Mumbai: The annual general meeting of Reliance Industries Ltd (RIL) is watched closely because it is possibly the only time the company’s high-profile yet extremely reticent chairman Mukesh Ambani speaks publicly about his vision and plans for the company.
RIL accounts for 3.5% of India’s gross domestic product by sales and its stock has a weightage of 14.68% in the Sensex, the Bombay Stock Exchange’s benchmark index.
On Friday, Ambani spelt out the company’s plans across several businesses.
“Reliance is actively pursuing an acquisition mode of growth,” he said, adding it was shifting strategy of building businesses from scratch as it faced intense competition, limited market opportunity and rapid changes in technology.
Responding to requests for a bonus or stock split, Ambani said: “We will find a solution to your demand... that will reward you and see that you continue to remain shareholders.” The company reports its July-September earnings on 18 October.
Other highlights: Exploration and production: To invest $4 billion (Rs15,720 crore) in hydrocarbons exploration.
To begin oil production from the Krishna-Godavari and Cauvery finds in the second half of 2008-09, with an estimated peak production of 40,000 barrels of oil.
The gas production rate will be equivalent to about half a million barrels of crude oil per day, representing 30% of India’s current oil import
Refining & marketing :The new Jamnagar refinery to be commissioned ahead of schedule.
To invest $8-9 billion there over the next three-four years.Petrochemicals: To build another petrochemical complex at Jamnagar with a 2 million tonnes per annum (mtpa) capacity in olefins with matching downstream capacities.
To expand into speciality chemicals, such as ethylene oxide derivatives and acrylics.
Polyester : Expansion of paraxylene capacity from 1.9mtpa to 4.5mtpa at Jamnagar.
With this, RIL will have 15% of global paraxylene capacity.
SEZs : To develop first phase of Haryana special economic zone on 1,200 acres out of the total 8,300 acres acquired.
Retail :To start rural distribution and business-to-business distribution centres.