Reliance Tracker » Mukesh Ambani

Mukesh Ambani: Creating Opportunities, Not Placebos

admin — Fri, 03 Sep 2010 15:54:12 +0000

India’s top corporate leader, Mukesh Ambani, who heads the country’s most valued firm, RIL, feels that the nation should go beyond mere lip service on financial inclusion and create millions of jobs for growth. Mukesh Ambani was awarded the NDTV Profit business leadership award which was presented to him by Finance Minister Pranab Mukherjee.
“Inclusion and all that is what I call lip service and we need some concrete action and make sure we create enough learning opportunities for 10 to 15 million people and at the end of the day, we need equitable growth,” Mr. Ambani said after receiving the NDTV Profit business leadership award.

Asked if the appeal by American business leader Bill Gates and 25 other billionaires there to donate half their wealth to charity was a gimmick or an example to be followed, Ambani said that circumstances in India were different.
“Within India, most of the people still do not realize that all the wealth that gets published only has paper value”, he said. “I have always believed that these shares are not to be sold. The whole objective is to build an institution that is timeless and that was my motivation, my commitment to my father.” Said Mukesh Ambani.
In a nostalgic mood, Ambani recalled that his father Dhirubhai Ambani had introduced him to Pranab Mukherjee in 1980, then also Finance Minister.
At that time, Ambani said, Mukherjee had told him: “Mukesh, your father has worked very hard to build a foundation. You now have to work hard to build one of the best companies in India.

“And I (Mukesh Ambani) think thirty years from then, the satisfaction that I have is that we have built an institution… So that’s really satisfying.”
In a lighter vein, he said: “I am sure the Finance Minister will not get ideas of inheritance tax. That is the main reason that most people in the US give.” Mukesh Ambani received his award from Mukherjee, an NDTV statement said today.

Mr. Ambani, however, added that at an individual level, he would relate to the appeal and even in this part of the world, industrialists would need to give.
Hence with the entire hullabaloo over the wealth of the great man, it was he who was again humble enough to hear the plea of the people and then in a way promise to guide them to a much more secure future than just a placebo of wealth which would prove to be just a rainbow in the dark.

RIL buys 3 mn barrels spot Brazil crude

admin — Fri, 03 Sep 2010 14:53:56 +0000

Reliance Industries (RIL), operator of the world’s largest refining complex, bought around 3 million barrels of spot Brazilian crude to arrive in India in the next two months, industry sources said on Friday.

The move was made possible by weaker US crude prices versus European benchmark and lower freight rates, traders said.RIL bought from Petrobras a Very Large Crude Carrier (VLCC) of Roncador Heavy and Albacora crudes to be loaded this month and a Suezmax of October-loading Marlin, a trade source said.
Petrobras has provisionally booked VLCC Olivia to load crude in Brazil on September 28 and head for the Indian west coast at a freight rate of W47.5, a shipping fixture from brokerage Clarksons showed.

RIL has also booked VLCC Vega Star to load crude in the Caribbean on September 30 at a freight rate of $2.7 million.

US crude futures have fallen below ICE Brent with the front month differential between the two grades at its widest level since late May, making South American crudes more affordable to Asian refiners.

Crude oil freight rates on major routes were also mostly lower this week due to growing vessel availability.

More Brazilian crudes are flowing into Asia as Chinese and Indian refiners diversify their crude supplies.

RIL’s purchase of Brazilian crudes jumped to 43,060 barrels per day (bpd) last year, up from 2,760 bpd in 2008.

The company operates two refineries with a total capacity of 1.24 million bpd in Jamnagar.

RIL last bought in April a VLCC of Brazilian crudes from Petrobras for June delivery, the source said.

Rising supplies from Canada and the Bakken oil shale may continue to put downward pressure on the front month spread until “the peak in refinery maintenance passes in six to eight weeks’ time”, JPMorgan analysts said in a September 1 note.

“We retain a cautious view on the WTI-Brent differential in light of the structural supply pressures that we see building at the Cushing delivery point,” the analysts said.Reliance Indstries Limited, Mukesh Ambani Reliance, Mukesh Ambani, RIL

Nita Ambani: The Second Engine to the Ambani Brigade

admin — Fri, 03 Sep 2010 14:13:26 +0000

Reliance is an array of potential leaders just waiting to emerge the cocoon they are growing consistently in. The latest in news is none other than the ever so graceful Nita Ambani.
Reliance Industries is likely to nominate Nita Ambani, the wife of RIL owner Mukesh Ambani to the board of luxury Hotel Company EIH. RIL, which bought a 14% stake in EIH — that runs the Oberoi and Trident chains — will nominate Mrs. Ambani, the wife of chairman Mukesh, because she is closely involved with the company’s increased focus on services, which account for more than 50% of India’s GDP.
The Journey of Mrs. Ambani up the business ladder has been quite gradual. She had married young (at 21), had three children, and was initially fully occupied with taking care of them and her in-laws, and supporting Mukesh. She did find time to do a teacher’s training program and pursue a course in interior design. She even briefly worked as a school teacher at Sunrise Elementary, a small private school on Mumbai’s Napean Sea Road, a job she enjoyed thoroughly.
Being a fashion designer, Nita Ambani bestowed upon herself the job of designing the interiors of their own newest home, a job she excelled at eventually, much to the glee of her entire family.
Soon enough, Mrs. Ambani was being trusted with the supervision of large and complex projects. A few years later, the refinery at Jamnagar was initiated, and Nita was to handle the execution of the township.
Her foray into public life began when she set up a school at Mumbai in 2003. Her school, ‘The Dhirubhai Ambani International School’, located near Bandra Kurla Complex in Mumbai has become a prominent fixture of Mumbai’s education landscape.
Hence, it is not surprising that Nita Ambani may be chosen to represent RIL on the EIH board. Mrs. Ambani is not a rookie in the game. While she is modest when she says that most of her businesses are not main stream, large amount of investments are involved in all her endeavors, which she has managed with ease.
Also, the enormity of her ventures cannot be overlooked. Nita Ambani runs a significant enterprise with myriad activities. Most things she runs directly, like the hospital and the school are not technically businesses, but they are vast and complex organizations nonetheless, employing hundreds of people which lead Nita Ambani to supervise an amount close Rs 750 Crore in revenues and over Rs 1,000 Crore in annual investment budgets.

Her managerial skills were thoroughly tested during her stewardship of Mumbai Indians, a team which participates in the Indian Premier League. Mumbai Indians did poorly in the first and second IPL tournaments but the team led by Sachin Tendulkar staged a comeback to emerge as the runner-up during the 2010 edition.
Hence, with the kind of successful campaigns that Nita Ambani has run in the past, the positive impact and emotional connect she brings to the brand ‘Reliance’, there can be no better leader than her to guide RIL through their journey on the hospitality front.

Fourth Gas Discovery by Reliance Industries

admin — Wed, 01 Sep 2010 08:11:30 +0000

Reliance Industries has notched a fourth successive gas discovery in the KG-DWN-2003/1 (D3) exploration block in India’s Krishna Godavari basin off eastern India.

According to partner Hardy Oil & Gas, well KGV-D3-W1 was drilled to a measured TD of 3,501 m (11,486 ft) at a water depth of 1,653 m (5,423 ft). It encountered a gross gas pay zone of 37.5m (123 ft) in Pliocene sands. The potential of the pay was evaluated by a wire-line modular pressure testing tool and via collection of gas samples. The partners are currently assessing the commerciality of the discovery dubbed Dhirubhai-52.

The D3 license covers an area of around 3,288 sq km (1,269 sq mi).

Hardy Chief Executive Yogeshwar Sharma said: “Four successive discoveries highlight the significant prospectivity of this extensive exploration block. The Krishna Godavari basin is an emerging world class basin for India. Further exploration drilling is planned in this area and we look forward to continuing to participate in unlocking of the basin’s exceptional energy potential.

Reliance Industries Now Have a Slice of Oberoi hotels

admin — Tue, 31 Aug 2010 06:00:13 +0000

It will now be Reliance Industries catering to your needs when you fine dine at The Trident or lay back in the lap of luxury at The Oberoi Hotel. Reliance Industries Limited, led by Mukesh Ambani, Asia’s richest man, announced that it had bought a 14.12 per cent stake in EIH Limited, which owns and manages several hotels in the country including the Oberoi and The Trident brands.
“The acquisition was made through RIL’s wholly-owned subsidiary Reliance Industries Investment and Holding Private Limited from Oberoi Hotels Private Limited and certain other promoters of EIH Limited” a statement from the company said.
“RIL’s investment in EIH Limited has been made as the Oberoi family had developed the ‘Oberoi Hotels’ brand into a premier international brand in the luxury hospitality sector and as a result EIH Limited has excellent future prospects,” the statement added.
The entire deal has set back RIL by a whooping Rs. 1,021 Crores. But knowing Reliance, one cannot be surprised at the enormity of the figures the deal has witnessed. Reliance is a very diverse and flexible company, a fact which is again proven by the mentioned deal.
In a statement, RIL said that the investment in EIH Limited had been made as the Oberoi family had developed the “Oberoi Hotels” brand into a premier international brand in the luxury hospitality sector. The company noted that EIH Limited has excellent future prospects. The statement also said that there would be no change of management, operation or control of EIH Limited.
RIL is likely to get one seat on the board of EIH Limited for its stake. Sources said that there was no immediate plan for an open offer. Sources also confirmed that this was a strategic investment and probably the first step for the petrochemical major to enter the hospitality segment.
Now with Mr. Ambani investing aggressively in the hospitality business, it would be interesting to know whether his competitors follow lead and this inception triggers a series of aggressive investments mounting to huge amounts. Only time will tell what is in store. But for the moment, it’s Reliance at your service.

RIL HELPS INDIA BECOME EXPORT KING

admin — Fri, 27 Aug 2010 13:35:20 +0000

India has surpassed South Korea to become the largest petroleum products exporter in Asia. With the commissioning of a new refinery by Reliance Industries at Jamnagar and Essar Oil increasing refinery output at Vadinar, India overtook South Korea by mid-2009 and has since then consistently maintained the lead position.

EXPERTS SHOW:
Gross Export Refining Capacity (million b/d)
India 1 3.69
South Korea 0.9 2.86
China 0.6 9.6
Japan 0.5 4.64

According to the data compiled by oil and metal information provider Platts, India’s gross exports currently average 1 million barrels a day, inching past South Korea which exports 0.9 million barrels a day which shows us that India’s average petroleum products export has grown from 0.77 million barrels a day in January 2009 to one million barrels a day in August 2009. In the current year, the average oil products export from India stands at 1.07 million while South Korea exports average 0.88 million.

“Both Reliance Industries’ Jamnagar and Essar’s Vadinar refineries contribute more than 90 per cent of the petroleum products exports while the rest is by public sector oil companies,” said Ms Vandana Hari, Asia Editorial Director, Platts.

According to her, petroleum products exports from India holds great potential as both RIL and Essar have high complexity refineries which make products that meet Euro IV and Euro V standards. Europe, the US and Africa are identified major markets for Indian refiners.

The surging demand for petroleum products abroad is also quite evident from the growth in the export volumes of both RIL and Essar. RIL alone exported 32.8 million tonnes of refined products last fiscal, fetching a revenue of $20.9 billion (Rs 1,10,176 crore).

And with the demand rising exponentially, it does not come as a surprise that the new Reliance Petroleum refinery in the Special Economic Zone (SEZ) at Jamnagar, which is designed to be export-oriented, is estimated to be exporting more than 80 per cent of its total output.

It is proven yet again that it is not necessary that every company would plateau with age. RIL being the ideal example is growing by leaps and bounds every single day, flying high while silencing cynics across the nation. With their actions being pretty decisive for the Indian economy, RIL without a doubt has become the face of business India.

Mukesh Dhirubhai Ambani on World Economic Forum Board

admin — Fri, 27 Aug 2010 12:23:48 +0000

Mukesh Dhirubhai Ambani, Chairman and Managing Director, Reliance Industries has been elected on board by the Foundation Board of the World Economic Forum.

Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, said, “We are honoured to have three distinguished new members of the Foundation Board. Mukesh Ambani will bring an extraordinary level of business acumen and his commitment to the ideals of the Forum. He has played a key role, especially related to the integration of India into all our activities.”

The Foundation Board is composed of leaders from business, politics, academia and civil society who strongly identify themselves with the Forum’s mission to improve the state of the world and who make a valuable contribution to this mission through their involvement.

Along with Mukesh Dhirubhai Ambani the other two who were elected on the board were Ben J. Verwaayen, Chief Executive Officer, Alcatel-Lucent, France; and Zhu Min, Special Adviser, International Monetary Fund (IMF), Washington DC, and a former Deputy Governor, People’s Bank of China , People’s Republic of China.

The Reliance Industries chairman will play an important role in India-WEF relationship.

Mukesh Ambani – DE Shaw JV

admin — Thu, 26 Aug 2010 12:48:59 +0000

The Mukesh Dhirubhai Ambani Group is close to signing a 50:50 joint venture with global private equity and hedge fund company DE Shaw to enter the financial services sector. After its recent entry into the telecom sector, energy giant Reliance Industries, controlled by billionaire Mukesh Ambani, might very soon sign a pact with global hedge fund DE Shaw to launch a $700-$800 million infrastructure fund.

Trading in energy, carbon and derivatives may be offered and the joint venture may also look at offering private equity and mutual funds. RIL sources confirmed the announcement regarding the joint venture will be made shortly.

Recently, Mukesh Ambani and his younger brother Anil Ambani scrapped a pact in May this year that had earlier prevented them from entering each other’s businesses. As a result, sectors like telecom, power and financial services were open to Mukesh Ambani. Earlier, there were media reports of him being in talks to buy a significant stake in Nimesh Kampani’s JM Financial Asset Management, which oversees $1.8 billion in assets.

Mukesh Ambani is on the DE Shaw, India, controlling board, an entity which oversees the operations here. The negotiations are being handled by Manoj Modi, a close lieutenant of Mukesh Ambani. The joint venture may eventually seek a banking license in India.

Mukesh Ambani – New Role in Reel

admin — Fri, 20 Aug 2010 12:54:47 +0000

India’s leading Industrialist Mukesh Ambani, CMD, Reliance Industries is now entering the world of Bollywood. According to sources, India’s Energy giant Mukesh Ambani and czar of Bollywood Yash Chopra might join hands to produce a film in the near future.
Mukesh Ambani’s Reliance Retail and Yashraj Films may float a 74:26 JV to set up multiplexes, run entertainment channels and produce soap operas for television. The new company formed out of this JV will use the upcoming malls of Reliance Retail nationwide to set up multiplexes.
“I love watching Bollywood movies and Yash Chopra is one of my favourite filmmakers. I have always believed that he has a Midas touch”, said Mukesh Ambani, Chairman, Reliance Industries. Mukesh Ambani has been a fan of Yash Chopra’s films since his younger days. It is said that despite the fact he has to spend lot of time in his business, he still finds time to watch latest movies with his family and friends in his Sea wind home.
The business tycoon is willing to invest a whopping amount of Rs. 200 Crores for this new venture. “Everything is at the nascent stage and no company will be forthcoming to talk about it right now,” says a source.
This move yet again demonstrates the diversity and flexibility of Reliance Industries to explore unknown territories. Mukesh Ambani may well bring about a revolution in the entertainment industry. With the amount of investments he would bring in, who knows, an Indian equivalent AVATAR may hit the box office very soon.

Mukesh Ambani’s RIL in talks with Alcatel-Lucent

admin — Fri, 20 Aug 2010 10:34:05 +0000

Mukesh Ambani’s RIL is now in talks with telecom equipment giant Alcatel-Lucent to procure broadband gear, a senior company official said.
Munish Seth, the newly appointed country head for the company’s Indian business, told reporters that Alcatel-Lucent expects the first set of broadband gear orders to come in early 2011. “We are in initial level of talks with most of the people who have won the spectrum. These majors include India’s largest listed conglomerate, Reliance Industries, and Tikona Digital Networks.” he added.
Earlier this year, many of the India’s top mobile firms like Bharti Airtel, Vodafone, Tata Teleservices and Idea Cellular spent a combined over $20 billion to grab licenses in recent auctions of 3G and broadband wireless radio airwaves in the fastest-growing cellular market.
But, the dark horse was yet to arrive as Reliance Industries, controlled by billionaire Mukesh Ambani, made a dramatic return to the telecom business with the $1 billion acquisition of Infotel Broadband, which was the only company to win a nationwide license for broadband wireless spectrum in the government auction. The future plans for RIL are quite aggressive as well. They plan to invest about $5 billion in the venture over the next two years.
Considering that Alcatel-Lucent Chief Executive Ben Verwaayen had mentioned in June that they are considering setting up their global services headquarters in India which would require an investment of $500 million in investments over three years, Mukesh Ambani may be the jack of the pack amongst its competitors.
All these decisions though are facing issues regarding Regulation Concerns as India has India tightened rules for telecom gear imports saying vendors must allow inspection of their equipment and made carriers solely responsible for the security of their networks, addressing security worries that had led to restrictions on Chinese manufacturers. Such regulation norms are proving to be bottlenecks in the process.
Alcatel-Lucent is a pretty huge player in the field and it would be quite beneficial for Reliance Industries if this deal goes in their favor and will soon be fierce contenders for Bharti Airtel for the top slot in the mobile communication industry.