Excerpts from Mukesh Ambani’s AGM speech
The Supreme Court upheld, in most parts, the stand of Reliance Industries Limited.
As and when the power plants of ADAG are ready to receive gas, we would commence supplies to them subject to government granting allocations to these plants in the same manner as we do to all other plants to which the government has allocated gas from the KG-D6 gas field.
With this legal dispute behind us, we look forward to a harmonious and constructive relationship with ADAG.
Reliance posted a 37 per cent increase in turnover to reach Rs 200,400 crore.
Reliance exported products to the extent of Rs 110,176 crore, an increase of 24 per cent over the previous year and is India’s largest exporter.
Return on capital employed for Reliance was 14 per cent
Capital investments to the tune of Rs 21,943 crore �
Dividend payout of 70 per cent on the post-bonus share capital, amounting to Rs 2,430 crore
Cash and cash equivalent of Rs 21,874 crore
A strong balance sheet gives Reliance the ability to pursue its organic growth charter (and) the ability to capitalize on inorganic growth opportunities.
RIL is setting up -
a. an integrated 2.3 million tonnes of purified terephthalic acid.
b. 540,000 tonnes of polyethylene terephthalate complex at Gandhar.
c. 360,000 tonnes of polyester filament yarn plant at Silvassa.
Reliance is unleashing a new wave of petrochemical projects, encompassing existing and new product-market domains. Potential end-use sectoral growth and the consequent derived demand form the basis for the new petrochemical investments planned by Reliance.
I had announced the setting up of an off-gas cracker at Jamnagar in 2007. We are accelerating the implementation of this cracker. This off-gas cracker with over 1.5 million tonnes per annum of olefins capacity with matching downstream capacities will be one of the largest facilities in the world. MEG from cracker will add to our leadership position in the polyester business. We will value-add kerosene to normal paraffin at Jamnagar to address the growth opportunity in the growing Indian detergent market.
Reliance will create additional capacities of poly butadiene rubber at Baroda and styrene butadiene rubber at Hazira; and for butyl rubber in a JV partnership with SIBUR to complete a comprehensive portfolio in the synthetic rubbers domain.
In the next five years, our total investment in all the new polyester and petrochemical manufacturing facilities will be the largest investment in this sector to be made anywhere in the world at any given point of time.
Last year, Reliance commissioned its new 580 kbpsd refinery in a Special Economic Zone at Jamangar. With an aggregate refining capacity of 1.24 million barrels per day, Reliance Jamangar earned the distinction of being the largest refining complex and petroleum hub in the world. I am pleased to share with you that along with the petrochemical facilities Reliance will go ahead and build one of the largest coke gasification facilities in the world. This will significantly increase the complexity and profitability of the refinery and also make it more environmentally friendly. This will further enhance bottom-of-the-barrel conversion making it a “Bottomless Refinery” in terms of value creation. The new petroleum refinery with superior gross margins coupled with value addition through off gas cracker, paraxylene and coke gasification will significantly enhance the profitability from the Jamnagar complex.
Within just one year of start-up, Reliance has ramped-up production at KG-D6 and supplied about 510 billion cubic feet of natural gas. The production level now exceeds 60 mmscmd of natural gas and over 30,000 barrels of crude oil per day. The emphasis is now on long term production sustenance through reservoir management and optimization. Reliance has intensified its exploration campaigns across the deepwater basins in the East Coast, with the objective of doubling the proven reserves base in the next three years.
Having made 49 oil and gas discoveries in less than a decade as an operator, the impetus is now on converting this established resource base into production.
Accelerated development of discoveries in the blocks KG D6 in the Krishna-Godavari basin, NEC 25 in the Mahanadi basin, CB10 in the Cambay basin and Coal Bed Methane in Sohagpur, Madhya Pradesh are our priorities.
Reliance has built an international portfolio in conventional oil and gas plays spanning over 14 blocks in 7 countries.
We shall be drilling the first exploration wells in our assets in Kurdistan in Northern Iraq and in East Timor. In Colombia, Yemen, and Oman we shall continue our efforts.�
During the year, Reliance took a significant first step by entering into a partnership with Atlas Energy to acquire a 40 per cent interest in Atlas’s core Marcellus shale acreage position in the USA.
With this, Reliance has access to approximately 343,000 acres of undeveloped land with estimated gross resource in excess of 13 trillion cubic feet of gas.
For Reliance, power business is a natural and synergistic extension of our energy portfolio. Reliance and ADAG have annulled the earlier non-compete agreement and have signed a new non-compete agreement. This new agreement opens up the full range of power business for Reliance, except non-captive gas-based power plants until 2022. This paves the way for Reliance to participate in the whole value chain of the power business, spanning generation, transmission and distribution. We see an unbounded opportunity in this space.
We are drawing up specific plans for mega-investment in this sector with clean coal-based power generation projects, hydel projects and also in nuclear power as and when it is opened up. We are also focused on the alternative energy domain, with priority on solar power. Reliance successfully executed a 1 Mw roof-top project at Thyagaraja Stadium for the Commonwealth Games in New Delhi. Reliance is also implementing a 5 Mw solar electricity farm at a site near Jodhpur in Rajasthan.
This is your best post yet,I have bookmarked.
http://s2sgateway.co.cc
Leave your response!