Anil Ambani’s Reliance Group has charted out a new growth plan, which involves the two main companies in the group, Reliance Infrastructure and Reliance Power, raising ₹17,600 crore and setting up the Reliance Group Corporate Centre (RGCC) that will provide strategic guidance to the group, a release from the group said.
Of the total funds planned to be raised, ₹4,500 crore is currently in the process of being raised via a preferential equity issue, ₹7,100 crore from Varde Partners through equity-linked long-term foreign currency convertible bonds, and ₹6,000 crore via qualified institutional placements.
The revival plan, called ‘Vision 2030: Growth Strategy,’ focuses on its existing businesses and pursuing new opportunities. The plan was announced even as the Solar Energy Corporation of India has, according to Reuters, sent a show-cause notice to Reliance Power for submitting fake documents for a bid.
Projects
In its statement, the Reliance Group said that Both Reliance Infra and Reliance Power have paid off their dues to the banks and are now ready to pursue their expansion plans. In September, Reliance Infra announced that it had brought down its standalone debt to ₹475 crore and currently had a net worth of ₹9,041 crore.
Reliance Power has secured 1,270 MW of renewable power projects in Bhutan, while Reliance Infra, through its subsidiary Reliance Defence, is setting up a manufacturing facility for small arms, ammunition, and explosives in Ratnagiri, Maharashtra, spanning 1,000 acres.
Reliance Infra operates a metro line in Mumbai. it has 9-10 road projects and also distributes power in Delhi under BSES Delhi Discom.
Reliance Defence has several joint ventures, of which the prominent ones are with Rafale and Thales.
Core team
The RGCC has a core team of leaders such as Sateesh Seth, Punit Garg, and K Raja Gopal, who have spent several years with the group and will be mentoring as well as providing strategic guidance for future growth and expansion.
Garg heads Reliance Infra, while Gopal is helming Reliance Power.
“The establishment of RGCC aims to harness the in-house expertise of these seasoned leaders to support the Group’s forward-looking growth initiatives and cultivate a new generation of leadership for future projects,” the statement said, adding that it would play a pivotal role in mentoring and developing emerging leaders, blending experience with fresh talent to propel the group towards sustained growth.
Anil Ambani, who took over the financial services, telecom, infrastructure, and energy businesses after he split with his brother Mukesh Ambani in 2005, has been struggling with debts and insolvency for over 15 years.