India’s Largest Conglomerates RIL, Adani Likely To Be In A Tussle
- ByAyushi Ray | August 3, 2021
India’s largest conglomerates RIL, Adani likely to be in a tussle in the market. Adani group, led by billionaire Gautam Adani, has already identified renewable energy as a key focus area so that the portfolio includes a growing presence in solar power generation and solar panel manufacturing. In June, Mukesh Ambani-led RIL announced an aggressive multi-billion dollar foray into clean energy solutions, which places it directly in the way of Adani’s ambitions. On Sunday, after a regulatory filing, the Adani group announced its newest business entity, Adani Petrochemicals Ltd (APL), which will set up refineries, petrochemicals complexes and specialty chemicals units in Gujarat—directly challenging the biggest player in these segments, which is RIL. Experts Predict that Adani will take some time to reach upto the standards already set forth in front of RIL, but the entry into petrochemicals comes at an interesting juncture nonetheless.
“To create a world scale refining and petrochemicals complex will cost around ₹30,000-35,000 crore if we assume Adani would be setting up a 10 million tonnes per annum capacity plant. It may take Adani group, which is great at executing infrastructure projects, three-to-four years to set up these projects unless it acquires an existing asset and enters the segment immediately to reach scale faster,” said a senior analyst with a domestic brokerage. However, RIL’s Dhirubhai Ambani Green Energy Giga Complex on 5,000 acres in Jamnagar, Gujarat, aims to create and offer a fully integrated, end-to-end renewable energy ecosystem so that it doesn’t lock horns with the Adani group, and can maintain distance from each other’s foray. Indeed, analysts say, RIL could well become a raw material supplier to Adani for its renewable energy projects.
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