Reliance AGM 2023: Key Highlights

India’s biggest conglomerate, Reliance Industries, held its 46th Annual General Meeting (AGM) today. The AGM was announced by RIL’s chairman, Mukesh Ambani. Investors had been eagerly waiting for this event since the listing of RIL’s demerged entity, JIO Financial Services, which hit the lower circuit back-to-back.

Looking at the share prices of both entities, RIL’s shares opened the day at Rs 2474, almost flat compared to the previous trading session’s closing price, while the newly listed JFS’s shares opened at Rs 216, which is 1.8% up from the previous close.

Here are the important announcements made during the AGM:

RIL board’s Rejig

Nita Ambani resigned and has stepped down from the board to focus on the Reliance Foundation charity, while Isha Ambani, Anant, and Akash Ambani were appointed as non-executive directors.

Jio Air Fibre

Jio Air Fibre is set to launch on Ganesh Chaturthi, on September 19, bringing supercharged broadband connections. With a customer base of 100 million in Jio Fiber, an additional 200 million are anticipated through Jio Air Fibre.

Reliance Retail

Reliance Retail is the sole Indian retailer in the global Top 100 and stands as one of the world’s fastest-growing retailers. The valuation of Reliance Retail’s business was Rs 4,28,000 crore in 2020 and has now grown to Rs 8,28,000 crore.

Reliance Jio

Jio aims to cover the entire country with 5G by December 2023. The Jio customer base has surpassed 450 million. According to the chairman, Jio stands as the uncontested leader in the 5G category. The company notes 200 million 2G users who are expected to transition to Jio. Moreover, Jio has extended connectivity to 80% of enterprises.

Jio Financial Services

Jio Financials Services is poised to enter the insurance sector, providing uncomplicated yet intelligent Life, General, and Health insurance products through a seamless digital interface. This venture may involve collaborations with global players.

Utilising predictive data analytics, JFS aims to collaboratively develop contextual products with partners, addressing customer needs in a truly distinctive manner. It aims to expedite the replication of India’s remarkable growth story, as stated by Ambani.

In the realm of payments, JFS will provide a pervasive offering for both consumers and merchants, thereby fostering greater digital adoption. JFS’s products will explore pioneering features, including blockchain-based platforms and CBDC.

Like Jio and Retail, JFS will undoubtedly become an invaluable addition to the RIL ecosystem, according to Mukesh Ambani.

Furthermore, Mukesh Ambani said he has three reasons to be confident about JFS’s success. First, the digital-first architecture will provide it with an unparalleled head start, as stated by Mukesh Ambani. Second, RIL has infused JFS with a net worth of Rs 1,20,000 crore, making it one of the world’s most highly capitalized financial service companies at its inception, and third, JFS is fortunate to have an exceptionally strong board, headed by KV Kamath, a seasoned and highly respected banker.

To develop an Energy Manufacturing Ecosystem

Making great strides in deploying Rs 75,000 crore for a new energy manufacturing ecosystem. Mukesh Ambani emphasised the unique ability to address India’s ‘Energy Trilemma’. Our goal is to set up 100 Compressed Biogas (CBG) plants within five years, utilising 5.5 million tonnes of agriculture residue and organic waste, he said. This will cut nearly 2 million tons of carbon emissions, produce 2.5 million tons of organic manure, and reduce imported LNG by about 0.7 million tons.

Giga Factory by 2026

RIL Chairman Mukesh Ambani has announced the establishment of their battery giga factory by 2026. It will produce battery chemicals, cells, and packs, encompassing energy storage solutions, and will also feature a battery recycling facility.

Reliance Foundation collaborated with the Bill & Melinda Gates Foundation

“Through collaboration with the Bill & Melinda Gates Foundation, the company will be empowering 1 million women entrepreneurs. In the realms of education and sports, our efforts have touched the lives of 22 million youngsters,” Nita Ambani shared during the 46th AGM.

Carbon Zero by 2035

Accelerate to achieve net carbon zero by 2035 through renewables and bioenergy said Chairman Mukesh Ambani.

Promise to support students

Promise to support 50,000 students through RF UG and PG scholarships over 10 years on the account of 90th birth anniversary of RIL’s founder chairman Dhirubhai Ambani.

Observing RIL’s stock performance during historical AGMs

The shares of RIL closed at Rs 2442.55, an increase of Rs 27.40 or 1.11%. Meanwhile, JFS concluded the day at Rs 211.65, experiencing a decrease of Rs 0.60 or 0.28% from the previous trading day’s closing price.