Mumbai, June 7 (IANS): Reliance Industries Limited (RIL) plans to invest nearly Rs 1 trillion ($18 billion) on expansion of its retail, petrochemical and telecom businesses in India over the next five years and targets to double profit during this period.
"We will invest nearly Rs 1 lakh crore (Rs 1 trillion) over the next five years in India to build a stronger and more diversified Reliance," Reliance Industries Limited chairman Mukesh Ambani said at the 38th annual general meeting of the company. He said the company targets to double operating profits over the next five years.
Ambani's statement came against the backdrop of recent decline in profit. RIL has reported second quarterly drop in profit in the quarter ended March 31.
"I have set myself the target to double the operating profit of your company in about five years," Ambani told shareholders in his keynote address.
RIL's operating profit declined by nearly nine percent to Rs.22,225 crore in 2011-12. This was the first decline in the company's profit in nine years.
Ambani said high inflation, slowdown in economic growth, decline in the value of rupee and high government subsidies on petroleum products have negatively impacted the company's business and profitability.
"Businesses of Reliance are equally influenced by development in the Indian Economy," he said.
"High rates of domestic inflation, adverse foreign exchange rate movements, continuing state subsidies for petroleum products and slowdown in rate of economic growth have had an impact on doing business in India," Ambani added.
India's economic growth has slumped to nine-year low of 5.3 percent in the quarter ended March 31. For whole fiscal 2011-12, the country's GDP expanded by a sluggish 6.5 percent, the slowest growth in almost a decade.
Ambani said despite the recent slowdown, the long-term India growth story remained intact.
"The currency difficulties faced by the Indian economy are temporary. I have full confidence in India's fundamental resilience to overcome these difficulties and emerge stronger," he said.