Here's what RIL predicts for its 3 hyper-growth engines in FY22

MUMBAI: Reliance Industries emerged out of Covid-19 as one of the biggest winners as the conglomerate utilized the early months of the pandemic to raise substantial capital from global private equity firms and technology majors such as Facebook and Google.

The company transformed itself into a consumer technology firm that also sells petrochemicals and oil on the side. The company’s consumer facing business now commands nearly 50 per cent of consolidated operating profit as against 36 per cent in the previous financial year.

“In an unpredictable and challenging environment, agility and innovation are key to staying consistently successful. As technology becomes a driving force in all businesses and facets of life, the future belongs to organisations that can lead and leverage the digital revolution,” Chairman and Managing Director Mukesh Ambani said in the annual report.


That said, the conglomerate laid out the outlook for its three hyper-growth engines in Jio Platforms, Reliance Retail and Reliance O2C.

Reliance Retail
In the near term, the business will focus and drive the following five key strategic thrusts.

First, the company will develop supply-side ecosystem and invest in design, product development and sourcing. Second, it will leverage the retail opportunity through continued store expansion. Third, it will scale up digital platforms across businesses led by JioMart. Fourth, it will onboard merchant partners across categories and lastly, it will expand to new geographies and build new businesses, segments and own brands.

“The business will look to establish an extensive supply chain network, leverage technology backbone and build talent and organisation for a world-class retail enterprise,” RIL said.

Jio Platforms
RIL said that over the next few years, Jio will focus on creating a “robust wireline network across the country, offering high-speed connectivity and a bouquet of digital services to every home and enterprise”.

RIL announced that it has successfully tested fifth generation telephony technology in India in partnership with Qualcomm with speeds of up to 1 gigabyte per second.

Oil-to-chemical
On the petrochemical and refining business, RIL was confident of demand picking up as the current financial year progresses even though it said that near-term demand trends will be affected by the second wave of the pandemic in the country.

RIL expects global transportation fuel demand to reach pre-pandemic levels by the end of the current financial year, and container shortages to persist till September that will support polymer and intermediate margins.

“Strong domestic demand across key segments such as healthcare, packaging, durables, auto and infrastructure is expected to drive demand for downstream products,” RIL said.