Reliance Industries Ltd. (RIL) on Tuesday announced new initiatives that aimed to bring a qualitative change in the organisation.
“Reliance has consistently generated over 25 per cent year-on-year returns for the last 30 years. It envisages a multi-fold growth in the near-term, with a far more widespread global footprint. This necessitates preparing the organisation for a new future, characterised by a changing world of business,” Chairman and Managing Director Mukesh Ambani stated here at the company’s 35th annual general meeting.
“This business transformation initiative would, in my view, create a Reliance that is able to scale up existing businesses; add new businesses both organically and inorganically; and accomplish all this with the least of stress. In essence, it will transform Reliance into a truly next generation enterprise, prepared for an even more expansive and start exciting journey in the coming decades of the 21 Century,” said Mr. Ambani.
It is now engaged on realising a renewed five-platform road map for value creation.
New oil and gas discoveries, new petrochemical project and global growth by acquisitions in the energy and materials value chain would exemplify the first platform. “Our efforts would be to grow the conventional energy and materials platform through greater global scale and competitiveness,” Mr. Ambani said.
The second platform is in services, specifically in organised retailing.
“Our efforts would be on expanding the edifice created by Reliance Retail at the customer end and reinforcing the supply chain and logistics. New product and service offerings, expanded footprint of stores and an overarching supply chain infrastructure would characterise these efforts,” Mr. Ambani said.
The third platform would be in the renewable energy space, as a natural extension of the conventional energy platform. The fourth platform is in innovation. Efforts here would be in new business models and technologies that are either integral or adjunct to our business. New performance materials and new process technologies would signify these efforts.
The fifth and final platform is in rural transformation. These efforts, according to Mr. Ambani, would be on improving income and skill levels by linking farmers in rural areas to urban and export markets.
Mr. Ambani also announced the formation of the Reliance Foundation endowed with an initial contribution of Rs. 500 crore from RIL and rapidly scaling up to Rs. 1,000 crore. In its charter, the foundation would address social development imperatives, specifically quality, formal and vocational education, affordable high-quality health care, meaningful rural development and urban renewal, and protection and promotion of India’s priceless heritage of arts and culture.
It would embody a corporate systems and processes-driven organisation operating on a not-for-profit basis. In its constitution, it would comprise accomplished professionals from within and outside Reliance who are deeply committed to contributing to India’s development.
“More resources will be made available in the coming years as the Foundation expands its activities. Over the coming months, the Foundation will develop specific programmes and projects that will address some of our most pressing challenges,” Mr. Ambani said. Shareholders also approved the board decision to issue bonus shares of one for every one share of Reliance held.