Ambani truce: RIL to enter power, communication
RIL, the country’s largest conglomerate in terms of value, will enter the power and communication sectors with huge investments, besides pumping in money to expand its existing operations in various sectors.
New Delhi: Reliance Industries, the country’s largest conglomerate in terms of value, will enter the power and communication sectors with huge investments, besides pumping in money to expand its existing operations in various sectors ranging from petrochemicals to retailing, its chairman and managing director Mukesh Ambani said Friday.
Speaking at the company’s annual shareholders` meeting, an emphatic chairman Mukesh said Reliance pariwar (family) is on its way to becoming “one of the most valuable corporations in the world.
End of rivalry
Signalling a “harmonious” relationship with younger brother Anil Ambani’s Reliance-Anil Dhirubhai Ambani Group (R-ADAG), Ambani said RIL will supply natural gas to ADAG’s power plants as and when they are ready to receive the gas.
"With the legal dispute behind us, we look forward to harmonious and constructive relationship with ADAG," Ambani said at the meeting, for which Anil did not turn up as speculated in the market and media.
The supplies to ADAG power plants including the one proposed at Dadri near Delhi, will be subject to government approving the allocation of the fuel, Ambani said.
The Supreme Court had last month asked the companies headed by the two brothers to rework a gas supply contract keeping the government policy on pricing and allocation in mind.
Mukesh, 53, however did not say when RIL will be entering into a new Gas Sales and Purchase Agreement (GSPA) with Anil`s Reliance Natural Resources Ltd (RNRL) as had been ordered by the apex court.
Ready for a ‘big surge’
Praising the performance of the Reliance group in the last year, Ambani said the conglomerate was ready for a big surge in a growing India.
“Reliance is ready to become the vanguard of India’s epic leap forward,” en emphatic RIL chairman told the shareholders.
He added that despite the global economic slowdown, RIL’s turnover surged 37 percent last fiscal to Rs 200,400 crore.
The company has now become the largest exporter in the country, Ambani said.
On expansion mode
He added that RIL’s production base is expanding day by day and the company plans to double it in three years.
RIL production from KG-D6 block exceeds 60 million standard cubic meters per day and over 30,000 barrels per day, Ambani said.
“RIL has intensified exploration campaign off the east coast.”
The company, according to the chairman, is now looking at expediting developing discoveries in blocks KG-D6 in Krishna Godavari basin, NEC-25 in Mahanadi basin, CB-10 in Cambay basin and Sohagpur CBM block.
Ambani said RIL, which acquired 40 percent in shale gas assets of Atlas Energy in the US, will continue to pursue gas opportunities abroad.
Regarding the scrapping of a non-compete agreement with ADAG, Ambani said “it was game changing development” and paves way for Reliance to participate in power sector.
“The company is drawing mega investment plans in coal, hydel and nuclear power sectors.”
He further said Reliance is now a USD80 billion enterprise.
“It took three decades for Reliance to create an enterprise value of over USD 80 billion. In less than a decade, we will create what we have done in the last 30 years,” Ambani told the shareholders.
Ambani further laid out the details of the projects undertaken by the Reliance Foundation.
“The major project the Foundation has taken up is the setting up of a world class university under the leadership of my wife Nita,” he said.
He added that the Foundation is also setting up a world class hospital in Mumbai, which will be operational in two years.
Another major initiative of the Reliance Foundation is to work with farmers to help them increase their profits and agricultural output.
The Foundation will work with the government and other partners in areas like education and health, and will promote Indian art and culture, Ambani said.