RInfra engineering, defence segments to be asset, capital light

Mumbai: Reliance Infrastructure (RInfra) on Monday said that going fo rward both its engineering and construction, as well as defence businesses will remain "asset and capital light".

Addressing the company's AGM here, Reliance ADAG Chairman Anil Ambani on Monday said: "Going forward both the growth engines of the 'Engineering and Construction and Defence' businesses will remain asset and capital light, without need for any large capital outlays."

He elaborated that over the last few years, "we have successfully transformed the company from a diverse fifteen-plus businesses currently into 'Power distribution, Transportation' which is highways, Metro and airports, engineering and construction, and defence".

"All of the four business verticals are fully funded," he said.

The group has repaid over Rs 35,000 crore in the 14 months till May 2019 and will be paying another Rs 15,000 crore till March 2020, aggregating to over Rs 50,000 crore through monetization and cash flows to lenders, " which perhaps is the largest repayment by any corporate group in these times with zero funding from any bank", he added.

On the engineering and construction business, Ambani said the arm currently has contracts on hand for execution at upwards of Rs 28,000 crore.

Recently, the business arm has won the Rs 7,000 crore Versova-Bandra Sea Link Project in Mumbai from the Maharashtra State Road Development Corporation.

Ambani said that in terms of the defence business, the company aims to be among the top 5 defence companies in India.

"Defence is a business which takes 5 to 10 years, thereafter, it is a continuing growth-oriented business for the long term," he said.

The company has joint ventures with Dassault Aviation and Thales, both of France. Both are operational with factories located in Mihan in Maharashtra.

In addition, the company has around 10 other strategic partnerships with major global partners in the areas of the army, naval and air force equipment manufacturing.

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