Reliance AGM 2022: 5G, India’s first carbon fiber factory, succession plans and more. All you need to know
New Delhi: Reliance’s long-awaited and highly publicized 2022 Annual General Meeting ended with Mukesh Ambani attempting to woo investors with a magnified platter. However, a 0.69% decline in the share price of Reliance Industries Ltd (RIL) gives the impression that investors have not gotten much carried away, and some may even have been disappointed by the business mogul’s announcements. .Read also – “Delighted to launch our partnership with JioMart…”, says Mark Zuckerberg
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STARTED BY MENTIONING NATIONALISM, CONGRATULATING PM NARENDRA MODI AND THE GOVERNMENT
A man known for his punctuality, Mukesh Ambani, did not make his investors wait even a minute longer for the meeting to begin. Exactly at 2 p.m. IST, as scheduled, Mukesh Ambani took center stage by welcoming all the shareholders and introducing the board members to the meeting held virtually. He added that he “missed the connection and bonhomie of our personal interactions” and hopes for a hybrid AGA model next year. He then spoke of ‘Azaadi Ka Amrit Mahotsav’, India’s 75th Independence Day, and praised ‘visionary Prime Minister Shri. Narendra bhai Modiji” for his August 15 “inspirational speech” and the “clear roadmap” to make the next 25 years the “most transformational” in Indian history. Also Read – Mukesh Ambani details succession plans, says daughter Isha is head of Reliance’s retail business
“He (PM Modi) aptly described the next 25 years as India’s Amrit Kaal – The Elixir Era. In the next generation, India is poised to achieve more than all post-independent generations have collectively achieved so far and Reliance is poised to make a far greater contribution to prosperity and India’s progress than what we have done so far,” said Mukesh Ambani. .
While saying that the world has “almost completely overcome the COVID pandemic”, Ambani referred to uncertainties due to heightened geopolitical tensions and global risks. He said amid this global unpredictability, “India stands proudly as a beacon of growth and stability.”
“The government’s skillful handling of the pandemic and its pragmatic approach to dealing with the resulting economic challenges have helped India emerge stronger than before, wiser than before and more resilient than before,” Ambani said, praising Prime Minister Narendra Modi’s “sighted leadership” and “Finance Minister Nirmala Sitharaman’s exemplary stewardship in navigating India’s economy through a period of unprecedented challenges”.
CONTINUED WITH RIL’S ASSESSMENT
After praising the Prime Minister and the Government of India, Mukesh Ambani talked about “The Core Philosophy of Reliance – We Care” where he mentioned how the company cares about its employees, its investors, the country and of the world as a whole. He then talked about the achievements of Reliance in the 2022 financial year, where he explained how Reliance became the first Indian company to cross $100 billion in annual revenue.
“Reliance’s consolidated revenue increased by 47% to Rs 7.93 lakh crore or $104.6 billion. Reliance’s annual consolidated EBITDA passed the crucial milestone of Rs 1.25,000 crore…”, Ambani went on to explain how Reliance’s exports increased by 75%, how the company continued to be the largest single taxpayer in India in FY22, how RIL added 2.32 lakh jobs in the Indian market.
While starting to talk about Reliance Jio and his new ventures, Ambani did not forget to mention “our Prime Minister’s Dynamic Digital India Initiative” and made brief remarks on government initiatives such as Aadhar , RuPay, UPI, Jan Dhan Yojana, etc.
“With humility and pride, I would like to declare that all these phenomenal achievements have become possible because Jio has built world-class 4G digital infrastructure at the right time with sufficient capacity and offered it in the most affordable way to every Indian. to bring India to global leadership,” said Mukesh Ambani before going into the nuances of Reliance Jio’s various achievements in the telecom sector.
CONCLUDED WITH “MAJOR” ANNOUNCEMENTS
The announcements investors were eagerly awaiting were made separately by Mukesh Ambani, Isha Ambani and Akash Ambani, which in itself is an indication of the business mogul’s plans to hand over the reins.
To everyone’s expectations, Mukesh Ambani has indeed made major announcements regarding Reliance Jio and the deployment of 5G services. He assured that 5G services will be available in Indian metros by this Diwali and that by the end of December 2023, Reliance Jio’s 5G services will reach all parts of India.
“To build our true pan-India 5G network, we have committed a total investment of Rs 2 lakh crore. Jio has prepared the fastest and most ambitious 5G rollout plan ever for a country our size. In the next two months. It is by Diwali, we will launch Jio 5G in several key cities including the metropolitan cities of Delhi, Mumbai, Chennai and Kolkata,” Mukesh Ambani said.
While Mukesh Ambani explained how Reliance Retail aims to serve millions of customers every day with “unlimited choices, an exceptional value proposition, superior quality and an unparalleled experience”, Isha Ambani went into the specifics of Reliance Retail. She mentioned how Reliance Retail opened 2,500 stores this year, bringing the total number of stores to 15,000.
“We have served over 200 million registered customers, equivalent to the collective population of the UK, France and Italy, across Reliance Retail’s physical stores and digital platforms,” said Isha. Ambani, adding that Reliance Retail will launch its FMCG business this year.
Isha Ambani also announced the launch of a partnership between JioMart and WhatsApp where customers can order groceries and other materials available on JioMart via WhatsApp chat. Shortly after Reliance announced its collaboration with WhatsApp, Meta founder Mark Zuckerberg also shared a message on social media saying he was “excited” about the partnership with JioMart.
Isha Ambani also announced the launch of Nita Mukesh Ambani Junior School as an extension of Dhirubhai Ambani International School.
Mukesh Ambani returned to the limelight, where he pledged an investment of Rs 75,000 crore in the value chain sector, setting up a giga power electronics factory based on renewable energy. He also touched on partnerships with Qualcomm and Meta platforms, where partnering with the former will help deliver cloud-based 5G services to enterprises.
DID AMBANI MEET INVESTOR EXPECTATIONS?
The fall in the share price between and after Mukesh Ambani’s announcements does not say much. But the fact remains that investors were actually expecting more announcements regarding the listing and spin-off of companies, a definitive answer on RIL’s succession plan, and so on. Regarding succession plans, Mukesh Ambani said that Akash Ambani and Isha Ambani have already taken on management roles in Reliance Jio and Reliance Retail respectively, and that Anant Ambani has joined “New Energy Business with great zeal “.