Reliance Industries NSE 0.19 percent Ltd, owned by billionaire Mukesh Ambani, has formed a slew of partnerships to shape its green energy business, which includes solar, battery, and hydrogen investments and could contribute nearly 10% of the company's pre-tax profits in five years, according to a report. The oil-to-retail conglomerate announced a slew of new collaborations including REC, NexWafe, Sterling and Wilson, Stiesal, and Ambri for telecommunications for total costs of USD 1.2 billion.
In a report, brokerage Bernstein stated, "With these investments, Reliance has acquired the skills and technology portfolio to begin to develop a fully integrated end-to-end renewables energy ecosystem through solar, batteries, and hydrogen." "The acquired technologies will be commercialized, and manufacturing units will be established in India," says Reliance.
Reliance is likely to continue to invest in sustainable energy technology such as fuel cells and critical materials.
"Based on our calculations, we believe the new energy business may contribute over 10% of the company's total EBITDA by FY'26," it stated, "provided all plants are developed and scaled up on the company's timeframe." "This will turn Reliance into a highly diversified conglomerate with interests in E&P, refining, petrochemicals, clean energy, telecoms, retail, and the internet, yet we believe the business will be divided up due to the inefficiency of such a corporate structure."
Reliance still requires fuel cell technology, which it is likely to acquire or license from one of the industry's leading companies, such as Plug Power, Ballard, or Ceres.
"Based on our calculations, we believe the new energy business may contribute over 10% of the company's total EBITDA by FY'26," it stated, "provided all plants are developed and scaled up on the company's timeframe." "This will turn Reliance into a highly diversified conglomerate with interests in E&P, refining, petrochemicals, clean energy, telecoms, retail, and the internet, yet we believe the business will be divided up due to the inefficiency of such a corporate structure."
Reliance still requires fuel cell technology, which it is likely to acquire or license from one of the industry's leading companies, such as Plug Power, Ballard, or Ceres.