Mukesh Ambani, who took over the reins of Reliance Industries Ltd (RIL) after the sudden demise of his veteran industrialist father Dhirubhai Ambani, completed 20 years during which the company saw a 17-fold jump in revenue, a 20-fold jump in profit and a has become a global conglomerate.
After Dhirubhai’s death in 2002, Mr. Mukesh and his younger brother Anil assumed joint leadership of Reliance. While the elder brother held the position of Chairman and Managing Director, Mr. Anil was named Vice Chairman and Joint Managing Director.
However, the brothers fought over control, which led to the formation of RIL with Mr Mukesh controlling the gas, oil and petrochemical units, while Mr Anil got the telecom, power generation and financial services units through a demerger.
In the 20 years the Stanford University-dropout Mr. Mukesh, 65, has been at the helm of RIL, the company has re-entered the telecom business, diversified into retail and new energy, and raised a record ₹2.5 lakh crore from a minority sale Is. interest during covid lockdown.
Here is his journey at the top of RIL in numbers:
* Market capitalization to grow at an annual rate of 20.6% over the last 20 years from ₹41,989 crore in March 2002 to ₹17,81,841 crore in March 2022.
* Revenue to grow at an annual rate of 15.4% from ₹45,411 crore in FY 2001-02 to ₹792,756 crore in FY 2021-22.
* Net profit to grow at an annual rate of 16.3% from ₹3,280 crore in FY 2001-02 to ₹67,845 crore in FY 2021-22.
* Exports to grow at an annual rate of 16.9% from ₹11,200 crore in FY 2001-02 to ₹254,970 crore in FY 2021-22.
* Total assets to grow at an annual rate of 18.7% from ₹48,987 crore in March 2002 to ₹14,99,665 crore in March 2022.
* Net worth to grow at an annual rate of 17% from ₹27,977 crore in March 2002 to ₹645,127 crore in March 2022.
* RIL added ₹17.4 lakh crore to investors’ wealth during these two decades, which is an average of ₹87,000 crore every year.
According to Motilal Oswal’s 26th Annual Wealth Creation Study, the company has emerged as the biggest wealth creator in 2016-21, creating wealth of nearly ₹10 lakh crore and breaking its own previous record.
Diversity
Reliance launched several new businesses in these two decades – telecom arm Jio in 2016, retail in 2006 and new energy in 2021.
From a single oil refinery in 2002, Jamnagar is now the world’s largest single-location refinery complex. During this period, RIL doubled its oil refining capacity, adding the unique capability to convert even the worst crude oil into exportable fuel. It also added some of the largest downstream units in the world.
Its traditional business of petrochemicals has also grown and grown manifold in the last two decades.
Reliance’s oil and gas exploration (E&P) business made the first hydrocarbon discovery in late 2002 and began production in 2009. The firm got UK’s BP Plc as an investor in the E&P business in 2011 and in recent months, it brought the second set into production. of discoveries.
RIL brought in BP, one of the global petroleum industry leaders, as a partner in its Indian fuel retail business. Reliance Mobility Solutions brings the latest technology and offerings to consumers at Petro-Retail Outlets through the Jio-BP brand. It aims to provide a new experience of buying fuel with high quality service and future-ready retail outlets with charging and battery swap facilities.
Reliance lays foundation of New Energy Business to invest over ₹75,000 crore over three years to set up five exclusive integrated Giga factories in Jamnagar with world’s latest technology. It will have a first-of-its-kind ‘quartz-to-module’ solar panel facility. The ultimate objective is to emerge as the world’s lowest cost producer of solar power and green hydrogen.
Reliance aims to become net carbon neutral by 2035, contributing to India’s net carbon neutral mission. It will commission a 10GW solar PV cell and module factory by 2024, which will be scaled up to 20GW by 2026. By 2025, RIL plans to generate its entire round-the-clock (RTC) power and intermittent power from captive solar to green hydrogen. power plants.
fundraising
Reliance created a record for capital fundraising in FY21. It raised over ₹2.5 lakh crore through a rights issue and minority stake sale in Jio Platforms and Reliance Retail Ventures to global marquee investors such as Facebook and Google. During FY2021, Reliance was the largest foreign direct investment (FDI) generator for India.
After the launch of Jio, India became the data capital of the world and the cost of data/GB dropped from ₹500 to ₹12. India’s ranking in broadband data consumption rose from No. 150 in 2016 to No. 1 in 2018, thanks to Jio.
Born in Aden, Yemen, where his father worked as a gas station attendant, Mukesh Ambani earned a bachelor’s degree in chemical engineering from the University of Bombay (now the University of Mumbai) and later earned a master’s degree in business administration from Stanford University. Of.
However, he left the program in 1981 to join the family business, where he worked to diversify the company, entering communications, infrastructure, petrochemicals, petroleum refining, polyester fiber, and oil and gas production.
In 2007, he became India’s first trillionaire. However, he has lost the richest Indian tag in recent months to a fellow Gujarati businessman, Gautam Adani.
The Reliance Foundation, backed by Reliance Industries, came into existence in 2010 to spearhead the company’s philanthropic initiatives under the leadership of his wife Nita. It works in the areas of rural empowerment, nutritional security, ecological conservation, education and sports.
Reliance Foundation is India’s largest Corporate Social Responsibility initiative in terms of reach as well as expenditure.