Reliance Industries chairman and managing director Mukesh Ambani on Monday addressed the shareholders of the company at its 42nd annual general meeting (AGM).
Shares of Reliance Industries (RIL) surged 10.18% to Rs 1280.25. Domestic equity market was shut on Monday, 12 August 2019, on account of Bakri Id.Mukesh Ambani stated that the slowdown in some sectors of economy is temporary, adding that India has potential to grow into $10 trillion economy by 2030.
The fundamentals of the Indian economy are very strong. The opportunities will grow further with structural reforms. India has political stability. The government is laying the foundation of new institutions for business promotion and regulation. New long-term measures are being taken to improve ease of living for all citizens, and reduce income inequality, he added.
Mukesh Ambani said RIL ended last year with net debt of Rs 154,478 crore. The company has clear roadmap to becoming a zero net debt company within the next 18 months that is by 31 March 2021.
Saudi Aramco and RIL have agreed to form a long-term Partnership in our Oil to Chemicals division.In terms of the understanding between the parties, Saudi Aramco will invest in Reliance for a 20% stake in O2C division at an Enterprise Value of $75 Billion. This Partnership will cover all of RIL's Refining and Petrochemicals assets, including 51% of the Petroleum Retail JV.
RIL and BP signed a Joint-venture in the petroleum retailing business. In a significant new initiative, BP is acquiring 49% stake in RIL's petro-retail business. RIL will get Rs 7,000 crore from BP for this transaction.
Ambani assured shareholders that RIL will reward them through higher dividends, periodic bonus issues and other means, and at a more accelerated pace.
RIL has received strong interest from strategic and financial investors in its consumer businesses, Jio and Reliance Retail. The firm will induct leading global partners in these businesses in the next few quarters, and move towards listing both these companies within the next five years. RIL will also evaluate value unlocking options for its real estate and financial investments.
Reliance JioFiber broadband services are set to launch from 5th September. Reliance Jio's digital set-top box will come bundled with ultra high definition entertainment, virtual reality content multi-party video conferencing, voice-enabled virtual assistants, interactive gaming, home security and many other smart-home solutions. Voice calls from home to any Indian operator - mobile or fixed - will be absolutely free forever.
Jio Fibre plan starts with 100 Mbps speed and goes all the way up to 1 Gbps or 1000 Mbps. This will disproportionately improve the quality of fixed-line data in India. And prices are at less than 1/10th the global rates, to make it accessible for all. Jio Fiber plans will be priced between Rs 700 to Rs 10,000 per month to suit every budget and every need.
Under a Welcome Offer, Jio Fiber customers who opt for annual plans, will get an HD or 4K LED television and a 4K set-top-box absolutely free
Jio Fiber customers will be able to watch movies in their living rooms the same day these movies are released in theatres. The firm calls this Jio first-day-first-show. It plans to launch this service in the middle of 2020.
Reliance Jio has invested nearly Rs 3.5 lakh crore towards creating a state-of-the-art digital infrastructure across India, with the largest optical fiber footprint. Jios customer base has crossed 340 million users and it is signing up more than 10 million new customers each month.
Reliance Retail is the only Indian retailer to be ranked in the Global 100 top retailers. Over the next 5 years, it aims is to be amongst the world's top 20 retailers. The retail business has grown phenomenally, registering a 7-fold increase in revenue and a 14-fold increase in profit in the last 6 years. Relentless focus on operating discipline has resulted in a 3-fold rise in per store productivity in last 5 years, Mukesh Ambani said.
RIL's retail arm will soon unveil Reliance New Commerce, an initiative to digitally connect kirana stores across the country. The purpose of 'new commerce' is to transform unorganised retail into organised retail. New commerce is a $700-billion business opportunity, said Mukesh Ambani.
On consolidated basis, RIL's net profit rose 6.8% to Rs 10104.00 on 21.9% rise in net sales to Rs 1,56,976 crore in Q1 June 2019 over Q1 June 2018.
Outstanding debt as on 30 June 2019 was Rs 288,243 crore compared to Rs 287,505 crore as on 31 March 2019.
Cash, cash equivalents and marketable securities as on 30 June 2019 were at Rs 131,710 crore ($ 19.1billion) compared to Rs 133,027 crore as on 31 March 2019. These were in bank deposits, mutual funds, CDs, Government Bonds and other marketable securities.
RIL is engaged in hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and telecommunications.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
