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Mukesh Ambani Solidifies Reliance Legacy At 44th AGM- Biggest Highlights

From net-zero carbon emission mission to qualifying among top 10 retail stores, these are the larger than life highlights Annual Meeting of India's bellwether conglomerate.

Highlights

  • India's largest private company welcomes Aramco's Chairman to its board of directors.
  • Google joins hands with Reliance to expand 5G network in India.
  • Reliance Retail to become one of the leading global forces in the industry soon.
  • Massive green energy investments worth billions to roll out over the next three years.

The 44th Annual General Meeting of Reliance Industries Limited (RIL) culminated with Chairman Mukesh Ambani's report on the company's performance and the future paths that India's largest company seeks to take in the coming years. The virtual webcast held on Thursday was attended by over 300,000 shareholders from 41 countries.

The event was lined up by back-to-back landmark announcements that solidify the bellwether's future legacy furthermore. From the refinery to the consumer sector, Reliance Industries unveiled its massive plans and fundamental shifts related to industry focus.

Here are the key takeaways from the 44th Annual General Meeting of Reliance Industries Limited:-

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Reliance Industries Financials (2020-21)

The Fortune 500 Company and India's largest private conglomerate reported its consolidated turnover for FY 2020-21 at Rs. 5,39,238 crore. The net worth of the company for the year was valued at Rs. 5,87,999 crores which is 58.2% higher than the year 2019-2020. The net profit of the company amounted to Rs. 53,739 crores, 34.8% higher than what was recorded in last FY.

Out of all the arms of the behemoth, the largest share of revenue was registered for Oil-to-Chemicals operations at Rs. 3,20,008 crores. The adjusted EBITDA for the same stood at Rs. 38,170 crores. The second highest revenue and adjusted EBITDA was recorded for the Retail arm of Reliance at Rs. 1,53,818 crore and Rs. 9,842 crore respectively.

Digital services recorded adjusted EBITDA worth Rs. 34,035 crore while Oil and Gas operations earned Rs. 258 crore in EBITDA. The Media and Entertainment wing was another winner with EBITDA at Rs. 796 crore.

The company also unveiled the figures representing its contribution to the Indian economy. As on March 31, 2021 Reliance added Rs. 1,45,143 crore through exports, Rs. 1,140 crore through CSR activities and 75,000 jobs to the economy.

For the shareholders, the company registered earning per share at Rs. 76.4 which was 21.1% higher than 2019-2020.

RELATED: M&A King Mukesh Ambani Is Rewriting The History Of Reliance Industries

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Saudi Aramco's Chairman Yasir Al-Rumayyan to join Reliance board

The virtual event was studded with landmark information about the company's performance and plans. However, Reliance's deal with the world's second-largest company and the global leader of oil and petroleum Saudi Aramco was the highlight of the event. Mukesh Ambani announced Yasir Al-Rumayyan, Chairman of Aramco Ltd. as the new independent director of Reliance Industries.

'Al-Rumayyan joining our board is also the beginning of internationalisation of Reliance. You will hear more about our international plans in the times to come,' Ambani said on Thursday.

Mukesh Ambani further announced that the pending deal of selling 20% stakes of RIL's oil-to-chemical business to Saudi Aramco will come to conclusion by the end of 2021. These stakes are valued at around $75 billion and was scheduled to be closed in March 2020 but was delayed due to COVID-19 led pandemic.

'We look forward to welcoming Saudi Aramco as a strategic partner in our O2C business. I expect our partnership to be formalised in an expeditious manner during this year, after obtaining required regulatory clearances,' he said.

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Reliance x Google- The 5G domination plan

Another notable highlight of hte meeting was Reliance's partnership with Alphabet Inc.'s behemoth arm Google. Google cloud partnership will enable Reliance Jio Infocomm Ltd. to launch 5G service through its technological solutions and consumer offerings.

'It's a broad partnership, it involves multiple pieces of Alphabet working together,' said Thomas Kurian, CEO at Google Cloud. 'Our own partnership spans multiple parts of Reliance Jio not just the communications business.but also health, retail, and other things. And it allows us to bring our technology to many consumers in India on a broad-scale basis as well as to many businesses that are served by Reliance.'

Google's cloud partnership with Reliance Jio is the biggest in the world so far according to Kurian.

In 2020, Google made investments worth $4.5 billion in the Jio Platforms to come close to its rival Facebook who also invested $5.7 billion in the digital industry.

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Big plans for Reliance Retail

For a change, Reliance Industries is going to transition its focus for the FY 2020-21 from refineries and telecom to Retail. Mukesh Ambani informed the shareholders that Reliance Retail will be the prime focus of the conglomerate so that it comes under the top 10 retailers in the world. 'I am confident that Reliance Retail is on a hyper-growth trajectory to grow at least three times in the next three to five years,' he said.

For the year 2020-2021, the company acquired a total of 156 million customers under Reliance Retail which 24.8% higher than 2019-2020.

In addition to 200,000 people already employed under the retail arm of behemoth, Reliance further aims at employing 10 lakh people over the next three years.

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Contribution during catastrophic COVID-19 wave in India

Under its philanthropic resolutions, Reliance Industries helped India to fight against COVID-19 and reflected the same in its annual statement. Reliance provided 1,000 metric tones of oxygen every day, the quantity equivalent to serving more than 1,00,000 patients.

Under its Anna Seva initiative, the Reliance conglomerate distributed more than 5.5 crore meals to more than 27 lakh daily wagers, police personnel, migrant laborers, etc. Facilities for more than 2300 beds were set up for COVID-19 patients across Jamnagar, Mumbai, and Surat with over 39 lakh patients supported by advisories.

A leap towards green India and net zero-emission company

Following the lead of the leading companies of the Silicon Valley, Reliance Industries too is now set to achieve the target of net-zero carbon company by 2035. In this direction, Mukesh Ambani announced investments worth $10.1 billion in clean energy over the next three years.

Rs. 60,000 crore will be invested to set up four massive factories for the production of green hydrogen, solar cells and modules, energy storage batteries and fuel cells. Another Rs. 15,000 crore will be invested to strengthen partnerships pertaining to renewable energy businesses. Furthermore, Mukesh Ambani announced the mission to build solar capacities of at least 100 gigawatts by 2030.

Dhirubhai Ambani Green Energy Giga Complex in Jamnagar will be the hub of all the green plans of the companies.

'Jamnagar was the cradle of our old energy business. Jamnagar will also be the cradle of our new energy business,' said Ambani.

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Disclaimer: This story is auto-aggregated by a computer program and has not been created or edited by Dailyhunt. Publisher: DKoding
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