Relying on Mukesh

IIPM PUBLICATION

RIL is expected to continue on its aggressive growth path, and set new benchmarks

When it comes to Indians and food, the word “Fresh” has a universal appeal, and smoothly supersedes every credible constriction construed under the sun. If it has to be eaten, by simple logic, ‘fresh’ is how the Indians love it.

As Reliance Industries Limited (RIL) finally got off with its gargantuan retail foray in the financial year 2006-07 with a food retail chain named Reliance Fresh, a powerful connection was established for the incorrigible ‘freshness conscious’ Indian at the outset. A connection that is pan- Indian, just the way Mukesh Ambani plans to make Reliance Fresh a household name across India (RIL currently has 138 Reliance Fresh stores in place), which is, in turn, a stepping stone to his becoming the Indian version of Wal-Mart. The company has also launched its foray into consumer electronics with Reliance Digital.

Grandiose is how Mukesh Ambani envisions every one of his old and new ventures, and lately he’s been quite preoccupied with setting up new behemoths that should one day be living examples on their own. And with the kind of numbers RIL shows up on its balance sheet, one wouldn’t dare to doubt Mukesh’s exuberance as evident from his investments, as the financial year 2006-07 proved yet again.

Despite facing volatility in the prices of crude oil, an unexpected incident at the Jamnagar plant, production loss owing to floods at the Hazira unit, Reliance Industries came out triumphant by creating a new chapter when its net profits crossed Rs.100 billion mark, exports that surpassed $15.02 billion and a turnover that stands at $25.51 billion. Mukesh Ambani, CMD, Reliance Industries, while speaking on the announcement of his company’s results sounded ecstatic, “2006 – 07 has also been an eventful year for the company. While our petrochemicals & refining business recorded its best ever performance, we have made substantial investments in our future growth engines such as E&P and retail...” As on June 7, 2007, the RIL scrip closed at Rs.1669.15, pole-vaulting by over 100% year on year. On May 28, Mukesh’s personal valuation in RIL made him the first trillionaire of India.

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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