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RIIL Rides on RIL Reach

But Reliance Industrial Infrastructure is yet to realise its potential

Promoted by Reliance Industries (RIL), Reliance Industrial Infrastructure’s (RIIL) primary business is to set up and operate industrial infrastructure projects.

RIIL is the conduit through which RIL explores available opportunities in infrastructure. Some 45.43 per cent shareholding of the company is held by RIL. A part of company’s income is derived from working on projects of RIL, including a gas transport pipeline system. It has also acquired and deployed construction machinery on hire-for-use basis at construction sites across India.

With RIL at the forefront of making major gas discoveries, RIIL’s future looks quite secure. Moreover, with future group plans including the setting up of SEZs all over the country, RIIL has a natural advantage over others.

The company ended FY09 with Rs 22.47 crore profit. It is almost debt free, with an interest coverage ratio of over 22. Its valuation, considering current income, may seem a tad high, but with RIL itself promoting RIIL, the high price can be justified. But, its potential is yet to be realised.

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