Reliance Retail, a subsidiary of Reliance Industries, plans to invest Rs 2,000 crore to add 3 million sqft retail spaces in 2010-11, a top company official said on Monday, 28th June.

Reliance Retail recorded sales of Rs 4,500 crore in the financial year ended March 2010. It operates nearly 1,150 stores in 86 cities across 14 states which span just over 4.5 million sqft space across India. In 2009-10, the company added around 1 million sq ft retail space.

The company has also focused greatly on its plan of luxury brands to India with Reliance Brands. The last two months have seen the launch of Hamleys and Diesel stores. Reliance Retail is now in talks with US fashion brand Kenneth Cole and Italian bag maker Mandarina Duck to open their exclusive outlets in India.

“We will add around 30 hypermarkets and 250 speciality stores this financial year. Around 1.5 million sqft will be added in hypermarkets while 1.5 million sqft will be in speciality stores and Reliance Fresh”, a Reliance official said.

“The company will focus on expanding Reliance Mart hypermarkets and its specialty retail formats – Reliance Trend, Reliance Digital, Reliance Jewels, Reliance Footprint, Reliance Time-Out and Reliance Wellness.” said the official.

This follows in wake of the Reliance Industries Chairman, Mukesh Ambani’s words at the 36th AGM claiming that Reliance Retail, Reliance Industries’ (RIL) retail arm will see a 10-fold growth in revenue over the next five years to become a Rs 45,000-crore entity.

Reliance Industries Limited (RIL) has announced discovery of another oil well in Cambay basin.

This discovery, named ‘Dhirubhai–50’, the seventh oil discovery in the block so far, has been notified to the Government of India and to the Director General, Directorate General of Hydrocarbons. The potential commercial interest of the discovery is being ascertained through more data gathering and analysis. This discovery supplements the understanding of the petroleum system in the Cambay basin in general and this block in particular. Based on interpretation of the acquired 3D seismic campaign in the contract area, several more prospects with upside potential have been identified at different stratigraphic levels.

The discovery is significant, as this play fairway is expected to open more oil pool areas leading to better hydrocarbon potential within the block. The block CB-ONN-2003/1 is located at a distance of nearly 130-km from Ahmedabad, Gujarat in the Cambay basin. The block covers an area of 635-sq km in two parts, viz. Part A & Part B. RIL, as Operator, holds 100% Participating Interest (PI) in the block.
The site in Cambay basin is located at 130 km from Ahmedabad, Gujarat. “The potential commercial interest of the discovery is being ascertained through additional data gathering and analysis,” the company said in a statement to the Bombay Stock Exchange (BSE).

It is being reported that the well flowed about 410 barrels of oil per day and the company has 100 percent interest in the block. After the news, the scrip of RIL was trading at Rs. 1,081.80 which was up by 1.74 percent on the Bombay Stock Exchange (BSE).

Mr. Jyotindra Thacker, credited with driving equipment procurement and operations of Reliance Infocomm (now Reliance Communications) during its formative stages, has emerged as the likely choice to head RIL’s latest foray into telecom due to his background in IT and ability to procure equipment in a cost-effective way. Reliance Industries (RIL), India’s largest private sector company, is trusting its homegrown professionals to lead its Telecom venture. The refinery-to-retail major may choose its information technology systems head Jyotindra Thacker for the top job at newly-acquired broadband services company Infotel Broadband Services, according to sources.

Mr. Thacker played a major role in rolling out operations of Reliance Infocomm which built a nationwide fibre optic leading to cheaper tariffs. A person who had worked in Reliance Infocomm said Mukesh Ambani’s trusted lieutenant Manoj Modi and Jyotindra Thacker were in charge of negotiations with suppliers like Nortel and Qualcomm. “Of course, they managed to bring down costs from companies like Nortel,” said the person. Mr. Thacker is also a close relative of Mr. Modi.

After bagging broadband spectrum for 22 circles, Infotel is drawing up plans to procure equipment and roll out operations. “This is where Thacker’s expertise will come handy,” said a telecom industry executive who had worked with him. The company is likely to start with offering wireless broadband services, analysts had told ET. The retail broadband segment has 9 million subscribers now, but despite that only eight people in 1,000 have broadband access.

Source:http://www.indiaprwire.com/pressrelease/oil-energy/2010062854924.htm

Reliance Industries Limited, one of the India’s biggest groups keeps expanding itself globally as well as in the domestic Indian market. Reliance Industries Limited proposed a takeover of LyondellBasell, the third largest independent petrochemical company based in Netherlands last year. However in March, 2010, the company rejected a $14.5-billion takeover offer from RIL. According to the international media, the Netherlands-based company looks positive and expects more bids in the years to come. On being asked if the news is true, nobody was available to comment from Reliance Group. The Senior Vice President, LyondellBasell feels that the failure of RIL to acquire the Dutch firm may not be the end of the story. According to the industry analysts, the opinion of the executives of LyondellBasell can be seen as an attempt to tell RIL that fresh takeover will be beneficial for the company.

According to the reports published in the international media, Anton de Vries, the Senior Vice President, olefins and polyolefins, LyondellBasell was quoted as saying, “The bid didn’t work out, but I think it may come back in years to come.” RIL decision to takeover LyondellBasell came after the company declared itself bankrupt and it was RIL’s attempt to bring the company back to its status. The reports also reveal that the creditors thought their upside potential would be restricted if the Reliance Industries Limited could have taken over LyondellBasell with majority share to emerge from bankruptcy. LyondellBasell rejected Rs. 66,700 crore offer from RIL as the board of directors opted for restructuring the company instead of giving control to Reliance Industries Limited. The company thought in favour of its creditors as it was their main concern.

Last week, in the 36th annual general meeting, Mukesh Ambani, while addressing the shareholders, looked positive about further expansions and said, “Reliance will, of course, explore and seize opportunities elsewhere in the world and plant the Indian tricolour at many places on the global business map.” Mukesh Ambani further said that the company is setting up a new plant in Jamnagar which will produce over 1.5 million tonnes of olefin and it will be one of the largest facilities in the world. LyondellBasell declared bankruptcy in January, 2009 with debts mounting to $24 billion and according to the reports, later debt worth $18 billion was converted into equity. In the same year Reliance Industries bid for the takeover in order to take the company out of bankruptcy.

Source:http://news-views.in/reliance-industries-eying-lyondell-again/

Mukesh Ambani, chairman of Reliance Industries Limited, India’s most valuable private sector corporate, confirmed that the long term association with various US based companies to tap the Shale gas sector will be beneficial for the growth of RIL. Reliance Industries Limited announced that it is planning to have a joint venture with the US-based Pioneer Natural Resources Company of Irving. According to the reports, Reliance Industries Limited is going for this deal with its subsidiary Reliance Eagleford Upstream LP and under this, RIL will acquire 45 per cent in Pioneer’s core Eagleford Shale acreage position. As per the reports, following the transactions, all three companies, Pioneer, Reliance and Newpek will own 46%, 45% and 9% interests respectively. However the share price of Reliance Industries Limited fell to 0.7% as the investors are not happy with this deal to acquire Shale gas from US.

According to Deven Choksey, MD, KR Choksey Securities, RIL’s decision to buy 45 % stake in Pioneer Natural Resources, will help the company grow in terms of assets. He also feels that the deal will lead to the value appreciation of 20-22 per cent per share of RIL. The joint venture may also lead to increased current drilling program to approximately 140 wells per year within a short span of three years. As per the sources at Reliance Industries Limited, Pioneer Natural Resources Company of Irving will work as the development operator for this joint venture whereas Reliance Industries Limited will begin as the development operators in the years to come.

Reports reveal that Reliance Eagleford Midstream LLS, Reliance’s subsidiary will pay $46 million to acquire a share of 49.9 per cent. Under this agreement both the companies, Pioneer Natural Resources Company of Irving and Reliance Industries Limited will have equal governing rights, however the operator will be the Pioneer Natural. Speaking about this joint venture by RIL, Executive Director, Reliance Industries, Mr. PMS Prasad said, “Reliance is very pleased to establish a long-term partnership with Pioneer in the Eagle Ford shale. This transaction represents another significant milestone in Reliance’s efforts to grow its North American shale gas operations.”

Addressing shareholders at the company’s annual general meeting, Mukesh Ambani talked about the future plans related to Shale gas expansion and said, “Reliance aspires to build a significant position in the shale gas business. During the year, we will continue to pursue such joint development opportunities with the best operators as well as on our own to build a substantial upstream business in North America.”

Source:http://news-views.in/ril-and-pioneer-natural-resources-announce-eagle-ford-shale-jv/

Looking at the growing need of technology, every company wants to stay ahead of the competitors and one such sector that is making best use of latest technology is the telecom sector. Of late Reliance Industries Limited has opened new channels with MTNL, one of the top 3G service providers, to market its services as a franchisee. According to the reports, after this offer by Reliance Industries Limited, Mahanagar Telephone Nigam raised high in the share market with the price of each share rising by 2.59 per cent to Rs. 65.35. The reports reveal that if the deal between both the companies is cracked, then MTNL will get the rights to sell 3G services of Reliance Industries under its own name. The services will be marketed under MTNL’s name; however the billing and payments department will remain with Reliance Industries only.

According to the reports, the talks are in the nascent stage only but the move is seen as a beneficial one for both the parties. Reliance Industries looks interested in this deal as recently RIL has ventured into the broadband sector and acquired 95 per cent share of not so famous internet service provider, Infotel Broadband Services Pvt Ltd. After entering the broadband sector, Reliance Industries Limited decided to build partnership with service providers, technology firms and device manufacturers. Partnering MTNL come across as a profitable and intelligent deal as MTNL is already offering 3G services in Delhi and Mumbai with around 4 lakh subscribers.

On the acquisition of 95 per cent share of Infotel Broadband Services Pvt Ltd. one of the rating agencies said, “Its strong financial balance sheet, with current cash and cash equivalents of more than $6 billion, and $7-8 billion in projected annual cash flow, can easily accommodate the price tag for Infotel and the expected $2-3 billion in additional capital outlays (excluding licence fees) during the initial years.” As per the reports, MTNL initially invited bids in July 2009 and it also shortlisted Virgin Mobile and Spice Group, however the deal could not work out due to regulatory issues.

The experts feel that RIL’s decision to partner with MTNL is a strategic move as other licensed telecom service providers are not permitted to bid for MTNL’s 3G franchise. Since there is no confirmation about this partnership from both the parties, it seems that MTNL may look out for other bidders as the company has already floated the tenders in the market for bidding 3G service.

Source:http://news-views.in/reliance-industries-in-talks-with-mtnl-for-3g-franchise/

Addressing an annual meeting of shareholders, Mukesh Ambani, the world’s fourth-richest man, said Reliance Industries will continue to invest in the development of shale gas in North America as part of its strategy to become a significant player in the business.

Reliance Industries said it will foray into the electricity business and re-enter telecommunications as it sets out to diversify after the recent scrapping of a non-compete pact between its billionaire founder, Mukesh Ambani, and his younger brother, Anil.

Mukesh Ambani said the cancellation of the agreement and the signing of a new pact with Anil has opened up the “full range of power business for Reliance except non-captive gas-based power plants until 2022.”

“This paves the way for Reliance to participate in the whole value chain of the power business spanning generation, transmission and distribution,” Ambani said. “We are ready to bring into full play our investment mobilization capabilities into a sector that is crying out for transformational mega-initiative.”

He said Reliance Industries is preparing “specific plans for mega-investment in this sector with clean coal-based power generation projects, hydel projects and also in nuclear power as and when it is opened up (to private companies).”

Reliance Industries is also focusing on alternative energy, he added.

Key Takeaways from Mukesh Ambani’s AGM Speech –

Supply of gas to ADAG power plants subject to Government allocation; Look forward to a harmonious and constructive relationship with ADAG

Investment in Capex of Rs. 21,943 crore in difficult operating environment and paid Rs. 17,972 crore in taxes and duties an increase of 55%

To embark on largest capacity addition in polyester

To also make new investments in petrochemicals including a gas cracker; largest investment in this sector anywhere in the world

RIL to build one of the largest coke gasification facilities making the Jamnagar refinery a “bottomless refinery” in terms of value creation

E&P to focus on growth, production assurance and reserves accretion; Accelerated development in KG, Mahanadi, Cambay and Coal Bed Methane blocks

India to pole vault from 1G and 2G to 4G and beyond; Wireless Innovation Centre in Mumbai to develop products for 4G; Infocomm could potentially be as big an opportunity as energy business

Reliance Foundation to develop World Class University, Sir HN Hospital and innovative low cost high output efforts in Sustainable Agriculture, Will also aim at preserving and promoting Indian art and culture

RIL to double enterprise value of USD 80bn within the next decade

Source:http://news-views.in/mukesh-ambani-announces-reliance-industries%E2%80%99-diversification-plans-at-36th-annual-general-meet/

Mukesh Ambani-owned Reliance Industries (RIL) may pick up a 26% stake in Pipavav Shipyard (PSL), India’s largest integrated shipyard with an exposure to offshore structures for oil & gas structures.

“We will issue a 26% fresh equity to the strategic investor,” SKIL Infrastructure chairman Nikhil Gandhi said. SKIL, the promoter of Pipavav Shipyard, holds a 39.5% stake in the company.

The acquirer will also make an open offer to the public at the same price after the deal is closed. An RIL spokesperson said that the company does not comment on market speculations.

Market sources said that RIL is the strategic investor. But Mr Gandhi declined to confirm that RIL is the potential investor. “The potential strategic partner could be a major national or international player from the oil & gas sector,” Mr Gandhi told ET.

He said that other investors have full confidence in his decisions and he would take them on board after the contours of the deal is finalised. “They invest in my vision,” he said.

The non-promoter shareholding in Pipavav Shipyard is 60.44%, out of which, 43% is owned by domestic and foreign institutional investors. Major investors include Trinity Capital (6.89%), New York Life Investment Management India Fund II (4%), Citadel (3.45%) and IL&FS (5.35%).

In March 2010, SKIL Infrastructure Group had bought a 19.6% stake from Punj Lloyd, the other major shareholder, through a negotiated deal at Rs 49.80 per share. Subsequently, it gave an open offer to public for 20% which received weak response.

The company’s stock closed at Rs 100.15, down by 0.10%, on the Bombay Stock Exchange (BSE) on Thursday. The company’s share price touched a 52-week high of Rs 103.40 on Wednesday. The scrip had touched a low of Rs 47.65 in October 2009.
The company has recently bagged an order amounting Rs 2,600-crore to build offshore patrol vessels for the Indian Navy. The deal is to construct about five patrol vessels, each with a displacement of about 2,000 tonne. Pipavav Shipyard has an order book of about Rs 4,500 crore.

Source:http://economictimes.indiatimes.com/Stocks-in-News/articleshow/6061515.cms

After its high-voltage entry into wireless broadband and the expected debut into power generation, the biggest surprise to come from Reliance Industries (RIL) could be its foray into healthcare. While the final contours are yet to be drawn up, the prevailing thinking in the management is in favour of entering the tertiary healthcare market by acquiring a stake in one of the domestic corporate hospital chains. What may come as a bigger surprise is that the company has sent feelers to brothers Malvinder and Shivinder Singh, promoters of Fortis Healthcare, the country’s second-largest hospital chain. The Singh brothers are currently locked in a takeover battle with Malaysia’s Khazanah for control of Singapore hospital chain Parkway Holdings.

According to industry sources, Mukesh Ambani could be looking at buying around 26% stake in Fortis. The RIL overtures have not gone completely unanswered, since top officials of both companies are understood to have met once to discuss the prospects of such a proposal.

Sources said while RIL is evaluating the scope of buying a stake in an existing hospital chain, it has not ruled out the greenfield route. It is also separately considering expansion of its concept stores branded Reliance Wellness to several cities. Reliance Wellness, which stocks a range of health products, is housed under the Reliance Retail umbrella. It has branches of this format in Bangalore, Hyderabad and Ahmedabad among others.

RIL already has some presence in the pharma sector through Reliance Life Sciences; however, the plans for its foray into hospital business are being chalked out separately.

Source:http://www.financialexpress.com/news/mukesh-sets-eyes-on-26-stake-in-fortis/634990/

Reliance Industries, India’s biggest company by market value, plans to build at least one power plant in the country marking the oil company’s entry into commercial electricity generation, two company officials said.

The Mumbai-based refiner and energy explorer is considering bidding for a 4,000-megawatt coal-fired plant in eastern India that may cost as much as Rs 16,000 crore ($3.4 billion ), according to officials briefed on the plan, who declined to be identified before a decision is taken. One megawatt is enough to power about 200 middle-class homes in India.

India’s government has invited bids for a 4,000-mw project in Chhattisgarh by July 5 and another in adjoining Orissa by July 30. Reliance may seek to build the Chhattisgarh plant, one of the officials said on Wednesday. A company spokesman didn’t reply to an e-mail seeking comments.

Reliance’s plan to start power generation follows a June 11 decision to buy a wireless Internet services company for $1 billion as it seeks to expand beyond refining oil, making chemicals and natural gas production. The diversification became possible after billionaire chairman Mukesh Ambani ended a non-compete agreement with his brother Anil Ambani on May 23.

“Power is a natural area of diversification for Reliance after the no-compete agreement ended,” said Apurva Shah, head of research at Prabhudas Lilladher, Mumbai. “They have the skills to execute large projects and the money to fund it.”

The operator of the world’s biggest refining complex and India’s largest natural gas field had outstanding debt of about Rs 62,500 crore ($13.4 billion) and cash and equivalents of Rs 21,870 crore as of March 31, the company said in April. Reliance is in talks with banks to borrow $1 billion, two people with direct knowledge of the matter said on June 4.

The world’s richest brothers split India’s second-biggest business empire five years ago after their father died in 2002 without leaving a will and squabbled as their business interests collided . Under the 2005 agreement, Mukesh, 53, kept the petrochemicals, oil and gas units and Anil, 50, got the power, financial services, telecommunications, and entertainment units.

Reliance Power, a company run by Anil Ambani won three of India’s four so called ultramega-power projects, of 4,000mw each, auctioned by the government so far. The government plans to bar companies from bidding to build more than three such power plants at a time to ensure their timely completion, HS Brahma, then power secretary, had stated on January 15. The government proposes to build nine such plants to help almost double the country’s installed generation capacity in the next seven years.

Reliance Industries fell 0.8% to close at Rs 1,057.95 in Mumbai trading, its first decline in six days. The shares have lost 1.3% in the past year compared with a 17% increase in the benchmark Sensitive Index of BSE.

Source:http://economictimes.indiatimes.com/news/news-by-industry/energy/power/RIL-likely-to-bid-for-mega-power-plant/articleshow/6057239.cms