Mukesh Ambani’s RIL second among world’s largest value createors

September 10, 2010

Mukesh Ambani-led Reliance Industries has been ranked second in the list of world’s 10 biggest ‘sustainable value creators’ — companies that have been successful in creating the most shareholder value over the last decade — prepared by Boston Consulting Group.

The list compiled by the global management consulting firm names Brazil-based mining and materials giant Vale as the top value creator worldwide for the 2000-2009 period.

“One side effect of the Great Recession has been to accelerate the ascent of companies from rapidly developing economies to the top ranks of the world’s creators of shareholder value,” BCG said in the report titled ‘Threading the Needle: Value Creation in a Low-Growth Economy’.

The ranking identifies large global companies with a market capitalisation of at least 35 billion dollars that have been the “most successful at sustaining superior value creation over 10 years.”

BCG says a decade is the minimum time frame necessary to evaluate the staying power of a company’s value creation performance.

The report has also listed companies industry-wise for creating the most value for their shareholders from 2005 to 2009. Starting from a database of more than 4,000 companies worldwide, the report presents detailed analyses of the Total Shareholder Return (TSR) at 712 companies across 14 major industries for the five-year period.

Of the top 142 companies included in this year’s global and industry rankings, 81 are located in developing economies. In a further indication of how emerging economies are pulling ahead of developed countries, the top 10 value creators in the 712-company sample are all from Asia —- five companies listed on stock exchanges in China, two in Hong Kong, and one each in India, Indonesia, and South Korea.

Similarly, seven of the top ten large-cap value creators (those with market valuations of more than USD 35 billion) are listed on stock exchanges in rapidly developing economies of Brazil, Hong Kong, India, Mexico and South Korea.

“Most developing economies are rebounding relatively quickly to their precrisis growth levels. In contrast, developed economies are entering an extended period of below-average growth with profound implications for how companies create value and which companies come out on top,” report co-author Daniel Stelter said.

Reliance Industries Now Have a Slice of Oberoi hotels

August 31, 2010

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.

Mukesh Dhirubhai Ambani on World Economic Forum Board

August 27, 2010

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.

Nita Ambani: The business royalty of India

August 27, 2010

It’s incredible how many things a person can manage at the same time. From supervising the construction of a new wing at Mumbai’s Hurkisondas Nurrotumdas Hospital, run by a trust controlled by the Dhirubhai Ambani Foundation to making sure that the Mumbai Indians are in perfect shape for the Champions League; and all this while carrying a queen like grace all the time. Nita Ambani is in true sense a luminary of the business world.

Then there is the Dhirubhai Ambani International School (DAIS) as well, the project that is closest to her heart. Also, there are the affairs of the Dhirubhai Ambani Foundation, which she chairs, to go through. And, of course, the numerous family and other commitments that are part and parcel of being wife of Mukesh Ambani and the first lady of the RIL Empire.

Meeting with Neeta Ambani I hear is not the easiest of tasks. Many weeks and numerous calls later, one may be lucky enough to get a confirmation from her. So when you reach the clean, clutter-free and resplendent waiting room of her office, one cannot cease to wonder at the might of the Reliance Empire of which this may be a small yet significant part.

There are no hassles as with meeting with celebrities. No delays, No cancellations and definitely no last minute change of plans. Mrs. Ambani is a woman who respects time. Both hers and of others; and even while being in the midst of all the madness happening around her, Nita Ambani’s serenity is commendable.

“Everything at Reliance is always a bit of a whirlwind. So many things are happening all the time that you have to constantly shift focus,” she laughs, quoting the reason for all the wait and phone calls that had gone through to reach her.

Nita Ambani seems an accidental businesswoman. She got dragged into project execution almost two decades after she married Mukesh Ambani. Now she runs a not-inconsiderable enterprise with myriad activities. Most things she runs directly — the hospital and the school — are not technically businesses, unlike the Mumbai Indians franchise. But they are enormous and complex organizations nonetheless, employing hundreds of people.

They are private entities and trusts, so it is notoriously difficult to get an accurate handle on numbers. Intelligent estimates are, nevertheless, possible. It is estimated that over Rs 750 crore in revenues and over Rs 1,000 crore in annual investment budgets is being supervised by Nita Ambani which can definitely termed small.

While having the richest Indian for her husband, to being an idol in herself as well, Neeta Ambani will soon prove to be a valuable asset to even the reliance group which is headed by her husband, the mighty Mukesh Ambani. It would hence be quite interesting to witness the changes that Mrs. Ambani would bring along to reliance in case she thinks of joining in the brigade. But even for now, her efforts and accomplishments are the talk of the town and with her grace and business acumen, reliance industries limited may be well on its way to include hundreds of more ventures in the near future.

Mukesh Ambani – DE Shaw JV

August 26, 2010

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

August 20, 2010

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

August 20, 2010

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.

CAG completes RIL gas field cost audit; report to take time

August 9, 2010

NEW DELHI: Government auditor CAG said it has completed auditing the expenditure that Reliance Industries incurred in developing Krishna Godavari basin gas field D6, which was at the centre of an inflated billing controversy.

“The audit is complete at CAG end. We are currently in the final compilation stage after which the report will be sent to the Oil Ministry for comments,” a CAG official said.

CAG, which went into the $ 8.8 bn cost incurred by Reliance in producing gas from the nation’s largest field, had examined and received replies on its audit comments from the Mukesh Ambani-led firm.

“In another 30 days, we plan to send it (the report) to the Petroleum Ministry,” the official said.

When asked if Reliance had fully cooperated with the Comptroller and Auditor General (CAG) in submiting records pertaining to KG-D6 fields, the official said: “They have given, if not 100 per cent, but mostly what we wanted.”

The CAG plans to complete the entire audit process, which will include incorporating oil ministry’s comments on its findings, by November.

“In 3-4 months time, we will be done with the special audit report. Based on the ministry’s comment, CAG will decide the necessity of placing the report in Parliament,” he said.

Since the audit of KG-D6 is not a statutory audit, as is being done in case of public sector firms, the premier auditor would decide based on ministry’s comments on its findings if the report has to be placed in the Parliament.

“Our intention of the audit is to find out if there was any loss of revenue to the government because of any improper increase in capital expenditure in the KG-D6 fields,” he said.

Government is to get between 10 to 90 per cent of the revenue generated from sale of gas over the life of the field after deducting expenses incurred by the operator (Reliance).

“While it took a while to persuade the ministry for the CAG audit, it then took the ministry some time to persuade the companies as this audit was the first of its kind. So the delay of over two years,” he said.

CAG started audit of Krishna Godavari basin D6 field on December 21 last year. It, however, faced some difficulty in accessing new documets it sought after completing the first round of scrutiny. But within a month, RIL complied and the premier auditor made good progress thereafter.

Petroleum Ministry asked CAG to audit the accounts of RIL, which faced allegations of gold-plating gas field costs that has increased four-fold to $8.8 bn.

RIL had on August 17 agreed to an audit by CAG but the nation’s premier auditor could put its house in order for the audit only by December.

CAG’s scope of audit of PSC in respect of the block KG-DWN-98/3 (KG-D6) awarded to RIL, for two financial years – 2006-07 and 2007-08, with access to records of previous years linked to transactions of these years.

Reliance Q1 results see 32.3% jump

July 28, 2010

Mukesh Ambani group’s flagship company Reliance Industries (RIL) has announced its results for the quarter ended June 2010. It has reported a net profit at Rs. 4851 crore as against Rs. 3,666 crore which shows a clear growth of 33.42 per cent on year-on-year basis. A day after RIL reported its best-ever quarterly profit; it surged over 1 per cent in the early trade on Bombay stock Exchange on Wednesday. According to the data, the turnover achieved for the quarter ended 30th June was 61,007 crore, an increase of 88.1 percent over the corresponding period of the previous year. Every field, be it net profit, exports, turnover, EPS and margin saw an upward trend in the quarter 1 results of Reliance Industries Limited. According to the media reports, exports were higher by 103.5 percent at 32,849 crore as against Rs. 16,145 crore in the corresponding period of the previous year.

Boosted by the healthy June quarter results, shares of the country’s most valued corporate rose 1.44 per cent to touch a high of Rs. 1068.70 on the Bombay Stock Exchange. According to statistics, during the quarter ended 30th June, 2010, the production from KG D6 was 304,349 tonnes of crude oil and 5,376 MMSCM of natural gas. As compared to the corresponding period of the previous year’s results, the production of both crude oil and natural gas grew by 207 percent and 210 percent respectively. Commenting on the quarter 1 results of Reliance Industries Limited, Chairman and Managing Director, RIL, Mukesh Ambani said, “We had yet another record quarter due to high operating rates and improving margins across all our businesses. Reliance embarked on two major initiatives to create incremental value. We entered into joint ventures in shale gas to internationalize and diversify our upstream portfolio. Reliance has also committed itself to participate in the high growth and exciting area of broadband wireless. Both these initiatives are in line with the strategy to identify and invest in new, value creating businesses.”

Reliance Industries Limited posted a 32.3 per cent rise in profit and a whopping 85 percent jump in revenues for the quarter ended 30th June. According to the industry experts, this is the highest ever quarterly result including net profit and revenues reported by RIL and its credit goes to the robust performance of its refining and petrochemical businesses. Research MD at CNI, Kishore Ostwal commented on these RIL results and said, “The company has posted impressive quarter earnings which should be good for the overall market. However, I feel the stock will remain flat in the short-term.”


Nita Ambani – Brand Ambassador for Saakshar Bharat

July 28, 2010

According to the blueprint prepared by the ministry earlier this week, Nita Ambani, wife of Reliance Industries Ltd chairman Mukesh Ambani and co-owner of Mumbai Indians; Priyanka Vadra, daughter of Congress president Sonia Gandhi; Supriya Sule, member of Parliament (MP) and daughter of agriculture minister Sharad Pawar; and M. Kanimozhi, MP and daughter of Tamil Nadu chief minister M. Karunanidhi; will be approached for key roles in “Saakshar Bharat”, which will have a specific focus on women. All of them said they have not been approached directly so far.

They would be requested to campaign for the mission, which was launched in September by Prime Minister Manmohan Singh. The names of the mission’s ambassadors are likely to be announced on 8 September, International Literacy Day.

Saakshar Bharat, aims to make 70 million adults (60 million being women) literate in three years and will be implemented in 365 of the country’s 619 districts. While India’s average overall literacy rate is 65.3%, for females it’s 54.28%. In the targeted districts, female literacy is less than 50%. The scheme has already been rolled out in 167 districts in the first week of April and is expected to cost Rs6,000 crore.

Nita Ambani’s office declined to comment. However, the ministry appears to be optimistic.

“We have zeroed in on these icons because we believe that this scheme will be successful if individuals who have sufficiently high profile as well as are committed to the cause are nominated as Saakshar ambassadors,” said a senior ministry official requesting anonymity. The official also said that the ministry wants Nita Ambani and Vadra to be ambassadors at the national level, others will be approached to be goodwill ambassadors at the state level. Some sports personalities will also be roped in later.

They will be expected to pro-actively participate in mass mobilization, undertake visits to some villages to influence teachers and learners, and help motivate private firms to contribute to the programme under their corporate social responsibility schemes. The ministry note points out that Nita Ambani can be “very effective in promoting the private sector initiative and mobilization of resources” for the adult literacy mission.