As of now, Ambani’s plan sounds a lot like Elon Musk’s Tesla minus the electric vehicles.
India’s richest man is making a strategic shift towards renewable energy.
This is significant because over 60% of RIL’s consolidated revenue comes from fossil fuels and their by-products.
Global investment bank Morgan Stanley expects RIL to pump in $13 billion to $15 billion into renewable energy space in the next 10 years.
One of the reasons for RIL hiving off its oil-to-chemicals business is to revive the deal talks with Saudi Arabia’s Aramco.
The Kingdom of Saudi Arabia itself is planning to invest in renewables in a big way and reduce its carbon footprint.
Check out the latest news and analysis on Business Insider.
The possibility of a stake sale to Saudi Arabia’s Aramco is only one part of the story behind Reliance Industries hiving off its oil-to-chemicals business.
This is also part of a strategic shift by Ambani to renewable energy. “RIL will further accelerate its new energy and new materials business towards its vision of clean and green energy development,” the company said in its filing with the stock exchanges.