InvestorQ : What are the green initiatives announced in the AGM of Reliance Industries?
swati Bakhda made post

What are the green initiatives announced in the AGM of Reliance Industries?

Sam Eswaran answered.
1 year ago

The 44th AGM Reliance Industries did have green shift as its theme. First, let me dwell on the sale of the stake in Reliance O2C to Aramco, that has been in the works for some time now. The 20% stake sale in Reliance O2C to Aramco is likely to fetch $15 billion and it will bankroll the green energy plans of RIL. RIL has confirmed that deal will be done by this fiscal and even H.E. Yasir Al-Rumayyan gets a seat on the board of directors of Reliance Industries.

There is an aggressive plan rollout on green energy. For example, Reliance plans a Rs.75,000 crore investment in green power over the next 3 years. This will include big investments in factories to manufacture hydrogen cells, green hydrogen, solar power equipment, solar batteries and more. The idea is to make Reliance Group totally zero-carbon by the year 2035. In short, its entire product portfolio will move from fossil fuels to green fuels.

The biggest takeaway from the AGM was that green energy could emerge as the big driver of RIL valuations in the future; a lot like digital and retail are driving valuations today. In a nutshell, oil is generating a lot of cash but contributing just one-third to the total valuation of the Reliance group. As digital and retail start to saturate, RIL group needs a new theme to drive valuations for shareholders. That is the role green energy will play.