Archive for October, 2011

RIL’s Latest Advent: 4G Revolution and Low Cost Tablets

October 19, 2011

The Telecom subsidiary of Mukesh Ambani owned Reliance Industries Limited aims at spreading a4G revolution in India. By early next year, they plan to offer high speed data services on reasonably priced tablets. Mid 2012, they intend to scale it up to a countrywide network.

RIL’s major plan is to offer fourth generation enabled data cards to be plugged into computers and laptops, and provide data connectivity with high speeds of 50-100 Mbps. This will enable data connectivity much faster than what 3G offers currently, at lower prices.

RIL also plans to offer tablets at Rs.3,000 or even lower to attract more customers. This strategy of offering products at a low price to gain more customers is similar to their move in 2003, when it took mobile phones to the common masses with its ‘Monsoon Hungama’ offer. The ‘Monsoon Hungama’ offer won Reliance 1 million customers in just 10 days, as it offered handsets at Rs.501 only.

RIL has examined prototypes of tablets from over 15 Taiwanese and Chinese original equipment, and chooses to focus on 3 to 4 models. These are likely to be priced between Rs. 3000 and Rs. 8000.

In order to acquire content for its wireless broadband offerings, Reliance Industries Limited is in talks with several media and entertainment companies. Walt Disney’s Indian venture UTV software is one among these companies, and their deal with RIL is close to being finalized. RIL will be able to offer games, entertainment and applications for younger customers through this deal.

A spokesperson from the company declined to comment and said that Reliance would not comment on speculation. However, as per an update on RIL’s Telecom business, their Telecom unit is ‘in the process of setting up a world-class broadband wireless network using state-of-the-art technologies and finalizing the arrangement with leading global technology players, service providers, infrastructure providers, application developers, device manufacturers and others to help usher the 4G revolution into India’.

For RIL’s broadband gear, the company is in the final phase of talks with three vendors – Alcatel Lucent, Ericsson and China’s Huawei.We are unable to comment if they will be signing contract with a single vendor, or all three.

It is expected that RIL go in for pan-India tower deals on regional basis. They will tie up with the tower firm that has maximum reach and density in that particular zone.

Reliance is certainly working out of its way for the success of their newest venture. It hopes to regaininvestors’ confidence that has been hampered by the criticism from the Comptroller and Auditor General.


Reliance Retail: In Expansion Mode through JV with Daiso

October 13, 2011

Mukesh Ambani owned Reliance Retailwill bring to India yet another foreign trade name. It plans for a joint venture with Daiso, which is the largest chain of 100-yen shops in Japan.

Daiso plans to tie-up with Reliance Retail, a subsidiary of Reliance Industries Ltd. for a shop-in-shop format in Reliance’s numerous outlets in India. Daiso has grown to be the largest chain of one-coin shops in Japan, with a humble start by a street vendor, who sold 100-yen products. It has over 3000 stores across the globe.

Mr. Hirotake Yano, President of Daiso said,” We have been in talks with Reliance for over three years now to zero-in on the joint venture.” He did not mention the timeframe for the venture to be formalized, but said that Daiso’s first shop-in-shop format in India is expected to be established in Gujarat.

Mr. Yano said that the Indian price for the products is yet to be decided. Daiso offers products in all the following categories: dining and kitchen, food, home décor, health and beauty, stationery, hardware, toys, giftsetc. The products are high quality products at a very low price. In Singapore, the decided price is $2 (Singaporean), and in Australia it is $2.80 (Australian currency), for any item.

Reliance Retail has over 1000 stores in India, retailing food and groceries, apparels, footwear, home products, IT products, electronic products, etc. Formerly, it has several joint ventures with international brands. Earlier this month, Reliance Retail was in news for its future conglomerate with Dairy Queen Inc., the global frozen food retailer.

After Reliance signs a bond with Daiso group of companies, the products procured will be imported from Japan, Korea, Indonesia and China. The variety of products from a differing range of prices will be offered at a fixed discounted rate in India.

Reliance Nominated For Energy ‘Oscars’, Platts Global Energy Awards

October 5, 2011

Reliance Industries, Cairn India, Indian Oil Corp, Indraprastha Gas Ltd., GAIL India Ltd, are among the 7 Indian Energy firms to be nominated in the list of finalists, for the 13th Platts Global Energy Awards, 2011.

More than 200 nominations listed as finalists, from over 25 countries were announced by the program host Platts, a leading global provider of energy and metals. These energy firms have been nominated under various categories for the annual ‘Academy Awards’ of the energy industry. The number of finalists for the Global Energy Awards 2010, consisted an equivalent number of Indian companies.

Platts Global Energy Awards established in the year 1999, honor energy industries for their outstanding performances, leadership, corporate and individual innovation. It has expert judges which include former OPEC energy ministers, national regulators and former heads of major energy companies. There are over 19 categories, and each has a key criteria against which the judges will evaluate.

Reliance Industries Ltd. has been nominated in 2 categories. Petrochemical & Blendstock Innovation Award is a newly introduced Awards category for which Reliance is nominated, and it highlights extraordinary innovations in the petroleum related industry. The 2nd category for which Reliance has been nominated is ‘Energy Efficiency Program of the Year – Commercial End-User’.

GAIL is nominated for the Downstream Operation of the year award. Cairn’s oilfield discovery at Rajasthan has paved its way to the energy ‘Oscars’ under the category, Energy Producer of the year.

Platts announced that along with awarding companies and prominent industry leaders for their vision and innovation, operational excellence, outstanding programs and leading technologies, they will also declare the 2011 Energy Company of the year, which will be selected from the list of finalists.

The 13th Platts Global Energy Awards expects nearly 600 prominent energy industry executives, and will be held on 1st December 2011, at Cipriani Wall Street in New York.