Monday, November 29, 1999

Mukesh eyes power, telco to double enterprise value to $160 bn

News posted by

Mumbai, June 18 (PTI) Free to enter new businesses after scrapping a non-compete pact with brother Anil, Mukesh Ambani today unvieled RIL''s mega plans for power and telecom to double enterprise value to USD 160 billion in 10 years, as also intent to supply gas to Anil Ambani Group''s power plants. "As and when the power plants of ADAG are ready to receive gas, we would commence supplies to them subject to government granting allocation.," Ambani told shareholders at the 36th Annual General Meeting here. RIL, India''s most valuable company with a market capitalisation of Rs 3.45 lakh crore, plans to use its strong balance sheet to fund coal, thermal and nuclear power plants, add capacity to produce polyester and chemicals to create "unprecedented value" for investors. Ambani, the richest man in Asia, said that RIL was ready for a "big surge forward" and will use its strong finances for "inorganic" growth in sectors like telecom. "It took three decades for RIL to create an enterprise value of over USD 80 billion (Rs 370,000 crore). I feel hopeful and confident that RIL can accomplish value creation of a similar magnitude in less than a decade," he said. Addressing RIL shareholders exactly five years to the day when he and his brother Anil split the Reliance empire created by their father Dhirubhai Ambani, Mukesh, 53, signalled desire to end the feud with his younger sibling Anil. "With legal dispute (over supply and pricing of natural gas from RIL''s Krishna Godavari basin fields to Anil Ambani Group''s power plants) behind us, we look forward to a harmonious and constructive relationship with Anil Dhirubhai Ambani Group (ADAG)," he said at the meeting, which contrary to speculation was not attended by Anil Ambani. There was perceptible excitement among shareholders as Mukesh walked in to the Birla Matoshree auditorium, flanked by wife Nita and mother Kokilaben, and the packed-to-capacity hall burst out in applause when Mukesh announced that he looked forward to a "harmonious and constructive relationship" with ADAG. Mukesh did not mention Anil, 51, during his over one hour speech and instead only referred to ADAG. RIL, he said, was ready to supply gas to ADAG''s power plants, including the proposed 7,800 MW at Dadri near Delhi, as and when they are ready to receive the fuel. The supplies would, however, be subject to the government allocating gas to ADAG plants like it has done for all of the over 60 million cubic meters per day of output from KG-D6 fields. Weeks after the world''s richest siblings decided to scrap a 2006 accord that barred them from expanding into each other''s businesses, RIL said it has planned "mega investment" in thermal, hydel and nuclear power generation. In telecom sector, which along with power was hitherto the reserve of Anil Ambani under the 2006 non-compete accord, RIL plans to offer fourth generation wireless infocomm services across the nation using the 20 MHz, contiguous, pan-India spectrum it got with acquisition of 95 per cent stake in Infotel Broadband. .

News posted by

Click here to read more news from
Please follow our blogs



No comments:

Post a Comment