Power shifts

In mid-October, at the annual general meeting (AGM) of Reliance Industries Ltd (RIL), Chairman Mukesh Ambani talked about five “fundamental strategic shifts” that were under way at this petrochemicals & refining Goliath. RIL will now pursue (global) acquisitions for global size and scale. That’s the first major shift.

The second big departure from the past is Ambani’s willingness to accept partnerships—primarily joint ventures—as a way of life. The other changes involve relying on agriculture and rural sectors for growth, focussing on research and innovation, and getting a global footprint in a bid to be recognised as a true Indian multinational.

A couple of those shifts became more evident last fortnight. The head of RIL’s global oil business let on at an investment summit that acquisitions of oil & gas assets, worth up to $15 billion, were on the anvil.

Around the same time, RIL signed an initial agreement with the state-run gas transporter GAIL (India) Ltd to jointly set up petrochemicals units in foreign markets. The shift towards JVs became more apparent when reports surfaced that RIL and Kuwait Petroleum were in talks to set up refining and petrochemicals units in Kuwait. The shifts have begun. Time will tell how they change the paradigms at RIL.