Reliance Industries held its 41st Annual General Meeting (AGM) on Friday, June 12, 2015 in Mumbai. The Chairman, Mr. Mukesh Ambani, addressed the meeting, attended by the company’s shareholders. Following the trend of the past 10 years, the shares of the company saw a hike of 1.2% to reach a price of Rs. 885.95 on Thursday. The pre-AGM period has proven to be highly profitable for the company’s stock in the past few years.
Mr. Ambani began his address by drawing an outline of the company’s strategic perspective. He further presented a review of Reliance Industries’ performance in the financial and business spheres. The various projects and ventures of RIL including petrochemicals, petroleum refineries, natural oil-and-gas and retail were also discussed. As expected by trade analysts and shareholders, crucial announcements regarding Reliance Jio’s 4G launch were made.
Speaking of Reliance Jio, Mr. Ambani described the digital venture as
“one of the largest transformational green-field digital initiatives in the world”. Lauding the team for its achievements in the past two years he went on to give an account of the current status of the project. Currently, Reliance Jio has established its presence in all 29 states, reaching out to 1,800 cities across India.It is now in the testing phase before the launch. Some of these, as discussed at the AGM, are as follows:
- Reliance Jio aims 85% coverage of India’s population by the end of 2015 and will look at extending it to 100% in the next three years. It is currently the largest holder of liberalized spectrum in India.
- Jio aims to provide cost-effective 4G LTE (Long Term Evolution) handsets, priced under Rs. 4,000 by the end of this year. With the low price, the 4G LTE trends in India are expected to match those in China.
- The commercial operations for 4G will begin in December, with the beta launch set for the next few months. It is expected to be fully operational by FY2017.
- The Jio team is also working on developing several digital apps, which will be launched in the next few weeks. The core product of Jio Money, to be used for digital payments, is operational.
- The services under Reliance Jio are to be offered under lucrative prices between Rs. 300 and Rs. 500, making them widely accessible.
Commenting on Jio’s progress, Mr. Ambani stated that it has the potential to emerge as a Tier1 company at the global level, bringing value to the shareholders. He expressed his faith in Jio’s ability to bring India among the top 10 ranks for Internet penetration. He also expressed Reliance’s commitment towards net neutrality in India.
The AGM also addressed several other important developments for Reliance Industries. Mr. Ambani announced Reliance’s entry into the digital cable industry. With an addition of 930 new stores in the last year, RIL expects to further increase retail presence in the coming year. Reliance has emerged as India’s largest exporter with a share of 12% in merchandise exports. It aims to re-commission all of its fuel retail outlets this year. It was also announced that Reliance has successfully raised its international credit ratings. Mr. Ambani concluded the address with an assurance of working with enthusiasm towards the company’s goals.
Summary
The Annual General Meeting of Reliance took place today with Chairman Mukesh Ambani summarizing key achievements and areas of growth.