10 July 2020 Reliance Industries (RIL) focus and determination with which it has executed its foray into digital and retail segments is highly commendable. This has resulted in our own equity valuation for digital and retail changing from INR315/share three years back to INR1,385/share currently. RILs digital segment has seen partnerships with global giants like Facebook, Microsoft, Intel and host of well known global private equity players. As RIL has achieved a decent foothold in both digital services and organized retail, we believe it would now turn its focus to the oil-to-chemicals project, for which it has signed an MoU with Saudi Aramco. In a conventional refinery, only three products (petrol, diesel and ATF) comprising 60-70% of the product slate, command positive margins. Globally, a conventional refinery produces ~8% of naphtha, which may be used as chemical feedstock. Comparatively, RIL has 24% conversion rate of oil-to-chemicals currently.