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RIL hosted its 46th AGM today, wherein CMD Mukesh Ambani laid out a five-year succession road map, while recommending his three children on the company’s board. JioAirFiber’s commercial launch date is set on September 19, 2023. 5G adoption stands at 50mn (~11%). O2C’s transition into a sustainable, green, circular and consumer-integrated business has been reiterated. In new energy, 100GW of renewable rather than solar energy capacity was reiterated with wind power also being a focus area now (carbon fiber to support lower costs). Integrated PV gigafactory would be commissioned by CY25-end, while battery (LFP) would be commissioned in CY26. Megawatt level demos for sodium ion batteries, RTC power (incl. storage), and green hydrogen (has a cost roadmap now and includes green ammonia, methanol and chemicals) would be done in the next 1-2 years. We find AGM KTAs to be overall neutral, although some progress in new energy development was revealed. We retain our HOLD rating with a TP of Rs2,660.

Jio 5G remains on track; AirFiber’s commercial launch on September 19; retail to be the fastest-growing business in group, more investors line up

JioAirFiber’s commercial launch is planned on September 19, though its pricing relative to Airtel remains the key. Airtel has already announced AirFiber earlier this month. Jio’s 5G plan remains on track, with countrywide rollout by Dec-2023 (with 1mn radio cells). RJio continues to roll out 5G at a fast pace, with 85% of total 5G cells operational in India on Jio’s network and 5G subscribers standing at 50mn (~11% penetration). The company also re-emphasized its plans for (i) JioBharat phone to convert 2G users to 4G; (ii) Jio Business to provide full spectrum of tech-enabled services; and (iii) Jio Platform, with its ambition to look for global opportunities for technology developed in India. As per the CMD, retail will be RIL’s fastest-growing business in terms of revenue and EBITDA. Several marquee global investors have shown a strong interest in retail and progress with them would be updated.

O2C transition reiterated while some more details were revealed in the new energy segment

RIL reiterated its net-zero target by CY35, with new energy platforms making O2C clean and lower costs driving the segment’s profitability. Jamnagar complex will operate progressively as a chemicals and materials feedstock engine, while carbon fiber facility in Hazira targets to propel RIL among the top-3 players globally. However, nothing was mentioned on the petchem expansion projects announced in CY22 AGM. The next few years would be transformative for new energy as giga-factories are rapidly executed. We note a slight delay in new energy projects, although progressive commissioning implies timelines are still reasonable. Wind as a part of renewable power has been further highlighted and the company aims to become a low-cost equipment manufacturer in this segment. In batteries, RIL will start with the tested LFP chemistry, although sodium ion is also a focus area. Megawatt scale demonstrations would start in the next 1-2 years. In green hydrogen, it stated having a cost roadmap now for electrolyzers as well as green hydrogen, though no numbers were disclosed. However, it mentioned green hydrogen would be used for captive requirements while derivatives would be for external markets.

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