 "Key takeaways from Reliance Communication 14th Annual General Meeting")
At the 14th annual general meeting (AGM), Reliance Communications (RCom) chairman Anil Ambani bid adieu to the telecom business, owing to intense slugfest in the sector. Once the regulatory approvals for spectrum sales to Mukesh Ambani’s Reliance Jio receive clearance, RCom will exit the telecom business completely.
RCom is planning to develop 133-acre infotech park Dhirubhai Ambani Knowledge City (DAKC) in Navi Mumbai into 30 million sqft of commercial space as part of its asset monetisation plan. The development will result in creating an area that is equivalent to 75 Nariman Points (Mumbai's central business district) or 10 new Bandra-Kurla Complexes.
Anil Ambani said Reliance Realty will be the engine of growth for them. The valuation of this project, according to an HDFC Realty study, is estimated to be over Rs 250 billion. RCom plans to develop the DAKC in 10 years. Around 3 mn square feet is already ready for commercial use and will be rented starting this year, Ambani said, adding that he expected revenue accruals through it this year itself.
Ambani said as they have moved out of the mobile sector, they will follow value accretive procedure and consider monetisation only at an appropriate time for RCom's enterprise business, which includes enterprise, data, submarine and long distance international voice calls.
For Reliance Infrastructure, Ambani reiterated that 100 per cent of the Rs 188 billion accrued from the sale of Mumbai power business to Adani Transmission will go towards the company’s zero debt target by next year. He said options for shareholder value creation like buybacks will also be addressed once the company is debt free next year.