Reliance Industries Limited (RIL) [NSE: RELIANCE, BOM: 500325], reported annual revenue of Rs 792,756 ($104.6 billion) and became the first Indian company with over US$ 100 billion in revenue.
The company has been investing and expanding aggressively across various business segments. In 2021-2022, Reliance acquired a substantial equity stake in several companies, especially in its Renewable Energy (RE) business.
Reliance’s Investments in Various Business Segments During FY-22
Reliance, through its subsidiaries, has expanded its scope remarkably in Telecommunications, Retail, Oil to Chemicals (O2C), Oil and Gas (Exploration & Production) and Media Business.
Reliance’s Oil to Chemicals (O2C), Oil and Gas Exploration & Production Business
Reliance’s Consolidated Oil to Chemicals Revenue shot up by 56.52% to Rs 500,900 crore in FY-22. The company’s Oil and Gas (Exploration & Production) showed a massive 250% increase in revenue in FY-22 from the previous fiscal.
Talking about the total throughput of Reliance’s O2C operations, there was a YoY increase of 3.2% over the last quarter of 2020-2021. The company maximised its gasoil and petrol production during 2021-2022 owing to a high efficiency of its Petroleum cracking process [RIL reported Cracker operating rate of 99%].
Reliance and BP plc are jointly developing three gas fields in KG D6 block as part of their joint efforts in deep-water gas mining. In April 2021 commencement of production from their Satellite Cluster gas field in Block KG D6 was announced. Reliance further reported that the ongoing work on the MJ field in the KG D6 offshore block is on schedule, and will commence production by Q3 of FY-23.
Reliance BP Mobility Ltd., an Electric Vehicle (EV) charging joint venture (JV) between RIL and BP plc which is operating under the brand name ‘Jio-bp’, built an on-the-go charging station, cluster charging station and two fleet charging hubs in 2021-2022. With this development Jio-bp has over 300 charging and battery-swapping points across India. The JV has also announced partnerships with OEMs like Piaggio, Mahindra and TVS, and last mile delivery partners such as Swiggy, BluSmart and moEVing to encourage EV penetration.
During Q3 of FY-22, Reliance completed the sale of its stake in Eagle Ford Shale, which it had held since 2010. Reliance gained Rs 2,872 crore from this transaction, and made an exit from US Shale gas reserves.
Additionally, just after FY’22, in April 2022, Abu Dhabi-based RSC Ltd (TA’ZIZ) and RIL signed a shareholder agreement to form a joint venture, TA’ZIZ Ethylene Dichloride (EDC) & Polyvinyl Chloride (PVC). With an investment of over USD 2 billion, this JV will construct and operate a facility for Chlor-Alkali, EDC and PVC production in Ruwais, UAE.
RIL’s Renewable Energy Venture with Reliance New Energy Ltd. (RNEL)
In 2021, Reliance announced an investment of Rs 75,000 crore for its ambition to set up Dhirubhai Ambani Green Energy Giga Complex in Jamnagar for Renewable and clean energy options. The Giga complex will eventually house 4 giga-factories*. These giga-factories will be spread over 5,000 acres, and will involve technologies like solar energy, hydrogen fuel, green hydrogen, and various battery technologies.
*Giga Factory refers to a comprehensive end-to-end eco-system for design, manufacturing of energy cells, batteries and related equipment.
Towards this plan, Reliance acquired REC Solar Holdings AS (REC Group) from China National Bluestar (Group) Co Ltd. in October 2021. This was followed by various other acquisitions like UK-based Faradion and Netherlands-headquartered Lithium Werks BV for battery technology. The company also invested US$ 50 million for stake in Massachusetts-based Ambri Inc. for its energy storage business.
In February 2022 Reliance New Energy Ltd. completed the acquisition of 40% stake in Sterling & Wilson Solar Ltd. (SWSL). SWSL is one of the largest solar EPC, and O&M solution providers globally. It has presence in more than 24 countries and has more than 11 GW of solar power projects in its banner.
Reliance has also partnered with Denmark-based Stiesdal A/S for producing Electrolysers for the generation of Green Hydrogen from water.
In February 2022, RNEL procured stake in the Bangalore-based EV company Altigreen Propulsion Labs Pvt Ltd. for Rs 50.16 crore. Altigreen provides EV technology solutions for last-mile connectivity through two, three and four-wheeler EVs.
The company also entered into an agreement with Germany-based NexWafe GmbH for its patented technology that will help cut production costs for photovoltaic cells.
Jio Platforms Limited (Telecommunications)
Jio Platforms Ltd. (JPL), Reliance’s Mumbai-headquartered subsidiary and a major telecom service provider in India reported a revenue of Rs 95,804 crore in FY-22.
A major highlight in Jio’s business during 2021-2022 was the launch of the ‘JioPhone Next’ smartphone on 4th November 2021. Jio and Google have jointly developed this smartphone. To enhance the user experience of JioPhone Next, in February 2022 Jio announced a $200 million (about Rs 1,500 crore) investment for a 17% stake in Glance, which is a smartphone lock-screen platform.
In February 2022, the company also announced an investment of $15 million (about Rs 116 crore) in Two Platforms Inc. (TWO), a Silicon Valley-based deep tech startup, for a 25% equity stake. Jio also intends to provide scalable broadband connectivity in India by using satellite communication. For this purpose, Jio and Luxembourg-based SES S.A. announced the formation of a joint venture, Jio Space Technology Limited in February 2022.
In addition to this, Reliance Jio is collaborating with Maldives Government-owned Ocean Connect Maldives (OCM), to land the multi-terabit India-Asia-Xpress (IAX) undersea cable at Hulhumale, Maldives. Jio plans IAX to be ready by the end of 2023.
Reliance Retail Ventures Limited – RRVL (Retail Business)
Reliance’s gross revenue from retail rose to Rs 199,704 crore in FY-22. In 2021-2022. Below are the major highlights of Reliance’s retail business for FY22:
Reliance Retail has also acquired a 67% share in Just Dial Ltd., the online search engine for services in India.
RRVL acquired a 96.49% stake in Aaidea Solutions Private Limited which owns Milkbasket, an online subscription-based platform for home delivery of daily essentials. During FY-22, Reliance Retail entered into a master franchise agreement with US-based 7-Eleven, Inc. for the launch of 7-Eleven convenience stores in India. The first 7-Eleven convenience store was launched on October 9, 2021 in Mumbai. RRVL also made a UD$ 200 million investment in Dunzo.
Reliance undertook acquisition of the brands, ‘Portico’ and ‘Stellar Home’, the home décor business of Creative Group. RRVL also acquired a 52% stake in Ritika Pvt Ltd., which has lifestyle and fashion brands – Ritu Kumar, Label Ritu Kumar, RI Ritu Kumar, aarké, and Ritu Kumar Home and Living under it. The company further made an investment of Rs 950 crore investment in Purple Panda Fashions Pvt Ltd.
Reliance’s Media Business
The company clocked a revenue of Rs 6,831 crore from its media business during FY-22.
Reliance’s step-down subsidiary, Viacom18, recently signed a partnership agreement with Bodhi Tree Systems for digital streaming and TV platform services. This involves a Rs 13,500 crore investment in Viacom18 by Bodhi Tree Systems, and a Rs 1,645 crore investment by Reliance.
Other Strategic Investments made by RIL in FY-22
RIL, through its subsidiary, Reliance Strategic Business Ventures Ltd. (RSBVL), has invested in diverse areas such as genomic testing, electronics manufacturing and the development of 5G and data centre infrastructure.
This includes RSBVL’s investments in Sanmina Corporation, Strand Life Sciences Private Limited and Neolync Solutions Private Limited during 2021-2022 fiscal.