Oil, gas and telecom will be mainstay of RIL

By Our Special Correspondent

MUMBAI, JUNE 15. Mr. Dhirubhai Ambani, Chairman, Reliance Industries (RIL), today said oil, gas and telecom would be the main thrust areas for the Reliance group in future. ``The oil and gas business at present contributes 3 per cent of RIL's overall revenues and it is expected that this will increase significantly in the future,'' said Mr. Ambani while addressing the shareholders at the company's 27th annual general meeting here.

The company has already emerged as India's largest private sector exploration and production (E&P) operator. RIL's exploration and production portfolio now comprises 25 onshore and offshore, deep and shallow water blocks, covering an acreage of 175,000 sq. km.

The company is in the process of completing formalities for the acquisition of five exploration blocks from Tullow of the U.K., covering 21,000 sq. km.

The company plans to spend Rs. 1,500 crores on the four new blocks awarded to it under the New Exploration Licensing Policy along with Hardy of the U.K. Mr. Ambani said the group ``continues to examine various opportunities in the power sector with potential for generating attractive returns in the long term''. The company's holding in BSES has gone up to 30 per cent and it also has appointed two directors on the power utility's board.

Reliance has built a modern cellular network, covering 106 cities and towns and notched up a subscriber base of over 2.12 lakhs in less than four years.

The subscriber growth rate of 170 per cent over the last one year is double the industry growth, Mr. Ambani said. On restructuring of its textile business Mr. Ambani said the company would now focus on high value added product ranges of menswear under the Vimal brand and home textiles under the Harmony brand. The restructuring is aimed at strengthening the leadership of the two brands.

Further Mr. Ambani said RIL proposes to raise the holding of foreign institutional investors to 49 per cent to increase the weightage of the scrip in the benchmark international stock indices. The FII holding in RIL has risen from less than 2 per cent in 1995-96 to over 17 per cent now.

All resolutions, including reappointment of directors, auditors, and raising FII holding in the company were passed unanimously at the AGM.

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Section  : Business
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