Marks and Spencer Reliance India, a joint venture between Mukesh Ambani-run Reliance Retail and UK-retailer Marks and Spencer Plc, intends to open 15 stores in two-years, mainly in the metros, a top company official said.

“We are looking to open 10-15 stores in the next two years mainly in the metros. We’re aiming to open larger stores which will showcase a fuller range of our product catalogue,” said Marks and Spencer Reliance India, Head of Marketing, Nandini Sethuraman.

In order to display the wide range of product catalogue properly, the company desires to open spacious stores approximately 10-15.

Marks and Spencer announced plans to open 50 stores in India in the next five years when it formed the joint venture in 2008. The retailer said the target remains.

“Our plan is to open larger stores between 15,000 sq ft and 35,000 sq ft. By 2014, our aim is to have 50 stores. It all depends on momentum and right locations,” Sethuraman said.

Currently, the company has 18 stores across India in destinations such as Delhi, Amritsar, Mumbai, Pune, Ahmedabad, Kolkata, Bangalore, Hyderabad and Chennai with an average size of about 5,000 sq ft to over 22,000 sq ft in conjunction with Reliance Retail.

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).

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/

The board of Reliance Industries (RIL) is believed to have approved plans to enter the Indian telecommunications sector when the opportunity arises, two persons familiar with the development told ET.

India’s largest private sector company is expected to go for only the lucrative corporate bandwidth market, or the business of selling telecom and internet services to companies rather than individuals.

It is likely that the company could unveil its intent to foray into telecom at its annual general meeting on June 18, the people familiar with its plans said.

The government is currently auctioning frequency spectrum for broadband wireless access, or WiMAX, a technology that speeds up internet access and RIL is likely to set up a special purpose vehicle (SPV) to acquire one of the winners.

The RIL board met recently to endorse these plans, says a person who has seen a copy of the resolution passed at the meeting.

It is widely believed in industry circles that Mahendra Nahata-owned Himachal Futuristic’s arm, Infotel Broadband Services, could be a candidate for acquisition by RIL.

Infotel is currently among the bidders in the broadband wireless auction and is competing with the likes of Qualcomm, Anil Ambani’s Reliance Communications (RCOM), and Bharti Airtel, India’s largest telecom company by subscribers.

“Himachal Futuristic doesn’t have enough money of its own to be bidding,” said a telecom analyst with a domestic brokerage. Infotel’s bid is likely to be backed by Reliance Industries, he added.

Mr Nahata declined to comment on whether RIL or any of its arms intended to buy the company. The RIL spokesman declined to comment on the company’s future telecom plans.

The bid price for all-India spectrum was Rs 12,257 crore at the end of 110 rounds of bidding on Wednesday. Bidding for Delhi, Mumbai, Kerala and Himachal Pradesh is still on while there is a surplus spectrum slot in eight service areas. Nearly 37% of the bid amount for spectrum for all circles in India is from areas that are still under contest.

Source:http://news-views.in/ril-drawing-up-plans-to-foray-into-telecom-space/

TAKE Solutions Ltd. (BSE: 532890), leaders in Life Sciences and Supply Chain Management (SCM) products, announced that the company has entered into strategic partnership with Reliance Life Sciences to supply its unique and innovative PharmaReady eCTD, SPL and PPM modules. The seamless integration of TAKE Solutions’ technologically advanced products will not only support Reliance Life Sciences in strengthening product development services; but these customized IT solutions will also add a cutting-edge finesse to the present line of business. With its strong background and industry knowledge, TAKE’s Warehousing & Clinical Systems Development and Integration tools will deliver a full spectrum of Information Management Services, leveraging on industry data standards to streamline the clinical information lifecycle. “We were looking out for a submission solution that can address our current and future requirement of our organization that enables our regulatory submissions. Also, in addition to software solutions, we wanted to partner with an organization that understands our business dynamics, and could work with Reliance Life Sciences to enhance the business process and solution set over the time to come. After a detailed market search, and understanding of the solutions available, TAKE Solutions emerged as a definite choice for us as the solution set offered us flexibility and options for customization, while meeting the core requirements. Also, TAKE Solutions as an organization has the right credentials, industry expertise and resource strength that we were looking for.” said Mr. Gopal Rangaraj, Vice President IT, Reliance Life Sciences Pvt. Ltd. “We are extremely pleased to partner with Reliance Life Sciences. Our engagement with such a credible and commended Life Sciences solution major is evidence of TAKE Solutions’ comprehensive understanding of the business, the challenges and proven track record of providing intelligent and innovative clinical regulatory solutions,” said, Mr. Ramesh L, Vice President – Sales, Life Sciences APAC, TAKE Solutions Ltd. Notes to EditorAbout Reliance Life Sciences Reliance Life Sciences, is a new millennium initiative of the Reliance Group. Reliance Group is the largest private sector enterprise in India, participating in businesses in the energy and materials value chain, with group revenues of USD 30 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company, and ranks 103rd amongst the world’s top companies in terms of revenues. Reliance Life Sciences is developing business opportunities in the domains of medical, plant and industrial biotechnology. From a domain perspective, these opportunities cover Biopharmaceuticals, Pharmaceuticals, Clinical Research Services, Regenerative Medicine, Molecular Medicine, Novel Therapeutics, BioFuels, Plant Tissue Culture, Plant Metabolic Engineering and Industrial Biotechnology. From an integration perspective, these opportunities encompass Repositories, Research, Process Development, Pre-clinical Studies, Clinica; Trials, Commercial-scale Manufacture and Marketing, all of which are carried out in-house. About TAKE Solutions TAKE Solutions is a leading software and services provider with domain expertise in Life Sciences (LS) and Supply Chain Management (SCM). With intellectual property assets embedded within its technology solutions, and with a set of best practices executed by skilled domain and technology professionals, TAKE is constantly looking at opportunities to drive efficiencies for its clients’ businesses. Headquartered in Chennai, TAKE primarily drives its SCM Domain Excellence Centre and Global Delivery Centre from India. Company has strong presence in the USA with Life Sciences Domain Excellence centres located in Princeton, New Jersey. The Company conducts business today with more than 390 customers worldwide. TAKE has been recognized as India’s 10th fastest growing technology company by Deloitte Technology Fast 50 India 2008 and has also been assessed at Level 5 of the Capability Maturity Model Integration (CMMI) & Level 3 of the People Capability Maturity Model, Software Engineering Institute, Carnegie Mellon University, USA. TAKE is also a Microsoft Gold Certified Partner, a Charter Member of the Microsoft BioIT Alliance, and along with its subsidiary (ACI), is a Registered CDISC Solution Provider, with recognized industry leadership in Microsoft-based Solutions, Regulated Life Sciences, and Supply Chain Management.

Source:http://news-views.in/reliance-life-sciences-and-take-solutions-enter-into-a-strategic-alliance/

Mukesh Ambani-led Reliance Industries Ltd. is looking to partner with handset makers to produce low-cost 3G handsets in India, The Financial Express reported Thursday, citing unnamed executives familiar with the development.

According to the newspaper, Reliance Industries is also looking to make WiMAX application devices.

It added that the diversified company’s future plans include buying bulk air time from mobile telephony service providers and selling the low-cost handsets, along with the purchased air time, through its retail outlets called Reliance Retail Stores.

Source:http://news-views.in/reliance-industries-looking-to-make-low-cost-3g-handsets/

Reliance Industries, freed from its non-compete agreement with the Anil Dhirubhai Ambani Group (ADAG) that barred it from investing in high-growth sectors, is likely to make its first big-ticket investment in coal-fired power plants.

RIL, which is looking to invest surplus cash, is likely to settle on coal-based power plants thanks to the surging demand for electricity and the attractive rates of return, a person familiar with the group’s thinking said.

An RIL spokesperson declined to comment on the issue.

As part of the peace formula announced by RIL and ADAG two weeks ago, the non-compete agreement signed between the two companies in 2005 was scrapped, allowing Mukesh Ambani’s group to enter power, telecom, and financial services. The deal also gave ADAG the freedom to enter the petroleum, refining, and petrochemicals sector.

RIL’s possible entry into the power sector could throw up the intriguing possibility of the two brothers going head-to-head for the first time. But there is unlikely to be a clash as ADAG is already implementing two large power projects and may not be in a position to bid aggressively for more, the person said.

RIL is unlikely to enter the telecom sector, which has seen a steady fall in margins and rising competitive pressures, unless it can find a new-generation technology that will be capital efficient, the person said. He did not, however, rule out the possibility of RIL acquiring an existing telecom company. As far as financial services are concerned, RIL is unlikely to get into the space immediately as the market is still evolving, he added.

The company is clear that among the three new sectors open to it, power is the most lucrative and the challenge will lie in developing plants in record time and with the best technology. “The challenge is to come in before demand starts petering out, which is in the next six to seven years. We will have to build the plant within three years if the normal practice is five years and most importantly, we have to adopt cost-effective technology like clean coal to maximise the returns,” the person added.

The rationale is simple. The sector has a demand-supply gap of 14%, requiring capacity addition of 90,000-100,000 mw every five years, and power-generating companies rake in a healthy rate of return of around 20% on an average. The company would have to become a player within the next three years or else would miss the bus, the person said.

As the second-largest growing economy, India is still far below global standards in electricity capacity. China, for instance, adds 100,000 mw of capacity every year to fuel its economy.

RIL may have preferred to get into the gas-based clean power sector since it is the largest gas producer. But having reserved that sector for ADAG for the next 12 years, the company is looking at cashing in on mega coal-based power projects.

Source:http://news-views.in/coal-to-power-rils-future-ambitions/

Russia’s leading petrochemicals group Sibur Holding is planning to join forces with Reliance Industries (RIL), India’s top private sector company, to produce synthetic rubber in India.

Moscow-based Sibur and Reliance Industries (RIL) of Mumbai, India have signed a preliminary agreement to form a joint venture butyl rubber plant at Reliance’s integrated petrochemicals complex in Jamnagar. The partners aim to feed Asia’s rapidly growing rubber consumption, led mainly by the expansion of automotive tyre manufacturing.

Under the terms of a memorandum of understanding the firms signed, Sibur will provide proprietary technology for butyl rubber polymerization and its finishing. Reliance is to contribute a new raw materials unit and the necessary infrastructure, the partners said in a joint statement.

“The creation of new capacity in close proximity to the Asian markets provides both Sibur and Reliance with exciting opportunities. Rubber consumption in Asia has shown strong growth in recent years,” commented Sibur’s president Dmitry Konov.

A Reliance spokesman said the move was “the right step towards strengthening the company’s position in the Indian market of synthetic rubber” as well as “an important step” in implementing the elastomers strategy formulated by its chairman Mukesh Ambani.

The Indian group has recorded an annual profit equal to $6.2bn on sales equivalent to more than $44bn as of March 2010.

Sibur manufactures 23% of all propylene and polypropylene, 17% of all polyethylene, 30% – 49% of different synthetic rubbers and 34% of all tyres in Russia.

Source:http://news-views.in/sibur-joins-forces-with-ril-in-indian-rubber-deal/

Four years ago, the Ambani brothers parted ways dividing the Reliance Group into two with a promise they won’t compete against each other. In that partition, Anil Ambani walked away with Reliance Communications (RCOM), today the second-largest telecom company in India, which was incubated by elder brother Mukesh Ambani. Amid speculation that Mukesh may now want to re-enter the business, analysts said Idea may be ideal. As the Idea commercial says, ‘What an Idea, Sirji’.

Last week, the brothers annulled their no-compete agreement for all businesses, excluding gas-based power generation. The move opens oil exploration and refining to Anil, while power, financial services and telecommunications become available for the elder Ambani.

It is not clear whether Mukesh will enter the telecom business, or how. There is no publicly available information that any deal is in the works. ET spoke to a number of analysts to figure out the possible options before him.

“If Idea is available, RIL could get interested in re-entering the business,” said Gaurav Dua, head research, Sharekhan. “I have my doubts that RIL may enter the business to build it from scratch.”

Aditya Birla Group-owned Idea Cellular is the third-largest GSM service operator with 15%, or 65.3-million subscribers, as of April-end. It recently won third-generation, or 3G, bandwidth in 11 service areas, for a sum of Rs 5,769 crore.

The company also has an identity that is independent of the Reliance brand, which is currently associated with RCOM, the flagship company of Anil Dhirubhai Ambani Group (ADAG). It has often been said that Idea may be sold, given the right price, but what that is, only a few hazard a guess. Idea sold a stake to Axiata, formerly Telekom Malaysia, at around Rs 157 a share in June 2008. The stock is currently trading at Rs 50.

Axiata currently holds around 23% in Idea, 47% is held by promoters, while the rest is with institutional and retail investors.

Source:http://news-views.in/mukesh-ambani-may-enter-telecom-business-with-idea-videocon/