RELIANCE INFRASTRUCTURE

Part of the Reliance Group led by Anil Ambani, Reliance Infrastructure Limited is engaged in the business of engineering and construction services for power generation, road, metro and other infrastructure sectors. The company is engaged in the implementation, operation and maintenance of infrastructure and the defence sector through its special-purpose vehicles. Reliance Infrastructure was incorporated in 1929 as Bombay Suburban Electric Supply Ltd and later renamed BSES Ltd. The company has implemented metro rail projects including the Mumbai Metro line on a build, own, operate and transfer basis.

Business operations

Reliance Infrastructure Limited's business can be broadly categorised into four segments – energy, infrastructure, engineering and construction and defence.

Energy

Following the privatisation of Delhi's electricity distribution, the business of power distribution was handed over to BSES Delhi Discom in 2002. The company handled challenges like rampant electricity theft to create a commercially viable business model. BSES Delhi discom has implemented a series of technological changes in the system including a new distribution management system. fault passage indicators, e-billing, smart metres and renewable energy assisted pumps.

Infrastructure

Reliance Infra's business in the infrastructure segment is further divided into three categories: road, metro and airports.

The company is presently among the largest developers of road and highway projects for the National Highway Authority of India (NHAI) under the Build, operate, transfer (BOT) scheme. The company is currently developing and managing projects worth ₹11,500 crores.

Reliance, through its special purpose vehicle (SPV) Mumbai Metro One Pvt Ltd, constructed the metro rail project in Mumbai on a build-own-build-operate and transfer (BOOT) basis. The company began operations on the Versova-Andheri-Ghatkopar corridor in 2014.

The company through its subsidiary Reliance Airport Developers Private Limited (RADPL) operates and manages brownfield airports in Maharashtra – Nanded, Latur, Baramati, Yavatmal and Osmanabad. The company, in 2009, was awarded a 95-year lease to develop and operate these airports.

Engineering and Construction

Reliance Infra's E&C division implements power generation projects on a turnkey basis. The company along with affiliated and sister companies in the Reliance Group, owns and operate over 6500 MW of generation capacity in the country. This includes thermal plants, gas turbine-based combined cycle power plants, cogeneration plants and renewable options like Solar ( PV & Thermal) and Wind Energy sectors.

Defence

In 2015, Reliance Infrastructure Ltd announced entry into the defence sector by setting up three wholly owned subsidiaries – Reliance Defence Systems Private Limited, Reliance Defence Technologies Private Limited and Reliance Defence and Aerospace Private Limited. The same year, the company announced the acquisition of Pipavav Defence and Offshore Engineering Company Limited together with sole management control. Pipavav Defence is India's first integrated defence production shipbuilding and offshore infrastructure company. It is also the first private sector company to secure licence and contracts to build frontline warships for the Indian Navy. Reliance Defence Limited has joint ventures with international original equipment manufacturers, including Thales of France, EOST, Republic of Korea and Dassault Aviation.

As of January 18, 2024, Reliance Infra Ltd's market capitalisation is valued at over ₹8,600 crore. Reliance Infra Ltd's share price has moved up by over 620% in the last three years.

Financial highlights

Reliance Infrastructure’s total revenue from operations in FY23 was ₹20,646.43 crore, a 12 % year-on-year growth from ₹18,411.10 crore in the last financial year. The company reported a net loss of ₹2,564 crore in FY23 as against ₹868.2 crore in FY22. Its earnings per share (EPS) in FY23 was a negative ₹112.98 as against a negative ₹37.98 in the last financial year.