In case you missed catching the headlines today, the biggest name in Indian business held its AGM today. RIL, or Reliance Industries Limited, led by Mukesh Ambani, shared its numbers today.
The company announced a host of new decisions that could impact many sectors across the economy.
Let’s do a quick check on what has been said so far.
Reliance Industries Limited held its 41st Annual general meeting today. Mint had noted last year that RIL’s annual shareholder meetings have always seemed like a big fat Indian wedding.
Besides, Reliance has rewarded shareholders generously over the years. Mr Ambani noted at last year’s AGM that if a person had invested Rs 1,000 invested in his company back in 1977, that amount would have been worth Rs 16.5 lakh in 2017.
And since this is Reliance, let’s look at the scale of the meeting. RIL has approximately 2.4 million retail shareholders. 33 years ago, in 1985, 12,000 shareholders attended the Reliance AGM in Mumbai. In 1986, that number shot up to 35,000. Last year, 2000 people attended while most people watched the proceedings over the internet, especially the chairman’s speech. Also, shareholders received a 1:1 bonus offer.
RIL chairman Mukesh Ambani noted the conglomerate’s continued success and remarked that it is going through a golden decade. Ambani said, “profits are up by 20.6% to Rs 36,075.crore (for FY18). Reliance has reached an inflexion point.” He mentioned that Jio and the Retail business’ share in overall EBITDA, or Earnings Before Interest, Tax, Depreciation and Amortization, has risen from 2% to 13%.
In today’s meeting, Ambani noted that Reliance Industries is India’s largest payer of GST, excise and customs duty as well as income tax. He claimed Reliance Jio has doubled its customer base in less than two years to 215 million users, a feat he said no technology company has been able to achieve anywhere in the world. Voice usage data shows that Reliance Jio clocks 530 crore minutes per day.
He made another announcement that could well trigger another price war: the commercial launch of JioGigaFiber. This is RIL’s fiber-based broadband connectivity on which the company made an investment of Rs 2,50,000 crore. Isha Ambani, daughter of the chairman, summed it up thus: “Gone are the days of Mbps, now it will about Gbps.”
What’s more, RIL is calling this FTTH, or Fiber to the home. In simpler terms, your fiber internet connection reaches only till the premises, after which copper cables are used for the last stretch of the connection.
Another big move the RIL is looking at is the commissioning of the world’s largest coke gasification project. This is geared towards eliminating its dependence on imported natural gas. He also spoke about the RIL-BP joint venture seeking opportunities to market gas in India. The company has set itself a target to begin gas production by 2020 and reach full production of 30-35 MMSCMD gas production in India by 2022.
The impact of Reliance’s 41st AGM remains to be seen. But, as of now, Bloomberg reports that shares of the company erased gains and fell 0.98 percent to Rs 980.40 after the shareholders’ meet ended.
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