The 47th Annual General Meeting (AGM) of Reliance Industries Limited (RIL) was a landmark event, showcasing the company’s remarkable achievements over the past year and outlining its ambitious plans for the future. Chaired by Mukesh Ambani, the AGM presented a clear vision of how Reliance is poised to drive growth across various sectors, leveraging its strengths in digital technology, retail, and energy. Below, we get into the major highlights from this year’s AGM.
1. Record-Breaking Financial Performance
Reliance Industries continued to set new benchmarks in financial performance. For the financial year 2023-24, the company achieved a record consolidated turnover of ₹10 lakh crore, making it the first Indian company to cross this milestone in annual revenues. This impressive growth was accompanied by an EBITDA of ₹1.79 lakh crore and a net profit of ₹79,200 crore, underscoring Reliance’s strong financial health and operational efficiency.
Mukesh Ambani emphasized that this growth is not just a testament to Reliance’s strategic investments but also its ability to navigate a complex global landscape marked by geopolitical tensions and economic uncertainties. The company’s focus on technology-driven transformation across all its business verticals has been a key driver of this success.
2. Exciting News for Shareholders: Bonus Share Announcement
In a move that delighted shareholders, Mukesh Ambani announced that the Board of Directors would meet on September 5th, 2024, to consider issuing bonus shares in the ratio of 1:1. This announcement reflects the company’s confidence in its future growth prospects and its commitment to rewarding shareholders as the business continues to scale new heights.
Ambani highlighted that Reliance’s success story has always been intertwined with its shareholders, and this decision is part of a broader strategy to create long-term value for them. The issuance of bonus shares is expected to further boost investor confidence and enhance the liquidity of the stock.
3. Digital and Telecom: Jio’s Unstoppable Momentum
Reliance Jio, the digital arm of RIL, continues to revolutionize the Indian telecom and digital services landscape. Since its inception, Jio has grown exponentially, and the AGM revealed that the platform now serves over 490 million subscribers, with each user consuming an average of 30 GB of data monthly. This growth is a testament to Jio’s ability to democratize digital access across India, offering high-quality services at affordable prices.
One of the standout achievements in the past year has been the nationwide rollout of Jio True 5G. With over 130 million customers already on board, Jio has completed the world’s largest and fastest 5G deployment. This extensive coverage not only enhances connectivity but also sets the stage for a new era of digital services, including AI-driven innovations.
Jio is embedding AI across all its operations, creating what is known as the “Jio Brain” platform. This end-to-end AI infrastructure enables real-time data-driven insights and automation, leading to smarter services and more personalized customer experiences. Additionally, Jio introduced two new services: “Jio Phone Call AI,” which records and transcribes phone calls, and “Jio AI Cloud,” which offers up to 100 GB of free cloud storage to users. These innovations reflect Jio’s commitment to staying at the forefront of technology and providing cutting-edge solutions to its customers.
4. Retail: Expanding the Largest Retail Network
Reliance Retail has solidified its position as the leader in India’s retail sector and is now one of the top global retailers in terms of store count. Over the past year, Reliance Retail recorded gross revenue of ₹3.07 lakh crore, marking a 17.8% year-on-year growth. This performance is driven by the company’s unique omnichannel model, which seamlessly integrates physical stores and digital platforms to offer a superior shopping experience.
In FY 2023-24, Reliance Retail added 1,840 new stores, bringing its total store count to 18,383, with a retail space of 79 million square feet. The expansion strategy focuses on smaller towns and cities, where over two-thirds of the new stores are being established. This approach not only broadens the company’s market presence but also caters to the diverse needs of Indian consumers.
The company’s retail strategy extends beyond brick-and-mortar stores. Reliance Retail’s e-commerce platform, JioMart, has become a key player in the online grocery segment, offering hyperlocal delivery across more than 1,300 cities. This digital push, combined with the acquisition of Metro India Cash and Carry, has further strengthened Reliance Retail’s supply chain capabilities, enabling it to serve over 4 million registered Kirana partners across the country.
Reliance’s consumer brands business is also seeing significant growth, with the relaunch of popular brands like Campa, Lotus, and Soulfull. These brands have been well-received in the market, further enhancing Reliance Retail’s portfolio and profitability.
5. Media and Entertainment: A New Era with Disney Partnership
The media and entertainment segment of Reliance, particularly Viacom18, has seen tremendous growth over the past year. The business achieved revenues of ₹10,000 crore, with Viacom18’s sports segment driving a remarkable 62% increase. This growth was largely fueled by the success of JioCinema, which became the world’s most-watched live streaming platform during the IPL season, reaching 62 crore Indians.
One of the most significant announcements at the AGM was the new partnership with Disney. This collaboration marks the beginning of a new era in India’s entertainment industry, combining content creation with digital streaming to offer world-class entertainment at affordable prices. The digital-first approach aims to cater to every consumer segment, delivering a wide range of content, from OTT Originals to blockbuster movies.
6. Energy Business: Sustaining Growth Amid Challenges
The oil-to-chemicals (O2C) segment remains a cornerstone of Reliance’s business, and the AGM highlighted its continued resilience and growth. Despite facing a challenging global environment marked by geopolitical conflicts and weak demand, the O2C business generated revenues of ₹5.65 lakh crore. Reliance’s ability to source diverse feedstock, optimize supply chains, and leverage advanced manufacturing technologies has enabled it to maintain strong margins and deliver industry-leading performance.
Reliance’s exploration and production business also reached a significant milestone, with its fields in the KG Basin contributing 30% of India’s domestic gas production. This achievement underscores the company’s commitment to supporting India’s energy security and its ability to execute complex deepwater projects successfully.
The AGM also provided insights into Reliance’s future energy strategy, with a focus on expanding capacities in new chemical value chains and developing sustainable energy solutions. The company is well on its way to becoming one of the largest users of renewable energy in India, further aligning its operations with global sustainability goals.
7. Leadership and Generational Transition
Mukesh Ambani took the opportunity to discuss the ongoing generational transition within Reliance Industries. Akash, Isha, and Anant Ambani have now completed their first year as board members, taking on greater responsibilities and proving their capabilities in leading the next phase of Reliance’s growth. Ambani emphasized that this transition is being managed with the utmost dedication to ensuring that Reliance continues to operate as a world-class institution.
He also highlighted the importance of nurturing a strong pool of young leaders within the company. This new generation of leaders, combined with Reliance’s experienced management team, is expected to drive the company to new heights in the coming years.
Conclusion
The Reliance AGM 2024 was a showcase of the company’s ability to adapt, innovate, and grow in a rapidly changing global environment. With strong financial performance, strategic investments in digital and retail, and a clear focus on sustainability and leadership development, Reliance Industries is well-positioned to continue its trajectory of success. As Mukesh Ambani aptly summarized, the future of Reliance is brighter than ever, with the company set to double its size and continue creating value for all stakeholders in the years ahead.
Reliance’s commitment to leveraging cutting-edge technology, expanding its market presence, and investing in sustainable growth ensures that it remains at the forefront of India’s economic transformation. With ambitious plans in place, Reliance Industries is poised to lead India into a new era of prosperity and innovation.
