Reliance not built on largesse; not hoarding wealth: Mukesh Ambani

PTI, Aug 29, 2024, 7:11 PM IST

Mumbai: Mukesh Ambani, Asia’s richest man, on Thursday said each of his sprawling conglomerate’s businesses was built from scratch and were not received as largesse, as he laid out growth plans at India’s most valuable company.

Ambani, 67, also said his Reliance Industries, which has interests in oil refining, oil and gas production, petrochemicals, telecom, retail, and media, was not pursuing short-term profits or hoarding wealth but instead is creating wealth and working to provide energy security to the nation.

He went on to add that personal or family wealth holds no importance to him and is working to pass on the baton at Reliance to the next generation.

Ambani, whose three children are on board of Reliance and look after different verticals – Isha, 32, for retail, twin brother Akash for telecom and youngest Anant, 29, for new energy – has most of his net worth of USD 112 billion coming from his 42 per cent stake in Reliance.

He took over Reliance after the death of his father and legendary industrialist Dhiburhai and transformed what was a textile and petrochemical company into a USD 250 billion conglomerate that also owns the world’s largest single-location oil refinery.

After a split with younger brother Anil, he grew its petroleum operations and branched into new areas, such as retail, telecom and media.

“We have built each of our businesses from scratch and grown them to a global scale. We did not receive them as largesse,” Mukesh Ambani, chairman and managing director of Reliance Industries Ltd, said at the company’s annual shareholder meeting.

The richest man in Asia and, for a brief time in 2008, a contender for the title of the wealthiest man in the world, said Reliance stood for wealth creation and not short-term profiteering.

“We are not in the business of pursuing short-term profit and hoarding wealth,” he said. “We are in the business of creating wealth for India” and “providing the highest quality products and services that improve efficiency, productivity, and ease of living for Indian consumers.”

Reliance, he said, is “on a mission to provide energy security to our nation”.

The firm is building giga-factories to support its pivot towards green energy by manufacturing solar modules to batteries.

Ambani said that in 2017, he had promised that Reliance would enter the world’s Top 50 before its Golden Jubilee.

“I am pleased to inform you that this year, Reliance is among the world’s Top 50 most valuable corporations,” he said. “In July 2018, Reliance crossed the USD 100 billion valuation mark. And in just six years, we have become the first Indian company to cross USD 250 billion in market value. In 2022, I promised that Reliance would double its value by the time we complete 50 Glorious Years in 2027”.

Reliance, he said, has never rested on laurels. “Complacency is not in our DNA. I am supremely confident that Reliance will continue to reach new heights of growth and profitability in the future.”

Ambani said three out of the five growth engines of Reliance – oil-to-chemical (O2C) business that houses oil refinery and petrochemical plants, retail comprising of both online and physical stores, telecom and digital venture Jio, media, and green energy – have a valuation of over USD 100 billion each and will continue to grow even faster.

“Jio and Retail are expected to double their revenues and EBITDA in the next 3-4 years. I see immense growth potential in our media business. Our new energy business will be the new jewel in Reliance’s crown.

“I foresee it becoming as big and profitable over the next 5-7 years, as our O2C business, which we have built over the past 40 years. And I am confident that green fuels and AI-based solutions will become long-term growth engines for Reliance,” he noted.

He said his three children just completed one year as board members and “have stepped up to take on greater responsibilities”.

Overall, the Reliance Group is well on track to more than double in size before the end of this decade and grow faster in the decades ahead, he noted.

“Today, Reliance is more than just a company. It is a proud national institution, an institution that belongs to the people of India. I firmly believe that my family and I, and also other senior members of the management team, are simply trustees of this great institution.

“Personal or family wealth holds no importance for me. What truly matters is our responsibility to pass on this precious institution to the next generation on a solid foundation. This will enable them to elevate Reliance to even greater heights of success,” he said before signing off with the ‘Jai Shri Krishna’ slogan.

Stating that the people of India have great expectations from Reliance, he said the conglomerate will exceed their expectations.

“Indeed, India needs dozens of Reliances so that we can build an inclusively prosperous and fully modern developed nation by 2047,” he said.

“Now is the time for all businesses in India to work together as a grand coalition with the spirit of cooperation, collaboration, and mutual support.”