Archive for June, 2010

Reliance Group might bid for Lyondell again, think Execs of the Dutch firm

June 25, 2010

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.



Reliance Industries eying 26% stake in Pipavav Shipyard

June 18, 2010

Mukesh Ambani-owned Reliance Industries (RIL) may pick up a 26% stake in Pipavav Shipyard (PSL), India’s largest integrated shipyard with an exposure to offshore structures for oil & gas structures.

“We will issue a 26% fresh equity to the strategic investor,” SKIL Infrastructure chairman Nikhil Gandhi said. SKIL, the promoter of Pipavav Shipyard, holds a 39.5% stake in the company.

The acquirer will also make an open offer to the public at the same price after the deal is closed. An RIL spokesperson said that the company does not comment on market speculations.

Market sources said that RIL is the strategic investor. But Mr Gandhi declined to confirm that RIL is the potential investor. “The potential strategic partner could be a major national or international player from the oil & gas sector,” Mr Gandhi told ET.

He said that other investors have full confidence in his decisions and he would take them on board after the contours of the deal is finalised. “They invest in my vision,” he said.

The non-promoter shareholding in Pipavav Shipyard is 60.44%, out of which, 43% is owned by domestic and foreign institutional investors. Major investors include Trinity Capital (6.89%), New York Life Investment Management India Fund II (4%), Citadel (3.45%) and IL&FS (5.35%).

In March 2010, SKIL Infrastructure Group had bought a 19.6% stake from Punj Lloyd, the other major shareholder, through a negotiated deal at Rs 49.80 per share. Subsequently, it gave an open offer to public for 20% which received weak response.

The company’s stock closed at Rs 100.15, down by 0.10%, on the Bombay Stock Exchange (BSE) on Thursday. The company’s share price touched a 52-week high of Rs 103.40 on Wednesday. The scrip had touched a low of Rs 47.65 in October 2009.
The company has recently bagged an order amounting Rs 2,600-crore to build offshore patrol vessels for the Indian Navy. The deal is to construct about five patrol vessels, each with a displacement of about 2,000 tonne. Pipavav Shipyard has an order book of about Rs 4,500 crore.


RIL makes sixth oil discovery in block CB–ONN–2003/1

June 11, 2010

Mukesh Ambani-led Reliance Industries Limited (RIL) announced its sixth oil discovery in exploratory block CB-ONN-2003/1 (CB 10 A&B), awarded under the NELP-V round of exploration bidding.

The well CB10A-T1 was drilled to a total depth of 1500 meters in Part A of the block, with the objectives of exploring the play fairway in the Miocene Basal Sand (MBS) of Babaguru Formation as well as the Oligocene play of Tarapur Formation. The Hydrocarbon bearing zone was identified from 1390-1402.5m in the Miocene Basal Sand (MBS) of Babaguru formation. Conventional production testing was carried out in the interval 1390-1395 m. The well flowed at a rate of 415 barrels of oil per day (bopd), through a 6-mm bean with a flowing tubing head pressure of 290 psi.

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 about 130 kms from Ahmedabad in 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.

While the entire block was covered with 2D seismic, about 80% of the block area has 3D seismic coverage. Of the 16 exploratory wells drilled in the block by RIL so far, 12 are located in Part-A and the remaining 4 in the Part B of the block. RIL is continuing further exploratory drilling efforts in the block.

The discovery, named ‘Dhirubhai–49’, the sixth oil discovery in the block so far, has been notified to the Government of India, and to the Directorate General of Hydrocarbons. The potential commercial interest of the discovery is being ascertained through additional data gathering and analysis.

The discovery supplements the understanding of the petroleum system in the Cambay basin in general, and the block in particular. Based on the interpretation of the acquired
3D seismic campaign in the contract area, several more prospects with upside potential have been identified at different stratigraphic levels.


Reliance Jewels opens first store in Coastal K’taka

June 9, 2010

Reliance Jewels, the jewellery specialty store from Reliance Retail, today launched its first store here today.

The store is the third in Karnataka and 23rd in the country.

Addressing a press conference after the launch of the store, Assistant General Manager (AGM) Isaq Turner said the new store offered 100 per cent range in gold, diamond and wedding jewellery.

He said RRL, which opened its first retail store in November 2006, operated more than 1,000 stores in 86 cities.


Reliance Jewels Shines in City Centre Mall, Mangalore

June 8, 2010

Reliance Jewels, the jewellery store from Reliance Retail announced the launch of its first store in Mangalore at City Centre Mall on Tuesday. This is the third store in Karnataka and 23rd store in the country.

Addressing the reporters on Tuesday, Reliance Jewels Southern region Assistant General Manager Isaac said that Reliance Jewels offers its consumers an unparalleled range of jewellery, backed by the assurance of hallmarked gold and certified diamonds, in an unmatched shopping ambience.

Reliance Jewels has a special introductory offer of flat 10 per cent off on plain Gold Jewellery making charges, flat 20 per cent off on studded gold jewellery making charges and flat 100 per cent off on diamond jewellery making charges.

Reliance Jewels guarantees 100 per cent purity as it offers only BIS Hallmarked Gold. Diamonds here are Internationally Certified by Independent Certification Laboratories.
The range at the store encompasses stunning designs in South Indian Temple Jewellery, Hyderabad Ruby and Emerald collections, Timeless Naqashi Rajkot Antique, Kolkata Filigree, Kundan and exclusive Bridal Jewellery. Plus exquisite diamond jewellery in distinctive designs, finish and superior quality to celebrate every special occasion in a woman’s life.


Reliance Industries looking to make low-cost 3G handsets

June 3, 2010

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.