Billionaire Mukesh Ambani admitted disappointment over the D6 block, Reliance Industries' flagship gas field, but remained upbeat in front of shareholders of his Reliance Industries, whose falling stock price has seen it overtaken as India's most valuable company.

Ambani, India's richest man, said Reliance aimed to double its operating profit in the next 4-5 years as it boosts spending and capacity in its core energy business and builds up its newer retail and telecoms operations.

Some investors expressed concern over the group's push beyond energy and chemicals into capital-intensive consumer businesses that take longer to yield returns.

Last month, Reliance cut estimates for proven reserves in its Indian gas blocks by 7 percent to 3.67 trillion cubic feet.

"We have experienced some disappointment with the reserves and consequently seen production drop below the originally estimated quantities," Ambani told Reliance's annual meeting, one of the rare occasions when he speaks in public.

Gas output at D6 block, off India's east coast, is projected to decline to 20 million standard cubic metres a day (mscmd) in 2014-15 from 28 mscmd in the current fiscal year.

That's less than half the 60 mscmd it was producing in 2010 and well below planned peak capacity of 80 mscmd.

Profits at the energy-based conglomerate have fallen for two straight quarters, its shares are near a 3-year low, and a mounting cash pile has shareholders wary about what it does next.

"I don't expect much growth for the next 2-3 years. Current businesses are going slow and it's obvious they don't have big growth opportunities in front of them," said Dharmesh Gosalia, a 42-year-old shareholder, who has 1,100 Reliance shares, many passed down from his father.

Reliance and partner BP will submit a development plan for the block to the regulator by the year-end.

"It's very easy to criticise sitting here, but the fact that we have found oil and gas in the KG basin after so many years should not be undermined," Ambani said, responding to one question.

Ambani, standing near a garlanded photograph of his late father Dhirubhai, who founded the company, said Reliance aimed to add around 30 mscmd of oil and gas output through new developments, and achieve sustained total production of 60 mscmd in 3-4 years.

TOUGH TIMES

Ambani, 55, cited the challenges of the global and domestic economic slowdown, a sharp plunge in the rupee and volatility in input prices, but sounded bullish nonetheless, patiently answering questions and listening to comments from shareholders packed into a Mumbai function hall.

"We are now ready for the next period of growth at Reliance by investing across all our core businesses," said Ambani, who was accompanied by his wife Nita and mother Kokilaben.

The tone of the meeting was cordial, with several shareholders politely asking whether getting into telecoms and media were the best moves. Ambani chided such thinking.

"All growth we stand on today is on the shoulders of Dhirubhai, and he believed in businesses of the future," he said. "If I were to go by your views, we would have remained a textile company."

Reliance has invested at least $3.5 billion to enter the fiercely competitive and regulatorily unpredictable telecoms sector, but has yet to launch its fourth-generation (4G) service.

Ambani said the company was finalising plans to offer broadband services, but did not set a timeframe for launch.

Reliance, India's second-most valuable company at around $42 billion, will invest 1 trillion rupees in its Indian operations over the next 4-5 years, added Ambani, who wants to tap into rising domestic spending power.

Shares in Reliance, which held a hefty $13.8 billion in cash at end-March, rose 0.75 per cent on Thursday, lagging a 1.2 per cent gain in the broader market.

"At least 50 percent of that doubling of profit can be done by effective use of their cash pile," said Deven Choksey, chief executive officer at KR Choksey Shares & Securities.

Profit from operations before other income and finance costs fell 9.4 per cent in the year to end-March to Rs222.25 billion.

Reliance aims to generate Rs 400-500 billion in sales from its retail business in 3-4 years, Ambani said, from less than Rs 76 billion in the year to end-March.

Its retail business, India's second largest with 1,300 stores, is loss-making after six years.