Reliance Industries: Adding more legs to growth

More than $6-bn investment, growth in near term will come from investments made in past 4 yrs

With its announcement to ramp up gas production, Reliance Industries (RIL) has finally addressed the issue of declining gas volumes from the Krishna Godavari (KG-D6) fields. Thus, the investment of $6 billion or Rs 40,000 crore in association with British Petroleum (BP) for developing about 3 trillion cubic feet of discovered gas resources in KG-D6 block is expected to benefit the company, albeit in the longer term.

Analysts feel the plan to develop existing discoveries in D6 is a clear positive and a fresh round of capex could rub off on the stock. Earnings upgrades, however, will