Archive for November, 2012

Vimal Gearing For A Revamp?

November 28, 2012

Vimal, the face of Reliance once upon a time, comes to the fore, by strengthening its franchise network by roping in 1500 new retailers who would house the brand. Owned by Reliance Industries Limited (RIL), the brand has also ensured that it sends across the message to the masses by releasing a fresh communication mentioning – 1500 new outlets are waiting for you.

The advertisement rolled out created a lot of buzz as it also portrayed a woman wearing a western outfit in it, indicating that it may soon cater to women garments, contradicting earlier claims of sticking to its men‘s wear. Sources claim that the brand may also involve in the provision of home furnishing in some time.

The heritage brand got a lift in the year of 2007. Anand Parekh, President of Textile divisions at Reliance Industries Limited mentioned that the brand has been bolstering since the last three years and is set to witness an increased growth in the forthcoming years. He also added that while they have roped in 1500 new retailers, they might endeavor to increase the number to 1800, so that it complies with their capital expenditure.

During the days when the company was in its best shape, known as the queen of textiles, women fabrics seemed to be a natural part of the extension. While Parekh gives no clue about their foray into women’s wear, he mentioned that at present, they have been focusing on men’s wear and fabrics would continue to be the core of the business. Only a few stores have been housing the celebrated – Vimal saris.

The brand via its campaign ‘Dressing Up New India’ intends to reach out to the masses and strengthen its stance in the market. Speaking about the brand, Parekh mentioned that they are one of the most pre-eminent brands who majorly cater to the middle class. The brand is mainly segmented into variants including Black, White, and Red, the most sought after ones. He also added that the demand for the brand has been consistently rising, since the last five years. However, the company has to resolve other setbacks that the company has.

RIL will also be able to leverage the most out of its own stores: Reliance Mart and Reliance Trends where it can house the brand – Vimal. The company is also likely to resort to the online space by launching the site:www.onlyvimal.com.

Its expansion plans have completely put to rest rumors about the company selling ‘Vimal’ brand. The company will not leave any stone unturned in making the brain regain its sheen, as it is sentimental about it.

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RALP: An Ambitious Program by RIL to Encourage Aspirants

November 21, 2012

RIL (Reliance Industries Limited), India‘s Largest Private Sector Company, had recently attained the feat of employing more than 50k employees. Considering the huge employee base of the company, it deems it as its responsibility to harness talent among skilled employees.

A company‘s human resource serves to be its asset and is irrefutable for a behemoth like RIL. Comprehending with this importance, it introduced RALP (Reliance Accelerated Leadership Program) as an initiative to create a pool of skilled executives among its employees. Encouraging talent is essential for the company to keep accelerating its growth and keep up with the pace of changes. This initiative has been dynamic in nature and has proved to be a life turning point for many individuals including Robin Cherian who is now a part of the training program that introduced him to company’s key functions , which he was never aware of, as a procurement expert, before . In addition, another group of youngsters including Anindya Sundar Ghosh, Pramod Yadav and Sameer Mehta, who worked behind the scenes headed by Manoj Modi, is now a part of the most esteemed Reliance Infotel 4G project and among the first ones to belong to the first batch of RALP.

McKinsey mapped out this business transformation program for RIL in 2010-11 to leverage its operations, resulting in a process and system driven work culture that is followed in multinationals where every executive has a specific pivotal role to play. Hitel R.Meswani, Executive Director and Reliance Board Member says “RALP intends to satisfy the quest and intellect of young talent by providing them with the right opportunities.” He mentioned that unlike before when age and experience was considered the determining factors, the present market values competence more than anything was. In addition, he stated that, youngsters today are smarter than people at their age used to be then, and by providing right raw materials and ingredients, they can be groomed and trained to suit the needs of the company.

It has comprehended that changes are quick and growth is tremendous, which makes it essential for them to plan for the years ahead, to prevent being a laggard. This is why the company has refrained from its earlier model of cadre that constituted of in – house managers or former public sector employees. The company deems the objective of RALP to identify talent, guide them as they get the grip of the company’s working and culture, give them power and later an opportunity to build an enriched Reliance. RALP manifests Mukesh Ambani’s attitude by having a far-reaching people vision and the company’s philosophy by enabling them to define new frontiers.

IMG-Reliance May Partner With Chelsea FC For Developing Its Football Academy In India

November 12, 2012

Collaboration with Chelsea FC would serve to be a landmark achievement for the Indian football. Sources claim that Mukesh Ambani, Chairman, and CEO of RIL headed to London to meet Ron Gourlay, Chelsea FC Chief Director, for their preliminary discussions about IMG- Reliance’s collaborating with Chelsea FC paving way for the partnership of Indo- American sports management academy with the English Football Club, with the objective of developing an international football academy in India. Two people, who have information about the deal, confirmed the news.

The forthcoming academy in Vadodara will have Chelsea, the forefront Premier Club and the winner of Champions League training them by infusing their expertise and know- how about the happenings organize and manage effectively. IMG- Reliance, collaboration between IMG Worldwide, international sports management committee, and Reliance Industries, is the commercial partner of football’s governing body All India Football Federation (AIFF) and has been constantly taking efforts to bring football to the mainstream sports. This partnership will provide momentum to the move and nudge way for India honing its skills in football. Prashant Singh, General Manager of Octagon India mentions that this Reliance- Chelsea deal can turn out to be a remarkable step for India football.

The upcoming football academy can strengthen India’s stance on the global front. This partnership can be a sound decision with the mutual benefit, both parties may enjoy. Chelsea will increasingly benefit from collaborating with a company like Reliance with deep pockets and the resilience to bear losses. There is a huge amount of anticipation and hopes built on this deal, considering the fact that India has not witnessed much successful collaboration, with respect to football.

According to the source mentioned above, the partnership may be brought into fruition after Gourlay‘s visit to India in December. He also mentioned that Roman Abramovich, owner of Chelsea, put forward the proposal of Reliance backing their club in Europe, which was rejected by the latter.

When Gourlay was asked to comment on the news, he via an email confirmed his visit to India soon and stated that the club seeks to have a lasting grassroots level program in India that helps them connect with their growing Indian fan base.

Recently, IMG- Reliance had collaborated with iStream for online coverage of their league where I- League matches will be broadcasted through internet for people across the globe and increases the recognition of (Indian) football on the global arena.

RIL Likely To Buy Hotel Leela’s IT Park

November 9, 2012

Mukesh Ambani owned Reliance Industries Limited (RIL) is keen on the acquisition of Hotel Leela venture – promoted IT Park based in Chennai, with sources claiming that the talks have reached the advanced stages. A whopping amount of Rs. 172 crore is the acquisition price, as claimed by resources. Hotel Leela’s Board were known to approve the sale to the highest bidder, last Friday.

This IT Park, spreading across an area of 2.20 lakh square feet, has the valuation price quoted to be Rs.8000 per square feet. However, a senior official claimed that no deal confirming the purchase has been signed yet. The Group has been looking out for a suitable suitor for almost a year. While the company initially decided to lease out the property to IT companies, it later changed its decision to sell off the property owing to its financial doldrums.

With the property falling in the category of IT Park, RIL will have to confine its use for ICT purposes alone. As the company is gearing for its 4G rollout, the company will require this property for numerous IT purposes that it will have to cater. Mukesh Ambani and Krishna Nair, CP of Hotel Leela have been sharing an amicable relationship for several years, now. Krishna Nair is all praises for Mukesh Ambani deeming him the white knight.

Since Leela has an IT park with higher FSI rules, its use will limit to IT purposes. The rentals are at present estimated to be around 60 to 65 per square feet, paving way for a return of 10%. With the help of RBI mandated Corporate Debt Restructuring (CDR) cell, they will be able to put an end to their financial woes. They have also decided to sell some of the assets from the hospitality segment. The present terms give Leela a span of eight years to settle the debt.

Added to the above speculations, RIL is also going to set up a 160-180 room Trident Hotel, collaborating with EIH in Navi Mumbai. Based on the deal, RIL will cater to the purchase of the land and will invest in the property while the Oberoi Group will look into the management of the hotel. India’s largest conglomerate, RIL, had bought a 14.8% stake in EIH by shelling out Rs. 1,000 crore and at present has 18.53 % in the same. Its deep pockets enabled it to cut the competition with ITC that was rubbing its shoulders in order to have a higher control in the EIH stake.