Reliance AGM tomorrow: What to expect from Ambani's keynote event
What's the story
Billionaire Mukesh Ambani will address over 44 lakh shareholders of Reliance Industries Ltd. (RIL) at its 48th Annual General Meeting (AGM) online at 2:00pm on August 29, 2024. Investors are keenly awaiting updates on the company's digital, retail, new energy, and oil & gas businesses. They are also looking for any potential value-unlocking moves that could impact their investments in these sectors.
Business expansion
Updates on consumer and enterprise digital services
At Reliance's 48th AGM, investors will be looking for updates on consumer and enterprise digital services. The market is also keen to know Reliance's plans in fast fashion and quick commerce, two sectors where the company has been aggressively expanding. These updates could provide insights into how Reliance plans to capture new consumer trends in these rapidly evolving industries.
Value unlocking
Potential value-unlocking announcements
In addition to business updates, shareholders will be keeping an eye out for any potential value-unlocking announcements. Back in 2019, Reliance had hinted at plans to list its telecom and retail arms within five years. Investors are eager to know if there has been any progress on that front, which could significantly impact the company's valuation and their investments.
Business outlook
Capital expenditure targets through FY27
RIL's capital expenditure targets through FY27 include polyester (5 mtpa), vinyl (3.9 mtpa), and carbon fiber (20 ktpa). Global oil demand trends will influence this outlook. New refinery ramp-ups in 2025 could pressure product cracks, but anticipated closures may create upside potential for refining margins. In India, downstream chemical products' demand is expected to outpace GDP growth due to infrastructure, packaging, automotive, and agricultural needs.
Production goals
Reliance's plans to boost gas output
Reliance Industries currently produces 28.5 mmscmd, accounting for 30% of India's gas supply. The company plans to drill more wells at the KG-D6 basin by H2CY28 to boost output and offset natural decline. This move is part of Reliance's broader strategy to strengthen its position in the oil and gas sector amid changing market dynamics.
Business development
Update on new energy business
Reliance Industries is setting up an integrated polysilicon-to-modules, electrolysers, and battery manufacturing facility. The company expects the platform to be operational in 4-6 quarters and self-funded in the coming years. So far, engineering and procurement have been completed with equipment deliveries scheduled for 2025. A gigawatt-scale solar PV module line has already been commissioned as part of this ambitious project.