RIL's Chairman & Managing Director Shri Mukesh D Ambani's Address at the 42nd Annual General Meeting (Post - IPO)
Mumbai, India: At the 42nd Annual General Meeting (Post - IPO) of Reliance Industries Limited, the Chairman & Managing Director Shri Mukesh D Ambani has presented Company's account on business and financial performance for the year ended 31st March 2019.

Reliance became India's largest and most profitable company both in public and private sector with multi-sector diversification, with one of the major growth engines being 'Oils to Chemicals' division. Along with other growth engines, this one has done exceedingly well. In this segment, Reliance has made a record contribution to the Indian economy. As the largest exporter, the Company generated 2,24,391 crore exports to 107 countries accounting for 9.8 percent of India's total merchandise exports. The Company is the highest payer of custom's and excise duty amounting to 26,379 crore.

The 'Oils to Chemicals (O2C) Business' is formed by the integration of refining and petrochemicals businesses. This vertical has the ability to convert oil to high-value chemicals and new materials with life-enhancing ability. As the world moves towards renewable energy sources and electric vehicles, Reliance has positioned itself far ahead of the curve to create new value. At Jamnagar, the Company operates with a Complexity Index of over 21.1, which is the highest globally for a refinery. Higher complexity signifies a high degree of integration of units, feed flexibility, product manufacturing capability, and consequently the ability to maximize margins. Reliance O2C business achieved a revenue of 5.7 lakh crore, exports of 2.2 lakh crore, and EBITDA of 52,041 crore.

The Company processed 68.3 million tons of crude during the year maintaining the record of over 100 percent operating rate. Despite being in a challenging global environment, the Company achieved a gross revenue margin of USD 9.2 per barrel, maintaining a margin of USD 4.2 per barrel over the Singapore complex.

The Company also derived the full benefits of Refinery Off-Gas Cracker through the polymer production increase by 18 percent to 5.8 MMT. The Ethane sourcing investment achieved superior returns for capitalizing on the feedstock flexibility in a volatile environment.

All units of the Gasification complex have been safely commissioned. The Gasification complex is tightly integrated with the refinery and petrochemical complex at Jamnagar. The business focus is presently on completing this integration, capacity utilization, and efficiency.

The Butyl Rubber project with equity and technology from SIBUR of Russia, one of the global leaders in this business, is nearing completion and will be commissioned this year. This is a great example of India-Russia cooperation. Reliance and BP signed a Joint-venture in the petroleum retailing business. In a significant new initiative, BP is acquiring 49 percent stake in our petro-retail business. Reliance will get 7,000 crore from BP for this transaction.

Reliance is also going to make the biggest foreign investment in the history of the company, which is also one of the high-value foreign investment in the country. Saudi Aramco and Reliance have agreed to form a long-term partnership in Oil to Chemicals (O2C) division.

In terms of the understanding between the parties, Saudi Aramco will invest in Reliance for a 20 percent stake in O2C division at an Enterprise Value of USD 75 Billion for the O2C division. This investment by Saudi Aramco is subject to due diligence, definitive agreements, regulatory, and other customary approvals. This Partnership will cover all of RIL's refining and petrochemicals assets, including 51 percent of the petroleum retail JV. Saudi Aramco will also supply 500 KBPD of crude oils on a long term basis to RIL's Jamnagar refinery. This signifies perfect synergy between the world's largest oil producer, and the world's largest integrated refinery and petrochemicals complex. Since its inception, RIL's Jamnagar refinery has been processing Saudi oil every single day for 20 years. This longstanding relationship of two decades, based on mutual trust, is going to be transformed into a partnership of growth potential for many more years.

In context of Natural Gas Business, Reliance is re-emphasizing its shale gas business in USA. The present focus is on India.

In coal-bed methane block, RIL's focus is on augmenting production. The joint venture with BP will play a major role as a producer of natural gas. With world-class deep water infrastructure in the east-coast of India, the JV is uniquely positioned to monetize over 3 trillion cubic feet of discovered resources in the KG D6 block. The JV has committed an investment of 35,000 crore in three deep water fields in this block. The projects to develop these gas-fields are amongst the most complex, being executed anywhere in the world. These will commence production from the first half of 2020. With an expected peak production of one billion cubic feet per day, equivalent to nearly 30 percent of India's current indigenous gas production , the JV will emerge as a major contributor to India's energy security.