Archive for March, 2013

RIL Finds A New Reserve in KG-D6 Block

March 26, 2013

It was just before a few days that Reliance Industries Limited (RIL) was exploring the Krishna-Godavari river basins for new reserves and also by deepening the existing blocks by a mile to expand its production of natural gas and oil. The efforts have borne fruits; RIL has found a new exploration well in KG-D6.

To supplement ever increasing demand, RIL has found this first exploration well in March this year. The MJ-1exploration well is near Dhirubhai -1 and 3 gas fields in the KG-D6 basin block. This well is similar to an existing MA oil and gas field in the same block and it is targeting a Mesozoic synrift classic reservoir. It will be drilled deeper more than two kilometers, directly beneath D1& D3 fields in the block.

It will be in April or May that this well will be fully operational.According to a pre-drill test result, the best case prospective resource in the well is around 819 billion cubic feet of gas and 56 million barrels of liquids.

Apart from this, to increase the production of natural gas from the largest blocks in the field namely D1 and D3, RIL is drilling a probe well on the fields in order to study reservoir characteristic. To increase the output of the existing blocks and to find new blocks by drilling the parts in KG-D6 basin, Reliance will increase the total production of natural gas and crude oil and meet the demands of fertilizers and power companies. According to sources, RIL had proposed this expansion plan almost a year back to drill the MJ-1 well, but received permission for the same earlier in this year. The approval surfaced with clauses like the cost of the new well would not be recovered unless it led to a commercial oil or gas discovery. The defense ministry of the country also gave its approval for drilling after Reliance relinquished 450 of area which was hampering surveillance and Air force operations.

In the KG-D6 basins, RIL has a share of 60% while the European petroleum giant BP holds 30 percent and Niko holds 10 percent of the share.In the upcoming two years, Reliance and its partners are supposed to invest $350-450 million in the KG-D6 block by 2014 and $400-500million in the year 2015.MukeshAmbani, head of RIL, has envisioned making India fully independent in demand-supply of crude oil.

RIL Gets Sandip Das On Board to Head Its 4G Services

March 20, 2013

Reliance Industries Limited (RIL) is spearheading its launch of 4G services in India. In wake of this phenomenal launch which will revolutionize the telecommunication industry in India, RIL is getting the best minds in the telecom industry on board. The recent addition to the list is Sandip Das, CEO of Malaysia’s Maxis Communications. Das will head the 4G mobile venture – Reliance Jio Infocomm, the upcoming telecom venture by Mukesh Ambani headed RIL.

Reliance will be pioneering the market of 4G services in India. According to analysts, Reliance Jio Infocomm has meticulously planned its various aspects. The experiments of its services are going on since many months now. The applauded feat for this venture came in the form of telecom department’s approval to allow 4G license-holders the permission to launch voice services. The 4G project will be launched in Mumbai and Delhi in mid-2013 as a part of initial launch. The next phase will cover the other major cities by 2014. By the end of 2015, 4G services will be launched across the whole country. The history is set to repeat itself after ten years where the previous telecomm launch by Reliance had grabbed the major portion of market with its launch of reasonably priced bundled voice services and low cost phones. For the launch of 4G services, RIL is planning to strike a deal with Samsung – the South Korean conglomerate to devise low cost mobile phones which are amicable with 4G services. With known names of telecommunication industry joining RIL, it is obvious that RIL’s 4G services will set a mark for itself.

About Sandip Das:

Sandip Das had been working with Maxis Communications for the last six years as the CEO and executive director. With Maxis, he looked after the operation of Aircel which is the Indian subsidiary of Maxis. Apart from Aircel, Sandip also looked after numerous subsidiaries such as Sri Lanka telecomm Pvt Ltd and Bridge Mobile Pte. Ltd. Das had been instrumental in the success of Aircel in 3G and 4G spectrum auctions in 2010. Das was also associated with Hutchisson Essar in India for thirteen years before joining Maxis. A MBA graduate from Delhi University, Das started his career in 1978 with DCM group.

With Reliance Industries Limited, Sandip Das will work with Manoj Modi. Apart from him, the team would consist of Mathew Oomen (operational head), Kiran Thomas (assistant VP at RIL), Jyotindra Thacker (Head of IT and Systems), Sumit Chowdhary (CIO) and Aarvind Rao (innovation head). The team will closely work with RIL’s head Mukesh Ambani. The 4G services launch is one of his major priorities of this year.

RIL Focusing On “Emerging” Sectors For Investment: Analysts

March 13, 2013

Reliance Industries Limited (RIL) intends to focus aggressively on the emerging sectors – telecommunication/internet and retail, in the next five years. According to a study by financial analysts, the Mukesh Ambani led RIL will put these sectors on the fore with an annual investment of 6,500 crore each year. The telecommunication and retail sector will see an investment of around 2,700 crore and 3,800 crore each year, respectively.

The investment plans for 2013-14 are not disclosed yet from the official sources. Analysts believe the core sectors viz. oil, gas, refining and petrochemicals will see an influx of a whooping investment of $28 billion (INR 151,000 crore) during the course of next five years. RIL is supposedly investing huge amount in all the sectors comprising of oil & gas, petrochemical, refining, retail and telecommunication. The investment in the retail sector is expected to break records and take a lead ahead of the telecommunication sector in less than a month’s duration.

RIL’s retail annual turn-over has grown to 44 percent by the end of December 2012. Analysts foresee an annual growth rate of 30 percent each year in the retail sector for the upcoming five years. The total investment of 19,500 crore in this retail sector is thus just nick in time. Also, Reliance Industries Limited is planning to expand its’ retail business. Currently there are 1400 stores of Reliance Retail across the country catering in domains like food, clothes, jewelry, shoes, home and electronic appliances. These retail stores have a yearly growth of 10 percent in garments and 25 percent in food. The total retail space owned by the country’s biggest company is around 8 million sq.ft. of area at present.

The investment in telecommunication sector will be used to set up the infrastructure for a tower company. The stake of a foreign partner in this tower company is still elusive. Some media reports, suggest that AT&T and RIL may strike a deal on this, but nothing has been officially stated yet. From the investment figures it is evident that these new emerging sectors will be now working as the growth engines for the next five years.

Personalized Services To Act As A Growth Trigger For Reliance Brands

March 1, 2013

Reliance Brands, retail arm of RIL is geared to boost its business by offering ‘personalized services ‘to its consumers. Innovative and exclusive services that include ‘outside shop’ purchases and other customized services will be offered. The company reckons these personalized services, as its growth triggers to push its sales.

At present, Reliance Brands is the only company to possess exclusive sales and distribution licenses for six international apparel and footwear brand. To start with, the company will offer personalized services for two top- notch brands- Diesel, a brand popular for its luxury and ready to wear jeans and Zegna, a key player in the apparel industry especially for men’s wear. The ‘outside shop services ‘have garnered a lot of popularity and have already accounted for 10% of its total sales in Zegna and Diesel stores. Speaking about their new approach towards customer service – enhancement, President and CEO of Reliance Brands, Mr. Darshan Mehta, mentions that they are making an effort to add value to their brand by offering these personalized services to their consumers. He also stated they believe that these services will have a huge impact in the forthcoming years and account for 20% of its sales via this concept.

Outside the store selling is a new – fangled concept wherein they offer home- delivery to their customers making it convenient and easy for them to shop. Apart from that, Reliance Brands will also have VIP room facilities for their consumers in its Diesel store in Juhu, Mumbai. Here, company appointed personal managers would themselves attend to the needs of the consumers in an exclusively booked room, availing them latest designs and apparels. The best part is that they will not levy any extra charge for offering these services. Another key service includes ‘Made To Fit’ tailoring specifically available in Zegna stores. Customized products are a rage and Reliance Brands hits the nail on the head by offering designer suits, based on the customer’s requirements, fabricated by Italian designers. Mr. Mehta stated that these made to fit suits would cost 15% higher than any Zegna suit.

All these services, synergistically, can act as a powerful growth trigger for the company in the coming years. Collaboration with revered international and national brands has been the core strength of the company. Currently, it has inked a deal with brands including Diesel, Timberland, Quicksilver, Steve Madden, Zegna, and Paul & Shark.