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/

Reliance Industries (RIL) has appointed the head of its Jamnagar refinery Pawan Kumar Kapil, 64, as executive director on its board, reflecting chairman Mukesh Ambani’s plan to professionalise the board of India’s largest private sector company.

Mr Kapil is the third home-grown professional to find a place on RIL’s board after Hardev Singh Kohli and PMS Prasad, the head of the oil and gas business. Mr Kapil replaces Mr Kohli, who has stepped down after a long innings on the board of petroleum-to refinery major. His appointment comes into effect from May 16.

Mr Kapil — who was a director on the board of the former Reliance Petroleum, which has been merged into Reliance industries — is a chemical engineer and has more than 40 years of experience in different facets of petroleum refining industry.

This former executive director of Indian Oil Corporation joined RIL in 1996 to lead the commissioning of the Jamnagar refinery.

He is among the high-ranking professionals who had joined RIL from public sector refinery companies in the late 1990s and rose to become the site head in 2001.

Staring his career in the Indian Oil Corporation in 1966, Mr Kapil honed his skills in Mathura Refinery as the head of refinery operations and later set up Panipat Refinery, one of IOC’s newest refineries. “He is man of details and is well-versed with technical issues,” said an executive who works with him in Jamnagar.

RIL began attempts to professionalise its board by appointing R Ravimohan, the former head of rating agency Crisil, and PMS Prasad as executive directors in August last year. Mukesh Ambani, Ramaniklal Ambani, Hital Meswani and Nikhil Meswani are among executive directors who represent the family on the board.

RIL board has 13 members with seven being independent directors. Independent directors include Dipak C Jain and A Mashelkar.

Source:http://economictimes.indiatimes.com/news/news-by-company/corporate-announcement/Pawan-Kapil-appointed-RIL-executive-director/articleshow/5942404.cms

After entering and ruling oil and gas and retail sectors, Mukesh Ambani led Reliance Industries (RIL) is now stepping into hospitality through a JV with Mumbai-based real estate company Maker Builders. They will build two hotels at the Bandra Kurla Complex in suburban Mumbai.

The partners are in final talks with an international hotel chain listed in London — Mandarin Oriental of Jardine Matheson group — to run their hotels. Terms and conditions of a revenue sharing deal between RIL, Maker and Mandarin are expected to signed shortly. The first project — Maker Maxity — will come up in the open-air theatre ground in Bandra.

Reliance and Maker will hold 35 per cent stake each in the project, while Urban Infrastructure Venture Capital Fund and Zander Private Equity Fund will hold 15 per cent each. One hotel will be a five-star property and other will be a seven-star super luxury hotel and Mandarin will manage both.

Mandarin Oriental will oversee construction of both the properties and ensure that they meet the hotel chain’s specifications. Construction of both the hotels is estimated to cost about Rs 1,200 crore, excluding land value of about Rs 3,000 crore. Construction cost will be borne by RIL and Maker Builders.

According to people close to the negotiations, the business plan and the revenue sharing agreement between Maker Maxity and the hotel chain is in place. “It will take two to three years for the project to be set up.”

In reply to a questionnaire from Financial Chronicle, a RIL spokesperson said, “As a policy, we do not comment on speculation.” Though RIL has not lined up any other hotel projects, it may look at setting up more hotels in other cities. “If there is good revenue generation from the business, the company may have more such properties,” said a person close to the project.

Mandarin Oriental is an international hotel investment and management group that operates, or has under development, 41 properties representing more than 10,000 rooms in 26 countries, with 17 hotels in Asia, 13 in the US and 11 in Europe, the Gulf, and North Africa. Its parent, Mandarin Oriental International, is incorporated in Bermuda and has its primary share listing in London and secondary listings in Bermuda and Singapore. Mandarin Oriental Hotel Group International, which operates from Hong Kong, manages the group’s hotels.

Source:http://reliance-news.blogspot.com/2010/05/reliance-industries-enters-hospitality.html

Much of what the top corporates do in the name of Corporate Social Responsibility is an extension of sharing the success with society in which they work. India’s biggest network, Reliance Group is among the most illustrious corporate which have a tradition of thinking beyond business goals. Reliance treats the world as a family and works towards the greater good of the country. According to Nita Ambani philanthropy is one of the firm planks on which civil society can be structured. With a powerful and responsible guiding light like Nita Ambani, Dhirubhai Ambani Foundation is surely in safe hands. Mrs. Ambani’s role in creating this foundation cannot be overlooked and she feels that in today’s time we need to move ahead the dictionary meaning of philanthropy because love and humanity are two terms that have a deeper significance only felt by those who have truly known it.

The Dhirubhai Ambani Foundation is a way to tell the world that Reliance thinks beyond business. Reliance always encourages and funds numerous initiatives related to education, health, human capital and infrastructure. The Dhirubhai Ambani Foundation (DAF) has instituted many awards and scholarship programmes over the years. One of the longest running scholarship programmes is the Dhirubhai Ambani SSC Merit Reward Scheme that helps meritorious students from various districts of Gujarat, Goa, Union Territory of Dadra and Nagar Haveli, Daman and Diu and Maharashtra to pursue higher studies. The scheme was introduced in 1996 along with Dhirubhai Ambani Undergraduate Scholarship Scheme.

The Reliance Kargil Scholarship Scheme was launched to support 383 children from the martyrs’ families. On the silver jubilee of the company’s listing on the Bombay Stock Exchange, the Dhirubhai Ambani Scholars Scheme was announced in 2003. Under this scheme, 900 meritorious students of Reliance shareholders are selected for the scholarship. Talking about the social responsibility in general, President Dhirubhai Ambani Foundation, Ms. Nita Ambani said, “I believe all of us can and do give in varying degrees. Sadly, it hasn’t been enough. Poverty, hunger, malnutrition, disease, infant mortality, illiteracy and unemployment continue to be the scourge of our times. We also do not have the luxury of choosing one over the other. There is no hierarchy of suffering. The claims of the homeless on our time and resources are as urgent as those of the hungry.”

DAF is also associated with different health care initiatives including the collaboration with Sir Hurkisondas Nurrotumdas Hospital and Research Centre in 1997. The deal was to restructure the hospital and to employ state-of-the-art technology for better treatment.

Source:http://www.reliance-news.com/nita-ambani/daf-in-nita-ambani%E2%80%99s-responsible-hands/