i Develop Stocks Advisory

Mukesh aims to double size of RIL A decade ago, the Reliance annual general meetings were akin to legendary investor Warren Buffet's conferences. Even large venues would overflow with people and there would often be queues to get in. At a popular hall in South Mumbai, perhaps deterred by the monsoon, shareholders were trickling in long after the meeting had begun. The venue eventually filled up as Reliance chairman Mukesh Ambani made his customary speech listing the company's achievements and future plans. There was a familiarity about it all, except that journalists were expressly told that they wouldn't be allowed to attend the shareholders meeting. Nevertheless, some made it in. Like every other time, Ambani spoke of big things. He spoke of doubling the size of his company with the commissioning of the new refinery and oil and gas production facilites. While the refinery is expected to go on stream this year, the stabilization of the new facilities is expected to happen in the next two years. In the short term, Ambani said that the company would be focusing on smooth start-up and operations of historic projects that include, apart from the refinery, the retail operation in 700 cities and 6000 towns. Today, Reliance has over 700 stores in the country, even lower than the 1000 Reliance Fresh that were to be opened last year. The shortfall is mostly because the company has had to curtail its rollout in states like Uttar Pradesh and Bihar on the back of opposition from small shop owners. Apart from the retail roll out, Reliance put much of its money in the exploration and production business. It made a capital expenditure of Rs 19,503 crore in one year, its highest ever. Ambani expects that these investments will create immense value to shareholders in the years to come. In the long term, Ambani has zeroed-in on two areas to invest. The first potential avenue, he said, was in fostering rural prosperity. As a part of the retail initiative, he expects Reliance Retail to create several rural hubs that will eventually engage the rural community in education, healthcare and community welfare services. Though Ambani did not elaborate, he said that the second potential avenue for growth and transformation is alternative energy, a natural extention of the current conventional energy portfolio.