On August 28, while speaking at the annual general meeting of the conglomerate, Mukesh Ambani, the chairman and managing director of Reliance Industries said that in the next 10 years, its growth will outrun the growth it has seen in the past years.
Ambani said, “I am supremely confident that the value that your company will create for all its stakeholders over the next decade will be multiple times greater than what it has generated over the past 45 years.”
Ambani said that in order to ensure that the company becomes more valuable with time, Reliance Industries has duly complied to certain cardinal principles of value creation. They are growth driven by the following key factors: perpetual demand, superior customer experience and value, strength of disruptive technologies and innovation, business discipline and global market potential.
He said that those five commitments would translate into a new and virtuous multi-decade Value Creation Cycle defined by faster growth, higher revenues, better margins and increased EBITDA and this would significantly enhance the earnings multiples of each of Reliance’s businesses.
Ambani emphasized that Reliance intentionally chose to be in businesses that have large pent-up demand, which over many decades is guaranteed to grow annually at a healthy rate.
He added saying that choice had led them to build businesses of global size and scale. Each of Reliance’s three growth engines, their O2C business, their Retail business and Jio’s Digital Services business met that value-creation criterion and so, will their newest and fourth growth engine Jio Financial Services.
In O2C, retail and telecom businesses, Reliance’s subsidiaries are category leaders. The company is also venturing in renewable energy, financial services and aims to recreate its successes.