Reliance to invest $27 bn over 4 yrs in core business

Mukesh Ambani-led Reliance Industries Ltd (RIL) plans to invest about $27 billion (nearly Rs 1.5 lakh crore) over the next four years across its core oil and gas and petrochemical businesses as also into new ventures like telecom. HT reports.

Mukesh Ambani-led Reliance Industries Ltd (RIL) plans to invest about $27 billion (nearly Rs 1.5 lakh crore) over the next four years across its core oil and gas and petrochemical businesses as also into new ventures like telecom.

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"RIL is at the cusp of its next capex cycle as it invests $27 billion over 2013-14 to 2016-17 fiscal," said a Deutsche Bank AG report issued after its analysts met one of the company's two joint chief financial officers (CFOs). About 85% of the capex will be in its core business, the report said.

RIL chairman and managing director Mukesh Ambani last year announced plans to invest Rs 100,000 crore across energy, retail and telecom businesses in the next five years to double operating profit.

According to the report, RIL will spend $11 billion in oil and gas exploration including US shale gas venture and $4 billion in refining business. Another $8 billion is planned in petrochemical projects while $3 billion would go into its yet-to-be- launched telecom venture. The remaining $1 billion would go into retail business, it said.

The company is also investing $8 billion to expand its petrochemical business.