News Views » Mukesh Ambani

RIL Buyback Strategy May Swell the Stock Price

Ananya Malhotra — Mon, 23 Jan 2012 07:29:32 +0000

Mumbai, January 23, 2012: The conglomerate giant’s buyback decision is on the cards and may trigger growth in the company’s stock prices at a time when the company’s core business is witnessing an overall decrease in profits.

Reliance would be utilizing Rs. 10,440 crore out of their Rs. 75, 000 crore cash balance. A buyback is a good strategy to boost investor confidence in the company in increase its stock price.

The buyback may also increase the company’s Earnings per Share (EPS), because of the effect that it has on the number of share (a buyback of share reduces the number of shares outstanding).
Ballabh Modani and Nitin Tiwari, of Religare Capital Markets, say “In our view, the buyback will act as a catalyst for the stock as, of late, the market has been concerned over cash deployment, with RIL turning in to net debt-free company.”
The buyback would be triggered through an open-market, which is a prudent option to remain tax-efficient. Reliance would also have the upper-hand of enjoying capital gains if it takes the open-market route instead of routing the decision through tender offers. Rahul Saraf, Director, Citigroup Global Markets, India, says “It (buyback through stock exchanges) is a tax-efficient way to return capital to existing shareholders as the buyback, if done via open market purchase on the floor of the stock exchange.”
According to The Times of India, “SEBI rules stipulate that, provided the stock price remains below Rs.870, the maximum offer price, Reliance Industries has to buyback at least 25% of its planned 12 crore shares under the plan.”

Rcom and RIL May Tie Up to Launch Low-Cost Tablets

Mayur Tikekar — Wed, 02 Nov 2011 14:01:54 +0000

Marking as the first major alliance between the Ambani brothers since 2005, Reliance Industries, owned by Mukesh Ambani might tie-up with Rcom. RIL plans to supply high-speed data services for which it will use the towers and fibre optic cables of a telecom company headed by younger brother Anil.

In May 2010, a non-compete agreement was terminated by the Ambani brothers which restricted RIL’s entry into telecom. After the cessation of the agreement that was in place for five years, India’s largest private sector company bought licences for nationwide wireless broadband services. The one-of-its-kind deal was worth Rs 13,000 crore.

Earlier this year, RIL had asked various telecom tower operators to lease around 26,000 towers for the first stage of its wireless broadband venture. Majority of the infrastructure is sourced from Reliance Communications or RCOM which is a part of Reliance ADA Group. According to the sources, RCOM’s bid was probable to be favoured over the bids of two independent tower firms. They also added that RIL will not invest any equity in RCOM during this deal.

There have been various speculations claiming that RIL would buy into RCOM but no official confirmation came on the issue. On being asked about the deal, spokesmen of both the companies declined to comment. One of the source stated that no decision had been taken on the issue. RIL has issued a tender and all tower and fibre companies had given their quotes. The company has not yet announced anything.

RIL will also use Reliance Communications’ transmission facilities and optic fibre network apart from the towers. The deal will allow RIL to access 50,000 towers of RCom spread across 1,500 cities and towns in the country.

RELIANCE TO ENTER CHEMICALS WITH $12 BILLION

Anurag Goenka — Fri, 06 May 2011 09:51:17 +0000

Reliance Industries plan to enter the rubber industry by investing $12 billion in the business. This ambitious project is undertaken to utilize the growing healthcare and hygiene sector of the country. Reliance admitted that it saw a huge potential and growth opportunities in the rubber sector in India and Asia. Mukesh Ambani, Chairman Reliance industries said, “This project will make reliance the largest players in the rubber industries in the world. We are undertaking a new venture of rubber as Asia is the new hub of tyre industry. The projections for the next 10 years shows that automobile growth will be mostly focused on India, Asia and China.
He adds that the company is positive as it sees a lot of changes in the country such as the living standards which is bound to boost investments by both traditional and new businesses. There is a lot of growth in the sectors of plastics and polyester because the quality of life is improving in India, so RIL will be reinvesting in these traditional businesses. The feed stock-based centers will be based at Jamnagar’s refining hub and other new businesses will come up at their existing locations.
Reliance has the world’s biggest refining complex at Jamnagar that will add an advantage of massive plants as they will supply feedstock for the chemical industry. “Majority of chemical industry depends on feedstock. We will add value to the existing feedstock as we go from C-1 to C-16, making us the world’s largest supplier to all the private label players”, said Ambani.

Mukesh Ambani: Transforming Corporate Social Responsibly model

Ananya Malhotra — Wed, 02 Mar 2011 11:41:54 +0000

The greatest men who have walked this earth have always emphasized on giving back to the society. And Mukesh Ambani, chairman of Reliance Industries Limited (RIL), thinks no different. On the appendage, he has been advocating a change CSR model (corporate social responsibility) into a “continuous social business through enterprise and entrepreneurship”.
RIL has had a long tradition of supporting larger societal institutions in the field of education, healthcare, youth empowerment and much more. At Ficci AGM held on Tuesday, Mukesh Ambani suggested many a fine reform models quoting that, “The purpose of any business cannot be only profit. Profit for the shareholders is important. But unless entrepreneurs have a larger purpose and businesses that change lives of millions of people, a sustainable business cannot be created.”
And who better to suggest reform in CSR than the man who knows the significance of co-operative augmentation for the larger good the best. Just last week, Mukesh Ambani struck a $9-billion deal with British energy major BP that would bring India its biggest FDI so far. And RIL’s gas and oil finds off the Andhra coast is estimated to save India some $9 billion in import bill; a rather huge sum of money that can be diverted towards the making provisions for healthcare, education and skills for those who are deprived access to these basic necessities.
Ambani also suggested that outlays on healthcare need to grow manifold in terms of its repute, quoting that, “Our demographic dividend, the youth and the young, are largely unprotected and uncared for. We will need to radically transform healthcare delivery to all our people.”
He emphasized the surging need to invest in economic growth and development from inside out in this spate of inflation. He suggested that the focus of development should be agricultural and rural development and empowerment, as it is this section of people who form the larger section of end users who are most directly affected by fluctuation in the economy.
He spoke of the under-leveraged consumer class from the tier II and tier III regions, which are still at the pith due to their backwardness in economic know-how and functions of modern day world. It is this class of people who are in dire need of transformation in terms of awareness, education and basic societal skills, and only then can the economy prosper in tune with the larger vision the government hones dear to its plans.
A visionary like Mukesh Ambani, a philanthropist of the modern world, is one of the many leaders who today realize and understand the need for personal empowerment and co-operative growth rather than isolated vertical advancement. His vision for transforming CSR towards improving the overall societal utility value is definitely a noble endeavor with immense reflection.

RIL-Hazira LNG sign a two year pact

Amit Rai — Wed, 02 Mar 2011 11:25:21 +0000

Mukesh Ambani, chairman of the ever so dynamic Reliance Industries Limited (RIL) has decided to sign a two year pact with Hazira LNG Pvt Ltd, to import a spot liquefied natural gas (LNG) from April onwards.
Recently, BP- world’s largest energy enterprise- announced its joint venture with Reliance Industries whereby it would acquire a 30% stake in 23 of Reliance’s oil and gas exploration blocks in India and as part of this deal, the two firms have decided to form an equal joint venture for sourcing and marketing of gas. Although, it is not clear whether the LNG cargoes from Hazira LNG will be imported as a part this joint venture or by Reliance Industries alone; but an indispensable requirement of the same is incontrovertible.
As the present state of things goes, Reliance is in need for LNG cargo for its processes and units located in Jamnagar, Gujarat. This refining complex can process 1.24 million barrels per day – making it the world’s biggest petrochemical and energy producing plant. In order to continue the functions at the estimated rate, Reliance needs additional cargo of gas, as its D6 production block gas is allocated to other companies. Thereby, Reliance is set to import regassified LNG equivalent to a spot cargo at an estimated 3.6 million tonne a year from the Hazira terminal on the west coast starting April this year.
Shell Gas, via its Royal Dutch Shell subsidiary, owns a 74% stake in Hazira LNG, while Total Gaz Electricite France, a unit of France’s Total, holds the remainder.
The RIL-BP joint venture, set to commence its functioning within next six months, will seek to meet the growing demand for fuel in the world’s second-fastest growing economy. According to BP’s Energy Outlook 2030, India’s daily gas consumption in 2010, estimated at 6.1 billion cubic feet (bcf) is expected to surpass15 bcf mark by 2030.
There is a mounting anticipation to produce energy products at a faster pace, and Reliance’s dealings with BP and now the Hazira LNG Pvt Ltd will prove to be a marginal effort in accounting for the same.

Reliance Industries Limited- The Derivative Of Excellence

Mayur Tikekar — Thu, 17 Feb 2011 05:06:28 +0000

When one looks at India from an industrious point of view, the picture becomes incensed with images of hardworking, determinant and value oriented people. But for most part, this image stands as an epos of a company that has for long been the symbol of trust, value belief systems and excellence unsurpassed. The house of Reliance Industries Limited (RIL) is one such enterprise whose existence has given India a whole new spectrum of opportunities and whose contribution to growth channels has truly augmented India’s stand on the global platform.
When speaking of Reliance Industries Limited, the most prominent picture that first catches the mind is that of its dynamic spearheading eagle forte, Mukesh Ambani. Taking his father’s strong suit and enhancing it to a passel of varied new brand extension, Mukesh Ambani has been able to reach out to every nook of industrious existence with excellent métier.
For an enterprise as RIL, it has always been a matter of commitment to excellence over the years and beyond. Such an ambitious vision can become a tangible reality given the efforts of every individual of the organization. And for Reliance, the pillars of strengths that support Mukesh Ambani go by the name of PMS Prasad, Manoj Modi and Anand Jain. The quartet are possibly responsible for taking the company from core industry systems and extending its footing to whole new avenues. Not only did they conceive and implemented the process of value addition to existing boughs but they successfully applied the same to newer ventures that helped Reliance enjoy a stead fast domestic footing with a very gleaming manifest in the global industrial arena.
PMS Prasad has been the energy executive of Reliance. His contribution in taking the energy and refinery function of Reliance to global standards is more than just stupendous. A visionary at heart, he has always perceived for Reliance an image of a global leader and hence, the derivative leadership qualities that stem from such a vision are simply magnanimous.
Manoj Modi has been the third arm of Reliance, the Man Friday as they say. He is someone who learns from practical experience rather than theoretical assumption. And it is this intuitive pursuit of more that has ignited in him the drive and commitment to take Reliance ventures to greater heights. His precise analytical abilities and well thought understanding of state of things empowers him to guide Reliance with immense chutzpa.
Anand Jain is Mukesh Ambani’s key advisor and is the final word on all critical issues. He is one of those eminent futurists who dare to dream beyond perceived realms. His contributions to the development of infrastructural undertakings of Reliance, like the SEZ and IPCL, are esteemed, and his pursuit of the best through the company that is perhaps India’s best is what fuels his ambitions.
For it is because of such a tremendous team of dedicated function heads that Reliance Industries Limited (RIL) today stand on such a pedestal.

Talented singers flock Reliance TimeOut in Mumbai

Mayur Tikekar — Tue, 08 Feb 2011 12:23:59 +0000

Reliance TimeOut, a subsidiary of Mukesh Ambani owned Reliance Industries Limited’s Reliance Retail, hosted a choir contest in Bandra, Mumbai which saw some of the best talent from the world of music flock the venue with immense zeal.
Reliance TimeOut Choir Contest had 3 categories – Solo (Age groups 10-15, 16-20, above 20), Duets and Quartets. The Duet and Quartet category saw maximum enthusiasm from participants and audience alike, making the evening a truly melodious and memorable one. The winners of the contest in respective categories were awarded Rs. 30, 000 worth cash prizes.
In an effort to encourage new talent and celebrate good music, this initiative by Reliance’s specialty store was a tremendous feat accomplished. The participants and audience present at outlet were enthralled and excited to have an opportunity present their choir members at such a platform. The mood of the event was festive and one of jubilation as everyone joined in to cheer and sing along with the participants. Reliance TimeOut saw a good footfall following this event as people flocked in large numbers at the one-stop shop for some ‘time-out’.
Reliance TimeOut is a specialty store of Reliance Retail that offers books, music, stationery, toys and gifts, all under one roof. The store, from time to time, offers book enthusiasts with the opportunity to interact with their favorite authors through book reading sessions held especially for them. The store also features music launches for some of the most famous names in Indian and global music arena. A wide range of products pooled together with services such as the Cafe, Kid’s Play Area, Sound Domes, and Reading Bar offer truly a world class environment that has helped the store win the hearts of over 1 million customers in short span of time.
An initiative like this on behalf of house of Reliance is indicative of the values that Reliance wishes to promote. Appreciation and celebration of music, brought under one roof, is an endorsement that people feel warmly about and is something worth encouraging time and again.

RIL’s Nikhil Meswani to lead India Fashion Forum

Amit Rai — Mon, 07 Feb 2011 11:53:39 +0000

Executive Director of India’s largest private sector holding Reliance Industries Limited (RIL), Nikhil Meswani is set to take on new responsibilities and that too in style. This ardent member from the house of Mukesh Ambani run RIL conglomerate has been appointed as the Chairman of India Fashion Forum (IFF) 2011, a global fashion retail business summit.
To be held on February 17-18 in Mumbai, the 11th edition of India Fashion Forum will see many world visionaries and think tanks share their visions with frontrunners of the Indian fashion industry. Many of India’s top retail chains and franchises are likely to be pro-active participants in this year’s summit as global fashion brands will fight tooth and nail to find a footing in the booming Indian fashion sector.
On being appointed as the leader of this revolutionizing and inspiring course of events, an excited Nikhil Meswani quoted, “It is my proud privilege to chair the IFF. Textile industry has grown significantly from Farm (cotton) to Fabrics in the last few decades. Now the industry is in the journey of converting Fabrics into Fashion trends of tomorrow. IFF will be an initiative that helps to integrate the industry across the value chain and give it due recognition in international arena. I look forward to interacting with captains of the business of fashion from India and overseas and explore new paths of expansion and growth for Indian market and industries.”
The torchbearers of the Indian fashion retail industry will flock the summit to snatch global fashion partners. Reliance Retail will obviously find itself in the front row as the likes of Future Group, Arvind Mills, Gitanjali group, Hidesign, Bata, Giordano Fashions, Mahindra retail, Madura garments, Tommy Hilfiger, Aditya Birla retail, reliance retail, Spencer retail, Westside, Globus, Lifestyle, G&B, Koutons, ITC, SKNL, Reebok, Adidas, Puma, Fila, Nike, Lotto, Biba, Estee Lauder, L’Oreal, Chanel, Pepe follow suit.
With tremendous growth in Indian fashion industry in last 5 years, many leading international retailers are vying for Indian market. Reliance Industries has already set the ball rolling for international partnerships as it enters into a joint venture with the likes of Quiksilver and many more. As organized retail defines for itself a definite outline, it is now up to the likes of Nikhil Meswani to take the industry forward. His expertise and insight acquired from the proficient house of Relaince will definitely play to his tune and make the summit a successful one.

Reliance TimeOut and Popular Prakashan join forces for book launch

Madhuri Srinivasan — Thu, 03 Feb 2011 09:37:31 +0000

Reliance TimeOut, a specialty format under the Reliance Retail subsidiary of Reliance Industries Limited (RIL) recently collaborated with Popular Prakashan, the quintessential publishing house of India, to launch the book, ‘The Best of Epicure’s Exciting Vegetarian Cuisines’ by the queen of vegetarian cuisines Asha Khatau. The book was launched at Reliance TimeOut outlet at Korum mall followed by an interactive session with author Asha Khatau and a live demonstration of International vegetarian cuisines.
Popular Prakashan boasts of some of the finest literary works of Indian authors; including Sanjeev Kapoor’s Khazana of Indian Recipes, The Man Who Divided India by Dr. Rafiq Zakaria, The Britannica Quiz Master Series and many more. Though this magnificent offering in association with such a reputable publishing house, Asha Khatau has expanded the horizons of vegetarian cuisines which was formerly restricted to old school Indian cooking epithet. With over 250 recipes collected from all over the world, there is a recipe for every palate. Mr. Deepinder Kapany, Head of Reliance TimeOut was quoted saying, “At Reliance TimeOut, we have always been very active in hosting the most exciting and engaging events and book launches for our customers. I am sure that our customers will love this book and will be able to add new flavors to their cuisine.”
Asha Khatu was pleased to be offered such a grand platform for her to bring forth this book, which is not only epicurean in theme but also effortless in purpose. Asha Khatau could not contain her gratitude towards the wonderful event put forth by Reliance TimeOut while paying homage to their welcoming macrocosm.
Reliance TimeOut has honed many such remarkable events, as a part of their endeavor to elevate and promote excellent authorship and works of art. They have time and again brought forth authors and writers from varied fields to interact with audiences and offer their valued insight. These sessions are one of Reliance TimeOut’s strongest USP’s.
What brings people back to a store like this is the value that it exudes in its function. Through their excellent product range, warm environment, comfortable recreational area and friendly staff, Reliance TimeOut has made a mark in the hearts of many in a short span of time. It is no surprise then that this ‘one-stop destination offering from the reputed house of Mukesh Ambani owned Reliance Industires is perhaps the most well-disposed establishment in function today.

RIL’s Infotel Broadband Services calls for bids from telecom operators

Ananya Malhotra — Thu, 03 Feb 2011 09:34:56 +0000

Mukesh Ambani owned Reliance Industries Limited (RIL), India’s most valuable company by market capitalization, has invited bids from telecom tower operators willing to lease out around 26,000 towers across India for its subsidiary Infotel Broadband Services Pvt. Ltd. RIL has been testing 4G technology in some areas and in an effort to unroll their 4G broadband services nationwide, it has called for bids in regards to this aspiring Broadband Wireless Access (BWA) venture.
Viom Networks Ltd, India’s largest independent telecom tower company and GTL Infrastructure Ltd are likely put in their bids with this mega-conglomerate in an effort to rope in the power house as their prospective clients.
Infotel Broadband Services won the pan-India spectrum for broadband wireless access (BWA) last year. RIL acquired 95% stake in Infotel, thereby making its re-entry in to the telecom quarter. Infotel was able to acquire air-waves in 22 circles in a government auction, following which, it raised $1 billion through ECBs to refinance loans availed for paying fee for Broadband Wireless Access (BWA).
“Infotel is in the process of finalizing the arrangement with leading global technology players, service providers, infrastructure providers, application developers, device manufacturers and others to leapfrog India to the 4G revolution,” RIL had said in a statement issued on 21 January, while announcing its results for the quarter ended 31 December.
Currently, RIL is finalizing vendors who would supply broadband equipment based on the so- long term evolution (LTE) technology so as to roll out wireless broadband services by the end of 2012.
Last year, India announced a National Broadband Plan with the intention of connecting close to 160 million households as compared to the present estimate of 10.3 million.
This venture will mark RIL’s successful entry into a new found sector with a resolute footing. For long, Reliance Industries has been eyeing to foray into newer avenues and seek better investment opportunities following a remarkable growth in the core industry sector. Through Infotel, Reliance will not fulfill its dreams of embarking in new category but will also be able to generate exceptional brand equity that is a derivative of its name.