The Hindu Business Line : RIL sees Rs 30,000-cr cash flow in 3 years

THE Reliance group today said that it would have cash flow of Rs 30,000 crore from various operations in the next three years. The group is also open for acquisition globally from the cash generated.

The cash flow would be from the petrochemicals, refinery, power and telecom businesses.

While announcing the third-quarter results today, the Reliance Industries Ltd (RIL) Vice-Chairman and Managing Director, Mr Anil Ambani, said that the group will have cash flow of Rs 10,000 crore annually for the next three years.

He added that in case there is further upside in the petrochemicals cycle over the years, the cash flow would increase. On whether the group was looking for acquisition outside the country, Mr Ambani said: "We keep getting proposals from investment bankers. If there are some good proposals, the cash flows would be used for acquisitions."

Last year, the group acquired the US-based Flag Telecom.

Mr Ambani also said that Reliance Infocomm has touched cash break-even levels - expenditure is equivalent to revenue on cash basis - in December 2003 and is expected to make net profit by March 2004.

He also said that the group has also shown interest in acquiring the Government's stake in Rashtriya Chemicals and Fertilisers Ltd (RCF).

On the rationale of bidding for RCF, he said that fertiliser was an integral part of the chemical business and fitted well in Reliance group business.

Mr Ambani also said that since the fertiliser business was a major consumer of gas, it would fit well in the value chain of the group.

Reliance has already announced mega plans for drilling gas from Krishna Godavari basin in Andhra Pradesh.

According to Mr Ambani, foreign institutional investors (FII) bought $900 million worth of Reliance shares, almost 13 per cent of the total FII inflow last year.

FII holding in RIL increased from 14.45 per cent in December 2002 to 22.10 per cent at the end of December 2003.

During the same period, the public holding declined from 17.84 per cent to 14.04 per cent.