Archive for October, 2012

RIL Categorically Denies Kejriwal’s Allegations

October 31, 2012

RIL (Reliance Industries Limited) has quashed all the allegations made by Arvind Kejriwal claiming that his statements are fallacious. Hitting back at Kejriwal’s accusation where he mentioned that ‘Mukesh Ambani runs India, and not PM,’ RIL issued a statement claiming, “The statements by Kejriwal at the press conference today are short of any truth or substance whatsoever and are denied.”
India’s largest private sector, RIL, mentioned that KGD6 basin is a laudable project and has significantly helped the country to increase its economic dominance. It also stated that the technologies involved including the deep-water exploration in the KGD6 basin is of world-class standards. In fact, RIL’s Jamnagar Refinery was listed as the world’s top refineries by the Discovery channel a day ago, after an inspection by an expert team closely for three days. It also rebuffed the allegation declaring that it is an irresponsible act by the IAC at the behest of vested interests without comprehending with the complexities of a project that is of such high standards.
Besides, it is incorrect from Kejriwal’s side to connect political and macro-economic issues of the country, and spread information among the masses that will lead to misinformation & unnecessary confusion. It is wrong to demean a company that is of the highest standards without authenticating facts & reports without any credibility.


Reliance Brands To Acquire 50% stake in Gas Jeans

October 26, 2012

Reliance Brands intends for 50% stake with the management rights in its joint venture with Italian Fashion Apparel maker that owns the jeans brand, GAS (Grotto Apparel Sportswear). This strategic partnership for the Italian company with India‘s largest private sector will enable it to gain ground in the Indian market. If things fall into place, Grotto may soon endow Reliance Brands, the rights to the 50:50 joint venture company, for the Indian market. Sources claim that the deal is in the final stages and will soon come into force.

Grotto’s launch dates back to 1970 by Claudio Grotto and it was in 1984 when Grotto SPA launched GAS. Since then, it has been a prominent face in the fashion industry known for its superior quality denim apparel for both men and women. With Raymond, the company set its foot in India in 2006 but later made a buzz in 2010 when it came to India with a complete owned cash and carry format where it opted for the franchise route to reach out to its consumers. At present, it has few unique department stores in the country. It has its flagship company located on Maddison Avenue in New York City. The company eyes launching five new stores after embarking upon its partnership with Reliance.

Reliance Brands, an arm of Reliance Industries Limited was launched in October 2007 with the objective of granting international and domestic brand equity, making the most top- notch international brands accessible in India and caters to segments including apparel, footwear, and lifestyle business.

Reliance Brands has been making every attempt to be an unparalleled brand, one of a kind in the country, with the richest display of varied products. It deems ownerships and partnership as a channel to progress, expand and grow. A spate of ownerships with leading brands like Quicksilver, US based Diesel, Timberland, Dune; Thomas Pink has enabled it to enhance the standards of the Indian luxury brand segment, by offering the most sought after premier brands in the country, under one roof. Presently, it has around 60 stores across the country. Its partnership with Stuart Witzman, New York based designer footwear will come to fruition by 2013.

News is that it may also open e-stores next year, to tether with the current generation and increase its footprints in the online turf. Reliance Brands, backed by RIL’s deep- rooted pockets have been able to expand and revamp the Indian fashion Industry with a slew of international partnerships.

Shale Gas Production To Enable RIL Record $ 1 Billion Profit By FY15

October 18, 2012

Thanks to the strong shale Gas production at RIL (Reliance Industries Limited), the company expects a profit of $ 1 billion by FY15. The conglomerate’s first half figure and analysis stand as a testament to the same, ensuring that the company’s operating profit ( earnings before interest, tax, depreciation and amortization) can touch the $ 1 billion milestone by 2014- 2015. This figure is equivalent to the 12.5% of the company’s total Ebitda last fiscal that would account for a colossal return of around 20% a year from the time it has invested.

For its partnership in US shale gas assets, RIL had engaged in a joint venture with three companies i.e. Pioneer, Chevron and Cazziro where the assets were chipped in for the purpose of production , since last year with the products being sold in the markets of Pennsylvania and Texas. At the annual general meeting on June 8, Mukesh Ambani, Chairman mentioned that the net sales are projected to increase tenfold to nearly 300 bcfe (billion cubic feet equivalent) in the next five years. According to analysts, the company has infused around $ 5 billion in their assets and poised to record revenue of $ 400 million, by the end of 2012-2013.

With respect to the three shale gas joint ventures in the US, RIL ‘s revenue accounted to $ 235 million and an Ebitda of $ 198 billion in the first half of the fiscal. Analysts at international brokerage, Vijay Jaisingh and Rajesh Sethia opined that the shale gas might churn out revenue of $ 355 million in Ebitda for this entire year.

Shale gas is the gas trapped in rocks that has failed to escape and pass through the earth’s crust. With the life expectancy that is 25 times higher than that of other naturally available gas in oil and gas wells, it entails a high amount of exploration over large tracts along with an enormous amount of water to wash out the water. This increase in profit owing to the shale gas production has paved way for positive sentiments in the stock market for the company.

Reliance Industries ‘s Revised KG-D6 block plan approved by the Government

October 4, 2012

RIL (Reliance Industries Limited) gets a go-ahead from the Government for its revised field development (RFD) plan for MA oilfield primarily to propel gas production in the KG-D6 block, the country’s largest natural gas field. RIL holds a 60% stake in this block while UK’s BP and Niko hold 30 % and 10% stake respectively.

According to the revised field development plan, it will drill one gas well and transfer two six-oil wells into gas wells in this field, as stated by Niko Resources. It also mentioned that the revised FDP for the presently productive gas fields (D1 and D3) has been submitted to the Management Committee, the block oversight panel. After analyzing the present situation, Nikon provided details about estimated production levels and expansion activities in this plan and put to light the enhanced water handling capacity, and increased booster compression in the forthcoming years (two to three years) that would be required to bolster the plunging reservoir pressure.

The current gas production at KGD6 block is 27.5 mmsmcd approximately along with an output of 5.5 mmsmcd from MA field. KGD6 was ascertained to be the most productive discovery in the 19 oil and gas fields that the company made. The field is also capable of producing natural gas other than oil production that it is known for. High amount of water and soil ingression has been acting as a barrier hindering the total output. This Revised Field Development (RFD) plan is designed to address this problem and pull the plug before the damage is done.

Niko also stated that the Management Committee for the KGD6 block comprising of each of the representatives of the joint venture collaborators including RIL, BP exploration and themselves along with two representatives from the Government mutually decided to formulate the RFD for the MA oil and gas field. They have chalked out this plan after getting the right picture of the present situation. They finally comprehended that they will need an additional well and have to convert two suspended gas wells into gas producers in order to enhance the efficiency of this reservoir.

According to sources, RIL has also decided to cut back its investment to $ 1.96 billion in comparison to $ 276 million held previously. In its original field development plan formulated for D1 and D3, it estimated the capital expenditure to be $ 8.836 billion. 60 % of the same has spent until now.