RIL out with Rs 1-lakh-cr investment plan for 5 yrs

Barely 24 hours after Prime Minister Manmohan Singh had set high targets for infrastructure growth and investments, Reliance Industries Ltd unveiled a big-bang investment plan for the next five years.

Barely 24 hours after Prime Minister Manmohan Singh had set high targets for infrastructure growth and investments, Reliance Industries Ltd unveiled a big-bang investment plan for the next five years.

“We will invest nearly Rs 1 lakh crore… to build a stronger and more diversified Reliance,” RIL chief Mukesh Ambani, 55, told shareholders at the company’s annual general meeting on Thursday.

Revealing the plan to double the group’s profits by 2016, Ambani said the investment would cover retail, telecom and financial services businesses.

While many global and domestic business leaders have criticised the government for its alleged policy inaction, Ambani said RIL “continues to be in the mindset” of focusing on India. “We can achieve this growth while maintaining our financial strength.”

Ambani sounded bullish about business prospects despite the global and domestic challenges, such high inflation, a sliding rupee and a wobbly international economy.

“We are now ready for the next period of growth at Reliance by investing across all our core businesses,” said Ambani, who was accompanied by his wife Nita and mother Kokilaben.

Hinting that the second phase of RIL's multi-brand retail business plan is ready for take-off in a much bigger scale, he said it would involve a mix of retail and wholesale cash-and-carry.

"We are targeting a growth of five to six times in existing revenues (in retail business) and achieve Rs 40,000-50,000 crore over the next three to four years," Ambani said. RIL, which is sitting on a cash stockpile of Rs 73,000 crore, has set aside Rs 10,440 crore for buying back its shares-the largest ever by an Indian corporate house.