Archive for August, 2011

Reliance Industries ropes in Navin Wadhwani to head M&A

August 26, 2011

Mukesh Ambani led Reliance Industries Limited (RIL), India’s most valued private sector firm, has decided to bring in Navin Wadhwani , ex-managing director at NM Rothschild and Sons (India) Pvt. Ltd, to head its new mergers and Acquisition (M&A) division. Wadhwani will be responsible for setting up a dedicated M&A team for RIL that will most likely take on operations previously headed and managed by Chief Financial Officer Alok Agarwal and Manoj Modi; who led the recent deal between RIL and BP Plc.

Navin Wadhwani comes with 20 years of experience in advising on financial restructuring of electricity and infrastructure based industries. He has overseen many key cross-border M&A deals and will now head he same for Reliance Industries.

Reliance Industries has been growing steadily in terms of size and scale, and keeping up with the pace, the company is looking to acquire more businesses and growing inorganically. It is looking to expand into more diverse areas and effectively utilize its capital assets. Addressing his shareholders at the 2010-11 AGM, Mukesh Ambani, chairman of RIL, quoted, “We are gearing up for the next phase of growth through a combination of our own initiatives and forging new partnerships with leading companies of the world.”

Reliance Industries has been charting numerous significant deals since last one year, including acquisition of Infotel Broadband Services in 2010 that marked its entry into telecom sector, joint ventures with US based investment and technology development firm DE Shaw and Co., acquisition of Bharti Group’s 74% stake in two insurance joint ventures with France’s AXA Group, joint ventures with US based energy majors Chevron, Pioneer and Carrizo for acquiring shale gas assets and its much acclaimed deal with London based energy giant BP plc that is set to bring in one of the largest FDI seen in Indian energy quarter. For the quarter ending June 30th, Reliance Industries touched a pinnacle when it accounted its highest ever quarterly financial performance.

Advertisements

Mukesh Ambani led RIL wins back the title of India’s most valued firm

August 23, 2011

After commanding a market value higher than any other listed company on Bombay Stock Exchange (BSE), Mukesh Ambani led Reliance Industries Limited (RIL) has regained its lost standing as India’s most valued company after pushing the short term title holder Coal India Limited back to second position. RIL commanded a market value of Rs. 2, 46,995 crore at 09: 45 hours on the BSE starting this week, a value higher than any other company, while Coal Indian Limited rested at Rs. 2, 44,190 crore during the same time.

Reliance Industries has been the defending champion of the title of India’s most valued firm for a straight four years. Coal India Limited (CIL) and ONGC had been closing down on RIL in terms of market valuation for the past few weeks as RIL stocks were under a lot of pressure and given the two PSUs had been performing well even during the draught spell that hit the markets earlier this month. Following this, RIL slipped to a close second position behind Coal India Limited earlier last week. Reliance almost slipped another level, closing behind ONCG but, nevertheless, it managed to regain the second slot by the time the markets closed last week. However, Coal India’s victory was equally short lived as Reliance Industries regained the top slot early this morning. Trade analysts are now eyeing this bump up closely to ascertain the longevity of the status-quo.

Mukesh Ambani led Reliance Industries is back on an optimistic roll as the company has won its namesake title back. It had acquired this title in the first place by routing ONGC to second position four years ago, and since then, it had maintained the calling exceedingly over the years. Boosting the company’s moral once again, Reliance will be seen tuning up its processes to retain the calling of India’s most valued and biggest private sector firm.

Reliance Retail launches ‘Home Club’ – a Direct Selling initiative

August 17, 2011

Reliance Retail subsidiary Reliance Home Products has launched a door-to-door selling initiative under the name of ‘Home Club’ in an effort to improve the sales of its private brands like Sudz detergent, Amara soaps and Healthy Life food items. Now in its pilot stage, this initiative is eyeing housewives to register with the club and help sell the products in and around their social networks.

The products sold under Home Club initiative will be made available at whole sale prices, in order to exhaust existing inventory and drive demand for more. Consumers will stand a chance to purchase quality products from the house of Reliance at 30% discounts through members who themselves will earn 10% of their sales amount as commission. Such type of Direct Selling has been a popular choice for companies who wish to drive sales and create a customer base for their in-house products.

Retail experience in India has primarily been driven by word of mouth, point of purchase promotions and by way of mass advertising. While these efforts have been around and tested to their full potential, direct selling has surfaced as the latest and one of the more creative ways to market and sell a product at the same time. An initiative as the one taken by Reliance Retail is beneficiary to both the company and its customers. While the company stands to improve the sales of its in-house brand and generate a future demand for the same via personal selling, members, especially housewives, have an opportunity to make quick commission with every sale with minimum amount of investment in terms of time.

Reliance Retail had previously pioneered an effort where it tried to make its products available via its own stores and local grocers. In an improved version of the effort, this initiative hopes to bank on the ‘personal selling’ attribute and the value proposition the products come bearing with the title of Reliance.

Pune to welcome five new Reliance Digital stores

August 11, 2011

Reliance Digital, the multi-brand electronics retail chain, is set to launch five new stores in the city of Pune on 13th August 2011. This is one of the biggest multi-store launches to be carried out by Reliance Digital in the country.

The new Reliance Digital outlets are located in Phoenix Market City Mall, Viman Nagar; Amanora Town Center Mall, Hadapsar; KPCT Mall, Fatima Nagar; Bund Garden, Next to Ruby Clinic and iStore at Phoenix City Mall, Viman Nagar.

Reliance Digital will be offering its customers a horde of special launch offers and assured gifts on occasion of this mega event. Apart from attractive deals in all electronic items, Reliance Digital is giving away free gift vouchers worth Rs. 1000 with every purchase made between 13th and 14th of August at all new stores. It will also host a special contest (at Fatima Nagar and Bund Garden stores only) called the ‘Digital Knockout Challenge’ where customers stand a chance to win free iPad or iPhone. Adding to the festivities will be Bollywood actor Ranvir Singh from ‘Band Baaja Baraat’ fame, who will be present at the new Reliance Digital stores in Viman Nagar and Fatima Nagar on 13th of August at 1 pm and 2:30 pm respectively.

The new stores will follow the template of existing Reliance Digital store format, carrying multitude of brands of CDIT products and solutions ranging from high end LCD and LED televisions, refrigerators, washing machines, laptops, mobile phones, digital cameras, home appliances, music systems, gaming consoles and software and IT related accessories, all available at great prices.

About Reliance Digital: Reliance Digital, the value-driven electronics retail chain, is the most popular destinations for purchase of electronics items. Carrying over 4000 different products of 150 brands – both domestic and international – Reliance Digital is a state-of-the-art, one stop shop for all consumer electronic items.

Government gives RIL-BP deal the green flag

August 9, 2011

Mukesh Ambani led Reliance Industries Limited (RIL) has received a go-ahead from the central government for its much acclaimed and anticipated deal with London based energy major BP PLc. The RIL-BP deal will see BP stake a 30 per cent share in 23 oil and gas acreages of Reliance, including RIL’s most commended oil and gas block of KG-D6. This deal spans a length of over 270,000 square kilometers, across 23 oil and gas blocks, making the partnership India’s largest private sector holder of exploration acreage. Following this official sanction, both RIL and BP will work together to concretize the deal efficiently and effectively. RIL, in its official statement, said that it is grateful to the government for granting approval for a deal which will result in the largest foreign investment in the domestic hydrocarbon sector

The deal between RIL and BP will see RIL harvest BP’s technical expertise for productive exploration and development of deep sea reserves while BP will mark its entry into Asia’s second largest energy consuming nation. Since BP is known for its technical dexterity in tapping deep sea exploration blocks, it was the likely partner for RIL in its ambitious pursuit. The limited reserves off the cost of Andhra Pradesh, which carry half the volume of stipulated quantity as established on initial examination, pose a serious challenge to its operator and Reliance hopes to tackle the situation by bringing in the best in the trade to do the needful.

The RIL-BP deal is equally prolific as it reflects the growing power and potential of private players in a sector that has, so far, been dominated by public sector operators. Private operators like RIL are today developing far-reaching measures to reap the most out of every reserve rather than probe around for additional acreage to develop. With concern for energy security now mounting, efforts of players like RIL are reassuring that nation’s reserves are being harnessed to their full potential through the best technical assistance there is.

Energy operators vying for success similar to RIL’s KG D6 block

August 5, 2011

The Krishna – Godavari oil and gas basin, developed by Mukesh Ambani owned Reliance Industries Limited (RIL), is somewhat of an aspirational pursuit for many energy operators across the country. KG-D6 development has been one of India’s biggest and most complex underwater installation campaigns. One of India’s largest sources of domestic gas for FY-11, RIL’s KG-D6 accounted for almost 35% of the total gas consumption in India. Currently, it caters to the demand from 57 core sector players including fertilizer, power, steel, petrochemicals and refineries.

The 8,100km² KG-DWN-98 / l (KG-D6) block lies off the east coast of Andhra Pradesh in the Bay of Bengal region. The first three discoveries made in this region, namely Dhirubhai-1, Dhirubhai-2 and Dhirubhai-3, have estimated gas reserves of approximately eight trillion cubic feet and, and besides D1 and D3 gas fields, MA oil discovery has proven to be a very substantial one.

Natural gas from Reliance Industries’ KG D6 field is estimated to have rendered Rs. 6,000 crore in savings for the government over the last year, while its fertilizer subsidy bill eased by almost Rs. 3,100 crore. This was a substantial benefit to the power and fertilizer companies, who are the foremost users of natural gas. KG D6 output has saved 32 per cent in fertilizer subsidy after urea making plants shifted from costlier liquid fuels to lighter and more cost effective gas inputs from RIL’s gas fields.

Analysts are of the view that following such large savings by the government the benefits are likely to trickle down to the end consumers. Many companies bid for deepwater assets hoping to experience success similar to that of KG D6, one of India’s most prolific natural resource finds. Often, operators commit much capital and time in developing gas field in hopes of similar result, but the expertise employed at KG D6 has so far been unmatched.

With RIL-BP deal now taking shape, it is likely that the production from the field will augment substantially with BP’s deep sea technical expertise at work.

Mukesh Ambani led Reliance Industries eyes tremendous growth

August 2, 2011

Last week came with encouraging news of Mukesh Ambani led Reliance Industries Limited (RIL) earning its highest ever quarterly financial results, with profits reaching as high as 17 per cent. What’s more is that RIL has recently been granted official sanction for its much acclaimed deal with BP and acquisition of Bharti group’s stake in Bharti AXA life and general insurance companies, paving way for a successful fiscal year run.

Topping the success metrics, Reliance saw its first big accomplishment by earning the highest ever quarterly financial performance results for the April-June quarter of 2011. The turnover achieved by India’s largest energy major for the quarter ending on 30th June was Rs. 83, 689 crore – an increase of 37.2% as compared to previous year – and its net profit leveled at Rs. 5,661 crore during the same period, up by 16.7%. Refining business led the success charts, credited to the heavier grades of crude oil which, cheaper than lighter varieties, being processed at RIL’s Jamnagar facilities to push higher margins.

This break-through was followed by sanctioning of RIL’s deal with London based energy major BP Plc by the Cabinet Committee on Economic Affairs (CCEA). RIL-BP deal, signed earlier this February, will see BP stake a 30 per cent share in Reliance’s 23 oil and gas exploration blocks, including its most prolific block off the cost of Andhra Pradesh, the Krishna – Godavari (KG D6) block. This deal will allow Mukesh Ambani led RIL to implement BP’s superior technical assistance in prolific exploration of deep sea oil and gas reserves, especially at a time when government is concerned with ensuring energy security in the country.

Most recently, the Competition Commission of India (CCI) on Tuesday cleared the bid by RIL to buy out Bharti Group’s 74 per cent stake in insurance joint ventures with AXA of France. As Reliance Industries sketches out plans of tapping into the financial services sector of India, a great lead has been achieved in the same following this buyout.

These significant breakthroughs are reflective of the efforts RIL is putting in to churn out thriving and economically benefiting processes.