Petrochemicals, retail, telecom businesses to drive RIL growth: Mukesh Ambani

Fresh from posting a record turnover, Reliance Industries is looking at petrochemicals, consumer retail and telecommunications business as drivers for growth, Chairman and Managing Director Mukesh Ambani said.

"We will augment our commitment to Indian markets by investing in new petrochemical capacity, oranised retailing and digital services," Ambani said in the covering letter of his company's latest annual report.

Reliance achieved a record turnover exceeding Rs 2,58,000 crore ($58 billion) and a higher net profit of Rs 20,286 crore ($4.5 billion) in the 2010-11 financial year.

"In 2010-11, Reliance attained the largest profit growth in its history with record operating and financial results from each of the three core segments of petrochemicals, refining and marketing and oil and gas," Ambani said.

"We are gearing up for the next phase of growth through a combination of our own initiatives and forging new partnerships with leading companies," Ambani said.

Reliance has "embarked on a major capacity creation initiative in petrochemicals," encouraged by strong demand forecasts for petrochemicals and fibres, to become "the world's largest integrated polyester producer".

Ambani said the company's new projects "represent the largest-ever investment by Reliance in a sector" and the biggest capital commitment in the global petrochemicals segment as well.

"Our investments in organised retailing are anticipated to be significant and will transform the Indian market," he added.

On telecom, he said: "We envisage that significant value will be created for consumers as well as operators with new services and connectivity."

During the 2010-11 fiscal, Reliance entered into three partnerships on shale gas in North Amercia. "The joint ventures are expected to accrue resources in excess of 10 trillion cubic feet and make a meaningful contribution to our earnings within the next few years," he said.

On the company selling 30 per cent of its stake in 23 oil and gas exploration blocks, including the all-important eastern offshore KG-D6 fields, to UK's BP Plc, Ambani said Europe's second biggest oil firm will make available "its sub-surface technical expertise to maximise recoverable resources."

Reliance has seen output from the KG-D6 fields drop to less than 50 million standard cubic metres per day from 61.5 mmscmd in March, 2010, due to reservoir complexities. It is now banking on BP to salvage the situation