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BW Businessworld

RIL AGM: To Invest Rs 75,000 Cr In Green Initiatives; Build 4 Giga Factories

Addressing the shareholders in its 44th AGM, Mukesh Ambani said Giga factories will manufacture and fully integrate all the critical components of "new energy ecosystem"

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RIL Chairman Mukesh Ambani said Reliance would be cumulatively investing Rs 75,000 crore towards the green initiatives over the next three years. Of this amount of Rs 75,000 crore RIL would use Rs 60,000 crore in building-integrated solar photovoltaic factory, battery making unit, and green hydrogen unit, Ambani said.

"Our Jamnagar complex will provide infrastructure and utilities to manufacture ancillary material and equipment needed to support these Giga factories so that all critical materials are available in time. We will also support independent manufacturers with the right capabilities to be part of this nationwide ecosystem," Ambani said.

An additional amount of Rs 15,000 crore would be further invested by Reliance in its value chain, partnerships and future technologies, including upstream, Ambani added.

"Thus, our overall initial investment from our own internal resources in the New Energy business will be 75,000 (over $10 billion) crore in 3 years," Ambani added.

Financials & Partnerships

Mukesh Ambani said that the company's business grew despite challenges due to the Covid-19 pandemic. This was mainly due to a sharp increase in its consumer business, which now contributes roughly half of RIL's operating profit.

RIL reported a consolidated revenue of Rs 5,40,000 crore and a consolidated EBITDA of Rs 98,000 crore.

RIL chairman further said that he expects a partnership between RIL and Saudi Aramco to be "formalized in an expeditious manner this year". Despite challenges due to the pandemic, the two parties have made "substantial progress" in talks, Ambani said. He added that he expects strong global growth to benefit RIL's oil-to-chemicals business.

Ambani also announced that H.E. Yasir Al-Rumayyan, chairman of Saudi Aramco and governor of the Kingdom's wealth fundthe Public Investment Fund will join the board of RIL as an independent director as part of the deal.

Emphasizing on the need for a transition towards clean energy, the company's chairman laid out the roadmap of RIL's new energy business.

"We have started work on developing the Dhirubhai Ambani Green Energy Giga Complex on 5,000 acres in Jamnagar," Ambani said. "It will be amongst the largest such integrated renewable energy manufacturing facilities in the world."

At the close of trading hours, the scrip of RIL fell by 2.66 per cent to end at Rs 2146.50 on the BSE.