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From bonus share to petrochemicals: Four things Mukesh Ambani announced apart from JioPhone at RIL AGM

Announcements other that the JioPhone that grabbed limelight during the 40th Annual General Meeting of Reliance Industries Limited on Friday.

BT Online   New Delhi     Last Updated: July 21, 2017  | 20:54 IST
From bonus share to petrochemicals: Four things Mukesh Ambani announced apart from JioPhone at RIL AGM

JioPhone was the showstopper at the 40th Reliance Annual General, but it was not the only highlight of the event. From petrochemicals to organised retail, Reliance Industries Chairman Mukesh Ambani made a few announcements apart from the cheapest 4G feature phone, ranging from achievements of the oil-to-telecom behemoth, and the roadmap for growth in days to come.

Here are four major announcements that features in the Ambani's Statement on the occasion of 40th AGM of Reliance Industries:

RIL shareholders to get 1:1 bonus share

Apart from the launch of JioPhone, another announcement that received cheers at Annual General Meeting of Reliance Industries Limited was that of 1:1 share bonus. Declaring that the board of directors had recommended 1:1 bonus share, Chairman and Managing Director Mukesh Ambani stated that this is the largest bonus issue in India.

Bonus issue with a ratio of 1:1 means that shareholders will receive an additional share for every share of RIL they hold in the present. Emphasising on what the profits will mean to the shareowners, Ambani said, "One thousand rupees invested in Reliance shares in 1977 is today worth Rs 16,54,503 - over 1600 times more valuable."

It was 12 years ago that the largest conglomerate of India offered bonus issues to its shareholders. Buoyed by this move, shares of Reliance Industries gained 3.07 per cent to Rs 1,575.70 on BSE. The stock had hit a 52-week high seen on a single day, with prices rising to Rs 1588.20.

ALSO READ: Reliance Industries announces bonus share issue

JioFiber

After offering 4G networks on mobile phones with Jio Infocomm, Reliance Industries is now looking to venture into broadband services through optical fibre. Creating fixed-line high-speed broadband services is the next leap forward for our country, Ambani said in his address.

Although not openly mentioning JioFiber , he clarified that Jio remains well on track to bring world-class optic-fibre connectivity to enterprises, small businesses, homes and public spaces. Most of Jio's infrastructure for providing these services is already in place and this will be the next big monetization opportunity for Jio, he added.

Expected to be another major disruptor in the telecom sector, RIL is likely to launch JioFiber in Mumbai, Delhi-NCR, Ahmedabad, Jamnagar, Surat and Vadodara for free under its JioFiber Preview Offer.

According to a leaked image on Jio's website which was later taken down, JioFober is likely to offer 100Mbps speed with a cap of 100GB per month, with the first 3 months being free.

ALSO READ: Reliance Industries stock closes 3.76 per cent higher post 40th annual general meeting

Petrochemicals

At the Reliance AGM, Mukesh Ambani announced that largest Paraxylene manufacturing complex in the world has been successfully commissioned in Jamnagar, along with adding new capacity in PTA and in Downstream Polyester over the past 2 years.

These investments strengthen our position as the world's largest integrated Polyester player, Ambani said.

"The refinery Off-gas Cracker at Jamnagar is among the world's largest and fully integrated crackers ever built. This project was mechanically completed last quarter and is being commissioned. The Off-gas Cracker complex will be fully operational in a few weeks setting a new benchmark for start-up and production in less than 6 months from mechanical completion," he added.

RIL's ambitious project to import large-scale ethane from North America to India is also being commissioned. This is the first of its kind in the world and provides feedstock security, reliability and flexibility to existing crackers of the company. This project has been executed in a record time from concept to commissioning of less than 2 years which includes building of special purpose ocean going Ethane carriers and installation and commissioning of Ethylene unloading system, Ambani said.

These projects will place Reliance as among the top 10 petrochemical producers globally with a unique portfolio and the highest level of integration, Ambani said.

He further added, in refining and petrochemicals, our goal is to be fully integrated producer of refining and petrochemical products serving the Indian and global markets.

In future, Reliance Industries is looking to invest in new sources of energy, aiming for leading positions in renewables - and new materials which will have dramatic and multiple new applications.

ALSO READ: Reliance JioPhone is priced Rs 0, but how good can a free phone be? Here are all its features

Organised retail

In the next decade, RIL estimates consumption spending in India to grow four times and organized retail 6-8 times.

We will continuously expand Reliance Retail's geographic spread and fulfilment capability, positioning it as retailer of choice in both urban and rural India, said the RIL Chairman.

Keeping this in mind, Reliance is planning to build, within a decade, new businesses of the same value as our existing businesses, thereby further consolidating its position as one of the world's leading value creators.

The company is now aiming to grow as an enterprise with lakhs of partners and an enabler of a large ecosystem of entrepreneurs.

After demonstrating this model in India, Reliance will leverage it globally, Ambani added.

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