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Reliance Industries Limited (RIL), a prominent Indian conglomerate, has announced plans for a significant bonus share issue and substantial investments in its new energy ecosystem. The company, led by Chairman and MD Mukesh Ambani, aims to double its revenues and EBITDA over the next three to four years, driven by its growing connectivity business.
The proposed bonus share issue will be in the ratio of 1:1, meaning existing shareholders will receive one additional share for every share they hold. This move is seen as a reward for shareholders and a testament to the company's growth trajectory. The last bonus issue announced by RIL was in 2017, also in a 1:1 ratio.
In a bold move, RIL has committed to investing up to Rs 75,000 crore in establishing a manufacturing ecosystem for its new energy businesses. This includes various emerging technologies like Artificial Intelligence (AI), Internet of Things (IoT), Machine Learning, and Robotics. Ambani highlighted that Jamnagar will become the central hub for this new energy venture by 2025, housing the Dhirubhai Ambani Green Energy Giga Manufacturing Complex, touted as the world's largest and most integrated ecosystem in a single location.
RIL's strategy for its new energy business involves complete ownership and automation of integrated value chains, aiming for higher margins compared to standalone, non-integrated players. To facilitate this ambitious plan, RIL is actively partnering with leading global technology companies, investing in cutting-edge R&D, and expanding its talent pool with PhDs, technologists, and engineers from diverse backgrounds. The company has already invested over Rs 3,643 crore in FY24 towards R&D, bringing its total research spending to over Rs 11,000 crore in the past four years.
Specific initiatives within RIL's new energy portfolio include the commencement of solar photovoltaic (PV) module production by the end of the year. The first phase of the integrated solar production facilities, spanning modules, cells, glass, wafer, ingot, and polysilicon, will have an initial annual capacity of 10 GW. The giga-factory is designed for modular expansion, enabling quick and cost-effective scaling up. RIL has also integrated its wholly owned subsidiary, REC Singapore, to develop 1 Gen bifacial solar panels with cell efficiency exceeding 26%.
In addition to solar energy, RIL is establishing an integrated advanced chemistry-based battery manufacturing facility in Jamnagar, with an annual capacity of 30 GWh. Production is slated to begin in the second half of next year. The facility will focus on assembling Battery Energy Storage Systems (BESS) for utility-scale applications and pack solutions for various markets, including residential, commercial, industrial, telecom, and mobility. Over time, RIL plans to integrate backwards into cell manufacturing and eventually battery chemicals production, creating a fully integrated battery giga-factory.
RIL's foray into green hydrogen production is also progressing. The company is constructing a fully automated, multi-GW electrolyser manufacturing facility on India's west coast, scheduled to be operational by 2026. The facility will be adaptable to different technologies and expandable to meet market demands. RIL is also developing capabilities for future electrolysis-based technologies to enhance energy efficiency and reduce capital costs for next-generation electrolysers.
Beyond new energy, RIL's retail arm, Reliance Retail, is entering the luxury jewelry segment with curated and design-led experiences. The company is also exploring the fashion jewelry and accessories segment to broaden its market reach. Reliance Retail is establishing 7-Eleven as a leading 24×7 convenience destination, tailoring its offerings to the Indian palate.
Ambani expressed confidence in doubling the retail business within the next 3 to 4 years. The announcements highlight RIL's strategic focus on expanding its portfolio across new energy, retail, and technology, aiming to solidify its position as a leading Indian conglomerate.
Source: RIL plans 1:1 bonus issue; to invest Rs 75,000 cr in new energy ecosystem