Mukesh Ambani India’s richest man is making a strategic shift toward renewable energy it is learnt.
This is significant because over 60% of RIL’s consolidated revenue comes from fossil fuels and their by-products.
One of the reasons for RIL hiving off its oil-to-chemicals business is to revive the deal talks with Saudi Arabia’s Aramco.
Saudi Arabia itself is planning to invest in renewables in a big way and reduce its carbon footprint.
The possibility of a stake sale to Saudi Arabia’s Aramco is only one part of the story behind Reliance Industries hiving off its oil-to-chemicals business.
It is also part of a strategic shift by Ambani to renewable energy. “RIL will further accelerate its new energy and new materials business towards its vision of clean and green energy development,” the company said in its filing with the stock exchanges.
It looks like Ambani is trying to be Elon Musk minus the electric vehicles? Tesla makes the lion’s share of its revenue from selling electric cars but its owner Elon Musk is investing in a big way in the energy generation and storage business, which includes batteries and solar panels. As it seems, Ambani too may invest in similar spaces except for electric cars.
There is a reason why two of the world’s richest men are going big in this space.
