Mukesh Ambani laid out a five-pronged value creation roadmap for the conglomerate, saying Reliance is entering its next phase of “hyper-growth” and is confident of more than doubling its consolidated EBITDA over the next five years.
Ambani said Reliance has built diverse cash flow streams, reducing earnings volatility and enabling growth in the high teens over investment cycles. The group doubled its EBITDA over the last five years, he said.
Ambani said the most important value creation milestone this year would be the “imminent IPO” of Jio, which he said would unlock significant value for Reliance shareholders. Ambani identified five major value creation pathways for the group.
The first is the oil-to-chemicals business, which he said would see earnings improve when the geopolitical situation stabilises. More importantly, Reliance is looking to reinvent the business by converting crude oil into new materials such as carbon fibre, speciality materials and green chemicals. This, he said, would drive margin expansion and lay the foundation for an oil-to-chemicals-and-new-materials business.
The second growth pathway is new energy, which Ambani said has entered the phase of accelerated commissioning and early revenues. Reliance’s integrated solar manufacturing and advanced battery platform are expected to help it achieve one of the world’s lowest costs of round-the-clock green power, while also enabling a competitive green hydrogen and green chemicals ecosystem. He also flagged underground coal gasification and compressed biogas as businesses with large growth potential.
The third pathway is Reliance Intelligence, the group’s AI venture, which Ambani described as potentially as transformative as the new energy business. He said the infrastructure for the AI business is being built rapidly and will be fully operational over the next couple of years.
The fourth is FMCG, described as a new multi-billion-dollar growth engine. Reliance plans to grow the business into India’s largest FMCG company and among the biggest globally.
The fifth pathway is exports. Ambani said Reliance aims to become an anchor institution for building a globally competitive, multi-sector export hub, with a target to enable $125-$150 billion in exports by 2032.