RIL AGM 2019: Full text of Mukesh Ambani's statement at Reliance Industries' 42nd annual general meeting today

At the 42nd AGM of Reliance Industries on Monday, Mukesh Ambani unveiled Jio Fiber, the much-talked-about fiber-to-the-home (FTTH) service.

Mukesh Ambani on Monday announced the rollout of Jio Giga Fiber from 5 September, that will offer free voice calls for life from landline phones, high-speed broadband of minimum speed of 100 Mbps, free high definition TV and dish with a minimum subscription of Rs 700 per month.

RIL Chairman and Managing Director Mukesh Ambani speaking at the 42nd AGM of the company also announced unlimited ISD calling service from Jio landline at a fixed monthly rental of Rs 500 to US and Canada.

File picture of Mukesh Ambani, Chairman, Reliance Industries. YouTube screengrab

"In India even the most basic Jio Giga Fiber will start at 100 Mbps at the lowest end. We have plans to go all the way to 1 Gbps. We are pricing our plan at one-tenth of global rate to make it accessible for every home," Ambani said.

He said that plan will start at a monthly rental of Rs 700 and go up to Rs 10,000.

He also announced that Saudi oil giant Aramco has agreed to take a 20 percent stake in his flagship Reliance Industries' oil refinery and chemical business at an enterprise value of $75 billion (around Rs 5,32,466 crore).

Reliance Industries will sell 20 percent stake in its oil and chemicals business to Saudi oil giant Aramco for about $15 billion (approximately Rs 1.06 lakh crore) and nearly half of its fuel retail business to BP of UK for Rs 7,000 crore, its chairman Mukesh Ambani said on Monday.

"This is the biggest foreign investment in the history of Reliance," he said. "It is also amongst the largest foreign investments ever in India."

The deal covers all of Reliance's refining and petrochemicals assets as well as the remainder of stake the firm has in fuel retailing business after selling 49 per cent to BP, he said.

Mukesh Ambani also announced plans to make Reliance group a zero-net debt company in the next 18 months as he sells stakes in oil and chemical business to Saudi Aramco and fuel retailing business to BP.

"We expect to complete transactions with Saudi Aramco and BP within this financial year. These are expected to generate an inflow of Rs 1.15 lakh crore," he said at Reliance Industries' 42nd annual general meeting here.

These, along with other transactions to deleverage the group, would make the company a zero-net debt company in 18 months.

"We have a very clear roadmap to becoming a zero-net debt company in next 18 months," he said.

Reliance has invested nearly Rs 5.4 lakh crore over the last five years to generate EBITDA in excess of $1 billion annually for over a decade.

Ambani also said Reliance "will induct leading global partners in (telecom arm) Jio and Reliance Retail in the next few quarters, and move towards the listing of both these companies within the next five years."

"As we achieve our zero-net debt target this financial year, I assure you, my dear shareholders, that we will reward you abundantly through higher dividends, periodic bonus issues and other means, and at a more accelerated pace than any time in our history," he said.

Ambani said Reliance ended last year with a net debt of Rs 1,54,478 crore.

(With PTI inputs)

(Disclosure - Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd)