Reliance Banks on Agriculture for Growth

[rgiridhar]

12-Oct-07

MUMBAI: Reliance Industries’ chairman Mukesh Ambani told shareholders today that agriculture would be one of the five strategies of growth for their company.

The company traditionally grew with industries and services but that strategy needs change, Ambani told the 33rd Annual General Meeting of the company here.

Company’s initiatives in organized retailing of agriculture products were “a pre-cursor to an agro-driven strategy,” said Ambani, who heads the company that has a market capitalization of Rs 3,82,259 crore.

“Reliance will work with farmers in creating economic opportunities,” Ambani said. He also said so far no corporate house in India stressed on the agriculture and rural sectors “as fulcrums for growth.”

Besides the stress on agriculture the company would have four other strategic shifts. For one, Reliance will be “actively pursuing an acquisition mode of growth,” he said.

Secondly, the company will look for partnership. “Traditionally, Reliance has grown by owning businesses one hundred per cent” but that was found “inadequate” in the changing environment of globalization.

The company would stress innovation as another engine of growth. He said it was “imperative” for the company “to invest in innovation” for its growth.

As the fifth strategy, the company would look for “sustainable global growth.” Reliance will be “engaging with several countries in its global play,” he said.