Over the last four to five years, Reliance Industries Limited (RIL) has invested approximately $6-7 billion in acquisitions, with expectations to spend a similar or greater amount in the next three to four years.
The company will likely direct a significant portion of these funds towards the new energy and retail businesses as it focuses on scaling up these operations.
Past Expenditures on Acquisitions
Between 2019 and 2024, RIL has spent close to $7 billion on acquiring partial or full stakes in various companies.
According to data from Tracxn the acquisitions account for about 10% of RIL’s total capital expenditure of ₹5.76 lakh crore between FY20 and FY24.
Future Acquisition Strategy
Looking ahead, Reliance is expected to continue pursuing its aggressive acquisition strategy.
The company is likely to spend a similar amount, or even more, in the next 3-4 years, with a particular focus on expanding its new energy business and Reliance Retail Ventures.
These sectors are key areas where the conglomerate aims to scale up operations.
At RIL’s annual general meeting in August, Mukesh Ambani outlined his goal of doubling the size of the conglomerate by increasing the revenue and EBITDA of key businesses like Jio and Retail over the next few years.
Acquisitions will play a vital role in achieving this objective.
Notable Acquisitions in Recent Years
Over the last five years, RIL’s parent company has made several key acquisitions totalling around $1.3 billion.
Some of its more notable purchases include Sintex Industries, Shubhalakshmi Polyesters, Faradion, Stoke Park, and Fynd.
These acquisitions align with the company’s broader strategy to strengthen its portfolio across various sectors.
Meanwhile, Reliance Retail has made substantial investments, spending over $1.4 billion to acquire leading brands.
Some of these include directory assistance and search engine Just Dial, lingerie brand Clovia, furniture retailer Urban Ladder, online pharmacy Netmeds.com, V Retail, Ravalgaon, and Metro Cash & Carry.
Additionally, Reliance investment has committed over $1.5 billion in acquisitions for its new energy business.
Reliance investment mainly target global technology and innovation companies, which will contribute strategically to RIL’s new energy vertical set to begin operations in the upcoming fiscal year.
Major Acquisitions Highlighted
One of RIL’s largest acquisitions in recent years was Norway’s REC Solar Holdings AS, which was purchased for $771 million in 2021.
The acquisition aimed to enhance RIL’s presence in the US, Europe, Australia, and Asia.
Another notable acquisition was in 2022 when RIL acquired a significant stake in Sterling and Wilson Renewable Energy for $285 million from the Shapoorji Pallonji group.
Perhaps the most high-profile acquisition was RIL’s merger with Viacom18 and the Walt Disney Company to acquire Star India for $3.1 billion.
The deal, concluded in 2022, strengthened RIL’s media and entertainment portfolio significantly.
Conclusion
Reliance Industries clearly focuses on growth through strategic acquisitions, especially in sectors like new energy and retail.
As reported by thehindubusinessline.com, with significant capital already deployed and more planned for the coming years, RIL aims to solidify its position as a leader in these industries.
