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MOSL: RELIANCE INDUSTRIES (Buy): AGM Takeaways: Towards a greener Reliance; Unveils vision and forays in green energy

RELIANCE INDUSTRIES: AGM Takeaways: Towards a greener Reliance; Unveils vision and forays in green energy

(RIL IN, Mkt Cap USD190.2b, CMP INR2153, TP INR2430, 13% Upside, Buy)

 Reliance Industries (RIL), in its AGM held on 24^th June’21, announced a change in gears with the introduction of its New Green Energy business, with large-scale capex planned for the same. It also continues to focus on the next-gen opportunities in Jio Digital and Reliance Retail. Here are the key highlights:

 

Big foray in new green energy

Constantly on the lookout for large-scale and high-growth business opportunities, RIL today announced its next big value creation engine with the launch of its New Green Energy business. With the peak of the investment cycle behind in RJio and Reliance Retail, it now plans to invest INR750b towards this ambition over the next three years. Our FY22/FY23 capex estimate of INR850b/INR500b does not capture this development. RIL plans to create a 5,000 acre Green Energy Giga complex in Jamnagar, and build four Giga factories to manufacture a) solar photovoltaic cells, b) energy storage batteries, c) electrolyzers for the production of green hydrogen, and d) fuel cells. It plans to establish a 100GW solar energy capacity by 2030. RIL plans to repurpose its existing business without any asset write-downs and aims to be a zero-emission company by 2035 – providing a multi-decadal growth path through this growth engine.