Mukesh Ambani’s plans to make Reliance Industries debt-free hit snags
Six months after Mukesh Ambani laid out a road map to make Reliance Industries Ltd. free of net debt by early 2021, his plan has hit a few bumps thanks to the government.
Prime Minister Narendra Modi’s administration has petitioned a court to halt a proposed stake sale by Reliance Industries to Saudi Arabian Oil Co., threatening a key source of funds needed to pare liabilities. In addition, the conglomerate, which is into oil refining, telecommunications and retail, is also facing unfriendly tax proposals that could hit its businesses.
Shares of the company have slid almost 9% since reaching a record high in mid-December. A spokesman for Reliance Industries declined to comment. Here are four challenges the company is facing:
