Reliance Industries set to invest $60 bn in 10 years: Morgan Stanley report

India cos announce large investments in renewables, energy transition

Reliance Industries Ltd (RIL), India’s biggest firm operating in areas such as oil refining and retail, will invest $60 billion in the next 10 years, according to an estimate by global financial powerhouse Morgan Stanley.

With this, RIL joins conglomerates like Tata, JSW, and Adani, which have announced big investments for the next decade.

Last month, the JSW group revised its investment target to $70 billion by 2030 -- mainly in ports, steel, and infrastructure.

The new investment figure given by JSW includes $5 billion in electric vehicles in Odisha, announced in February this year.

The Tata group has announced plans to invest $120 billion while firms in the Adani tent will put in $100 billion in the next one decade mainly to build airports, sea ports, and roads.

Aditya Birla group-owned Ultratech has announced it will invest Rs 32,400 crore ($3.88 billion) as capex over the next three years.

RIL declined to comment on the report. It will invest in new energy, renewable energy, and telecom in the years to come.

In the shareholders’ meeting last year, RIL Chairman Mukesh Ambani had said the company had cumulatively invested more than $150 billion in the past 10 years — higher than any other company in India and comparable to the leading businesses across the world.

Over the next five years, RIL plans to shift most of its energy footprint in connectivity and digital services to green energy, which is not just eco-friendly but also lower cost, Ambani had said.

India Inc leaders say the forthcoming Budget is expected to boost government spending in infrastructure building, which would help companies to invest more.

“The economy is in good shape owing to healthy macroeconomic conditions, corporate earnings, and robust domestic demand. We expect the new government to continue with the capex momentum and keep the ease of doing business goals and fiscal consolidation in focus,” said Shashi Kiran Shetty, chairman, Allcargo Group.

According to an estimate by rating firm CRISIL, the momentum in revenue growth for capital goods players will be supported by investment in productivity-linked schemes as well as in emerging sectors like electric vehicles and data centres, where there could be growth in providing automation, digitisation services, and setting up charging networks.

These sectors (coming under production linked incentive-driven schemes and emerging sectors), which accounted for 10 per cent of investment in FY24, are expected to cover 25 cent by FY28, CRISIL said in a statement.