New Delhi: Billionaire industrialist Mukesh Ambani-led Reliance Industries Limited (RIL) on Tuesday entered the club of energy supermajors and became the sixth-largest oil company in the world surpassing British giant BP Plc. The conglomerate is now valued at $138 billion.
Following Ambani’s fresh announcement to cut the firm’s net debt to zero in 18 months time, the shares of Reliance Industries jumped three-fold as compared to the pace of India’s benchmark index this fiscal year. The decision towards zero net debt would also include stake sale to Saudi’s leading oil company Aramco.
Mukesh Ambani’s latest move not only boosted the Reliance’s shares but also surged his net worth to $56 billion, making him Asia’s richest person ahead of Alibaba Group’s founder Jack Ma.
Notably, RL’s market capitalisation briefly overtook BP Plc for the first time at the end of October. With regaining the position, the Ambani-led firm is now looking at ways to narrow down its gap with PetroChina Company.
Interestingly, Ambani’s improved credentials come at a time when oil companies around the world are struggling amid increased volatility.
While the majority of Reliance’s revenues come from its energy business, the conglomerate recently also made significant strides with its telecom service firm Reliance Jio. Reliance Industries is further planning to expand business in e-commerce retail to take on Amazon and Walmart.