InvestorQ : What were the major announcements made by Mukesh Ambani at the 45th AGM of Reliance on 29th August?
Rashi Mehra made post

What were the major announcements made by Mukesh Ambani at the 45th AGM of Reliance on 29th August?

Archita Jajjoo answered.
2 months ago

The 45th AGM of Reliance Industries was conducted on 29th August 2022 and while Mukesh Ambani did try to answer most of the questions, he did leave some of the issues like the IPOs of Reliance Retail and Reliance Jio for future AGMs. Here are some key takeaways from the 45th AGM of Reliance Industries.

a) Ahead of the IPO there were strong expectations that board would indicate some dates for the IPOs of Reliance Jio and of Reliance Retail. However, Reliance AGM was non-committal on this front. On the positive side, the shareholders have been assured that they can expect a more tangible announcement on IPOs in the 46th AGM next year.

b) There was an elaborate discussion on the succession plan. For now, the businesses have been divided among gen-next although Mukesh Ambani will continue to be the sounding board for most of the key decisions on this front. The Ambani twins; Akash and Isha will drive the digital initiatives and the retail initiatives of the group respectively. These two groups will be much more closely coordinated dur to the overlapping nature of their businesses. The younger son, Anant Ambani, will take charge of the new energy business, with focus on green energy and making the O2C business carbon neutral.

c) There was a firm commitment on the 5G rollout, which would happen in Diwali 2022. The test pilot launch will be in Delhi, Mumbai, Kolkata and Chennai, but the all India roll out would be completed in 18 months from the date of 5G spectrum allocation i.e. December 2023. Jio 5G will connect over 10 crore homes.

d) On the retail side of the business, Reliance Retail is planning a major FMCG foray and the simultaneous integration with the Metaverse will allow the placing, managing and payment for grocery orders via WhatsApp. Reliance Retail has touched total turnover of Rs200,000 crore, and is now among the top 10 retailers in the whole of Asia. It is expected to contribute more than the O2C business over the next few years.

e) At the 45th AGM, Reliance group also reported some mindboggling numbers, unheard of in India so far. Reliance Jio has 421 crore customers for mobile broadband using 20 GB per month on an average. Its optic fibre network is over 11 lakh kilometres, enough to circle the equator 27 times. There were also record top line and bottom line numbers. RIL became the first Indian company to cross $100 billion in revenues and Rs1.25 trillion in EBITDA.

f) Finally, new energy continues to be a major focus area for Reliance group. It has committed to invest Rs75,000 crore to expand its existing petrochemical capacity over the next 5 years. The specific projects would include setting up a PTA plant, expanding polyester capacity, tripling capacity of vinyl chain and setting up a chemical unit in UAE.

One can argue that details on the monetization of Jio and Retail was missing in the AGM but there is enough grist for the mill.