Reliance Industries Ltd (RIL) has sought shareholders' approval to appoint Mukesh Ambani as the company's managing director (MD) for another five years till April 2029. The appointment will start on the expiry of his present term of office, i.e., with effect from April 19, 2024.
Mukesh Ambani had capped his annual remuneration at ₹15 crore, from FY2008-09 to FY2019-20. Since FY2020-21, he opted to forego his salary, due to the COVID-19 pandemic, until the company and all its businesses were fully back to their earnings potential.
Ambani has also not been paid any salary and profit-based commission since FY2020-21. Accordingly, no salary or profit-based commission will be paid to him for the proposed term from April 19, 2024, till April 18, 2029, RIL says via its annual report for FY 2022-23.
“Mukesh D. Ambani will attain the age of seventy years on April 19, 2027. The Company has grown multifold under his leadership and it would be in the interest of the Company that he continues to lead the Company even after he attains the age of seventy years. Accordingly, approval of the Members is sought for passing the resolution."
In his address to shareholders, Ambani says the RIL's initiatives in new energy and consumer businesses will meet societal needs and aspirations, and tackle climate change via affordable green energy and inclusive growth.
"Our goal is to become Net Carbon Zero by 2035. Accordingly, the development of giga factories at the Dhirubhai Ambani Green Energy Giga Complex at Jamnagar is progressing rapidly."
On the demerger of RIL's financial services arm into a separate listed entity, Jio Financial Services Limited (JFS), Ambani says: "The growth opportunities presented by financial services are remarkable...an independent financial services entity will allow us to access the opportunities available in the Indian market."
On the company's financial performance for FY 2022-23, the RIL chairman in his address to shareholders says despite the headwinds, Reliance was able to deliver another year of remarkable performance both on operating and financial fronts, with consolidated EBITDA at ₹1,53,920 crore, up 24.4% YoY and consolidated net profit growing at 11.3% to ₹73,670 crore.
He says the impressive growth at RIL was "well rounded" and supported by all business segments. "Consumer businesses continued their growth trajectory with a rapid expansion of retail store footprint and strong subscriber acquisition in Jio. O2C business delivered a record performance amidst a challenging business environment. The oil and gas segment also registered a strong performance with sustained gas production from the KG D6 block."
Ambani says elevated inflation levels led to an aggressive rate hike by central banks throughout the financial year, but the company's "strong cash flows" from operations have ably supported growth capex requirements. "Over the past 2 years, 98% of the company’s capex has been funded by internally generated cash profits," says Ambani, adding that it helped the company maintain a strong and conservative balance sheet and retain superior investment-grade ratings.
The RIL will hold its 46th annual general meeting on August 28, 2023.
