Reliance AGM: Expects New Energy Business to be Profitable in 5-7 Years

The Indian conglomerate Reliance Industries anticipates its burgeoning new energy business to match the profitability of its core oil-to-chemicals segment within the next 5-7 years, according to Chairman Mukesh Ambani.

Reliance’s new energy ventures encompass solar photovoltaic and fuel cell manufacturing, energy storage, and green hydrogen production. This diversification aligns with the company’s ambitious goal of achieving net zero carbon emissions by 2035.

While the oil-to-chemicals business remains a cornerstone of Reliance’s revenue, contributing two-thirds of the overall total, the company has been actively expanding into retail, telecom, and green energy sectors.

Reliance announced a substantial investment of $10 billion to bolster its green energy portfolio in 2021. As of Thursday, Ambani confirmed that the company is progressing steadily toward achieving this investment goal.

“I foresee it becoming as big and profitable over the next 5-7 years as our O2C (oil-to-chemicals) business, which we had built over the past 40 years,” Ambani said.

A significant milestone is the imminent commencement of solar photo-voltaic module production by the end of this year. Furthermore, the first phase of integrated solar production facilities will be completed in the upcoming quarters.

To support its ambitious solar energy plans, Reliance has secured an arid wasteland in Gujarat state, aiming to generate approximately 150 billion units of electricity over the next decade. This output represents roughly 10% of India’s total energy requirements.

In addition to solar generation, Reliance is developing transmission infrastructure to facilitate the integration of solar projects into the grid. The initial phase is expected to be operational by 2026.

Reliance has acquired land at Kandla port, adjacent to its marine infrastructure at Jamnagar to cater to domestic and international markets. This strategic location will serve as a hub for producing, storing, and shipping green fuels.

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