Archive for August, 2012

Reliance Industries Limited Gears For Its 2013 Broadband Launch

August 31, 2012

Reliance Industries Limited (RIL) ‘s Broadband launch has been highly awaited. While there is a high level of speculation regarding its aggressive participation in the 2G auction, sources say that it has already set the ball rolling for its 2013 Broadband launch. It has already come to the fore by employing people, engaging in talks with vendors for networks and devices and development of applications. It may also decide on its partner ecosystem during the 1st quarter of 2013. Reliance Infotel seems to be highly resolute about its services being the finest, when it rolls it out.

It has been eyeing on the Google Fiber Project that created a stir recently. Launched on 26th August in the Kansas City, it is an experimental project by Google to augment the internet speed by using fiber-optic communication. At present, it charges US $120 per month to provide them high speed internet and TV services. The project seems to enjoy success in its first week itself with more than 2000 homes opting for the service in Missouri and Kansas. This service 1 GBPS will endow consumers a speed that is 100 times faster than the speed rendered by normal internet subscriptions in the US. It will provide 1GBPS internet bandwidth, 2TB of DVR storage and 1TB of Google Drive. It will also give away a Nexus tablet as a freebie to its consumers. The service seems out of the ordinary with the incredible speed it offers. Besides, it also enables one to view television channels and avail instantaneous services on their tablets, which was not possible before. However, it does not entail to provision of voice service. A paradigm shift in internet services can be expected with Google Fiber setting in motion.

As always, RIL may endeavor to bring this state of the art technology to the country. It intends to devise a similar model and fine-tuning it in a way that it will appeal to the Indian masses. It may also want to add voice calling to this service once things are confirmed. Since India has still not switched to the fully data service mode, voice service is a necessity and can help RIL augment its services. The company also plans to introduce m2m (machine-to-machine applications), video conferencing solutions and home security solutions as a part of its service. However, it will lay high emphasis on the basic features like price, quality, and bundling to reach out to the masses in India.

Reliance Infotel will target Delhi and Mumbai initially and will later scale up its activities by moving to other state capitals and cities.

IMG -Reliance Presents Vision 2026 And Puts Football On The Center stage

August 29, 2012

India won six Olympics Medals (highest ever) this year which was no less than a dream come true for all Indians who have considered it beyond their reach. However, this Olympics boosted our confidence, making us believe that we can be more than cricket champions. IMGR (IMG Reliance Private Limited) is one such initiative intended to create a sea change in the sports segment and encourage the sports talent here profusely. A joint venture of RIL (Reliance Industries Limited) and IMG, the leading sports marketing and management company in the world aimed to provide international coaching facilities to infrastructural facilities in order to stir up the sports talent in the country. Today IMGRonce again comes to the fore with their initiatives to popularize Football in India. As a part of this initiative, they have rolled out ‘Vision 2026’, a roadmap that has fetched Reliance praises from Vim Koevermans, the Indian National Team Coach, for their vision and interest towards this sport.

This meeting had all the I League clubs, except for Pailan Arrows who are adamant about formulating their own strategy. WimKoevermans stated that putting into fruition this roadmap would enable India to be a key player in 2022 World Cup. However, after talks with Reliance that opined that it is more viable to settle on 2026, he agreed to the same. RIL has also been in talks with him regarding the building of Elite Academy in Vadodara. Improving infrastructural facilities will act as a drive to India’s dream of being a footfall nation.

He also mentioned that opening match of the Nehru Cap against Syria stood as a testament to the fact that India is flexing its muscles to be a football nation. Undoubtedly, there is no dearth of talent in the country. However, there is a need for focused effort towards bolstering this sport and it reaching out to the nook and corner of the country and fostering this talent.

IMG Reliance is also heading towards enhancing the look and feel of the stadiums in India.MukeshAmbani’s Reliance Foundation endeavours to recognize a few stadiums that can be refurbishedto host international matches. An official involved in the process mentions that there are not many sportsstadiums in the country, limiting the number to two or three.

Seems Reliance Is Already Ready to Change the Game!

RIL Streamlines Its Overseas Oil And Exploration Business By Consolidating Its Activities To Limited Regions

August 22, 2012

RIL (Reliance Industries Limited) , India ‘s second largest company by revenue in the country has taken the plunge to systemize its activities with respect to its Oil and the Gas blocks overseas after examining its exploration and production strategy (E&P). RIL presently has seven blocks overseas reducing from the count of 12 that it dealt with.Thiscompany mentions it to be a deliberate decision with the intention of streamlining its activities and effectively managing its resources. RIL intends to confine to one or two regions and increase the size of these investments in these areas in order to leverage its operations in this field. Previously, it had its exploration acreages across the world from Peru to Australia. However, it wishes to reorganize its strategy and switch to consolidation that will enable the company to manage its resources even more effectively. Besides, it now intends to attain participating interests in areas that it entails to, already.

Anonymous sources who are tracking the move mentioned that it was more expensive and unfeasible for them to invest and operate shattered businesses in different parts of the world than infusing a huge investment in one or two regions and clinging on to them.

Previously, this Mukesh Ambani led conglomeratecatered to acquiring exploration acreages in order to redeem from the premium for participating interests in the already developed fields. To liberate itself from this cost i.e. premium, it embarked upon the acquisition of exploration acreages. They have bought most of them through the bidding rounds. The company also wishes to relinquish its activities (exploration acreages) from the no- contact zones as it usually makes the process strenuous leading to ineffectiveness.

RIL wishes to adopt a strategy similar to its shale gas operations in the USA, where it has been a gratifying experience for them. Its cumulative investments in shale gas assets in US accounts for more than $ 3.5 billion. It presently has seven overseas Oil and gas blocks through its Reliance Exploration & Production DMCC arm, which includes two in Yemen, two in Peru, one in Australia and two in Columbia. In addition, it has a uranium exploration block in Australia and shale gas assets in the US. It has withdrawn from acquisition and operations of its exploration blocks at East Timor, Oman and Yemen where it had one block each and Kurdistan where it had two blocks.

According to AashishMehra who is the Partner and Managing Director of Strategic Decisions Group, which is a US based strategy consultation firm, the company’s exploration and production business is a decision-orientedbusiness unlike the other segments. With respect to this segment, it is not possible for one to intensify the effectiveness of a poor decisionwith its smart implementation. Hence, the top management of the company must be delighted of this move and recognize its significance.

Brian Bade- The Brain Behind Reliance Digital’s Growth

August 10, 2012

While many are astonished about the pace of expansion that Reliance Digital is heading with, it seems very natural and expected with a person like Brian Bade heading the segment. As a CEO of the Reliance Digital Limited (RDL), he has embarked on the idea of scaling up when others are rolling back their activities. The last 2 years have been action packed for this CEO who has been spearheading the activities of around 712 stores, right from the nascent stage to their advancement stage.

With hands on experience in the retail and the electronics division (Circuit City, America ‘s retail store catering to electronic and durables )for around 15 years, he had the acumen and the expertise to map out strategies for Reliance Digital when it broke fresh ground in the country. When he was appointed as a CEO of RDL In 2010, he took up the challenge to work in a new country and comprehend with the consumer behavior over there. It would not have seemed wise for someone to leave a firm (Circuit City) that was the second largest in the USA after Best Buy over there then. However, Brain Bade has been successfully mentoring RDL and engineering it to be the country’s largest electronic retail chain. The growth that these stores have witnessed is immense and is potential of being a profitable division for RIL in the forthcoming years. Mukesh Ambani in his Annual General Meeting this year stated that he aims to create a revenue of Rs.40,000 crore revenue in a period of 4 years from the retail segment.

Besides having a successful stint in the Circuit City, he has also worked for a year with Big Lots that is the largest Broadline closeout retailer. After honing his talent and skill all these year, he was well equipped to deal with the overall activities of a company right from recruiting people to intensifying its sales. Brain is known as a man who is always on the go. He intends to make RDL the ace player in the country by the end of this financial year. With stiff competition from Croma (Tata Group), Next Digital (Videocon), Digiworld along with strong regional players like Vivek in the southern zone and Vijay Sales in the western zone, the task may seem a bit daunting though.

Reliance Digital witnessed a sea change in its operations when its store count increased from 27 to 85 during the previous year. The present year already has 16 new stores added to the division with the launch of a few stores in the pipeline. In fact, RDL propels to attain the landmark achievement of having 100 stores across the country in some time.

Brian Bade also wishes to infuse new services and practices that will change the face of the retail industry. He supervises the activities and gets the feel of all the stores across the country by personally travelling to these stores.

RIL Proficiently Reduces Its Promoter Holding To 55

August 6, 2012

The total number of promoter groups for Reliance Industries reduces to 55 manifesting its competence in reducing its promoter holding from 62, during the beginning of the financial year 2012-2013. While it still stands as the third highest amongst the Sensex- listed company, its cogency with respect to bringing down the number of promoter’s group serves to be a cue to its growth. According to RIL’s latest news, the promoter‘sgroup entails six individuals including MukeshAmbani, the Chairman and Managing Director of the company. Family members including KokilaDhirubhaiAmbani(MukeshAmbani’smother), Nita Ambani (MukeshAmbani‘s wife),Isha, Akash and Anant (children of MukeshAmbani) also hold a miniature part of this holding. Besides,there are around 48 corporate bodies and 1 trust belonging to this group. LLP (Limited Liability Partnership) firms hold around three fourth of the company’s holding with it accounting to be 29 among the 48 bodies. Thus, the LLPs represent 33% of the total promoter’s group that account for 45% in the stake.

There has been a tremendous fall in the total number of the promoter holding at RIL since the time the listed companies were obliged to reveal the number of their promoter’s group in June 2006.The total number of its promoter ‘s group during the fiscal ended March 31 , 2012 accounted to be 68. However, the end of December 2011 witnessed the number to be 65, which later reduced to 62 at the onset of the financial year, 2012-2013.

The lowest number of total promoter‘s group was when it stood at 41 during the end of the fiscal ended March 31, 2010. This number however later rose to 74 in the following quarter and remained consistent for three quarters. Later, the number of promoter‘s entities reduced only during the January – March period of 2011. There were no LLPs in the promoter’s group when the company’s total promoter group was 41 (lowest). On the other hand, it had 27 LLPs in the quarter ended June 2010.

Among the 30 Sensex companies, the share market considers the company with the largest promoter group to be Bajaj Auto with its standing at 81, at present. The company previously had a higher number of promoter group, which has significantly fallen down. During the end of December 2011, the number accounted to be 84.The company with the second largest promoter entity is Jindal Steel with the number accounting to be 56. This number has remained unvarying for this company during the course.