BILLIONAIRE Mukesh Ambani in his annual shareholders’ address on Thursday (Aug 29) unveiled plans for Reliance industries to develop cutting-edge artificial intelligence (AI) tools, but gave not details on the much-awaited listings of its telecom and retail units.
The conglomerate wants to “democratise” AI by offering models and services to ordinary Indians at affordable prices, he said without giving an investment outlay.
The energy-to-entertainment conglomerate also plans to set up “gigawatt-scale AI-ready data centres” powered by green energy in Jamnagar, a city in the Western Indian state of Gujarat.
Ambani, Asia’s richest person, took the dais minutes after Reliance informed stock exchanges that its board will consider a bonus share issue for the first time in seven years next week.
This comes as shareholders await clarity on initial public offerings of Reliance Jio Infocomm and Reliance Retail.
Ambani’s focus on mega data centres will pitch him against compatriot and Asia’s second-richest Gautam Adani, who is also doubling down on this business.
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Shares closed 1.5 per cent up at 3,041.85 rupees (S$47.27), pushing this year’s advance to almost 18 per cent.
The shares surged as much as 2.6 per cent on Thursday after the unexpected bonus issue announcement.
However, it pared some of those gains as the billionaire’s speech was scant on details of listing its consumer-facing businesses.
The Reliance board will meet on Sep 5 to consider the bonus stock issue proposal.
Ambani did outline growth plans for the conglomerate’s telecom and retail business. Both are sector leaders which attracted more than US$27 billion from marquee investors in 2020.
Alphabet’s Google and Silicon Valley giants Meta platforms were among the investors of the telecom venture. Saudi Arabia’s Public Investment Fund and Abu Dhabi Investment Authority bought into its retail business.
He said Jio and Retail – identified as two of five growth engines – are expected to double their revenues and earnings before interest, taxes, depreciation and amortisation (Ebitda) in the next three to four years.
“Today, three of these engines have a valuation of over US$100 billion each,” Ambani noted, without naming the businesses.
The tycoon also expects the green energy business to be the “new jewel in Reliance’s crown”, equalling the traditional energy business in size and profitability in the next five to seven years.
Ambani’s daughter, Isha Ambani – who helms the retail business of the group – told shareholders that Reliance will partner Shein, marking the fast fashion giant’s return to India after four years.
Founded in China and headquartered in Singapore, Shein was among Chinese apps banned by New Delhi following deadly border skirmishes with China in 2020.
The tie-up will help Reliance compete with rival Tata Group whose retail unit Trent is outperforming Indian fashion rivals. BLOOMBERG
