The company, India’s largest by revenues, is aiming to expand its retail business and expand into 4G services later this year, with owner Mukesh Ambani pledging an increase in investment from $18.5 billion it announced last year.
“We have to spend more on 4G infrastructure,” said a spokesman. “We are definitely going to be spending more money, although it is difficult to exactly say how much more.”
As part of the investment, Ambani also plans to fuel growth in his oil, gas and petrochemicals businesses. It will spend approximately $11 billion on its oil and gas exploration division, with the company keen to address a perceived lack of focus in its core business.
The investment by India’s richest man is likely to be welcomed in India, particularly as the country struggles with declining CAPEX as a result of a slowing economy.
Up to $4 billion of the investment will be kept for 4G expansion and its retail telecoms business, according to Deutsche Bank analysts. There are however growing concerns a 4G foray may not prove profitable for Reliance, particularly in a country where customers still use basic handsets.
