The richest industrialist in Asia, Mukesh Ambani, is making a significant change in the energy, telecom, and manufacturing sectors. He is investing heavily in renewable energy, with an emphasis on cleaner fuel alternatives for his refining and petrochemicals, as well as in new clean hydrogen production, solar, and battery storage, positioning his conglomerate Reliance Industries as a major player in the transition from traditional to low-carbon energy sources.
At the same time, Reliance’s digital business is growing by the day, with Jio Platforms Limited acting as the country’s primary enabler for the coming decades in terms of 5G, as well as various digital offerings such as financial services, cloud platforms, and enterprise applications. Ambani is adopting a multi-pronged approach that combines vertical business development with investments in key areas (telecom, refining, petrochemicals, and retail) as well as a large number of acquisitions (notably in Jio). This strategy has the advantage of balancing the group’s exposure to commodities while generating value through digital platform monetization. Ambani’s approach appears to be a smart alternative for other large industrial groups, which are all considering how to reconcile their commodity-producing activities with the shift toward low-carbon economies.
Meanwhile, Ambani is investing heavily in the creation of manufacturing capabilities, particularly in electronics, chemicals, and clean energy, as a means of both supporting the transition to low-carbon energy and making the most of India’s Make-in-India initiatives. The industrialist wants to localize the value chain as much as possible to foster the development and growth of Indian speciality steel and auto ancillary clusters while also cutting transportation costs and producing high-quality products. Although some of these initiatives, particularly in green hydrogen and large-scale battery production, will take years to mature, they raise the question of whether the capital allocated to them will generate the desired return on investment. However, the track record of Reliance shows that the company is capable of massive investments and profiting from them.