RIL’ 42nd AGM: Saudi Aramco’s Investment; Zero-Net-Debt Roadmap; Jio Fiber Launch Date; IPO Plans For Subsidiaries And More
Catch all the live updates from RIL’s 42nd annual general meeting here.
KEY HIGHLIGHTS
Watch Mukesh Ambani's Address To Shareholders
Key highlights from the AGM speech:
- Saudi Aramco to buy 20 percent in Reliance’s oil, chemicals business at $75 billion enterprise value.
- Reliance plans to be a zero-net-debt company in 18 months.
- Reliance Industries to commercially launch Jio Fiber broadband services pan-India from Sept. 5.
- RIL plans to list Jio, Reliance Retail over the next five years
- BP Plc, to pay Rs 7,000 crore for stake in RIL’s fuel retail network.
- RIL and Microsoft tie up for cloud centres using Azure.
Read the full text of Mukesh Ambani’s speech at Reliance Industries 42nd AGM here.
RIL Plans To List Jio, Reliance Retail Over Next Five Years
Reliance Industries plans to list its telecom unit—Jio and Reliance Retail within the next five years, Mukesh Ambani said.
“We have received strong interests from strategic and financial investors in our consumer businesses—Jio and Reliance Retail. We will induct leading global partners in these businesses in the next few quarters and move towards listing of both these companies within the next five years,” he said.
“We will also evaluate value unlocking opportunities for our real estate and financial investments,” he added.
Reliance Has Clear Roadmap To Be Zero Net Debt Company In 18 Months, Says Mukesh Ambani
Reliance Industries has a clear roadmap to become a zero-net-debt company in the next 18 months, Mukesh Ambani said.
“We are confident that the consolidated operating income will grow 15 percent annually for the next five years. We have clear roadmap to be zero net debt company in 18 months,” he said.
Besides, he assured rewarding investors of higher dividend and periodic bonus issue once the company hits zero net debt.
Watch the conversation here:
Mukesh Ambani Outlines Reliance's 'New Commerce' Strategy
RIL, Microsoft Tie Up For Cloud Centres Using Azure
Reliance Industries’ Jio entered into an agreement with Microsoft.
Jio will set up large data centres across the country powered by Microsoft Azure's cloud infrastructure services, Mukesh Ambani said.
Key highlights from the speech:
- Jio offers incentives to startups to take away the cost-connectivity and cloud services for startup and small and medium businesses.
- Jio to invest in startups in the field of agriculture, education, healthcare
- Connectivity to all startups with automation at Rs 1,500 per month - to have access to voice, data, marketing and sales solutions and security solutions.
Mukesh Ambani Announces Jio Fiber Plans
The Jio Fiber, Jio’s fibre internet service will be prices between Rs 700-10,000 per month, Mukesh Ambani said.
“Jio Fiber will be available starting Sept. 5. The plans will start at 100 Megabits per second and will go up to can go up to 1000 Gbps,” he said.
Key highlights from the speech:
- Jio Fiber will come bundled with subscription to most OTT platforms
- Will start offering premium movies on first-day, first-show basis, starting middle of next year.
- Jio Fiber customers with annual subscriptions will get a HD/4K LED TV and set top box absolutely free.
Watch the conversation here:
Mukesh Ambani Outlines Four Key Opportunities For Reliance Jio
Reliance Industries’ Chairman and Managing Director Mukesh Ambani outlined four key opportunities for Reliance Jio.
“Most of our investments are complete. Only mobile broadband has been fired up. Now we ready with–Internet of things, home broadband, enterprise broadband and broadband for SMEs,” he said.
Jio To Complete Broadband Company Rollout In 12 Months, Mukesh Ambani Says
Reliance Industries’ telecom unit—Reliance Jio Infocomm is expected to complete the rollout of fibre-to the-home network within the next 12 months, Mukesh Ambani said.
Here’s what the Chairman and Managing Director said:
- Revenue from fibre to the home will kick in from this financial year.
- Received over 50 million registration for FTTH
- Will reach 20 million residences and 15 million businesses soon
Jio Invests Rs 3.5 Lakh Crore For Infrastructure, Optic Fibre
Reliance Jio, the telecom subsidiary of Reliance Industries has invested Rs 3.5 lakh crore for infrastructure and optic fibre, Mukesh Ambani said, adding that it had recently divested Rs 1.2 lakh crore to infra trust.
“The Jio investment cycle is now complete and the company will continue with marginal investments,” he said.
Watch the conversation here:
Saudi Aramco To Buy 20% Stake In RIL's Oil-To-Chemical Unit
Saudi Aramco will take 20 percent stake in Reliance Industries’ oil-to-chemical division at enterprise value of $75 billion, Mukesh Ambani said.
The deal will include 51 percent stake in RIL-BP joint venture, the Chairman and Managing Director of India’s largest company said, adding that the investment is subjected to various due diligence and regulatory approvals.
Read the full story here. Watch the conversation here:
Slowdown In Some Sectors Of The Indian Economy Is Temporary, Says Mukesh Ambani
Mukesh Ambani said:
- India's fundamentals are strong
- There is political stability in India; government is taking various measures
Coming Year Will Mark The Beginning Of New Value Creation Strategy Of RIL: Mukesh Ambani
Expect Consumer Business’ Contribution To Reach 50% Of RIL’s Ebitda: Mukesh Ambani
Reliance Industries expects its consumer business’ to contribute 50 percent of the overall company’s operating income, Mukesh Ambani said.
“The consumer business contributes 32 percent to RIL's consolidated Ebitda. We expect the contribution to reach 50 percent very soon, Ambani said.
According to the Chairman and Managing Director of RIL:
- Reliance Retail is four times larger then the second largest retailer in India
- Reliance Jio is world's fastest growing telecom company in world
Incubating New Growth Engines In Reliance Industries, Mukesh Ambani Says
Reliance Industries is incubating new growth engines within the company, its Chariman and Managing Director Mukesh Ambani said.
“Reliance Industries became the most profitable company in both public and private sector last year. We are the are the only diversified multi-sector Indian enterprise with three major growth engines with one single corporate entity,” Ambani told shareholders at the 42nd annual general meeting.
Mukesh Ambani, Nita Ambani Arrive
Chairman and Managing Director Mukesh Ambani has arrived at the venue of the 42nd RIL AGM with his wife, Neeta Ambani.
How Reliance Industries Fared Between Two AGMs
Shares of the Mukesh Ambani-led company has returned 17.4 percent since the last annual general meeting. This, however, was the lowest return since four years between two AGMs, according to data compiled by BloombergQuint.
What To Expect From RIL's 42nd AGM
Reliance Industries announced the launch of broadband service JioGigaFiber on a trial basis by its telecom arm Reliance Jio Infocomm Ltd.
JPMorgan expects the company to also give details on its retail arm’s ‘New Commerce’ plans and on the next leg of growth in sectors like real estate, petrochemicals and refining. It, however, doesn’t expect any immediate steps towards the same.
Click here to know the list of announcements that RIL made in the previous AGMs and what Bank of America Merrill Lynch expects the company to announce today
Mukesh Ambani To Address Investors At 42nd Annual General Meeting
Reliance Industries Ltd. will hold its 42nd annual general meeting from 11 a.m. onwards.
Over 22 lakh shareholders will watch out for what Chairman and Managing Director Mukesh Ambani and board members have to say about the company’s performance in the year gone by and the big bets for the future.