Reliance Industries Ltd. (RIL) plans to double its operating profit in five years, even as it steps up investments in its core and ‘consumer-facing' businesses.
Addressing shareholders at the 38 annual meeting, Mukesh Ambani, Chairman, said, “We will invest nearly Rs.1 lakh-crore over the next five years in India to build a stronger and more diversified Reliance.”
On refining and marketing business, Mr. Ambani said the company was aggressively pursuing partnership opportunities for feedstock. RIL is building the world's largest gasification facility to convert petroleum coke in to synthetic gas to be used as feedstock at the Jamnagar complex. “It is our target that this will add 30-40 per cent to the integrated Jamnagar complex margins within the next three years,” he said.
Next wave
Mr. Ambani said like other projects, the KG D6 had had its unique set of geological challenges. “The reserves from the existing D1 D3 field have proved far more difficult to produce than anticipated.” The company is now working with British Petroleum to understand the geology of the block and is chalking out an exploration and development campaign. The company is creating a pipeline of projects for the next “wave of oil and gas development projects which would include R series discoveries and satellite discoveries.”
The company hopes to add around 30 million metric standard cubic metres a day (mmscmd) through it. RIL will proceed with the development of two coal bed methane blocks in Sohagpur, Madhya Pradesh, and expects additional quantities of gas by 2015.
RIL's total investment in shale gas exceeds $3.5 billion and net resources of Reliance from its three joint ventures in the U.S. are about 10 trillion cubic feet. Net sales from the joint ventures are expected to increase 10 fold to nearly 300 billion cubic feet in five years and the shale gas business was a major area of investment over 3-5 years, he said.
Analysts feel that the company has clearly focussed its attention on the longer term.
Speaking to this correspondent, Dipen Shah, Senior Vice-President, Kotak Securities, said, “there were no major announcements made that would impact the short-term prospects. There were no major announcements on the retail business or the 4G telecom foray or even the oil exploration business. The large investment planned will yield results only over the medium term.”
Focus on retail
Mr. Ambani said Reliance Retail achieved revenues of Rs.7,600 crore last year. “We are targeting a growth of five to six times in existing revenues to achieve Rs.40,000-50,000 crore over the next three to four years.”
Also, Reliance is working on an integrated digital services business model, “to become a global leader in delivery of digital content, applications and services. We are currently finalising our plans to offer services on a nation-wide basis.”
Buyback
The company's ongoing buy-back offer was the largest-ever announced by an Indian company at Rs.10,440 crore. Mr. Ambani said. It has to-date bought back 2.7 crore shares worth Rs.1,929 crore.
Keywords: Reliance, RIL, Mukesh Ambani
Hats off !!
All said and done Its Ambanis who have given us the pride and shown us
how to grow in the complex scenario like this what is prevailing in our
country .
lets not criticise only but try to learn how to navigate and be
successfull .
best wishes for Ambanis
They can manage anything and everything. Power attracts power and money attracts even more money!
RIL has refused to provide a transparent account of their investment in the KG basin. Credible reports indicate the company 'cooked the books' to show a higher investment than actually invested in the blocks. Further, revelations on the Radia Tapes of political parties being lobbied on the floor of parliament to extend tax breaks for the company have been brushed aside. Whilst RIL's contribution in boosting domestic resource capacity is essential for the overall economy in the long term, we have an obligation to ensure the Government has not given them a pass on corporate governance standards.
Ambanis lead by example -they do what they speak and successfully. Ambanis are the leading refiners in the world today-hope they will lead also in harnessing nature in : wind-solar-thermal-geo-and nuclear power. dr. kalam can led the in mfging Thorium based nuclear power plants which can turn the middle east green and surplus with desalinated water.,thus indian can earn in billions of dollars by exporting this power plants thru out the oil rich middle east.they will only be eager and happy to use fresh water to irrigate and turn their deserts into greenery .we also export trained agriculturists and series of other skilled man power-technicians . Thorium is available in plenty in Assam unlike in uranium u have so much restrictions./bindings. Ambanis should start mfg these power plants under the guidance of dr. kalam. and be a leader in this front as well.
Whenever the Ambani Brothers announce mega projects, I get massive jitters because invariably allegations of gigantic frauds are made. They have such an amazing track record. Surprisingly they manage hoodwink the law every time!!
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