Archive for May, 2011

Reliance Retail to leverage Marks and Spencer’s expansion plans

May 31, 2011

Marks and Spencer (M& S), a well known UK based apparel retailer, is set to expand its footing in the Indian market in collaboration with Indian retail giant Reliance Retail, a subsidiary of Mukesh Ambani led Reliance Industries Limited (RIL).

M & S stores currently spread across 41 countries, including India, and is known world over for its cutting edge apparel wear and luxury food products. It is the number one provider of women’s-wear and lingerie in the UK, and is swiftly expanding its market into menswear, kidswear and home decor. As a part of its joint venture with Reliance Retail, it currently operates 19 stores in India, and plans to open 10 additional stores within a few years.

CEO of M&S, Marc Bolland, reported on the company’s plans saying, “We have accelerated the pace of growth in the Indian market, in working with our partner Reliance Retail. Over 50 percent of our products are sourced from the region, which provides a better tailored proposition for Indian customers.”

By collaborating with Reliance Retail, Marks and Spencer hopes to reach further into the booming fashion and apparel wear market of India. Having tied up with many an international brand, Reliance Retail hopes to cater to the demand for high end fashion and apparel segment in India. Marks and Spencer have been known for high-quality and fashionable apparel range, and in an effort to expand their segment size, M&S will soon set up new stores.

Reliance Retail already has a strong presence across India via its value based and specialty formats. The value formats include Reliance Fresh, Reliance Mart and Reliance Super while its specialty format includes Reliance Digital, Reliance Trends, Reliance TimeOut, Reliance Footprint, Reliance Wellness, Reliance Jewels, Reliance Autozone and Reliance Living.

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RIL to score high as the biggest profit maker of India

May 26, 2011

Mukesh Ambani led Reliance Industries Limited (RIL), India’s largest private sector conglomerate, may soon become the largest profit making enterprise in the coming days, surpassing the reigning title holder Oil and Natural Gas Corporation (ONGC).

RIL has reported net profit of Rs. 20,286 crore in 2010-11 as compared to Rs. 16,133 crore incurred by ONGC in the first three quarters of 2010-11. Current Index heavyweight, RIL, is the most valued company in terms of market capitalization, with a market cap of Rs. 3 lakh crore with a free float of 1,70,934 crore share. While Reliance has been trading between the bands of Rs. 900 to Rs. 1050, ONGC has slipped from its trade band. It is expected that ONGC will not have an EPS surpassing the bar of Rs 22 for financial year 2011. This allows Reliance Industries to take the lead and stay in the lead.

Reliance Industries Limited has been consistently working towards augmenting the production from its oil and gas field with technical assistance from BP. RIL also holds interest in unconventional shale gas assets in the US having acquired stakes in Atlas Energy, Pioneer Natural Resources and Carrizo Oil and Gas Inc. While trade analysts believe that shale gas can help secure fuel reserves for RIL, it will also circumvent against any drop in the conventional fuel production in the long term. As a long term bet, RIL is perceived as one of the better option as compared to its other oil counterparts.

Chairman and Managing Director of ONGC, A K Hazarika, reported that because of an increase of Rs 3,832 crore in the company’s oil subsidy, the burden thus encountered is likely to affect the overall performance, knocking net profit in the fourth quarter by Rs 2,000 crore. Following reports of hike introduced by government in regards to contribution of upstream oil companies towards fuel subsidies for revenue losses suffered by oil retailers, the shares of many upstream oil companies indicated a decline while that of RIL have shown stability.

Nita Ambani: Pitching a striking season for Mumbai Indians

May 12, 2011

To be a formidable owner and spearing force of one of the most striking teams at Indian Premier League (IPL) this season, Nita Ambani surely has pitched one of her very best performances as a franchise owner and as a motivating team leader. As Mumbai Indians claim top spots as the most favored team and likely title winners of IPL 2011, Nita Ambani is very much elated and a proud owner after all.

Mumbai Indians is synonymous with two entities- Sachin Tendulkar and Nita Ambani. While the former leads on the field, the latter leads both on-field and off –field. Two not so successfully IPL seasons later, Nita Ambani was determined to turn things around for her team. Inspired by Ambani lineage of doing things in a strategic and thought out way, Nita Ambani set out to change the structural framework of Mumbai Indians – both in the managerial front as well as in the team’s actual constitution. Supported by her husband, Mukesh Ambani, Nita Ambani was all set to bell the cat by the third season and needless to say, the endeavor was almost successful. Although Mumbai Indians lost out in the finals, to have reached that level after failing to make it to even the semi finals in the previous seasons, the team had made a good start. Come season 4, and the team is back with inspired courage and chutzpa, all credited to the persistent efforts of Nita Ambani. This first lady of corporate India is a fine example of woman of today who has juggled home and work just as adeptly. Staying true to the Reliance mantra of quality performance and value addition, Nita Ambani has truly helped untie her team as one strong tour de force.

Working round the clock, following her team’s progress and planning the line of attack for following matches is a regular work these days but Nita Ambani is more than happy to lead the cause. After all, she is determined to ensure her team bags the title this season.

Mukesh Ambani –DE Shaw likely to set up India’s largest private sector bank

May 5, 2011

Mukesh Ambani, head honcho of Reliance Industries Limited (RIL), in association with America based D E Shaw group, one of world’s largest financial institutions, is set to launch what is being termed as India’s largest private sector bank so far; also being dubbed as the ‘The Bank of Ambani.’

Following its tie up world’s leading hedge fund, RIL was armed to make its move into India’s booming financial services sector. The idea was to channelize D E Shaw’s technical and investment expertise in the field of financial services by means of RIL’s extensive market network and operational excellence, marking a strong foray by Reliance Industries into the sector. As a part of joint venture, services such as energy and carbon trading, energy and carbon derivatives, private equity, mutual funds and other security-linked products were being listed as part of likely offerings from the JV. But latest speculations suggest that Mukesh Ambani may have had much bigger plans for his foray into the field of finances.

If realized, this bank could readily pose a threat to other leading banks in India, both in private and public sectors alike. India’s Central Bank, which regulates the workings of the banking sector, is currently weighing options to decide whether or not to allow Mukesh Ambani and his enterprise to venture into the banking quarter. As of yet, the decision is still far from realization, but talk are underway.

Irrespective of whether the ‘Bank of Ambani’ finds the light of day or not, it is irrefutable that Mukesh Ambani’s foray into financial sector will see India’s private equity business; mutual funds and energy trading sector grow leaps and bounds. Given RIL’s omnipresence and excellence in all its functions, this JV too, nevertheless, try to reach out to a larger segment of population with an array of financial services that are comprehensive and dynamic in nature.