INSUBCONTINENT EXCLUSIVE:
Golden Dec ade of the oil-to-telecom giant, and creating ample value for shareholders.
The owner of world's largest refining unit at
Jamnagar said the conglomerate aims to bring the consumer businesses to a level where it will match revenues of the hydrocarbon
realising multiple monetisations
mobile data network in the world
Through JioGigaFibre, Jio wants to build the home-and-office connectivity platform, which will potentially connect some 50 million
He said JioGigaFibre would have a much higher value proposition, as the core investments had been made while building the mobility
network.
Ambani is also seeking to redefine retailing with what he called a 'New Commerce' platform.
Analysts appeared impressed by this
vision.
The transition road map that Ambani has laid out for the next 10 years clearly defines the earnings trend for the company, said
Mayuresh Joshi, Fund Manager at Angel Broking.
"At this point as it stands, Jio and retail contribute 13 per cent of Ebitda
The jump in contribution that these entities are expected to make over the next 8-10 years would be significant
A large element in terms of core capex of $18.5 billion is largely behind the company
The kind of commissioning we have seen in the past with the ethylene project, gas cracker and petcoke gasification, this is all going to
Ambani also announced that the largest-ever cycle of investment in RIL's world-scale petchem complex projects is nearing completion
He expects the investments to yield healthy profits for many years to come.
"The value-chain integration would allow us to create an
annuity-like cash flow with lower risk of cyclical markets
We have a full plan to further increase the level of integration by adding new chemical chains and capacity to produce new materials and
This will minimise the impact of renewables and electricity on transportation fuels
We have the unique advantage, among global players, of being able to pursue this strategy with physical integration at one large site," he
One will have to wait and watch
But prima facie, capex should definitely be lower and earnings should definitely be on a higher trajectory over the next three years,
particularly from the consumer- facing businesses," he said.
