Reliance Industries Limited, which is currently stated to be India’s most valuable company, is likely to displace British Petroleum Plc as the second best energy company globally in 2011, according to Ross McCracken, the editor of Energy Economist.
At the macro level, India too will be looking to play a more significant role in the global refining industry. India’s consumption of crude oil grew by 4% as compared to a 1% growth on a global platform in the 10 years till 2009. According to credit rating firm Icra Ltd., the reason behind such a steady growth for the Indian economy is due to the higher demand growth in the country.
McCracken further talked about RIL being a very likely candidate to capture the second highest rank in the list of the top energy firms in 2011, British Petroleum’s ranking having dropped because of the huge liabilities that it is shouldering from the Gulf of Mexico oil spill.
RIL has been one of the most crucial if not the key contributor to the position of prominence that India has received as an energy producer in Asia. It is also the fastest growing refining and marketing company in Asia and is looking to grow exponentially on the global platform.
The rankings were purely based on the company’s status on assets, revenue, the profitability factor and return on invested capital. According to statistics, Reliance very obviously scored a higher rank having reported the highest revenue in the history of the company as well as a very competent figure on the net profit margin in the six months that ended 30th September, this year.
RIL’s position has jumped from a lagging 25 to a sprightly 13 in its ranking on the global list of top energy companies. According to Vandana Hari, editorial director, Asia at PLatts, while regulated prices in the company’s domestic market may hold things back for RIL, the ever ambitious company has very strategically decided to relook at the market position its Jamnagar refinery currently holds in the subcontinent. This refinery is extremely well managed, quality conscious and highly efficient and is apparently set to topple some of the best managed Asian exporters.
McCracken reports that RIL has aggressively pushed its position on the asset base front from $37, 188 million to $55,939 million and has substantially increased revenues by a whopping 50%. With these key components in place looking to place the company in the top league, RIL’s entry in the second place on the global list is only a matter of time.Labels: Mukesh Ambani, Mukesh Ambani Reliance, Reliance Industries Limited, RIL