Archive for May, 2010

RIL to expand business in key markets: Mukesh

May 31, 2010

Reliance Industries (RIL) Chairman and MD Mukesh Ambani, in an address to RIL’s shareholders, said RIL would continue to follow its successful strategy and focus on improving its portfolio, increasing efficiency, product innovation and expanding its businesses in order to get closer to key markets.

Ambani said within a year of start of gas supply from KG D6, the supply has been ramped up to over 60 million standard cubic metres per day (mscmd) of natural gas and 35,000 barrels of crude oil per day.

“Increased availability of natural gas has resulted in higher volume and cheaper cost of indigenously produced fertilisers, thereby saving the country Rs 4,000 crore per annum in subsidies. It has also resulted in a significant improvement of 30 per cent in gas-based power generation in the country and the replacement of more expensive liquid fuel for refining, steel and petrochemical industries,” Ambani said in a statement in the annual report.

Mukesh AmbaniDuring the year, RIL achieved a turnover over Rs 2,00,000 crore or $44.6 billion and its net profit increased to Rs 16,236 crore ($3.6 billion).

The company announced a dividend of 70 per cent amounting to Rs 2,430 crore ($541 million), including dividend distribution tax.

RIL’s exported products were worth Rs 1,10,176 crore ($24.5 billion) against Rs 89,199 crore in the previous year. Its exports, which represent 55 per cent of RIL’s turnover, were to 123 countries.

Petroleum products constitute 85 per cent and petrochemicals account for 15 per cent of the exports.

During the year, the Petroleum Trust sold 88.8 million equity shares (adjusted for bonus issue) of the company and realised Rs 9,334 crore. As on March 31, RIL’s debt was at Rs 62,495 crore ($13.9 billion).

The company’s cash and cash equivalents as on March 31 amounted to Rs 21,874 crore ($4.9 billion). These are placed in bank fixed deposits, certificates of deposits, government securities and bonds, it said its annual report.

Source:http://news-views.in/ril-to-expand-business-in-key-markets-mukesh/

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RIL seeks clarification on gas utilisation policy

May 27, 2010

Even as India Inc and the government rejoices over the settlement between Mukesh Ambani and Anil Ambani, it seems like the drama is not over yet. NDTV has learnt that Mukesh Ambani-led Reliance Industries now wants the government to clarify its gas allocation policy before it begins talks with RNRL over gas supplies.

For this the company has already sent feelers to the empowered group of ministers (EGoM) members seeking further clarity, sources said.

Sources said RIL has informed the government that there is no room for re-negotiation as per the government’s current gas utilisation policy.

Sources close to the development also say that RIL wants the government to play a significant role in renegotiations with RNRL. When contacted, RIL declined to comment on the news.

The Supreme Court had on May 7 rejected Anil Ambani Group firm RNRL’s claim for cheap gas from RIL as had been decided in a private family agreement of 2005. The apex court had directed the two companies to rework gas supply pact keeping the government’s pricing and utilisation policy in mind.

RIL and RNRL are likely to meet formally next week for renegotiations on the family pact that provided for Anil Ambani firm getting 28 million cubic meters per day of gas for 17 years.

Source:http://news-views.in/ril-seeks-clarification-on-gas-utilisation-policy/

RIL mulls strategic investor for Haryana SEZ

May 25, 2010

Mukesh Ambani-led, Reliance Industries Ltd (RIL) may rope in strategic investor for its Haryana Special Economic Zone project, which will be developede as a joint venture with Haryana government on about 9,600 acres of land.

RIL, in its annual report for 2009-10 has declared that it might bring in a strategic investor to halp maximize the potential of the investment made so far and make it a truly global investment destination. The report was issued to the shareholders for the company’s forthcoming annual general meeting to be held on Jun 18.

The RIL shares were trading down by 1.75 per cent, from the previous close on Monday, on the Bombay Stock Exchange (BSE). Meanwhile, the benchmark index, Sensex too traded lower by 1.65% at 16,198 points in the morning trades today. RIL shares have hit 52-week high at Rs 1,186.15 on June 12, 2009 and a 52-week high at Rs 859.15 on July 13, 2009.

The company has formed a joint venture with Haryana government to establish a large scale fully integrated economic enclave as SEZ. It has purchased about 9,600 acres of land and has obtained various approvals from government to establish the SEZ, the report said.

Source:http://news-views.in/ril-mulls-strategic-investor-for-haryana-sez/

RIL appoints Pawan Kapil as the executive director

May 18, 2010

Mukesh Ambani-led 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

Mukesh Ambani: Crude oil price to rise above $100 a barrel

May 14, 2010

Mukesh Ambani, Chairman and Managing Director of oil and petrochemicals giant Reliance Industries (RIL), said the Crude oil prices can rise to more than $100 a barrel due to sluggish refinery growth and high costs of new discoveries and production.

“By most analyst accounts crude oil prices are well above the $70 mark and in the foreseeable future in the worst case we have to be prepared to again see a three-digit oil price,” Mukesh Ambani told a conference.

“$80-$100 is a norm in this ever changing global dynamics and we have to reset our thinking rather hoping that oil prices will go back, and energy prices and feedstock prices will go back to what we were used to in the last two decades,” he said.

Reliance Industries, owner of the world’s largest refining capacity, posted a 30 percent increase in profit for the three months ending March 31. Mukesh Ambani controlled Reliance’s 1.24 million barrel-a-day Jamnagar refining complex in the western state of Gujarat ran at 108 percent of planned capacity last month.

U.S. crude oil fell to a three-month low below $74 on Friday on concerns the European debt crisis would curb global growth and energy demand, while a stronger dollar shrank buying power for other currency holders.

Source:http://www.reliance-news.com/mukesh-ambani/mukesh-ambani-crude-oil-price-to-rise-above-100-a-barrel/

DAF in Nita Ambani’s Responsible Hands

May 6, 2010

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/

Reliance KG D6 gas saves 32% in fertilizer subsidy: Govt

May 3, 2010

Reliance Industries’ KG-D6 gas has saved 32 per cent in fertiliser subsidy as urea making plants shifted from costlier liquid fuels to cheaper gas, the Rajya Sabha was informed today.

“The reduction in naphtha usage in existing gas-based unites has reduced the subsidy cost to the government by approximately 32 per cent. The reduction in subsidy by shifting to natural gas has resulted in savings of subsidy bill,” the minister told the Upper House in a written reply.

Fertiliser subsidy is pegged at Rs 49,980.73 crore in 2010-11 fiscal from Rs 52,980.25 crore in the previous year. In 2008-09 fiscal, subsidy was over Rs 1,00,000 crore.

Under fertiliser subsidy, the government would provide Rs 15,980.73 crore for indigenous (urea) fertilisers, Rs 5,500 crore for imported (urea) fertilisers and Rs 28,500 crore for sale of decontrolled fertilisers (DAP, MOP and complexes) with concession to farmers.

Source:http://economictimes.indiatimes.com/news/economy/finance/Reliance-KG-D6-gas-has-saved-32-in-fertiliser-subsidy-Govt/articleshow/5878007.cms