RIL Bets on New Energy and Petrochemicals for Future Growth – EQ
In Short : Reliance Industries (RIL) is focusing on new energy and petrochemicals as key growth drivers, committing ₹75,000 crore ($9 billion) to both sectors. RIL plans to expand its renewable energy portfolio with solar, battery storage, and green hydrogen projects. It is also enhancing its petrochemical operations to capitalize on margin recovery. These sectors are expected to drive future profitability and growth.
In Detail : Reliance Industries Ltd (RIL) is strategically positioning new energy and petrochemicals as the primary growth drivers for the company in the coming years. Chairman Mukesh Ambani highlighted that these sectors would play a pivotal role in increasing the company’s revenue and profitability as it looks to diversify its business portfolio.
RIL has committed a significant investment of ₹75,000 crore (approximately $9 billion) to both the new energy and petrochemical sectors. The company’s new energy initiatives will focus on solar power generation, photovoltaic module manufacturing, battery storage solutions, and green hydrogen production. These projects are expected to be developed in phases over the next three to four years.
Already, RIL has made notable progress in its renewable energy ventures. The company has launched a 1-gigawatt heterojunction (HJT) solar module facility and aims to scale it up to 10 gigawatts by 2026. Additionally, RIL is investing in lithium iron phosphate (LFP) battery technology, with production set to commence by 2026, targeting utility-scale energy storage solutions.
In the petrochemical sector, RIL is capitalizing on the recovery of petchem margins and is enhancing its operations to strengthen its market position. By leveraging its existing infrastructure and expertise, the company aims to expand its footprint in this segment, which has shown significant growth potential in recent years.
Analysts have responded positively to RIL’s strategic focus on these sectors, with expectations of substantial growth. Brokerages have maintained a “buy” rating on RIL’s stock, forecasting a 13-14% growth in consolidated EBITDA and net profit between FY25 and FY27, driven by advancements in telecom, retail, and energy sectors.
In summary, RIL’s large-scale investments in new energy and petrochemicals reflect its commitment to sustainable growth. By diversifying into these future-focused industries, the company aims to align itself with global trends in renewable energy and sustainable industrial practices, positioning itself for long-term success and profitability.
