Next leg of RIL debt-reduction to be driven by energy business: Report

RIL has started to hive off its oil-to-chemicals entity which comprises of its twin oil refineries at Jamnagar in Gujarat as well as petrochemical units

After announcing asset sale worth $14 billion and completing a $7 billion rights issue in the past two months, Reliance Industries Ltd's next leg of debt reduction will be driven by its energy business as cash flows is likely to exceed expectations, a report said on Tuesday.

"Deleveraging has played out faster than expected, fuelling rerating. The next leg of growth and surprises should be from volume and margin recovery in energy and retail," according to the Morgan Stanley report.

Over the past two months, billionaire Mukesh Ambani's oil-to-telecom conglomerate has announced the sale of about $14 billion of assets,