Reliance Industries AGM | Key Highlights

Reliance Industries’ Road Map to a Become Zero Net-Debt Company

Reliance Industries AGM | Key Highlights

Reliance Industries’ Road Map towards a Zero Net-Debt Company by 31st March, 2021

Introduction

Reliance Industries Ltd’s 42nd AGM held today. Lets discuss the key highlights of the AGM 2019 and the company’s road map towards a zero-net debt company by 31st March, 2021.

Reliance Industries Ltd AGM 2019 Key Highlights

Reliance Industries Ltd (RIL) is the only diversified Indian enterprise with 3 major growth engines in one single corporate entity :

  1. Oil-to-chemicals division
  2. Reliance Jio
  3. Reliance Retail

All 3 have done exceedingly well in the past years.

Lets see the key highlights of Reliance Industries AGM 2019 announced by the Chairman and Managing director of Reliance Industries Ltd Mr.Mukesh Ambani.

1.Reliance Oil-to-Chemical

  • RIL is having most comprehensive and integrated oil-to-chemicals (OTC) business.
  • Saudi Aramco and RIL have agreed to form partnership will invest in RIL for 20% stake in oil-to-chemical business with an enterprise value of $75 billion or over 5.3 lakh crore. Saudi Aramco will supply 500,000 barrels of oil to Jamnagar refinery. It is one of the largest Foreign investment in India.
  • JV with BP will invest Rs 35,000 crore in KG-D6. Focusing on augmenting production of methane; partnership with BP will help here. Reliance to get Rs 7,000 Cr by selling 49% stake in its Fuel-Retail business to BP.
  • Oil to chemicals business achieved revenue of Rs 5.7 lakh crore, exports of Rs 2.2 lakh crore.
Detailed Stock Analysis by Invest Yadnya

2.Reliance Jio

  • Reliance Jio Crossed 340 Million Subscriber Mark  Jio become the world’s fastest growing digital player; it is larger than all other major retail business put together.
  • Jio fibre plans will be priced between Rs 700 to Rs 10,000 per month. 
  • Voice calls from home to any network will be free. International pack for calls to US/Canada at Rs 500 per month. 
  • Jio first day first show will be launched in middle of 2020 
  • Reliance Jio fibre customers who opt for annual lifetime plans will get an LED 4k HD TV and set top box free.
  • Jio will install a blockchain network across India 
  • Jio announces partnership with Microsoft to accelerate digital transformation of India 
  • IoT services to be available from Jan 1, 2020 
  • Jio fibre roll out within next 12 months 
  • Jio launches Jio set top box 
  • Reliance Jio’s customer base crossed 340 Mn and more than 10 Mn new customers every month are being added. 
  • Jio has invested 3.5 lakh crore in digital infrastructure.  Because of early adoption to LTE tech, our wireless is 4G ready and can upgrade it to 5G.

3.Reliance Retail

  • Reliance Retail crossed turnover Rs 1.3 lakh crore to be largest retail company.
  • Reliance’s Consumer business – Jio and Retail verticals bring in 34% of consolidated EBITDA from 2% in last 5 years.
  • Reliance Jio and Reliance Retail are proposed to be get listed in next 5 years.

4.Reliance Industries’ 4 New Revenue Engines

Reliance is to start 4 more engines to generate revenues: 

  1. Internet of Things all over India
  2. Home Broadband
  3. Enterprise broadband
  4. Broadband for small and medium businesses
 Reliance Industries AGM 2019
Reliance Industries AGM 2019 | Key Highlights

5.Road Map towards zero net-debt company

  • Reliance Industries aims to become zero net-debt company in next 18 months, by 31st March 2021.
  • Reliance’s Consumer business – Jio and Retail verticals bring in 34% of consolidated EBITDA from 2% in last 5 years.
  • Reliance Industries’ Rs. 5.4 Lakh crore investments over the last 5 years will generate EBITDA in excess of $ 1 billion annually for over a decade.
  • Thus, based on the new and existing growth engines, Reliance Industries can grow EBITDA by 15% annually over the next 5 years.
  • According to this growth rate, consumer business’s share soon will be 50% of Reliance Industries’ consolidated EBITDA.
  • Company will reward shareholders abundantly with bonus issues and higher dividends, once the company is debt-free.

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