MUKESH AMBANI, REDUX

“At Reliance, we have been ruthless in reshaping our growth model in response to the global realities.”

- T. Surendar

The chart-busting began in May.

Reliance Industries Ltd (RIL) became India’s biggest enterprise by revenue (₹6.23 lakh crore in FY19), going past state-owned Indian Oil Corporation (₹6.17 lakh crore). This pushed RIL to No. 1 in Fortune India’s 500 list (published in December)—which it also topped in terms of profit and market capitalization—to add to its top rank among Indian companies in the Fortune Global 500 list. (It had been at No. 2 on both lists since their inception in 2010 and 2004 respectively.)

The momentum didn’t flag.

At 10.10 a.m. on November 28, RIL’s share price touched ₹1,579, making it the first Indian firm to reach the market capitalization milestone of ₹10 lakh crore. This called for a touch of smugness in the plush fourth-floor executive offices of Maker Chambers IV at Nariman Point, Mumbai.

But by the afternoon of November 28, the morning’s win was already old news at the RIL headquarters. The focus had shifted to moving RIL into the top 50 most valuable companies category by March 2020. It stands No. 66 on the ongoing list—compiled based on market capitalisation—led by the likes of Apple, Microsoft, Amazon, and Alphabet. No Indian company has ever made it to the top 50.

The ‘how’ of this potential climb was clear too: By increasing its telecom arm Jio’s tariffs to keep up with competitors’ price hikes. This, analysts expect, will improve earnings and up the stock value. Two early December equity reports by broking firms CLSA and Nomura have fixed target prices for the stock at ₹2,000 in the next 12 months (from ₹1,583 as of December 13, 2019).

The promising projections would, again, be enough for most organisations to stay with the status quo.