That Reliance Industries Ltd (RIL) has become the first Indian company to declare a quarterly profit of over Rs 10,000 crore, driven by good performances in retail and media/telecom besides in refining and petrochemicals, is certainly good news for its investors. But what is perhaps even more noteworthy is the company’s willingness to spend more on research and development.
As of now, Tata Motors is the only Indian company to figure in the global major league of R&D spenders. RIL could change the status quo, if the present trend continues, of increasing R&D expenditure and patent filing. This is welcome. We would urge RIL to back broader R&D efforts.
Google, Facebook, Samsung and Microsoft spend large proportions of their revenue on R&D. Companies like Intel and Huawei spend close to a fifth of their revenues on R&D. Read More