New Delhi, Jun 3 (IANS): India's largest private sector firm Reliance Industries (RIL) Friday said that it will be debt free by the end of this year adding that the company will soon enter the cash and carry wholesale trade business.
"With a cash balance of Rs.42,393 crore ($ 9.5 billion), our company is in a very strong position financially. Reliance will be completely debt free, net of cash balances within this year," said Mukesh Ambani at the company's 37th annual general meeting.
"Reliance Retail will soon launch a cash and carry format that is built on the principle of inclusive growth. This format will offer regional, national and international brands to millions of small traders and kirana shop owners," he added.
Reliance Retail has a geographical footprint of over 1,000 stores across 86 cities. Every week, 2.5 million customers shop in these stores.
According to Ambani, Reliance has a healthy financial position at an enterprise value of $75 billion in just 33 years since the company floated its first public offer.
"This growth signifies we have grown 28 percent year-on-year in the last 33 years in terms of revenue, 30 percent in terms of net profit and 37 percent in market cap. This is among the highest rates of growth for any business enterprise across the world."
Ambani said that exports have also risen 33 percent at Rs.146,667 crore ($32.9 billion) and made up 57 percent of the turnover of Reliance in the last financial year. The company has been India's largest exporter for the past 10 years, he added.
Reliance will also be expanding polyester manufacturing capabilities owing to the rising polyester demand in the country. "This expansion will further consolidate our global leadership position and increase our polyester capacity to 3.6 million tonnes."
He also stressed on creating solutions to address the digital value chain in fields like education, healthcare, entertainment and financial services.
"India is on the verge of a digital revolution which will connect, enable and enhance the lives of Indians. India has to and can reach broadband penetration levels comparable to other developed nations," said Ambani.
"Reliance plans to create end-to-end solutions that address the complete digital value chain, including rich content, applications and services."