Archive for July, 2011

RIL set to claim Bharti’s stake in AXA JV; CCI gives a go-ahead

July 28, 2011

Mukesh Ambani led Reliance Industries Limited (RIL) has been awarded an official sanction from the Competition Commission of India (CCI) for buying out Bharti group’s 74 per cent stake in insurance joint ventures with AXA of France. RIL – Bharti AXA deal is first deal to be cleared by CCI since June, as per the newly framed competitive law.

As per the competition law that went effective starting June 1, all high value deals need to have clearance of CCI – the monopoly watchdog. A merger deals comes under CCI microscope if the combined turnover of the two companies involved is Rs 4,500 crore and above.

Bharti Group, India’s known telecom major, had chosen to opt out of financial services sector as the venture did not fit into the company’s long-term growth plans. Moving out of its JV with AXA, Mukesh Ambani led Reliance Industries has stepped in to partner up with AXA in place Bharti’s place for two of the key services – Bharti AXA Life Insurance and Bharti AXA General Insurance. Bharti owned a total of 74 per cent stake in both general and life insurance businesses, and it has sold the same to RIL for an undisclosed amount.

RIL will now own 57 per cent stake while its subsidiary Reliance Industries Infrastructure (RIIL) will own 17 per cent stake in both the insurance companies to become AXA’s latest JV partners in India. AXA will continue to hold 26 per cent stake in the ventures.

With hopes of tapping into the financial services sector of India, RIL has acquired a great lead following this buyout. With other significant mergers, either already signed or awaiting sanction, already in line, Reliance is stepping into India’s financial services sector with an astute plan. RIL has slowly been making progress towards making its grand entry into the sector and has entered into significant joint ventures with international hedge fund leader D E Shaw and a likely tie-up with payment gateway leader AmEx to help push the vision to realization.

Mukesh Ambani led RIL banks with one of the best financial quarter results

July 27, 2011

Mukesh Ambani led Reliance Industries Limited (RIL), India’s largest energy based enterprise, accounted the highest ever quarterly financial performance results for the April-June quarter of 2011. This break-through comes at an opportune time as RIL got its much acclaimed RIL-BP deal sanctioned from the Cabinet Committee of Economic Affairs (CCEA) earlier last week.

The turnover achieved for quarter ended 30th June was Rs. 83, 689 crore, which was an increase of 37.2% as compared to previous year and net profit leveled at Rs. 5,661 crore during the same period, up by 16.7%. Refining business led the success charts, credited to the heavier grades of crude oil which, cheaper than lighter varieties, are process at RIL’s Jamnagar facilities to propel higher margins.

Chairman Mukesh Ambani noted that the growth in earnings was driven by strong refining margins and sustained performance in the petrochemicals business and that RIL’s cash flows draws out an unparalleled opportunity to allocate capital to higher-margin resource plays in leading markets around the world. Trade analysts were impressed by RIL’s ability to improve its earnings in the refining business, despite a fall in its oil and gas production sector. Profits are likely to continue to dwell at this level, if RIL is able to augment its gas production process to a higher level.

On account of positive outlook for the Indian market, the Nifty July futures closed above crucial resistance at 5,680, after the cabinet approved the much anticipated RIL-BP deal, earlier on Friday. This deal will see BP stake 30% share in 23 of Reliance’s oil and gas blocks, including the KG D6 basin off the coast of Andhra Pradesh. This deal may come through to improve Reliance’s oil and gas production in the coming future, which saw a decline this quarter. Nevertheless, RIL is optimistic with such exemplary results. There is also the assuring news of rich natural resource discovery in Cauvery – Palar region, slated to parallel the success of its KG-D6 basin.

Reliance TimeOut sets rolling Rock Fest 2011

July 25, 2011

Rock Fest 2011, the much anticipated event from Reliance TimeOut, a one-stop shop for all things books, stationery and recreational, has finally arrived this monsoon. The festival will see the best of rock music, including rock band contests, live shows and rock quizzes, along with special offers on purchase of music and related items at all Reliance TimeOut stores.

With its popularity soaring each year, Reliance TimeOut Rock Fest 2011 strives to come out with unique and innovative events each time around. This year, Rock Fest has gone live with an online radio station (www.timeoutradio.in) that will pay homage to some of the best rock music. Apart from this, loads of exciting offers have been stocked up for customers and rock music fans alike. Many heavy duty contests such as the ‘Battle of Bands’ (where twelve bands will battle it out for the title of best rock band – the ‘Rock Crown’), live performances, rock quizzes, air guitar contests, ‘Dress like a rock star’ contest for kids and many more such exciting activities have been lined up this year’s Reliance TimeOut Rock Fest. The most popular event each year is the band contest and this time around, rock aficionados and customers can cast in their votes in favor of their favorite band through Facebook.

Apart from rock inspired activities, offers like price offs and discounts have been put in place for music as well as other categories of products in all Reliance TimeOut stores. Freebies and gifts, including two Gibson guitars, are up for grabs this season.

Reliance TimeOut Rock Fest is an endeavor to celebrate music, especially rock, and support young talent from the field of music by giving them a platform to showcase their acumen. With participants coming in from all corners of the country, Rock Fest has definitely found a pace among young rock stars as the place to be in order to be seen and heard. Rock Fest 2011 ends on 31st July, and there is much on offer for all music loving people.

RIL assumes Rs. 200 crore from sale of shares to LIC and Franklin Templeton

July 19, 2011

Mukesh Ambani owned Reliance Industries Limited (RIL) is rolling on a high as the state run Life Insurance Corporation (LIC) and private fund house Franklin Templeton upped their stakes in the conglomerate by buying 23 lakh shares, estimated to be around Rs. 200 crore, with LIC shelling Rs. 161 crore and Franklin Templeton incurring a cost of Rs. 37 crore at the current RIL share price of Rs. 867.10.

While LIC has increased its stake in RIL to 7.16 per cent to ascertain an increase of 8.6 lakh shares, Franklin Templeton Investment Funds hiked its stake to 1.05 per cent to account for a rise by 4.3 lakh shares.

LIC, one of India’s biggest insurance agencies, had held 6.04 per cent share in Reliance Industries as of Sept. 30, 2009. It is currently one of the top holders among other institutions in the company, while Franklin Templeton has marked a stake towards reaching the same.

The holding of large individual investors, with investments more than Rs. 1 lakh, fell down from 1.03 per cent to 0.96 per cent. However, small individual investors, with investments accounting for less than Rs. 1 lakh, were able to hike their holding in the company to 11.48per cent from 11.44 per cent. The promoter holding in the company remained unchanged at 44.72 per cent.

The sale of RIL’s shares comes at a time when the energy giant looks to buy a handful of petrochemicals firms, including LyondellBasell in a deal that sources claim could be worth an estimated $ 12 billion. Reliance Industries Limited, India’s largest private sector conglomerate, has been facing much pressure on account of the drop in its share price value following a 52-week high of Rs. 1,187.

Reliance Industries Limited (RIL) is a broad scope enterprise with strong hold presence in sectors of energy, petrochemicals, synthetic fibers and retail, with gradually strengthening foothold in broadband services and financial services quarter.

RIL: Bearing the brunt of paralytic governance

July 5, 2011

Mukesh Ambani led Reliance Industries Limited (RIL) is India’s largest private sector enterprise. With world class core energy operations and an across-the-board range of business functions, RIL leads the industrial pack with its dynamic abilities and execution process. And yet, a company as far-reaching as RIL is rendered as a subject of suspicion every time a process falters.

Speculations have swarmed from every sphere starting with the Directorate General of Hydrocarbons (DGH), the regulating body of oil and petroleum sector, which lashed out at RIL when the production from 18 wells at its distinguished D6 block in the Krishna-Godavari (KG) basin hit a low output count earlier this April. RIL had been strenuously working towards achieving it April 2012 target of 80 mmscmd from 31 exploration wells and, incidentally, the production dipped due to falling pressure at the wells. With the likelihood of government’s profit’s being affected, questions were immediately pointed at RIL for lack of consistency. Even when Reliance decided to partner up with British Petroleum (BP) to attain their deep water exploration technical assistance, speculation surged high on the choice of an international partner as against Indian public sector player like GAIL, irrespective of consideration of the large FDI, largest ever seen in the sector, the RIL-BP deal is to generate. Just this June, RIL’s budgetary structure was put under the scanner by audit authority, on claims that it had received partial treatment from the ministry.

RIL has maintained that all their operations have been to fructify the economy first and then focus on profit generation. The audit report sent to oil ministry fails to acknowledge that deepwater exploration is unique technique and comes with its own peculiarities and technical difficulties. Unless an audit of such stature is based on technical evaluation, it renders the reputation of the body in question mottled. As the cost increase, so will the expenditure and to properly and effectively harness the oil reserves, it is necessary to employ the best technology and minds, irrespective of their place of origin. RIL has stood its ground in this cloud of scams that has grayed over the government, and being a sound economic body, it understands the need to function in favor of the economy and its people first.

Emraan Hashmi to enthrall audience at Reliance Digital

July 1, 2011

Reliance Digital will play host to popular Bollywood heart throb, Emraan Hashmi. Emraan will visit Reliance Digital, Vashi, on 1st July 2011 at 2 PM for the promotion of his latest upcoming release ‘Murder 2’. The actor will be giving out details about his forthcoming release ‘Murder 2’ apart from interacting with his fans. As a part of contest held by Reliance Digital, a few lucky fans will get a chance to meet and greet Emraan Hashmi himself.

After Mumbai, fans in Delhi and Hyderabad are also in for a treat as Emraan will grace the launch of a new store by Reliance Digital at Himayat Nagar, Hyderabad on 2nd July with his presence. He is then also scheduled to visit the Reliance Digital Store at Dwarka Mall in New Delhi on 3rd July for this promotional event.

About Reliance Digital: Reliance Digital is the CDIT (Consumer Electronics, Durables, IT & Telecom) retail arm of Reliance Retail Group. It currently spans across 31 stores across 17 cities within the country with an average store space of around 10,000 sq. ft. Reliance Digital sells a wide range of CDIT products & solutions ranging from High-end LCD, LED & Plasma Televisions, Refrigerators, Washing machines, Microwave Ovens, Digital Cameras, Laptops, to small items like IT accessories, HDMI cables & Pen drives. It also sells the entire Apple range.