Mukesh Ambani-promoted Reliance Industries Ltd (RIL) is evaluating a plan to set up its third refinery at Jamnagar in an ambitious project to reach a total capacity of 100 million metric tonne per annum (mmtpa), the largest at a single location in the world.
The company has appointed a global oil and refinery consultancy firm to evaluate the feasibility of the project, which will help capitalise the increased requirement for global crude distillation capacity.
RIL has a 33 mmtpa refinery at Jamnagar, which is the third largest at a single location in the world. The refinery’s capacity is 22.6 per cent of India’s total refining capacity.
The company is also setting up a second refinery near the existing one with a capacity of 29 mmtpa.
This export-based refinery is being set up under its subsidiary Reliance Petroleum Ltd (RPL) and is scheduled to be operational by the end of this year.
RIL will require a capacity addition of 38 mmtpa through its third refinery at Jamnagar to reach the 100 mmtpa capacity.
A senior executive of the consultancy firm that is evaluating the project feasibility confirmed that the company has such a plan but did not want to divulge details. An RIL spokesperson said no such plan was under consideration.
The evaluation for such a project is believed to be at a nascent stage and no concrete decision has been taken yet.
“It is still not clear; the third refinery would come under RIL, RPL or a separate subsidiary will be created,” said a source familiar with the development, confirming the company’s plan for the third refinery.
According to RPL’s annual report for 2006-07, Paris-based International Energy Agency (IEA) estimates an additional global crude distillation capacity requirement of 580 mmtpa by 2011. The IEA is a governmental organisation that provides statistics about the international oil market.
The demand push has helped the gross refining margins (GRMs) sustain an uptrend in the last three years.
According to India Infoline Ltd, a Mumbai-based brokerage, RIL, with its complex refinery, has gained significantly by registering GRMs of $5-7/bbl above benchmark Singapore GRMs.
India has moved from the position of 19th largest refining country in the world in 1995 to the 5th largest now with a share of 3 per cent of global capacity.
Africa is the fastest-growing market for India’s exports, followed by Latin America, Europe and East Asia.
“Refining margins are expected to remain strong in the near- to mid-term,” said Ajay Arora, Partner, Transaction Advisory services, Ernst&Young.
Another Delhi-based analyst said that although the refinery margins will decline a little once the refinery cycle hits the downturn, RIL’s track record of putting up complex refineries will ensure that the company’s margins remain robust.
“RIL will always have margins which are a couple of dollars above the Singapore margins,” said the analyst. The Singapore refinery margin is the regional benchmark.
Abhineet Kumar / Mumbai March 25, 2008
Source : http://www.business-standard.com
Monday, March 24, 2008
Tuesday, March 18, 2008
SEBI looking into alleged insider trading in RPL shares: Bansal
NEW DELHI: Market regulator SEBI is investigating the alleged insider trading activities in the shares of Mukesh Ambani-run Reliance Petroleum, Rajya Sabha was informed on Tuesday.
"SEBI has informed that it has initiated an examination in the matter," Minister of state for Finance P K Bansal said in a written reply.
Bansal was replying to a query by Amar Singh (SP) on whether the government had taken any action against the promoters/affiliates of Reliance Industries Ltd regarding the recent mammoth insider trading activities in the shares of Reliance Petroleum Ltd.
Reliance Industries Ltd had raised Rs 4,023 crore by divesting 4.01 per cent of its stake in Reliance Petroleum Ltd, the company said on November 24.
While actual date for the stake sale is not known, the shares of Reliance Petroleum had moved by a wide margin between late October and early November.
"SEBI has informed that it has initiated an examination in the matter," Minister of state for Finance P K Bansal said in a written reply.
Bansal was replying to a query by Amar Singh (SP) on whether the government had taken any action against the promoters/affiliates of Reliance Industries Ltd regarding the recent mammoth insider trading activities in the shares of Reliance Petroleum Ltd.
Reliance Industries Ltd had raised Rs 4,023 crore by divesting 4.01 per cent of its stake in Reliance Petroleum Ltd, the company said on November 24.
While actual date for the stake sale is not known, the shares of Reliance Petroleum had moved by a wide margin between late October and early November.
SEBI looking into alleged insider trading in RPL shares: Bansal
NEW DELHI: Market regulator SEBI is investigating the alleged insider trading activities in the shares of Mukesh Ambani-run Reliance Petroleum, Rajya Sabha was informed on Tuesday.
"SEBI has informed that it has initiated an examination in the matter," Minister of state for Finance P K Bansal said in a written reply.
Bansal was replying to a query by Amar Singh (SP) on whether the government had taken any action against the promoters/affiliates of Reliance Industries Ltd regarding the recent mammoth insider trading activities in the shares of Reliance Petroleum Ltd.
Reliance Industries Ltd had raised Rs 4,023 crore by divesting 4.01 per cent of its stake in Reliance Petroleum Ltd, the company said on November 24.
While actual date for the stake sale is not known, the shares of Reliance Petroleum had moved by a wide margin between late October and early November.
"SEBI has informed that it has initiated an examination in the matter," Minister of state for Finance P K Bansal said in a written reply.
Bansal was replying to a query by Amar Singh (SP) on whether the government had taken any action against the promoters/affiliates of Reliance Industries Ltd regarding the recent mammoth insider trading activities in the shares of Reliance Petroleum Ltd.
Reliance Industries Ltd had raised Rs 4,023 crore by divesting 4.01 per cent of its stake in Reliance Petroleum Ltd, the company said on November 24.
While actual date for the stake sale is not known, the shares of Reliance Petroleum had moved by a wide margin between late October and early November.
Friday, March 7, 2008
Mukesh Ambani tops powerful CEO list
MUMBAI: Power, like beauty, lies in the eyes of the beholder. You may have all the trappings—wealth, influence, a cornucopia of customers and employees, shareholders dependent on you for their well-being—but you can never be certain where you stand in the power sweepstakes. That is, until The Economic Times-Corporate Dossier annual survey of India Inc’s Most Powerful CEOs comes along and tells you.
Conducted by IMRB International, the five-city survey has been producing India Inc’s definitive power list ranking for the past four years. This year, Mukesh Ambani of Reliance Industries has emerged as India’s most powerful CEO, a position that has been occupied by NR Infosys’ Narayana Murthy for three years.
So how does it feel being India’s most powerful CEO? “I look upon it as a responsibility,” says Mr Ambani. “I have tried to follow the message of my father’s, Dhirubhai Ambani, life. He remained a warm and open person throughout his life and did not change even when he became an icon of India’s corporate world.”
And how does Mrs Nita Ambani feel? “I’m his biggest well-wisher and best friend and therefore would like him to achieve many more laurels in the years to come. I believe that the satisfaction of doing a job and doing it well is what matters,” she says.
Power, by definition, is that which gives individuals the capacity to effect big changes in society through their actions. And it’s always been recognised a leading motivator for human activity (even ahead of money and sex). Power is also a zero-sum game, with the rise of one individual signalling the decline of another.
Mr Ambani’s rise can be partly attributed to the stratospheric market valuations his companies achieved last year, but it’s also a part of a general trend of old-economy CEOs being seen as being more powerful, mostly at the expense of IT companies.
In a year marked by declining stock valuations, shrinking profit margins and frozen salaries, CEOs like Wipro’s Azim Premji (at No 7) and Nandan Nilekani of Infosys (at No 9) have had to take a cut-back on their rankings. Rising to take their place this year are telecom czar Sunil Mittal of Bharti (at No 4), veteran banker KV Kamath of ICICI (at No 6) and Kumar Mangalam Birla of the AV Birla Group (at No 8).
In a year of high-profile mega deals, every banking CEO has climbed India Inc’s Most Powerful CEO list. In the year of the Tata Motors’ Nano car launch, Ratan Tata has remained rock solid in second position.
The Economic Times-Corporate Dossier annual survey also incorporates a power ranking of Global Indian CEOs. Not surprisingly, Lakshmi Niwas Mittal of Arcelor Mittal tops the list once again, followed by Indra Nooyi of PepsiCo and Vodafone’s Arun Sarin. The survey was conducted in November-December 2007 and covered over 600 senior business executives in Mumbai, Delhi, Chennai, Bangalore and Kolkata, as well business school students.
Conducted by IMRB International, the five-city survey has been producing India Inc’s definitive power list ranking for the past four years. This year, Mukesh Ambani of Reliance Industries has emerged as India’s most powerful CEO, a position that has been occupied by NR Infosys’ Narayana Murthy for three years.
So how does it feel being India’s most powerful CEO? “I look upon it as a responsibility,” says Mr Ambani. “I have tried to follow the message of my father’s, Dhirubhai Ambani, life. He remained a warm and open person throughout his life and did not change even when he became an icon of India’s corporate world.”
And how does Mrs Nita Ambani feel? “I’m his biggest well-wisher and best friend and therefore would like him to achieve many more laurels in the years to come. I believe that the satisfaction of doing a job and doing it well is what matters,” she says.
Power, by definition, is that which gives individuals the capacity to effect big changes in society through their actions. And it’s always been recognised a leading motivator for human activity (even ahead of money and sex). Power is also a zero-sum game, with the rise of one individual signalling the decline of another.
Mr Ambani’s rise can be partly attributed to the stratospheric market valuations his companies achieved last year, but it’s also a part of a general trend of old-economy CEOs being seen as being more powerful, mostly at the expense of IT companies.
In a year marked by declining stock valuations, shrinking profit margins and frozen salaries, CEOs like Wipro’s Azim Premji (at No 7) and Nandan Nilekani of Infosys (at No 9) have had to take a cut-back on their rankings. Rising to take their place this year are telecom czar Sunil Mittal of Bharti (at No 4), veteran banker KV Kamath of ICICI (at No 6) and Kumar Mangalam Birla of the AV Birla Group (at No 8).
In a year of high-profile mega deals, every banking CEO has climbed India Inc’s Most Powerful CEO list. In the year of the Tata Motors’ Nano car launch, Ratan Tata has remained rock solid in second position.
The Economic Times-Corporate Dossier annual survey also incorporates a power ranking of Global Indian CEOs. Not surprisingly, Lakshmi Niwas Mittal of Arcelor Mittal tops the list once again, followed by Indra Nooyi of PepsiCo and Vodafone’s Arun Sarin. The survey was conducted in November-December 2007 and covered over 600 senior business executives in Mumbai, Delhi, Chennai, Bangalore and Kolkata, as well business school students.
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