Morgan Stanley says Reliance biggest beneficiary of China’s anti-involution push
By Anjali Sharma
WASHINGTON – Morgan Stanley said on Tuesday that Reliance stands to be the biggest beneficiary of China’s anti-involution push across the energy and solar supply chains.
It will benefit from China’s push to curb overcapacity from a gamut of industries, and the conglomerate’s own efforts to streamline its businesses.
“Reliance is going through self-anti-involution in consumer businesses and benefiting from China’s anti-involution drive in multiple ways, both of which are not priced in.”
The shares of Reliance Industries Ltd gained over 2% in Tuesday’s trade after the analyst note.
According to Morgan Stanley, Reliance is building out a fully integrated solar supply chain in India at a time when overcapacity is forcing China to rationalize its polysilicon production. That could cut Reliance’s energy costs by as much as 40% by 2030 and lift new-energy earnings contributions to 13% by 2027.
The brokerage further estimated that involution-related gains could add around $20 billion to Reliance’s net asset value (NAV) and contribute 17% to its FY28 earnings per share.
It has also raised its new energy NAV estimate by 20% to $25 billion for FY27.
Reliance Industries Chairman and Managing Director Mukesh Ambani at the AGM had announced the formation of a wholly owned subsidiary named “Reliance Intelligence”, dedicated to enhancing artificial intelligence in India.
Ambani said Reliance Intelligence will bring global companies to India and deliver trusted and easy-to-use AI solutions for consumers, small businesses, enterprises, and sectors such as education, healthcare, and agriculture.
“It will also serve as a hub for world-class researchers, engineers, designers, and product builders, turning ideas into innovations and creating solutions for India and the world.”
Ambani announced that Reliance is partnering with Google to transform its businesses, including energy, retail, telecom and financial services, using AI.
