Anil Ambani announces creation of new enterprise, major expansion plan

Anil Ambani announces creation of new enterprise, major expansion plan
outlookindia.com
-0001-11-30T00:00:00+0553
Mumbai, Jun 19 (PTI) A day after the settlement of the Reliance business empire, an upbeat Anil Ambani today announced the group to be headed by him post-split with his elder brother Mukesh will be called Anil Dhirubhai Ambani Enterprises and unveiled major investment and expansion plans for it.

Forty six-year old Anil, who would take charge of the country's biggest private telecom company Reliance Infocomm (RIC) as well as Reliance Energy and Reliance Capital as part of the settlement, told a press conference here that Rs 3000 crore would be injected to expand the equity base of Capital and Energy companies.

His message to over three million investors in the Reliance group was that they had nothing to be worried about since the group was a "car without a reverse gear and will only move forward. "I parted with Mukesh on a cordial note", he quipped.

The new group would be listed in the market "if necessary" after the demerger of Mukesh Ambani-controlled Reliance Industries, Anil said exuding confidence that Reliance Capital would emerge as the country's top three financial services company after restructuring under which Reliance Energy would invest Rs 2000 crore in it.

Immediately after heading the Board meetings of Reliance Energy and Reliance Capital, where he took charge as Chairman after the reorganisation of the Board, the younger Ambani brother said changes would also be effected in Reliance Infocomm and added the company could be listed in due course of time.

Although ruling out acrimony and clashes with the Reliance group headed by Mukesh, in future, Anil declined to withdraw complaints filed by him with government and regulatory authrorities about corporate governance and other issues in Reliance companies during the last seven months saying "it is one way street. "Corporate governance issues are under consideration of various authorities and it is for them to make a statement. I have done my fiduciary duties and it is for them to decide," he added.

On the contentious issue of IPCL share sale by Reliance Capital at par to some other group companies that may have caused a loss of Rs 1,000 crore, Anil said the issue was taken up at the very first Board meeting today and "we will be writing to Reliance Industries and await their communication." Anil announced Anand Jain, whom he had earlier accused of conspiring to divide the Ambani family, along with D Chaturvedi and some other directors, had resigned from Reliance Capital and in their place S S Thakur and R Chitale were taken in as Directors.

Anil's lieutenant Amitabh Jhunjhunwala, who had raised a stink of IPCL equity sale at the Reliance Capital Board last month, is already on the Board.

Describing Reliance Infocomm as a company having great financial potential, Anil said it had done an outstanding job in infrastructre creation and providing service to customers to become India's leading mobile service provider.

On the changes in the Board of Infcomm, where Mukesh is still the Chairman with Manoj Modi as Director, and as to when he would take charge, he said the "Board will change" but did not specify when.

Anil said there would be 'no first love' among his business ventures and there would be no hierarchy among his companies as all the ventures were in different arena for which there was tremendous growth potential. Reliance Energy, a leading utility in India with a market capitalisation of Rs 10,500 crore, has investment plans of Rs 80,000 crore over a ten-year time span, he said and added Reliance Infocomm was the single largest mobile service provider.

"After the restructuring and capital infusion, we plan to become among the top 2-3 financial services and banking company," he said.

In this context, he said his group companies had tremendous growth potential and long-term investors and financial institutions are "already approaching us with interest to take part in energy, financial service and telecom space." Anil said foundation of his enterprise would be on the pillars of "six-C" -- which represent customer and customer care, corporate governance and corporate values and creativity and competitiveness.

"Our emphasis will be to build a strong foundation so that we can enhance value for stakeholders." Asked about the corporate governance issues raised by him earlier during his fight with Mukesh, he said if there were concerns about the corporate governance and values then "appropriate course of action is stick to the law.

Expressing his intention to form private-public partnership for nuclear power generation, Anil said REL also has "deep commitment" in non-conventional power -- solar and wind power. He said various power projects including gas-based plant, hydel project in Uttaranchal and projects in Maharashtra as well as the modernisation of transmission business in Delhi and Mumbai were priorities.

Anil expressed the hope that the commissioning of the Rs 11,000 crore Dadri power project in Uttar Pradesh would be on time.

He said the company was in discussion with Orissa government for setting up a Rs 48,000-crore pit-based power project and added investment would be made in phases.

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