Analysts place emphasis on the company’s development into a modern conglomerate.


The transformation to a modern conglomerate with a focus on digital is still a priority for Reliance Industries (RIL), the biggest private sector corporation in India, as it prepares to enter the wind power industry. According to reports from experts, the appointment of the next generation to the board and its CMD Mukesh Ambani’s commitment to serve as chairman for the next five years would establish a reliable succession roadmap.

They said, “Contrary to expectations, there have been no updates on the schedules of its telecom and retail businesses’ initial public offerings.” ICICI Securities asserts that RIL has established the framework for value creation over the next ten years, with particular focus on continuing its transformation into a modern digital conglomerate.

The company envisions a vastly different future for itself over the next ten years compared to the previous forty, placing special emphasis on expanding its digital footprint, accelerating efforts to transition to new energy and specialty chemicals, and continuing to leverage the global platform established by its retail segment.

It said that Mukesh Ambani’s decision to stay chairman for at least the next five years as well as the addition of his children Akash, Isha, and Anant to the board will establish a reliable succession plan.

While RIL management provided updates on strategy across companies at the AGM, BoFA Securities claims that there were none about the timing of its telecom and retail firms’ initial public offers. Earlier, there were several media stories about value being released via IPOs in certain corporations.

“Although Jio Financial Services was highlighted by the chairman, there were no significant near-term incremental revisions to business strategy. According to our assessment, a segment of the market awaiting information on further value-unlocking events would probably be let down.

Reliance Retail’s management stated that it has received interest from a number of prestigious global strategic and financial investors, and Kotak Institutional Equities stated in a report that RIL expects retail to be its fastest-growing business in terms of revenue and Ebitda. As a result, there are likely to be additional stake sales in “due course,” similar to the recent one to Qatar Investment Authority (QIA).

While the business is preparing for the commercial launch of JioAirFiber on September 19, Emkay Research claims that the price in comparison to Airtel is still crucial. Earlier this month, Airtel unveiled AirFiber. Reliance Jio’s 5G ambitions, which call for a nationwide deployment by December 2023, are likewise on schedule.

By partnering with major actors in the world of wind energy production, RIL intends to change its goal of enabling 100 GW of solar capacity by 2030 to 100 GW of renewable energy capacity. According to a CLSA analysis, establishing a carbon fiber capability would also make it possible to reliably and affordably produce wind turbines.

The prognosis for the retail sector has improved, according to IIFL Securities.

The statement said, “However, no indication on any timelines for the much-anticipated demerger of the telecom and retail businesses; as a result, meaningful immediate triggers seem to be missing.”