The oil-to-telecom behemoth will invest R2,500 crore in Reliance Sibur Elastomers, a joint venture wherein Reliance holds 74.9% stake and SIBUR owns 25.1%.
NEW DELHI: Reliance Industries would likely invest around R14,200 crore in its subsidiaries in the current financial year, the company informed the exchanges on Saturday. The largest of the investment – R7,000 crore — would go into Alok Industries.
RIL proposes to provide support to Alok Industries (AIL) through investment in securities, loans & advances and guarantees from time to time to enable AIL to meet its funding requirement, the Mukesh Ambani-promoted company mentioned in its report on material related party transactions.
Alok Industries was acquired by a consortium of Reliance Industries and JM Financial ARC in 2019. RIL holds a 40% stake in Alok Industries, a textile manufacturer. RIL also estimates sale products and services worth R5,000 crore to Alok Industries during the financial year.
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Another R5,000 crore would be invested in Reliance Retail Ventures Limited. RIL, which holds 85% in RRVL, supports the latter through investment in securities, loans & advances and guarantees from time to time to enable RRVL to meet its funding requirement.
The oil-to-telecom behemoth will invest R2,500 crore in Reliance Sibur Elastomers, a joint venture wherein Reliance holds 74.9% stake and SIBUR owns 25.1%. This joint venture is going to set up South Asia’s first butyl and halogenated butyl rubber production facility at Jamnagar, India with a world scale capacity of 120,000 metric tonnes per annum.
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Other significant investments mentioned in the report include R15,000 additional investment by Reliance Retail Venture Ltd in Reliance Retail Ltd over the next three financial years. This investment is over and above R25,000 crore already approved in the last AGM. RRVL holds 99.91% of Reliance Retail Limited.
In total, the company has provided details of R1.22 lakh crore related party transactions in FY24 (some of the investments may spill over to other financial years as well.)
