During the Reliance AGM 2023, Mukesh Ambani, the chairman of Reliance Industries, took a significant step towards the succession plan by appointing his three children – Isha, Akash, and Anant Ambani – as non-executive directors on the company's board. Preceding the Annual General Meeting, a gathering of Reliance Board members convened to endorse the appointments, as per an official stock exchange disclosure.
In a notable development in 2022, Akash Ambani assumed the role of chairman for Jio Infocomm. Back in 2019, Mukesh Ambani made headlines by selling a substantial 32.97% stake in Jio Platforms, securing investments from major players such as Google, Facebook, and various venture capital firms. This maneuver also attracted foreign investors to Reliance's retail ventures.
A statement from the company confirmed that Nita Ambani's resignation from the board was accepted, acknowledging her decision to focus her time and efforts on guiding and empowering the Reliance Foundation to amplify its impact on India.
Addressing the attendees at the company's Annual General Meeting, Mukesh Ambani expressed his belief in the indomitable spirit of the "new India," characterized by unwavering self-confidence and relentless determination. He underlined that this resolute India forges ahead without faltering or giving up.
Mukesh Ambani spoke about Reliance's pioneering role in shaping the emerging landscape of India, recounting how the company has consistently achieved ambitious goals that initially seemed unattainable.
Highlights from Reliance Industries AGM 2023
Business and Financial Performance:
- Mukesh Ambani shared that Reliance Industries achieved consolidated revenues of Rs 9,74,864, with an EBITDA of Rs 1,53,920 for the Fiscal Year 2023.
- The company's net profit for the same period stood at Rs 73,670 crore, accompanied by the creation of 2.6 lakh new jobs. The total count of on-roll employees reached approximately 3.9 lakh, while the company's contributions extended to generating numerous indirect livelihood opportunities.
- Reliance continued to lead across various parameters, encompassing revenues, profits, exports, market value, capital expenditure, job creation, tax contributions, and engagement in social responsibility initiatives.
Reliance Jio and Digital Services:
- Reliance Jio achieved a remarkable milestone with record-high revenue amounting to Rs 1,19,791 crore and an EBITDA of Rs 50,286 crore. The subscriber base surged beyond 450 million, reflecting a year-on-year revenue growth of over 20%.
- The coverage of Jio's 5G network extended to 96% of towns, and the company was on track to achieve nationwide coverage by December. Users exhibited a substantial increase in average data consumption, exceeding 25 GB per month.
- Notably, the monthly data traffic exceeded 1,100 crore GBs, showcasing a 45% year-on-year growth. Jio's 5G rollout was positioned as the fastest ever worldwide.
- A significant share of India's operational 5G cells, approximately 85%, belonged to Jio's network.
- Reliance pioneered the launch of commercial services on the mm-wave spectrum using its proprietary 5G stack, enabling enhanced private 5G, home broadband, and enterprise applications.
- With a customer base of over 50 million in 5G adoption, Reliance was the leader in India's transition to 5G, possessing the unique capability to smoothly migrate its entire 4G customer base to 5G with minimal additional capital outlay.
- Jio's comprehensive ecosystem encompassing connectivity, devices, support, and value-added services solidified its role as a driving force behind India's 5G revolution.
- Boasting an expansive optic fiber infrastructure spanning 1.5 million km across India, Jio stood far ahead of its competition, maintaining proximity to over 200 million premises.
Reliance Unveils Launch Date for Jio AirFiber
• Jio AirFiber is scheduled to debut on September 19, coinciding with the celebration of Ganesh Chaturthi.
• By utilizing optical fiber technology, the company can presently connect approximately 15,000 locations daily. With the introduction of Jio AirFiber, this expansion can be significantly amplified, enabling up to 150,000 connections per day.
• Presently, Reliance Jio extends connectivity services to over 80% of major enterprises in India. However, the untapped potential within the enterprise sector, particularly in the Small and Medium Business (SMB) segment, is much greater than realized thus far.
• Jio Platforms is already delivering comprehensive professional and managed services for all divisions of the RIL group, encompassing Telecom, Retail, Media, and Financial Services. It's positioned to extend these services beyond the RIL group as well.
• The Jio Set-Top box serves as a gateway to diverse entertainment options, including TV channels, streaming content, large-screen gaming, and digital applications.
• The Jio Smart Home app incorporates eRemote functionality for the Jio Set-Top Box, allowing smartphones to be used as game controllers, according to Kiran Thomas, President of Reliance Jio.
• The global entertainment landscape is undergoing rapid transformation, transitioning from linear to interactive experiences. Jio is expediting this shift in India, with its Set-Top Box supporting JioCinema and JioTV+ alongside leading international streaming applications, as highlighted by Akash Ambani, Chairman of Reliance Jio.
• Over the past decade, Reliance Industries Ltd has cumulatively invested $150 billion, marking the largest investment by any Indian corporation within this timeframe.
Media & Entertainment
IPL was streamed for the first time on Jio Cinema, achieving a global record with an astonishing 45 crore viewers. More people accessed IPL via digital devices compared to traditional linear television, indicating a significant shift in viewership trends.
Reliance Retail
• In FY23, Reliance Retail generated revenue of Rs 2,60,364 crore. It attained an EBITDA of Rs 17,928 crore and a net profit of Rs 9,181 crore. Reliance Retail stands as the sole Indian retailer within the global Top 100, and it ranks among the world's fastest-growing retailers.
• Within under 3 years, the valuation of Reliance Retail nearly doubled, notwithstanding the challenges posed by the Covid-19 pandemic. Based on this valuation, Reliance Retail would have secured a position among the top 4 companies in India and the top 10 retailers worldwide.
• Reliance Retail surpassed the milestone of 100 crore transactions and welcomed over 78 crore footfalls. The registered customer base expanded to 25 crore, as noted by Isha Ambani, Director of Reliance Retail.
• Over the previous year, the company established more than 3,300 new stores, totaling 18,040 outlets. Notably, two-thirds of these stores are situated in Tier II, III, and smaller towns, underscoring the commitment to inclusive retail growth, according to Isha Ambani.
• JioMart embraced over 25,000 artisans, weavers, and micro-entrepreneurs, offering a platform for 1.6 lakh artisanal products from 150 cities. Collaborations with 2,500 handloom weavers across 50 craft clusters further exemplify this commitment.
Jio Financial Services
• Jio Financial Services (JFS) emerges as an initiative to expedite the replication of India's remarkable growth narrative in Bharat. It aims to enhance financial services accessibility through a digital-first approach that simplifies financial products, reduces costs, and broadens reach via easily accessible digital channels.
• JFS has announced a joint venture with BlackRock to establish an asset management business providing transparent and reliable investment solutions. This partnership will deliver technologically enabled, affordable, and innovative investment opportunities.
• In the realm of payments, JFS intends to consolidate its payment infrastructure by offering a ubiquitous solution for both consumers and merchants, further promoting digital adoption. JFS products will explore innovative features such as blockchain-based platforms and Central Bank Digital Currencies (CBDCs).
• Just like Jio and Retail, JFS stands as a valuable addition to the broader RIL ecosystem of consumer-focused businesses.
Reliance Initiates Successful Execution of Complex and Efficient Deep-Water Ventures
In the current year, Reliance accomplished the commissioning of one of the most intricate and cost-effective deep-water projects of substantial magnitude – the MJ Field within the KGD6 Block. A remarkable feature of this endeavor is the state-of-the-art Floating Production Storage and Offloading (FPSO) unit, one of the world's largest and most intricate, boasting a gas production capacity of 14 MMSCMD.
Reliance's Oil to Chemicals Business
• Operated within a globally volatile context, the Oil-to-Chemicals business demonstrated resilience. Despite multifaceted challenges, including the imposition of the Special Additional Excise Duty (SAED), the O2C EBITDA for FY23 recorded an impressive increase of 17.7%, achieving a record high of Rs 62,075 crore.
• Reliance embarked on a strategic transformation of its O2C business into a sustainable, circular, and consumer-integrated chemicals and materials enterprise. This evolution is grounded in three key pillars:
• Firstly, the acceleration towards achieving Net Zero by 2035 through the adoption of renewable energy sources and bioenergy, aligning with sustainable and green principles.
• Secondly, a proactive drive towards circularity and seamless integration with consumer needs.
• Thirdly, leveraging technology and innovation to evolve the Jamnagar Refinery into a 'Chemicals and Materials Feedstock Production' hub.
• The company is actively progressing with the establishment of a world-class Carbon Fibre facility in Hazira, Gujarat, encompassing Carbon Fibre and Carbon Fibre Reinforced Plastics. The goal is to secure a prominent global position in these sectors.
New Energy Ventures
• Reliance announced its commitment to establish 100 Compressed Biogas (CBG) plants over the next five years, aimed at converting agricultural waste into usable gas.
• The focal point remains the swift advancement of the Dhirubhai Ambani Green Energy Giga Manufacturing Complex in Jamnagar.
• Priority is accorded to the creation of a comprehensive solar photovoltaic (PV) manufacturing ecosystem. This ambitious solar giga factory is set to be among the world's largest, most advanced, flexible, and cost-competitive, employing sand to manufacture solar PV modules.
• Simultaneously, the company is dedicated to the establishment of a battery giga factory by 2026. The facility will produce battery chemicals, cells, packs, and even containerized energy storage solutions. Additionally, it will include a battery recycling facility, fostering a holistic ecosystem.
• The initial focus will be on LFP chemistry, recognized for its scale-proven safety, stability, and lifespan.
• Reliance's pioneering efforts are directed towards integrating energy storage with solar and wind power generation, addressing the challenge of grid-connected, continuous electricity supply. Jamnagar is set to witness the validation of this integration on a megawatt-scale in upcoming quarters, followed by widespread battery deployment.
• The company's unique position allows it to offer a viable solution to India's pressing 'Energy Trilemma,' tackling Energy Affordability, Sustainability, and Security.
Dhirubhai Ambani, the founder of Reliance, initiated the company's journey in 1973. His visionary leadership drove the expansion from textiles to oil and telecom. After his unexpected passing in 2002, the family experienced a period of uncertainty.
Since 2019, Mukesh Ambani has been methodically restructuring Reliance's leadership structure to enhance governance standards in line with global norms.
