Mukesh makes patch-up public

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Mukesh makes patch-up public

Mumbai, June 19 -- The move from brothers in arms to brothers in charm took another step forward on Friday, as Reliance Industries Ltd (RIL) Chairman and Managing Director Mukesh Ambani (53) said he looked forward to a "harmonious and constructive relationship" with Anil (51). The statement came exactly five years to the day when Mukesh and Anil split the Reliance empire in 2005. With his mother Kokilaben, wife Nita and twin children Akash and Isha (both 18) looking on, the tightly-packed Birla Matoshri Sabhagriha Hall burst into applause when
Mukesh said RIL was ready to supply gas to Anil's power plants, including the proposed 7,800 MW at Dadri near Delhi, as and when they are ready to receive the fuel. Anil was conspicuous by his absence. Speaking to RIL's 3.5 million shareholders in the company's 36th annual general meeting, Mukesh unveiled his plans to enter the telecom and power businesses, a space so far restricted to him under a January 12, 2006 non-compete agreement with Anil. In less than a month after RIL scrapped its non-compete pact with ADAG on May 23, Mukesh said he would double the company's enterprise value to $160 billion (Rs 7,40,000 crore) in less than a decade. RIL is India's most valuable company with a market capitalisation of Rs 3,45,000 crore., Mukesh told shareholders that he plans to use RIL's strong balance sheet and cash surplus of almost Rs 22,000 crore to fund coal, thermal and nuclear power plants, add capacity to produce polyester and chemicals to create "unprecedented value" for investors.

 

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A NEW CHAPTER IN THE AMBANI SAGA - RIL plans `big surge forward'

Signalling a “harmonious and constructive rela- tionship“ with his brother Anil, Reliance Industries Ltd (RIL) Chairman and Managing Director Mukesh Ambani on Friday said that RIL is ready for a “big surge forward“.

Addressing his 3.5 million shareholders at RIL's 36th AGM -- exactly five years to the day when he and Anil split the Reliance empire created by their father Dhirubhai Ambani -- Mukesh said he was “hopeful and confident“ of doubling RIL's enterprise value in the next 10 years.

“It took three decades for Reliance to create an enterprise value of over $80 billion (Rs 370,000 crore),“ he said.
“However, I feel hopeful and confident that Reliance can accomplish value creation of a similar magnitude in less than a decade.“

Mukesh further said that RIL had cash equivalent of almost Rs 22,000 crore and will use its strong finances for inorganic growth -- growth that comes from acquisition of com- panies -- and investments into new ventures such as power and telecom.

“We are ready to bring into full play our investment mobil- isation capabilities, as well as our superior project execution capabilities, into a sector that is crying out for transforma- tional mega initiatives,“ he said.

In addition to announcing his investment plans for RIL's exist- ing businesses such as petro- chemical, oil exploration and refining, the biggest announce- ment was on RIL's multi-billion dollar foray into the power sec- tor -- a sector that was closed to Mukesh due to a January 12, 2006 non-compete agreement with his younger brother.

RIL has planned “mega investments“ in thermal, hydel and nuclear power generation, Mukesh said. “For Reliance, power business is a natural and synergistic extension of its ener- gy portfolio.“

Announcing the “game- changing“ development of annulling the earlier non-com- pete agreement with brother Anil, Mukesh said this new agreement opens up the full range of power business for RIL.

“This paves the way for Reliance to participate in the whole value chain of power business, spanning generation, transmission and distribution except non-captive gas-based power plants until 2022,“ he said, signalling that he will not get in the way of Anil's gas-based plants. While Mukesh did not put a number to RIL's invest- ment plans, sources in know said RIL could invest anywhere up to $10 billion (Rs 45,000 crore) in the power sector. This includes bidding for the forth- coming ultra mega power proj- ects in Orissa and Chhattisgarh.

“We are drawing up specific plans for mega investments in this (power) sector with clean coal-based power generation projects, hydel projects and also in nuclear power as and when it is opened up,“ he said.

Sources said RIL may be planning up to 30,000 MW of power plants over the next five years.

 

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Telecom: Mukesh bets on 4G, partnerships

New Delhi, June 18 -- Reliance Industries Ltd (RIL) would take partnership route for rolling out its network in wireless broadband services, RIL Chairman and Managing Director Mukesh Ambani said. It will offer 4G services on the spectrum that it has acquired by buying 95 per cent equity stake in Infotel Broadband.

The company will also set up a wireless innovation centre (WIC) in Mumbai, on the lines of the Dhirubhai Ambani knowledge city, which Mukesh had set up for Reliance Infocomm - a company that was handed over to younger brother Anil following the split, who changed its name to Reliance Communications (RCOM). Mukesh said that RIL would provide broadband to crucial social infrastructure, including UID, education, healthcare and literacy services.

"We will collaborate with strategic partners such as service providers, infrastructure providers, device manufacturers and other participants in the ecosystem," Mukesh said. Sources said that RIL would use Reliance Infratel's passive network such as towers to roll out its broadband services.

 

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RCom may hive off DTH, IPTV businesses into separate entity

NEW DELHI: Reliance Communications is planning to hive off its direct-to-home (DTH) and Internet protocol TV (IPTV) businesses into a separate company titled Reliance Digital Works.

Sources said RCom plans to bring multi-system operators (MSOs) and foreign investors into the new company for funding its expansion plans.

The company declined to comment on the issue. Currently, the group operates the DTH business under the brand name Reliance Big TV, which is a subsidiary of Reliance Communications. It has about 2.3 million subscribers.

Reliance Digital Works is expected to offer a 25 per cent stake to overseas investors and 10 per cent stake to multi- system cable operators (MSOs), sources said.

Earlier this month, RCom had taken permission from its board of directors to sell as much as 26 per cent to investors at a premium to its stock price.

The Reliance ADA Group has already hived off its film exhibition and processing arms into Reliance Media Works, and FM radio and outdoor advertising businesses into Reliance Media World.

Both Reliance Media Works and Reliance Media World are listed entities on the Bombay Stock Exchange and the group has been looking for capital infusion into its growing DTH business.