In recent years, Reliance Industries Ltd's annual general meetings (AGM) have become synonymous with jaw-dropping announcements. Its 44th AGM on Thursday was no exception.
A host of initiatives were on the table, ranging from the launch of an Android phone with Google in September to a major growth plan for its retail operation.
But what made headlines was the announcement Rs 75,000 crore investment in the clean energy business over the next three years.
The green energy sector has been gaining traction, with major corporations such as Adani and Tata entering the market. Analysts see huge potential in its development as well. While Adani Group's Adani Green has been in focus for its renewable energy developments, Tata Power also has entered the space with an unlisted firm.
Even though Mukesh Ambani did not mention listing the green energy firm in the AGM address, its listed peers have given stellar returns to its investors.
The company that has mostly been in focus in this space is Adani Green with its shares surging nearly 160 percent in the last one year.
In Q4, Adani Green posted a nearly 86 percent rise in consolidated net profit to Rs 104 crore due to higher revenues. The consolidated net profit of the company stood at Rs 56 crore in the corresponding period of the previous fiscal. For 2020-21, the company posted a consolidated net profit of Rs 182 crore, as against a loss of Rs 68 crore in 2019-20.
Apart from Adani Green, Indowind Energy has risen 129 percent, Urja global 122 percent, and Inox Wind has risen111 percent in the last year.
Meanwhile, Suzlon Energy has added 64 percent, Sterling and Wilson Solar 35 percent, and NHPC 28 percent.
Mukesh Ambani, Chairman of Reliance Industries, during the AGM said that the company would invest Rs 60,000 crore in the construction of four Giga factories at the Jamnagar Gigacomplex. Over the next three years, Rs 75,000 crore would be invested in new green energy businesses. RIL stated that by 2030, it would have established and enabled at least 100 GW of solar energy.
The company is planning to get into solar power generation and manufacturing, hydrogen production, e-fuels, and energy storage under its “New Energy and New Materials” division.
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