Reliance Industries Chairman Mukesh Ambani said India’s current economic woes are temporary and the country will emerge stronger from the difficulties. Ambani was addressing the 38th Annual General Meeting of the company in Mumbai.
Reminding investors of the returns the company has delivered over the years, Ambani said, “Reliance has a unique track record of organic growth and value generation for last 34 years. An investment of Rs 1,000 in our IPO has grown to Rs 7.78 lakh today."
The assurance came as Reliance shares fell by a third last year. The stock trades near a 3-year low and its market value has sunk to below $41 billion, dumping Ambani from the top of Asia's rich-list. Shares in the company closed off the day's high, rising 0.75 per cent at Rs 721.25 on the Nifty index.
Here are 10 big announcements from the AGM:
1) Cash pile: Reliance will invest Rs 1 lakh crore in the next five years. The company generates up to $1 billion in free cash every quarter and held $13.8 billion at March-end.
2) Profits: The company has set a target of doubling its operating profits in five years.
3) KG D6 output: Mukesh Ambani has set a target of 60 million cubic meters a day (mmscmd) gas output in two to three years. Output from the gas field has plummeted to a record low.
4) Refining margins: Projects in petrochemicals and refinery downstream will come online in the next 2 to 3 years. Investments in refinery downstream will add 30 to 40 per cent to margins, Ambani said.
Falling demand has pushed down oil prices and refining margins, hurting RIL’s core business. Gross refining margins were $7.60 per barrel for the March quarter, sharply lower compared with $9.20 a year earlier, but more than the $6.80 the energy major reported in the December quarter
5) Shale gas production currently at 30 billions of cubic feet equivalent will grow ten times in five years.
Reliance has cooled in its hunt for acquisitions in North American shale gas as U.S. natural gas prices have plunged.
6) Retail push: Retail will be a significant and profitable business for Reliance within 3 years, Mukesh Ambani said.
The retail business continues to lose money and, despite 1,300 stores, the company is nowhere close to the scale it aimed for at the time of its launch.
7) Digital: 4G commercial rollout plans are being finalised.
8) Reliance is increasing its polyester capacity by 1.5 million tonne in the next two years. It is also enhancing intermediate capacity to capture full value in chain.
9) Reliance will be the sole producer of poly-butadiene rubber in India. 290 KTA of PBR/ SBR and Butyl Rubber will make RIL amongst the top 15 producers in the world.
10) RIL will offer specialised content in key domain areas like education, healthcare, security, entertainment, financial services, and government-citizen interface.
Reliance AGM: Top 10 announcements by Mukesh Ambani
Reminding investors of the returns the company has delivered over the years, Ambani said, “Reliance has a unique track record of organic growth and value generation for last 34 years. An investment of Rs 1,000 in our IPO has grown to Rs 7.78 lakh today."
The assurance came as Reliance shares fell by a third last year. The stock trades near a 3-year low and its market value has sunk to below $41 billion, dumping Ambani from the top of Asia's rich-list. Shares in the company closed off the day's high, rising 0.75 per cent at Rs 721.25 on the Nifty index.
Here are 10 big announcements from the AGM:
1) Cash pile: Reliance will invest Rs 1 lakh crore in the next five years. The company generates up to $1 billion in free cash every quarter and held $13.8 billion at March-end.
2) Profits: The company has set a target of doubling its operating profits in five years.
3) KG D6 output: Mukesh Ambani has set a target of 60 million cubic meters a day (mmscmd) gas output in two to three years. Output from the gas field has plummeted to a record low.
4) Refining margins: Projects in petrochemicals and refinery downstream will come online in the next 2 to 3 years. Investments in refinery downstream will add 30 to 40 per cent to margins, Ambani said.
Falling demand has pushed down oil prices and refining margins, hurting RIL’s core business. Gross refining margins were $7.60 per barrel for the March quarter, sharply lower compared with $9.20 a year earlier, but more than the $6.80 the energy major reported in the December quarter
5) Shale gas production currently at 30 billions of cubic feet equivalent will grow ten times in five years.
Reliance has cooled in its hunt for acquisitions in North American shale gas as U.S. natural gas prices have plunged.
6) Retail push: Retail will be a significant and profitable business for Reliance within 3 years, Mukesh Ambani said.
The retail business continues to lose money and, despite 1,300 stores, the company is nowhere close to the scale it aimed for at the time of its launch.
7) Digital: 4G commercial rollout plans are being finalised.
8) Reliance is increasing its polyester capacity by 1.5 million tonne in the next two years. It is also enhancing intermediate capacity to capture full value in chain.
9) Reliance will be the sole producer of poly-butadiene rubber in India. 290 KTA of PBR/ SBR and Butyl Rubber will make RIL amongst the top 15 producers in the world.
10) RIL will offer specialised content in key domain areas like education, healthcare, security, entertainment, financial services, and government-citizen interface.
Reliance AGM: Top 10 announcements by Mukesh Ambani