Archive for April, 2013

Mukesh Ambani‘s RIL sees 32% rise in Profit

April 18, 2013

The fourth quarter ended on a good note for MukeshAmbani as Reliance Industries Limited (RIL) saw a rise of 32 percent in its net profit. Being strongly backed by strong margins in oil refining business, this net profit jump is highest as compared to past three years.

RIL has reported a growth of 4.8 percent in net profit at Rs. 21,003 crore as compared to Rs. 20,040 crorein the last year. The turnover jumped from Rs.339,792crore to 371,119 crore reporting an increase in turnover by 9.2 percent.

Owing to the world’s biggest oil refining complex owned by RIL at Jamnagar, the company reported a better than estimated profit of Rs.5,589 crore in the quarter which ended on March 31, 2013 as compared to Rs. 4,236 crore in the previous year.

Overall, refining business and petrochemical revenues saw a rise of 11.6 percent and 9.3 percent respectively. This rise in revenues also nullified the effect by the decrease of oil and gas revenues. It also earned an average of USD 10.1 on refining every barrel of crude oil to fuel as compared to USD 7.6 barrel gross refining margin in the last year. This refinery was also awarded the prestigious “International Refiner of the Year 2013” at HART Energy’s 27th World Refining & Fuel Conference held in USA. Reliance was awarded because of its ability to produce cleaner and higher quality fuel using diverse and innovative methods.

MukeshAmbani was certainly elated to see the growth of the company, said,” Reliance has delivered another year of strong operating performance in an environment of continued volatile economic conditions. The growth in earnings was largely driven by strong and improved refining margins during the year.”

According to the Chairman of Reliance, the company will look forward to strengthen its presence in the retail sector which has already crossed the annual revenue of Rs. 10,000 crore by the end of the financial year. “ We are working on projects that form the foundation of our aspirations to become one of the world’s most competitive producers of petroleum and petrochemical products while developing consumer centric businesses in India.” Added Ambani. Reliance is also coming up with fourth generation voice and data services across India under the brand-Reliance JioInfocomm which will turn the current telecommunication industry’s face.

Reliance Jioinfocomm and Reliance Retail will be the major revenue boosters for RIL in the coming years apart from its petrochemical business.

Sanjay Mashruwala Will Take Charge of Reliance JioInfocomm as Managing Director

April 9, 2013

Reliance Industries Limited (RIL) is leaving no stone unturned to succeed the launch of its fourth generation services across India. No wonder, it is roping the top minds of the telecommunication industry in the leadership team of RelianceJioInfocomm, the4G arm of RIL. The latest addition in the list is Mr. Sanjay Mashruwala. With over 30 years of acquaintance with Reliance, Sanjay Mashruwala will now hold the key position in telecommunication industry as managing director of JioInfocomm.

Sanjay Mashruwala was previously associated with RIL’s petrochemical business. Apart from this, he also holds the accord of building up a nation-wide fibre optic network in record time, almost a decade ago.

Reliance has also hired MadhumatiLele, former customer services head of Vodafone. She bears the tag of being the first woman executive in the country’s most valuable private sector company’s telecom leadership team. SandipDas, CEO of Malaysia’s Maxis Communications will assume the topmost charge of JioInfocomm from next month. The other team members are Mathew Oomen as operational head, Arvind Rao, former CEO OnMobile , who will now be JioInfocomm’s innovation head and Sumit Chowdhary, former IBM VP, will look after technology and product platforms.

Manoj Modi, a close aide of MukeshAmbani, has tactically chosen these people toaccentuate the launch of 4G services in India. This launch is a subject of high anticipation for most experts and telecomm market players, as the foray of RIL into telecommunication industry will change the market scenario with its low-cost high-speed data and voice services. Recently, Reliance JioInfocomm has signed a deal of INR 1,200 crore with Reliance Communications to share the latter’s fibre-optic network spread across the country. Being a new entrant in the market and introducing these fourth generation services in India, it was a wise move by RIL to share the existing ecosystem, rather than spending huge amount of investment into building the basic infrastructure first. Working with a futuristic approach, RIL is also building its own network. For the launch, Reliance is said to have adapted a two-pronged strategy similar to Google which includes wireless mobility as well as offering high-speed broadband, TV and other services to homes through fibre network.

Reliance is said to release these services by the end of this year in Delhi, Mumbai and Bengaluru.

Change in Cooking Gas Policy: Blessing in Disguise for RIL

April 3, 2013

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Reliance Industries Limited (RIL) led by MukeshAmbani will soon venture out in the domestic cooking gas (LPG) retailing market. This market of cooking gas was occupied by three state-owned oil companies till now. With the recent policy change of providing nine-cylinders-a year cap on subsidized rates, have made room for private –sector companies like RIL to enter this area. This is a profitable option for private energy companies to provide non-subsidized cooking gas (LPG) to Indian households.

Reliance is based on the vision to try out every opportunity that makes sense for its profitable growth. This one might be on those opportunities for RIL to just bag it at the right time. For Reliance to start pan-India operations, it requires a huge dealership network and basic infrastructure. By supplying small quantities of auto and industrial LPG in Gujarat and Maharashtra, RIL has already started to test and study the market nature. The pre-test in these two states before starting full –fledged operations of providing domestic cooking gas across the country will help Reliance to chart out a proper strategy.

The entry of private-owned companies in public sector will infuse a sense of competition amongst market owners. This competition amongst suppliers of the non-subsidized cooking gas market will help to bring down the prices of gas cylinders. In the end, this price competition amongst public and private players will be beneficial to the consumers.

At present, as per the new cooking gas policy each household will get nine cylinders at a price of INR 410 for a year. If the consumption of gas cylinders exceeds more than nine, the gas cylinders will be available at a price of INR900 for 14.2 kg.So, if any privately owned company starts to sell non-subsidized gas cylinders, it can sell cylinders at a discounted rate as per to the International market prices in order to increase market share.

Reliance has a big opportunity to capture the domestic cooking gas retail market. Apart from this, RIL is also focusing on increasing its production of natural gas and petroleum found from the reserves of KG-D6 basins located in Bay of Bengal. It is deepening its current reserve blocks and also searching for new reserves so that the demand and supply balance can be achieved. Reliance along with its European partner BP is planning to invest $5 billion for the expansion of these reserve blocks over the next five years. The vision of MukeshAmbani, Chairman of Reliance Industries Ltd is to make India fully self-sufficient to balance the demand and supply with the help of indigenous resources. It is a step to make India import-independent.