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Reliance to go for more acquisitions post merger
Reliance Industries on Monday said that it would aggressively look for new growth opportunities in India and abroad after its merger with unit Reliance Petroleum.
Reliance Industries on Monday said that it would aggressively look for new growth opportunities in India and abroad after its merger with unit Reliance Petroleum.
Post merger, Reliance Industries will be the only Indian private company among the Fortune 500 global companies, with sales of Rs 58,000 crore ($11.83 billion) and net profit of Rs 4,000 crore.
"Reliance will maintain its record of growth and will pursue newer opportunites in each of its businesses, both domestically and internationally," Reliance Group chairman Dhirubhai Ambani told shareholders at an extraordinary general meeting held here Monday to approve the company's merger with Reliance Petroleum.
The boards of the two companies earlier last month approved a one-for-11 share swap ratio for absorbing RPL into RIL. Accounting and auditing firms PricewaterhouseCoopers and SB Billimoria, a member of Deloitte Touche Tohmatsu International, were joint valuers of the merger and JM Morgan Stanley was the financial adviser.
Ambani said that the new growth opportunities would be in areas such as hydrocarbons, given the proposed privatisation of state-owned oil companies.
The government plans to sell part of its stakes in two state-oil companies -- Bharat Petroleum and Hindustan Petroleum as part of its ongoing privatisation programme. Ambani said that post merger, Reliance Industries would focus on the size and scale of operations relative to the integrated global energy companies.
"We still have a long way to go. Even after the merger, RIL's sales, profits and assets will be less than 10 per cent of the respective figures for the largest global energy companies," he said.
"Therein lies the challenge and the opportunity as well as the enormous potential for future growth."
He said that the per capita consumption of Reliance's major products in India was still among the lowest in the world.
"This indicates strong potential for sustained future growth. We have set our sights higher and we have the advantage of being the market leaders for all our major products in India, one of the fastest growing markets globally," Ambani added. Bureau Report
Post merger, Reliance Industries will be the only Indian private company among the Fortune 500 global companies, with sales of Rs 58,000 crore ($11.83 billion) and net profit of Rs 4,000 crore.
"Reliance will maintain its record of growth and will pursue newer opportunites in each of its businesses, both domestically and internationally," Reliance Group chairman Dhirubhai Ambani told shareholders at an extraordinary general meeting held here Monday to approve the company's merger with Reliance Petroleum.
The boards of the two companies earlier last month approved a one-for-11 share swap ratio for absorbing RPL into RIL. Accounting and auditing firms PricewaterhouseCoopers and SB Billimoria, a member of Deloitte Touche Tohmatsu International, were joint valuers of the merger and JM Morgan Stanley was the financial adviser.
Ambani said that the new growth opportunities would be in areas such as hydrocarbons, given the proposed privatisation of state-owned oil companies.
The government plans to sell part of its stakes in two state-oil companies -- Bharat Petroleum and Hindustan Petroleum as part of its ongoing privatisation programme. Ambani said that post merger, Reliance Industries would focus on the size and scale of operations relative to the integrated global energy companies.
"We still have a long way to go. Even after the merger, RIL's sales, profits and assets will be less than 10 per cent of the respective figures for the largest global energy companies," he said.
"Therein lies the challenge and the opportunity as well as the enormous potential for future growth."
He said that the per capita consumption of Reliance's major products in India was still among the lowest in the world.
"This indicates strong potential for sustained future growth. We have set our sights higher and we have the advantage of being the market leaders for all our major products in India, one of the fastest growing markets globally," Ambani added. Bureau Report