Projects Worth $35 billion in FY17 from RIL
Mukesh Ambani, chairman of RIL said, “In the polyester chain, we added substantial volumes in an effort to further integrate our business. Reliance is confident of placing all our incremental output from the new projects in the domestic markets to meet India’s growing demand.”
MUMBAI, 6 AUGUST, 2016: Reliance Industries (RIL) is looking forward to commission petrochemical projects with a total investment of $35 billion in 2016-17. These include petrochemical expansion projects that would place RIL among the top 10 global producers in that sector, the company said in its annual report for 2015-16.
RIL has also sought shareholders’ approval to raise Rs 10,000 crore through non-convertible debentures (NCDs) this fiscal year.
In a letter to RIL’s shareholders, Mukesh Ambani, chairman of RIL said, “In the polyester chain, we added substantial volumes in an effort to further integrate our business. Reliance is confident of placing all our incremental output from the new projects in the domestic markets to meet India’s growing demand.”
RIL said its petrochemical plant expansion was on schedule and would provide the company the capacity and earning potential of a top pro ducer in the world. It is also upbeat on the impending launch of the Reliance Jio Infocomm telecom service.
During the year, RIL and its subsidiaries arranged long-term foreign currency facilities of about $6.3 billion. RIL, which repor ted a gross refining margin of $10.8 a barrel in 2015-16, ma naging to outper form the Singapore benchmark with a premium of $3.3 a barrel, expects mar gin pressure, but ho pes to perform better than the benchmark.
“The ability to ope rate at high utilisa tion levels and switch product slate et conditions enabled to suit market conditions enabled RIL to capture margin optimisation opportunities in the market.Overall, effective utilisation of secondary processing units, innova tive approach to optimise logistics cost and utilisation, production flexibility to swing to higher netback products and sourcing of bestvalue crude and feedstock-enabled RIL to sustain its performance even in a challenging margin environment,” the company said.
RIL said it expanded its fuel retail pump network to 1,000. It sees opportunity for further expansion. The company also said: “Both Reliance and its partner BP are evaluating the new policy and investment plans to develop discovered resources.”