Allaying investor fears on Reliance Industries' diversification spree, its chairman Mukesh Ambani on Thursday said the company does not have any "unrelated focus" and all its investments in sectors like retail and telecom will deliver in due time.
"We are building a full, new consumer value chain. If you see the top value generators in the whole world, then they are energy companies and consumer companies. In India, we have the unique opportunity where in 10 years, we can build up a complete value chain in the retail business," he told company shareholders in Mumbai.
"And all our investment will give deliveries and we don't have any unrelated focus, which I want to assure all of you," he said.
RIL, which announced plans to invest Rs 100,000 crore (Rs 1,000 billion) over the next five years in energy, retail and telecom businesses to double operating profits, always invests in businesses of future, failing which it could have ended as a textile firm, he said.
"In terms of other businesses, we always believe in business of future. (Otherwise) we started up as a textile company, we could have ended up as a textile company," Ambani said, adding that retail business is one of those opportunities pursued by RIL as of now.
"Now, we are in the entire energy chain and we are leaders over there. And we are the one of those few companies, which can talk about textile to oil and gas. Now, we are building up consumer chain and we believe that we are investing in a business of future," he said.
Reliance Retail, the retail arm of RIL, has reached a revenue of Rs 7,600 crore (Rs 76 billion) in its five years of operation and aims to have a turnover of up to Rs 50,000 crore (Rs 500 billion) in the next three to four years.
Referring to falling production at KG-D6 gas fields, Ambani said things would improve in future as he has full faith on his team.
Oil and gas is "very complex", he said. "It is very easy to criticise. But, I think, the very fact that after 30 years, we have got oil and gas from Krishna-Godavari basin should not be undermined. I am very confident, that our young engineers will deliver and I expect all the shareholders and the entire country to support them," he said.
While world over, companies have taken 12-15 years to stabilise production from time of discovery, "we are still in the year 10 from the time we do the discovery. So, we are way ahead," he said.
Ambani also said he had gone through enough negative views about the company in last 35 years.
"For me, (in) last 35 years, I have seen people being negative... people being cynical. Even there was a time in 80's, people also said that Reliance is a bubble. You know where Reliance is today and I respect everyone's views," he said.
Photograph: Denis Balibouse/Reuters
