Reliance Industries AGM: What's on the agenda?

The street is not expecting any big bang announcements at Reliance Industries 38th AGM. Never before has the mood been this somber and Mukesh Ambani will have to convince investors and shareholders the company is not lacking a clear vision, despite the shrinking profits and tanking share price. CNBC-TV18's Nayantara Rai reports.

On Thursday, at Reliance Industries AGM, shareholders will hope Mukesh Ambani will provide much needed direction and clarity on all its five businesses. The mood is somber, with each of RIL's businesses—petchem, refinery, gas, retail and 4G—being clouded by uncertainties. RIL is sitting on a huge cashpile of USD 13.8 billion, and this Thursday…investors and shareholders will want to know how this will be put to use.

-RIL recently launched a USD 12 billion expansion plan for its petrochemicals business, including a USD 4 billion petcoke project to double its capacity over the next 4-5 years. But this at a time when pricing is under pressure coupled with a falling demand in China.

-Refining margins have anyway been declining for the past 8-9 quarters.

- New significant investments in the domestic gas business are on hold over differences with the government on gas prices even as the KGD6 cost recovery battle has moved towards arbitration.

Overseas, its going slow on the shale gas business on account of depressed pricing.

- Its 6 year old retail business is also seeing headwinds. RIL has already pumped in nearly USD 1.5 billion and CNBC-TV18 learns it’s planning to invest USD 500 million to USD 1.5 billion over the next two years. Despite a whopping store count of 1,300, the country’s largest food and consumer durable retailer, is unlikely to break even for another two years at least.

- Then there's the yet to be launched 4G business. RIL entered the space in 2010 with the acquisition of Infotel, and invested nearly USD 3 billion so far. But it will still need to invest another USD 2.5-3 billion over the next 12 months before it will be in a position to roll out services.

And there's of course the 15 month old joint venture with DE Shaw for financial services, which is yet to take off. The street will watch Mukesh Ambani's commentary to get clarity on where India's largest private company is headed.