Trouble in the Ambani paradise
- Cracks within India's largest private company Reliance with an annual turnover of ₹80,000 crore (₹800 billion) came to surface after Reliance Group Chairman Mukesh Ambani confessed to having disagreements with Anil Ambani over 'ownership issues.'
- However, Mukesh Ambani clarified that the tussle was in the 'private domain' and would not affect Reliance.
- He further stated that the investors didn't need to worry.
The great Ambani split
- A demerger in 2005, orchestrated by their mother gave Mukesh the control of "oil and gas, petrochemicals, refining and manufacturing"; Reliance Industries, Reliance Petroleum, IPCL and Reliance Industrial Infrastructure came under his purview.
- Anil took control over "electricity, telecoms and financial services"; Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources Ltd, Reliance Broadcast Network Ltd's reign came to him.
40% for dowager Ambani, 30% to each heir
The shares were divided in such a manner that both Ambani brothers got 30%, Kokilaben another 30% and 5% each was given to the Ambani daughters (under Kokilaben Ambani's control).
Mukesh, Anil scrap non-competitive clause
- The two warring Reliance conglomerates scrapped all the "non-compete" agreements.
- This would essentially mean permission for both groups to "enter sectors that had earlier been reserved for one of them."
- This move will most likely give Anil permission to foray into alliances for his telecom and insurance ventures and an access to gas.
- Mukesh too will be able to enter telecom and financial services.
Mukesh Ambani buys his way into telecom
- Following the rework of the non-compete agreement, Mukesh Ambani led Reliance Industries Limited bought a stake in Infotel Broadband Services Ltd. (a successful bidder for the broadband wireless spectrum in 22 circles).
- RIL also announced that it planned to further invest approximately ₹4,800 crores in Infotel raising its stake to 95%.
- Parallely, the Anil Dhirubhai Ambani group also continued to offer broadband wireless access.
The Ambani brothers $221 million thaw
- Mukesh and Anil Ambani signed a ₹12 billion ($221 million) deal for sharing the fiber-optic network. With this, Mukesh Ambani's Reliance Jio Infocomm Ltd. got access to use the countrywide network of Anil's Reliance Communications Ltd. to initiate 4G broadband service.
- The deal would also help Anil Ambani generate additional income.
- This marked their first deal since their very public split in 2005.
The Ambanis join together to offer 4G services
- The Ambani brothers, Mukesh and Anil are going to join hands to launch the fourth-generation (4G) mobile services by the end of the year
- Reliance Group chairman Anil Ambani called the coming together of his Reliance Communications (RCom) and Mukesh Ambani-led Reliance Jio (RJIO) for offering 4G services as a "virtual consolidation".
- The two will tie up for "trading and sharing" spectrum.
Reliance Jio 4G services make a limited debut
- Reliance Jio launched its much-awaited 4G services at a glittering ceremony in Mumbai.
- The services, however, are only for the companies 90,000 odd employees, for now.
- The limited inauguration was celebrated as part of Reliance Founder's Day Weekend to mark the 83rd birth anniversary of Dhirubhai Ambani's.
- ShahRukh Khan(Reliance Jio's brand ambassador) and A.R. Rahman performed at the event.
The re-entry of Mukesh in telecom space
For Mukesh Ambani-owned Reliance Industries, the 're-entry' in the telecom industry is one of the group's most formidable project to date and it Ambani has pumped almost ₹1 lakh crore into this business.
RCom and Jio ink spectrum sharing agreement
- The Ambani brothers signed the spectrum trading and sharing deal for the 800 MHz spectrum, which will bolster RJio's spectrum holdings ahead of its formal launch in April.
- According to the freshly inked pact, RJio will hold "2300 Mhz in all circles, 1800 Mhz in 18 circles and 850 Mhz in 10 circles."
- RCom-Jio will also enter into reciprocal intra-circle roaming (ICR) agreements.