Ambani Emphasises On New Energy Business, Technology

MUMBAI, Aug 29: RIL Chairman Mukesh Ambani announced a roadmap that has three key elements. Speaking at the RIL's 47th AGM, Mukesh Ambani announced exhaustive details of the growth plans for the new energy business, a continued emphasis on scale for all units, and an acceleration of the drive to convert Reliance into a technology powerhouse or, to use the title of the AGM speech, a "Deep Tech and advanced manufacturing company".

Another major announcement was of a 1:1 bonus issue. As India's most valuable company, it sought to reward loyal shareholders.

He said the roadmap was to be accomplished through generous use of Artificial Intelligence across businesses.

"Reliance spent over ₹3,643 crore ($437 million) in FY24 towards R&D, taking our spend on research to over ₹11,000 crore ($1.5 billion) in the last four years alone. We have more than 1,000 scientists and researchers working on critical research projects across all our businesses. I feel proud to inform you that last year Reliance filed over 2,555 patents, mainly in the areas of bio-energy innovations, solar and other green energy sources, and high-value chemicals," Ambani said.

Ambani has set ambitious targets for the New Energy business, pledging to achieve an earnings capacity in the next 5 to 7 years comparable to what the O2C business earns and what it has achieved over the last four decades. Towards this end RIL will invest Rs 75,000 crore in developing an ecosystem for the new energy economy.

The key elements of this are the establishment of large-scale manufacturing facilities for solar photovoltaic (PV) modules, battery energy storage systems (BESS) and a giga-electrolyser factory to address all parts of the value chain.

Jamnagar, the site of RIL's famous refinery, will house the proposed world-scale new energy units.

"Jamnagar is the Energy Capital of the World. I am proud to say that by 2025, Jamnagar will also become the cradle of our New Energy business. The Dhirubhai Ambani Green Energy Giga Manufacturing Complex will be the world's largest, most modern, modular, and integrated ecosystem at a single location," Ambani said.

Further the company has leased waste land in Kutch, to create green molecules through electrolysis with the intention of generating 150 billion units of electricity.

Scale was the leitmotif throughout Ambani's speech. Indeed, it has been the company’s DNA right from the days of its legendary founder, Dhirubhai Ambani.

In the area of digital services, Jio with 490 million subscribers now carries 8 percent of the world's mobile traffic. The company, which registered a net profit of Rs 20,000 crore on a topline of Rs 1,00,000 crore, has played a seminal role in elevating India to its current position of the world's largest data market. In the AGM Ambani introduced the launch of countrywide AI Infrastructure.

"We are laying the groundwork for a truly national AI infrastructure. We plan to establish gigawattscale AI-ready data centres in Jamnagar, powered entirely by Reliance's green energy, reflecting our commitment to sustainability and a greener future," Ambani said.

The proposed AI Infrastructure will make available AI infrastructure to sectors such as retail, healthcare, education, entertainment, small businesses and agriculture.

Reliance Retail (topline, Rs 3,06,848 crore net profit, Rs 11,000 crore) is now among the top five retailers in terms of stories and continues to grow 2.5 times faster than the rest of modern trade.

Despite these considerable achievements, Jio and Reliance Retail are expected to double revenues and EDITDA over the 3-4 years. Ambani also sees immense potential for the media business of which publication is a part. The much-awaited IPOs from Reliance Retail and Jio, when they happen, could potentially be blockbusters.

The growth plans for the Oil to Chemicals (O2C) and E&P businesses are also substantial though the newer businesses will dominate the news cycle.

Ambani promised to double the size of the Reliance Group before the end of this decade. He also said that RIL expects to meet a target set in 2022, of doubling market capitalization.

"I am pleased to inform you that this year, Reliance is among the world's Top 50 most valuable corporations. In July 2018, Reliance crossed the $100 billion valuation mark. And in just six years, we have become the first Indian company to cross $250 billion in market value. In 2022, I promised that Reliance would double its value by the time we complete 50 Glorious Years in 2027."

RIL's current market cap is $244 bn (Rs 20.4 lakh crore).

In a report in July Morgan Stanley projected an increase of $100 bn in market capitalisation on the back of $60 bn investment between 2021 and 2023.

Key to achieving it will be completing RIL's transition into a producer of innovation and technology. Given the track record so far few would bet against it.

Rahul Gandhi warns of stock market risk after new Hindenburg report on SEBI chief: ‘Umpire is compromised’

NEW DELHI, Aug 11: Leader of Opposition in the Lok Sabha, Rahul Gandhi, on Sunday issued a stark warning regarding the integrity of India's stock market following the latest allegations made by U.S.-based short-seller Hindenburg Research.

In a video statement, Gandhi expressed serious concerns about the potential conflict of interest involving the head of India's market regulator, the Securities and Exchange Board of India (SEBI).

"It is my duty as Leader of Opposition to bring to your notice that there is a significant risk in the Indian stock market because the institutions that govern the stock market are compromised," Gandhi said, referring to the Hindenburg report, which accused SEBI chief Madhabi Puri Buch of having had stakes in one of the offshore funds allegedly used by the Adani Group for illegal share ownership and price manipulation.

The Hindenburg report, released on Saturday, claims that Buch and her husband, Dhaval Buch, held investments in a sub-fund of the Bermuda-based Global Opportunities Fund. This fund, according to the report, was linked to the Adani Group’s stock trading activities.

The report alleges that Dhaval Buch became the sole operator of the account in 2017, just before Madhabi Puri Buch joined SEBI.

"This is an explosive allegation because it alleges that the umpire herself is compromised," Gandhi said, referring to Buch’s role as the chairperson of SEBI.

“Why hasn’t SEBI chairperson Madhabi Puri Buch resigned yet?” Gandhi said.

"If investors lose their hard-earned money, who will be held accountable – PM Modi, the SEBI Chairperson, or Gautam Adani?" he asked, calling for immediate action.

Gandhi also urged the Supreme Court to revisit the case against Adani Group, suggesting that the new allegations necessitate further investigation.

"New and very serious allegations have surfaced. Will the Supreme Court look into this matter suo moto once again? It is now abundantly clear why Prime Minister Modi is against the Joint Parliamentary Committee (JPC) looking into this matter," he added.

The Adani Group has categorically denied the allegations, describing them as "no more than red herrings thrown by a desperate entity with total contempt for Indian laws."

SEBI has also responded, with Madhabi Puri Buch dismissing the allegations as baseless and reiterating that all necessary disclosures were made before her appointment as SEBI chairperson.

Hindenburg report: Opposition demands SEBI chief's resignation, JPC probe

NEW DELHI, Aug 11: The US-based short seller Hindenburg Research's allegations against SEBI chief Madhabi Buch triggered a political slugfest on Sunday with the Congress and other INDIA bloc parties demanding her removal and a joint parliamentary committee (JPC) probe and the ruling BJP accusing the opposition of being a part of a conspiracy to create financial instability and chaos in India.

The opposition parties also urged the Supreme Court to step in after Hindenburg Research on Saturday alleged that the SEBI chairperson and her husband had stakes in obscure offshore funds used in the alleged Adani money siphoning scandal.

Madhabi Buch and her husband Dhaval dismissed the charges as baseless and alleged that Hindenburg Research is attacking capital markets regulator SEBI's credibility and attempting a character assassination of its chief instead of replying to a show cause notice served to it for "violations in India".

SEBI said allegations against the Adani Group have been "duly investigated", and its chairperson disclosed and recused herself from time to time when dealing with matters.

The Adani Group also termed the allegations malicious and based on manipulation of select public information.

The company claimed it has no commercial relationship with the Securities and Exchange Board of India (SEBI) chairperson or her husband.

In the wake of the report, the Congress said the government must act immediately to eliminate conflicts of interest in the regulator's investigation of the Adani Group and renewed the demand for a JPC probe into the entire matter.

The principal opposition party also said the Supreme Court should take suo motu cognisance of the "entire scam" and get it probed under its aegis as the investigating agency SEBI is itself accused of being involved in it.

It asserted that in the wake of such "serious allegations", Buch cannot remain in her position.

Leader of Opposition in Lok Sabha Rahul Gandhi said the integrity of SEBI has been "gravely compromised" by the allegations against its chairperson and asked whether the Supreme Court would look into this matter suo motu once again following the revelations.

Congress president Mallikarjun Kharge said SEBI previously cleared Adani before the Supreme Court following the January 2023 Hindenburg Report revelations but new allegations have surfaced regarding a "quid-pro-quo" involving the SEBI chief.

The small and medium investors belonging to the middle class who invest their hard-earned money in the stock market need to be protected as they believe in the SEBI, he said, adding a Joint Parliamentary Committee (JPC) inquiry "is imperative to investigate this massive scandal," he said.

"Until then, concerns persist that PM Modi will continue to shield his ally, compromising India's Constitutional institutions, painstakingly built over seven decades," Kharge said in a post on X.

In a statement issued late Saturday night and reposted on X on Sunday, Congress general secretary Jairam Ramesh said, "The government must act immediately to eliminate all conflicts of interest in the SEBI investigation of Adani".

"The fact is that the seeming complicity of the highest officials of the land can only be resolved by setting up a JPC to investigate the full scope of the Adani mega scam," the former Union minister said in his statement.

The TMC demanded that SEBI chairperson Buch should immediately be suspended.

"This situation is extraordinary. BJP is clearly on the back-foot in Parliament. We need both- a JPC as well as an SC monitored probe," TMC leader Derek O'Brien said.

TMC MP Mahua Moitra alleged that this is both a "conflict and capture of SEBI".

"Chairperson of SEBI is an opaque investor in Adani Group. Samdhi Cyril Shroff is on Corporate Governance Committee. No wonder all complaints to SEBI fall on deaf ears," she alleged on X.

"One simple point - Chairperson who has invested in (& interacted personally with) very same funds that need investigating, is leading organization entrusted with fiduciary responsibility of finding out other owners of the fund tells Supreme Court & its 6 member committee that it had drawn a blank & was a chicken and egg situation in its investigation into the ownership of 13 entities."

"What greater conflict of interest and mockery of justice is there?" she said in another post on X.

"We cannot trust SEBI under this Chairperson to do any inquiry into Adani. The Supreme Court will HAVE to revisit its decision post this information becoming public (sic)," she said.

Demanding a JPC probe, the Aam Aadmi Party alleged that it was a "BJP scam" and said Prime Minister Narendra Modi should step down on moral grounds.

The RJD, Shiv Sena (UBT) and the Samajwadi Party (SP) also questioned the role of SEBI.

"The history of SEBI has been such that it has never been a true protector and support for investors. Only an impartial investigation can restore SEBI's reputation," SP chief Akhilesh Yadav said, adding a thorough investigation into the episode is imperative for India's economy.

On similar lines, Rashtriya Janata Dal leader Manoj Jha said it shows the level of corruption.

"This shows how our financial systems have been hijacked. This is the level of corruption and there are attempts to cover it up. You complain to SEBI about financial mismanagement, and now SEBI is tainted," he said.

He backed the demand for a JPC probe.

The Left parties also demanded that a JPC should be constituted to probe the allegations.

Sebi Chairperson had stake in offshore entities used in Adani money siphoning scandal: Hindenburg

NEW YORK, Aug 10: In the continuing saga on the Adani-Hindenburg report, the US-based research firm Saturday alleged that “it suspects SEBI’s unwillingness to take meaningful action against suspect offshore shareholders in the Adani Group may stem from Sebi Chairperson Madhabi Buch’s complicity in using the exact same funds used by Vinod Adani, brother of Gautam Adani.”

Quoting “whistleblower documents”, Hindenburg alleged, “SEBI’s Chairperson had stake in obscure offshore entities used in Adani money siphoning scandal.”

When contacted, Sebi did not comment on the allegations raised by Hindenburg.

To date, SEBI has taken no action against other suspect Adani shareholders operated by India Infoline: EM Resurgent Fund and Emerging India Focus Funds, the US firm alleged.

In January last year, Hindenburg Research released a report alleging that the Gautam Adani-led group had indulged in stock manipulation and accounting fraud, which the port-to-energy conglomerate had denied. In July this year, Hindenburg said that it received a ‘show cause notice’ from Sebi for trading in shares of Adani Enterprises Ltd (AEL) immediately prior and post the release of its report on the Adani Group in January 2023.

“In our original report, we identified, among other funds, two Mauritius entities called EM Resurgent Fund and Emerging India Focus Funds. Both entities were disclosed as related parties of India Infoline (now called 360 One) and overseen by its employees, as per its annual reports,” Hindenburg alleged.

“We noted that the “the trading patterns [of these funds] suggest that the stock parking entities and the suspicious offshore entities may have artificially inflated the volume and/or price of some Adani listed companies,” it alleged.

On March 22, 2017, just weeks ahead of that politically sensitive appointment (as Sebi Wholetime Member), Madhabi’s husband, Dhaval Buch, wrote to Mauritius fund administrator Trident Trust, according to documents Hindenburg received from a whistleblower. The email was regarding his and his wife’s investment in the Global Dynamic Opportunities Fund (GDOF), the US firm alleged.

“In the letter, Dhaval Buch requested to ‘be the sole person authorised to operate the Accounts’, seemingly moving the assets out of his wife’s name ahead of the politically sensitive ointment,” Hindenburg alleged.

“In a later account statement dated February 26, 2018, addressed to Madhabi Buch’s private email, the full details of the structure are revealed: “GDOF Cell 90 (IPEplus Fund 1)”. Again, this is the exact same Mauritius-registered “cell” of the fund, found several layers deep in a convoluted structure, reportedly used by Vinod Adani,” the firm alleged.

The total value of Buch’s stake was worth US $872,762.25 at the time, Hindenburg said.

“Our concerns were further corroborated by an investigation by the Financial Times, which found a ‘secret paper trail’ at EM Resurgent and Emerging India Focus Funds. The investigation raised questions whether Adani used business associates as ‘front men’ to ‘bypass rules for Indian companies that prevent share price manipulation’,” Hindenburg alleged.

To date, SEBI has taken no action against these funds, it said.

“If SEBI really wanted to find the offshore fund holders, perhaps the SEBI Chairperson could have started by looking in the mirror,” Hindenburg alleged. In response to requests from the Indian Supreme Court to investigate the Adani matter, SEBI was said to have hit a wall unveiling the holders of the offshore funds. The Supreme Court said that while SEBI seemingly agreed with our concerns over who funded Adani’s offshore shareholders, “it is evident that SEBI has drawn a blank in this investigation”, the firm alleged

From April 2017 to March 2022, while Madhabi Buch was a Wholetime Member and Chairperson at SEBI, she had a 100% interest in an offshore Singaporean consulting firm, called Agora Partners, the US firm alleged.

On March 16, 2022, two weeks after her appointment as SEBI Chairperson, she quietly transferred the shares to her husband, Hindenburg alleged.

GST collections for July 2024 at ₹1.82 trillion, up 10.3% YoY

NEW DELHI, Aug 2: The central and state governments have collected ₹1.82 trillion in goods and services tax (GST) in July, marking a 10.3% year-on-year increase, according to finance ministry data. GST receipts also rose compared to the ₹1.74 trillion collected in June 2024.

While July's GST collections fell short of the record ₹2.1 trillion in April, experts said they were in line with the robust GST revenue receipts, and is likely to further increase as the festive season approaches. July's GST figures represent sales from June 2024, which is typically a slower month before the onset of the festivities.

At the net level, which includes refunds of ₹16,283 crore, GST collections rose by 14.4% for the month, despite refunds being 19.4% lower compared to the corresponding month of last year. Producer states Maharashtra, Uttar Pradesh, Karnataka and Tamil Nadu were the largest collectors of GST by value.

In April-July 2024, gross GST collections stood at ₹7.38 trillion, up 10.2% from ₹6.70 trillion a year-ago.

India’s manufacturing activity also remained steady in July, driven by new orders leading to higher output. The HSBC final India Manufacturing Purchasing Managers Index (PMI), compiled by S&P Global, stood at 58.1 in July, after recording 58.3 in June, 57.5 in May, and 58.8 in April.

GST collections have steadily risen annually since the inception in FY18, with more businesses complying with India’s indirect taxation regime and entering the formal sector. Gross GST collections have nearly tripled from ₹7.41 trillion in FY18 to ₹20.18 trillion in FY24.

The finance ministry has forecast central GST revenue, including cess, to reach ₹10.62 trillion for FY25, higher than the revised estimates of ₹9.56 trillion for FY24 in its budget presentation.

advertisements