Reliance to invest $18 billion in India, double its operating profit over next 4-5 years: Mukesh Ambani - The Times of India
Reliance to invest $18 billion in India, double its operating profit over next 4-5 years:
Reliance Industries has bought back 27 million shares to date, 22.5 percent of its share buyback target, chairman Mukesh Ambani said.The author has posted comments on this articlePTI | Jun 7, 2012, 12.02PM ISTMUMBAI: Reliance Industries on Thursday announced investment of Rs 100,000 crore in core businesses of petrochem and oil and gas as well as in new sectors of retail and telecom, to double operating profits in 4-5 years.
Addressing company shareholders, RIL chairman and managing director Mukesh Ambani said new projects in petrochemicals and refinery business would come online in the next 2 to 3 years.
Investments in refinery downstream would add 30-40 per cent to margins while retail business would be a significant and profitable business for RIL within 3 years, he said.
He said 4G commercial rollout plans are being finalised even as the company bets big on shale gas production with output projected to grow ten times in five years from current 30 billion cubic feet.
"Even after this investment of Rs 100,000 crore, our balance sheet will be the strongest not only in India but in the world," he said.
Ambani said while the main natural gas reservoir in the eastern offshore KG-D6 has proved to be difficult to produce, the company is pinning hope on satellite fields in the area to ramp up output to 60 million standard cubic meters per day on a sustained basis.
"We currently finalising plans to offer nationwide digital services," he said.
Reliance Retail aiming 5-6 times revenue growth
Aiming to make consumer businesses a key part of the business, Mukesh Ambani said that the group's retail venture was aiming to grow its revenue 5-6 times and achieve sales of Rs 40,000-50,000 crore in the next three to four years.
"We are investing aggressively in this business (Reliance Retail)... We are targetting 5-6 times of existing revenue and achieve sales of Rs 40,000-50,000 crore and would turn profitable within this time period," Ambani said.
He further said that Reliance Retail will be one of the important growth drivers for the group.
Ambani further said that the business has grown strong in five years of its beginning with over 1,300 stores and has created a leadership position.
He further said that Reliance Retail has provided new employment for 50,000 people, including 25,000 people directly by Reliance.
The company was looking to grow its customer base by over three-times from about 30 lakh people visiting its retail stores every week currently to over one crore people every week in 3-4 years, he said.
Ambani further said that Reliance Retail through its newest format Reliance Markets is partnering kirana stores and small retailers to supply them products at low prices.
"We aim to be a supplier of choice for kiranas and small retailers... We will grow in retail in partnerships with small retailers," he added.
"We have strengthened our portfolio of global brands through partnerships... We will continue to invest in partnerships with consumers, brands and producers," he said.
"Consumer businesses will form a significant part our our business in less than a decade," he noted.
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