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BW Businessworld

RIL To Invest In India

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Reliance Industries on Thursday announced investment of over Rs 1 lakh crore in core businesses of petrochem and oil and gas as well as in new sectors of retail and telecom, to double operating profits in 4-5 years.

Addressing company shareholders, RIL Chairman and Managing Director Mukesh Ambani said new projects in petrochemicals and refinery business would come online in the next 2 to 3 years.

Investments in refinery downstream would add 30-40 per cent to margins while retail business would be a significant and profitable business for RIL within 3 years, he said.

He said 4G commercial rollout plans are being finalised even as the company bets big on shale gas production with output projected to grow ten times in five years from current 30 billion cubic feet.

"Even after this investment of Rs 100,000 crore, our balance sheet will be the strongest not only in India but in the world," he said.

Ambani said while the main natural gas reservoir in the eastern offshore KG-D6 has proved to be difficult to produce, the company is pinning hope on satellite fields in the area to ramp up output to 60 million standard cubic meters per day on a sustained basis.

"We currently finalising plans to offer nationwide digital services," he said.

The company plans to achieve Rs 40000 crore to 50000 crore in sales from its retail business in 3-4 years, Chairman Mukesh Ambani told shareholders on Thursday.

Reliance operates 1,300 stores under its retail business that sells consumer goods, including apparel, food and electronics. Reliance Retail is India's second biggest retailer in the country after Future group that owns Big Bazaar and Pantaloon Retail.

In the year-ended March, Reliance Retail clocked sales of nearly Rs 7600 crore.

Ambani said India's current economic woes are temporary saying he had full confidence in the nation's economic resilience to overcome difficulties and emerge stronger.