What are Ambanis up to? Mukesh invades Anil's turf

184344 Investors following Reliance. Share this News with them.

0

Like this story, share it with millions of investors on M3

What are Ambanis up to? Mukesh invades Anil's turf

It has been ten months since the two brothers re-worked their non-compete agreement and Mukesh Ambani's Reliance Industries has entered the last bastion originally reserved for the younger Ambani in the family restructuring scheme, reports CNBC-TV18's Sajeet Manghat and Vidhi Godiawala.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from India Business Hour on CNBC-TV18 Watch the full show » Reliance BSE | NSE 31/05/12 Are Mutual Funds betting on Reliance? Other Stocks in this news EIH |

It has been ten months since the two brothers re-worked their non-compete agreement and Mukesh Ambani's Reliance Industries has entered the last bastion originally reserved for the younger Ambani in the family restructuring scheme, reports CNBC-TV18's Sajeet Manghat and Vidhi Godiawala.

It was once considered Anil Ambani's domain expertise but not anymore. Mukesh Ambani's RIL has set foot into the world of financial services. Following its role as financial investor in East India Hotels and Deccan 360, CNBC-TV18 learns that this financial services foray may kick-off with an infrastructure fund, and gradually branch out into the institutional and retail space with investment banking and asset management services. And since the Ambanis have a yen for high-impact, high visibility businesses, sources suggest a foray into some sort of micro-finance may also be considered in the future.

The rumour mills are busy. There is talk that RIL is looking at a domestic investment bank with mutual fund operations. Also doing the rounds is word that the company may be looking at infrastructure financing, by picking up a majority stake in IL&FS. While these rumours are unsubstantiated, there is speculation that this could be a step towards a banking license, as and when the RBI allows it.

Financial Services is not the first area that RIL has entered since the two brothers annulled the non-compete agreement.

It all began with telecom, when Mukesh Ambani acquired HFCL Infotel's all-India BWA license. Though final roll-out plans are not out, it is expected that Reliance will spend close to USD 4 billion on telecom capex in the next two years.

The power sector was next, with grandiose plans being unveiled to shareholders. While it has come to our ears that the groundwork on these plans has begun, there is no concrete evidence to suggest just how, and in what form, this foray will take place. But one thing is certain.
WIth this step, the elder Ambani has made up for the opportunities he lost out on when the non-compete agreement was in place.

Also watch the accompanying video.