 trillion.
From international private equity investors, sovereign wealth funds, and internet behemoths like Facebook and Google, Reliance received funding for its retail and telecommunications divisions of closer to Rs. 1.5 trillion. These investors will be paying close attention to how the business follows the path for value development that Ambani set forth at the annual shareholders’ meeting.
Ambani added that over the next five years, the company will invest 75,000 crores in its O2C business to build India’s first carbon fiber factory and expand production in other industries like polyester and vinyl. Additionally, he stated that the group would expedite its plan to invest 75,000 crores in the creation of Jamnagar’s fully integrated new energy industrial ecosystem.
Jio’s capex plan, according to Aniket Dani, head of CRISIL Research, shows that there is rivalry to fast increase market share. Between this fiscal year and the following, “Crisil Research anticipates private players to open up” 3-5 trillion, with top players spending 2 trillion. This is almost the same amount as was spent on 4G between FY 2016 and 2019 but was split into two fiscal years, signaling a rush to seize market share early, according to Dani.
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