Archive for February, 2014

Mukesh Ambani throws grand bash for mother’s 80th Birthday

February 24, 2014

Mukesh Ambani doesn’t normally venture out and we rarely ever see him at a party. However, the Reliance Industries Limited (RIL) Chairman and MD threw a grand bash to celebrate the 80th birthday of his mother – Kokilaben Ambani. It wasn’t just MukeshAmbani at the party, his brother; Anil was there too with a host of celebrities.

The lavish party was held at the old Ambani residence at Cuffe Parade. Kokilaben was dressed in a pink saree and was smiling throughout the party. The guest list was a perfect mix of politicians, socialites, Bollywood celebrities and top entrepreneurs.Amitabh Bachchan along with wife Jaya, son Abhishek and daughter-in-law Aishwarya were among the early guests. Aishwarya, dressed in a splendid pinkanarkali designed by Abu-Sandeep, was spotted bonding with Tina Ambani. Ash and Abhismiled and posed for the cameras with the Ambanis. MukeshAmbani’s wife Nita and their children too were part of the celebration. Godrej honcho Adi Godrej came with wife Parmeshwar. Politician Praful Patel refused to talk about any political issue as he was in a mood to party. Actor-politician VinodKhanna, who has been missing in action lately, was spotted at the bash along with wife Kavita.HemaMalini opted for a pink Benarasisaree. Late Shammi Kapoor’s wife Neiladevi and late Raj Kapoor’s wife Krishna Kapoor made rare appearances at the event.

Kokilaben Ambani is of course, the person who mediated the split between the Ambani brothers after her husband, Dhirubhai’s death. She was the one who ensured that the split was as amicable as possible. It was also because of her that there was a firm resolution from both sides to accept the split as it was. After Dhirubhai’s death in 2002, the succession act ensured that Kokilaben would inherit the Reliance Empire. During this time, she ensured that both her sons got a fair share of India’s largest company. In numerous interviews, Mukesh and Nita Ambani have stated that they owe a lot to both Dhirubhai and KokilabenAmbani. It’s only fitting that India’s richest man and one of the most successful industrialists honors his mother with a fabulous and grand party on the occasion of her 80th birthday.

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RIL Press Release 11th Feb 2014

February 17, 2014

Mumbai, February 11, 2014

MEDIA STATEMENT

The direction of the Delhi Government to order the registration of an FIR in relation to the decision of Union Cabinet to revise the price of gas is indeed shocking. The complaint and each of the allegations on the basis of which the Delhi Government has taken such action are completely baseless and devoid of any merit or substance whatsoever. The allegations appear to have been made by persons who are also Petitioners in the Supreme Court of India in a petition in which similar allegations have been made. The issue of gas pricing is also a contentious issue between the contracting parties being the Government of India and the Contractors.

We deny these irresponsible allegations and propose to resort to the available legal remedies to protect our reputation and preserve the pioneering efforts and investment made by Reliance so far. We also remain fully committed to the development of oil and gas sector in India within the parameters of law.

Registered Office:

Maker Chambers IV
3rd Floor, 222, Nariman Point
Mumbai 400 021, India

Corporate Communications

Maker Chambers IV
1st Floor, Nariman Point
Mumbai 400 021, India

Telephone : (+91 22) 2278 5000

Telefax : (+91 22) 2278 5185
Internet : http://www.ril.com

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Mumbai Indians off to a great start in IPL 7

February 13, 2014

The most lucrative cricket tournament in club cricket, the Indian Premier League is back for the seventh edition. For all the teams, they start this year’s tournament on a clean slate with some having retained a few players and focusing on assembling a great squad. Among the teams in the limelight, the Mumbai Indians camp got a lot of attention. Owned by the richest man in India, MukeshAmbani, the team has embarked upon an interesting strategy. Many experienced players such as Zaheer Khan, Mike Hussey and PragyanOhja were drafted in along with promising young players.

Commenting on the team’s strategy, Nita Ambani, co-owner of Mumbai Indians said, “Mumbai Indians has banked on domestic talent. If you remember, in IPL 3, ShikharDhawan, AjinkyaRahane and AmbatiRayadu were our domestic players; they all play for Team India now. Also, the purpose of the IPL is to find these domestic players and make them play. So we would probably look for domestic players.”

At the auction though, a lot of attention was focused on a dashing looking Akash Ambani. The elder son of Mukesh& Nita Ambani has just returned from completing his undergraduate studies at Brown University. The Ivy League graduate is now taking a keen interest in the business side of things ar Reliance Industries Limited and his involvement with the Mumbai Indians signals exactly that. Although, most viewers of the IPL will keenly identify his brother Anant as ever-present during many successful seasons for the Mumbai Indians, Akash is no stranger to the game. In fact, Akash has played cricket for his school, DhirubhaiAmbani International School. He has a keen interest in sports and the decision to have a strategic influence in the affairs of Mumbai Indians is natural considering his business as well as personal interests.

Some of the most impressive buys from Mumbai’s perspectives include star New Zealand all-rounder Corey Anderson and the return of the mercurial Zaheer Khan. Nita Ambani was ecstatic about the signing of Corey Anderson in Particular. “Yes actually, in our team combination we were looking at either a Maxwell or a Corey. We were really disappointed that we lost on Maxwell. But now we are so happy to have Corey – he will give us our middle overs, he can bat and he’s a genuine all-rounder,” she said.

She also claimed that Sachin Tendulkar was still close to the team. “He has always been part of the Mumbai Indians family. Last two days he’s been wishing me luck, recommending some players names, so he’s an integral part of Mumbai Indians,” said Mrs. Ambani.

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Oil Imports from Canada could benefit RIL

February 11, 2014

Canada, the world’s third largest oil reserve (Behind Saudi Arabia and Venezuela) could be India’s savior with regards to the ever-increasing oil prices. Oil companies in India, particularly Reliance Industries Limited (RIL) could receive a shot in the arm as cheaper Canadian crude from Alberta oil sands will reach Indian shores in large quantities four years from now. The production volume right now is quite low; however, it would be ramped up by 2018 with the assistance of a pipeline from the reserve to the east coast. The oil then would be transported to India using ships.

Oil imports from Canada are seen as having a significant impact on the revenues of companies. Take the example of Mukesh Ambani’s RIL- Canadian crude can be 14% cheaper for them than the Indian basket. This could turn out to be even cheaper with proper infrastructure for transport in place. An oil ministry official explained that it costs $11-12 per barrel for the transportation of oil by rail from Alberta (located in western Canada) to export terminals on the east coast of the country, and then further shipping the oil to India. India could therefore buy this oil at around $14-15 per barrel lower than the price at which oil is procured at in other markets.

Oil output from Alberta could reach 1.1 million barrels per day. India, at present imports 3.86 million barrels, mostly from West Asia. If Indian companies can get hold of a major chunk, it could mean costs going down, leading to huge savings on oil import bill and oil subsidies. In 2012-13, India’s oil imports grew by 9.22% to $169.25 billion from $154.96 billion in 2011-12. In the current fiscal, crude oil imports are seen rising to about 196 million tonnes from the 184.795 million tonnes it imported in 2012-13, but relatively low prices have been a solace.

Canadian high commissioner Stewart Beck is aware of the huge interest firms like RIL hold in his country’s oil deposits. “It (discount) has been as high as $ 40 and probably hovering around $20-25. Reliance has the biggest refinery in the world and they very much like synthetic crude because they can develop a lot more products. The new IOC refinery is also interested in synthetic crude. You get more value from the same barrel of conventional crude,” said Beck.

Another reason why companies are pursuing oil sands is because of their nature.They are a natural mixture of sand, water, clay and a type of heavy oil called bitumen. Bitumen must be removed from the sand and water before being upgraded into crude oil and other petroleum products. What is more, the synthetic oil extracted from oil sands can help refiners develop a wider range of petroleum products.

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Wireless Spectrum Auction Heats up, Reliance Jio plays it Safe

February 6, 2014

The first day of the wireless spectrum auction saw India’s biggest telecom giants bid for airwaves. This auction, the third effort by the Indian Government raise revenue from the sale of airwaves saw bids totaling 446.1 billion rupees ($7.12 billion).Some of the prominent names present during this auction were Mukesh Ambani’s Reliance JioInfocomm Limited, Vodafone Group Plc and Sunil Mittal’s Bharti Airtel. According to a press release on the Press Information Bureau website, these giants are competing for two bandwidth slots in 22 regional zones.

The Telecom Ministry had failed in their previous two attempts to raise revenue and this; the third attempt was seen by many as an attempt by the Government to ease the whole process of auctioning bandwidth. The floor price in the previous two actions did the bulk of the job in keeping away telecom operators, however, with that being lowered this time, the competition intensified to a great extent. Among the 2G players in India, Bharti and Vodafone needed to acquire 900 megahertz airwaves to continue services in India’s biggest mobile-phone regions where their licenses are set to expire later this year.

Ankur Rudra, analyst with Ambit Capital Pvt. Ltd., said, “These auctions are critical for the incumbents such as Bharti and Vodafone. Reliance Jio’s strategy remains a matter of speculation for now. We feel they are looking at making a calibrated entry rather than a big splash.”

India’s active wireless subscribers total over 750 million and this constitutes the world’s largest market after China. India is also the world’s fastest growing smartphone market, where data-enabled handsets are available for as little as 2,500 rupees, spurring carriers to raise broadband capacity.

The Ministry of Telecom under directions of Prime Minister Manmohan Singh aims to generate substantial revenue from the auction. This will narrow the shortfall to 4.8 percentof gross domestic product and prevent a credit-rating downgrade to junk. The total value of spectrum for sale is at least about 49,000 crore rupees, according to the notice inviting applications. However, many industry analysts are of the opinion that if the incumbent players, Airtel, Vodafone and IDEA limit their bids, the total collection from the auction may fall short of the government’s targets. In November 2012, less than a quarter of the government’s target was met with a feeble response to the auction where prices were nine times their original cost in 2008. Another auction in March attracted just one bidder, the Indian unit of Russia’s AFK Sistema.

Some companies have deposited cash which will be used as credit for the sale. This includes companies like Reliance JioInfocomm Limited (RJIL). The Mukesh Ambani owned company, according to analysts is keeping all options on the table and may alongside the main operators in India, bid across circles. Many analysts believe that telecom companies are starved for spectrum in Bihar, Maharashtra, Gujarat and Uttar Pradesh (East), hence the bidding here is likely to be fierce.

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