Archive for August, 2012

RIL To Build Its Flagship Shopping Mall In Delhi

August 30, 2012

RIL (Reliance Industries Limited)’s deep pockets have always enabled it to have a head start over others and is probably the conglomerate’s secret sauce to its unparalleled growth and success. After its entry into the retail sector, it walks the extra mile by building its own shopping mall in South Delhi. It intends to make its real estate business complimentary to its retail segment that will enable it to gain ground in both the arena.

A company official mentions that RIL will use the land Mukesh Ambani won in a Delhi Development Authority bid for around Rs.400 crore in 2007 to construct its 720,000 sq ft commercial complex at Alaknanda. It will use two- fifth of the retailing space to house brands owned by Reliance Retail (a subsidiary arm of RIL). It will have three basement levels along with parking space sufficient to accommodate more than 1000 cars and 700 two wheelers and ground level along with five storeys. The company will infuse capital in the range of 200 to 250 crore for construction and is projected to be executed by the end of 2014.

While it is waiting for a go ahead from the Delhi Pollution Control Committee, it already has the green signal from the Union environment and forest ministry, for this project. The committee’s minutes of the meeting held on June 15th has necessitated RIL to build more trees including tall canopied trees and jamun trees in its complex.

RIL was on a buying spree some years back and procured land in around 150 cities in India with the agenda of constructing shopping complexes and malls, mainly. Its real estate projects include Reliance Corporate Park in Navi Mumbai that serves to be convention center, a hospital in Mumbai that is at par with the intentional standards, to name a few. It is presently building four million square feet of retail space only in North India and has attained more than 20 sites in Delhi, which can be used for the construction of malls.

The company’s foray into the real estate will further enable it to tap a new market and enable it to support its retail business. The core business segments of Reliance Group include petrochemical , refining and oil and gas, with its subsidiary companies catering to textile, retail business, special economic zone (SEZ Development)and telecom / broadband.

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RIL Entering The Telecom Sector Paves Way For Cut-throat Market

August 24, 2012

RIL (Reliance Industries Limited), the country’s largest private sector, setting its foot at the telecom sector has made the market seem extremely competitive. It has already turned the tide by being the frontrunner in the 2G-auction bid. The Credit Suisse report claims that there are two key possible outcomes of RIL’s foray in the telecom sector. At present, it will tighten the competition for the 2G auction and in the long term will make the telecom sector highly competitive.

The advantage of being an already developed player with huge cash reserves will always give it an upper hand in the competition. While the steep reserve price that the Government put forward has taken back many, RIL is in a better position to triumph in the bidding due to its healthy financial status. Besides, its counterparts will now have to raise the bid amount further in order to make their position secure in the telecom market now.

At present, RIL is the only company with Pan India Broadband Wireless Access (BWA) spectrum and will soon launch its 4G services. By winning this bid, it will be able to provide a dual mode, where it will have a backup of 1800 MHz network along with data offering. Besides, it can score by coupling its data services with voice bound services. Comprehending the potential of voice telephony in the future telecom sector, the conglomerate will not leave any stones unturned to get the grip of the same. Besides, it will not want to confine itself to the data only LTE strategy where will cater to a small market with a revenue size of $750 million (Rs 4,162 crore) only. The feasibility of the business will be affected considering the fact that it paid $2.5 billion (Rs 13,875 crore) for the spectrum. Additionally, it might take some time for the masses to tether with 3G. Hence, it needs to provide voice services to gain ground in the arena presently. In a nutshell, RIL intends to hold the aces by having access to data and voice services in order to be the likely victor in the segment when it ventures. It will also enable it to give a tough competition to its rivals who have already ventured the market.

The Credit Suisse Report also mentioned that they believe RIL to earn around 6% revenue/market share of the segment it entails in the initial phase, which will slowly surge to 30% per year by the fifth year when the business gains momentum.

RIL Ahead In The Race To Win The Bid For The 2G Spectrum

August 16, 2012

RIL (Reliance Industries Limited) ‘s 4G LTE (Long Term Evolution) services has created a lot of buzz as it is the only company to hold the PAN India License for 4G Broadband services. While scores of people have been highly anticipating their 4GLTE service that is set to roll out in the coming ten months across the country, it has upped the ante by bidding for 1800 MHz band in 2G spectrum in the forthcoming auction. This will make it possible for the company to cater for the provision of voice services with this 4G LTE network.

Its foray in this bid has created a stir in the telecom sector, as the competition is set to intensify. A leading official from the company mentions that Infotel Broadband is Mukesh Ambani‘s dream project that is very close to his heart. He will not leave any stone unturned to be the pioneer in the telecom sector. There are chances that he may even provide free voice services along with the data services to his consumers. RIL had earlier announced that it would set up around 1, 00,000 towers pulling out from the ‘asset- light’ model. Besides, it also manages RoW (Right of Way) processes across the country. Mukesh Ambani owned Infotel Broadband would further gain ground in the telecom sector if it were able to put into effect its plans of introducing inexpensive tablets at prices less than Rs.3000.

4G LTE services are the most sought out services with it serving to the state of the art technology. Data transmission via 4G LTE services is 16 times the speed of 2G and four times the speed of 3G. With RIL rolling out the 4G services, companies who have infused a colossal amount of money for buying the 3G spectrum will be at a loss. The huge cash reserves of RIL enable it to stay ahead of other competitors who are in a predicament considering the amount required for refarming the spectrum the next year which is Rs.40, 000 crore. RIL has also been setting its sight at the 700 MHz of spectrum.

RIL’s participation in this bid for 2G spectrum was a strenuous one considering the number of problems it had to surmount. Many leading companies opposed its chipping in the bid as an Internet Service Provider (ISP) to bid for the 2G spectrum. However, the New National Telecom Policy came as a relief that allowed companies with ISPS and VOIP (voice over internal protocol) licenses to be eligible to bid in this auction.

RIL’s Corporate Sustainability Report Fetches It GRI+A Rating Once Again

August 10, 2012

The Global Reporting Initiative awarded RIL(Reliance Industries Limited) A+ Rating for its sustainability report 2011-2012. It offered the company the highest application level on sustainability reporting for seventh year consecutively. Besides, it is the first company in India to comply with the GRI 3.1 Oil & Gas Sector Supplement issued in February 2012.

This report with the title‘Partnering India’s New Future Sustainably’was presented to GRI, Amsterdam for the basic submission level check as indicated by the New GRI 3.1 Guidelines. Besides, the American Petroleum Institute and International Petroleum Industry Environmental Conservation Association had laid down certain guidelines, whichwill have to be considered for the same. The report also had to abide by the National Voluntary Guidelines for Social Environmental and Economic Responsibilities of Business drafted in November 2011 by the Ministry of Corporate Affairs, Government of India.

RIL was honored with this rating for the discipline it exhibited with respect to adhering to the guidelines. Besides, this conglomerate has constantly worked towards allocating adequate resources towards effective environmental management comprehending with the responsibility of the product. It has also endeavored towards the building of social institutions, which is a prerequisite for winning this rating.

Corporate Sustainability has recently gained a lot of attention considering the environmental challenges we are prone to and is hence devised as an antidote to the notion that the proliferating corporate phenomenamay serve as a threat to the environment. Corporate Sustainability caters to formulating a business system that entails long-term value for consumers and employees over there. It does not merely revolve around inventing green strategies. Every aspect of the business has to cater to a social, cultural, and economic environment. RIL is India‘s largest private sector enterprise and the second largest by revenue. All these years, it has successfully set an example to the corporate world with its principles and working system being concurrentwith the environment’s sustainability.

The Global Reporting Initiative is anNGO with the objective of advocating economic sustainability. The standards that it produces including Environmental Social Governance (ESG), Triple Bottom Line (TBL), Ecological Footprint Reporting, and Corporate Social Responsibility(CSR) reporting are highly acknowledged. It has been successful in making sustainability reporting an imperative part of the working of an organization. Last year, the GRI awarded RIL the Application level A+ certification for its report titled ‘New Business. New Technologies. New Partnerships.’

RIL to invest $1 billion To Augment Its Aerospace Division

August 3, 2012

Reliance Industries Limited (RIL) owned by MukeshAmbani, intends to infuse around $1 billion in the forthcoming years in the Aerospace division, based on reports from Economic Times on Sunday. To bolster this business segment, it will bring on board around 1500 people and merge with leading global players. Two executives aware of this move confirmed the news,but chose to remain anonymous.

Business Daily had reported earlier this month that Reliance had applied to the government for the license to manufacture, design and develop equipments and their constituents including radars, airframes, engines and other accessories for military and civilian aircraft , aerostats and unmanned airborne vehicles. This has always been their primary agenda since the launch of the RelianceAerospace venture,a year back. VivekLall, who has had a successful stint in NASA, Raytheon, and Boeing, heads their aerospace and Homeland Security division. He has previously won awards including North Asian Pacific American Achievement Award from Salt Lake City, Utah and Gold Medal for Scientific Contributions to Aerospace from the Cambridge University, UK.

The company had previously mentioned that aerospace division is a major segment of the company. RIL has an upper hand over other companies owing to its colossal cash reserves and closely-knit network. Robert Metzger, aerospace consultant from Washington and an expert in Indian Aerospace and defence market stated that it is increasingly difficult and requires nerve for a private sector to foray in the aerospace segment in India. He also mentioned that Reliance’s opening doors to this division exhibits its determination and grit to overcome the many challenges on its path to be the frontrunner in this division. India should be glad and encourage such moves. The country’s constant inclination towards the public sector in this segment has been a huge hurdle for private sectors. Considering the same, Reliance must be conscious of every decision that it takes and must reach out to products outside areas that entail direct Government authority. On the other side, clients will be glad to work with a private sector owing to the poor performance of the public sector.

Mukesh Ambani dreams of building an aerospace company that is bigger and better than the best in the world. The company has always believed in bringing in the finest technology from the pioneers in the international arena and will adhere to the same with respect to the aerospace division. The company holds research as the key to their growth and will hence prioritize researching and testing of new aerospace technologies, components, etc. Nasik in Maharashtra, India is expected to be its headquarters for this segment.