Mukesh Ambani’s next plan
Mukesh Ambani’s Reliance Industries is gearing up for a big spend in the coming times. Moody’s ratings related to credit rating have recently said great things for Indian companies. Rating agency Moody’s said that Indian companies will invest $45-50 billion annually on capital expenditure in the next one to two years to increase capacity. The country’s most valuable company Reliance Industries will have the highest share of expenditure on this. Reliance Industries may spend up to 30 per cent in the next two years. In such a situation, let us know where Mukesh Ambani is in the mood to spend so much money.
This was said in the report.
Moody’s has published a report on companies active in India and Indonesia. It said that this investment will be made to increase the integration of the production chain and achieve the goal of net zero carbon emissions.
According to the report, in the next one to two years, the annual capital expenditure of eligible Indian companies will amount to between $45 and $50 billion. Reliance Industries’ share in this alone will be 30 percent. The company has earmarked approximately $15 billion for investments in various businesses.
Where will the money be spent?
According to the report, the oil and gas sector and Reliance Industries together will account for more than 60 per cent of total spending by Indian companies in one to two years. Moody’s said the investment share of seven rated oil and gas companies in India will increase. This will account for about 30 per cent of total investment. These companies will spend about $15 billion annually to invest in the green energy sector to expand existing capacity and reduce carbon emissions.
As an example, Moody’s Ratings said ONGC (Baa-3 stable) and Indian Oil will spend between $6 billion and $4 billion over the next two years on reserve expansion, distribution activities i.e. supply chain integration and energy transition.
What is Moody’s view on India’s growth?
Moody’s said the quality of loans for Indian and Indonesian companies will continue to improve. Besides China, India and Indonesia are the two largest emerging economies in Asia. Both G-20 countries have the highest number of rated companies and the amount of rated debt among emerging economies.
Moody’s said India’s GDP growth rate is expected to exceed six per cent in the next two years. Domestic demand will play a major role in accelerating India’s economic growth.
Moody’s Ratings expects earnings of rated Indian companies to grow by five per cent over the next one to two years. Companies will benefit from broad-based growth across all sectors, including metals, mining and steel, telecom and automobiles.
