Mumbai: Anil Ambani-owned Reliance Communications (RCOM) on Tuesday became the first private operator to unveil its 3G network capabilities to the public.
A private news channel broadcast was streamed live on a mobile phone and shown to shareholders on a big screen at the company's annual general meeting (AGM) here.
"We are the first private operator to show our 3G network to the world," RCOM's President-Wireless, Syed Safawi, told shareholders as he requested a company executive to operate the mobile phone.
Interestingly, the channel was playing the happenings at the AGM live and there were smiles across the faces of the shareholders present at the Birla Matushri Sabhagriha, the venue of the AGM.
Probably due to the interest shown by the media in the goings-on at the AGM or caught up in the moment, a wide smile spread across Chairman Ambani's face as well.
RCOM has successfully bid for launching 3G phones in three metros, including Mumbai, besides 10 other circles nationally. State-owned telecom companies BSNL and MTNL have already rolled out their 3G networks for the public.
In a slew of announcements, Ambani outlined investments of nearly Rs 1,25,000 crore and said funds would be raised to the tune of over Rs 65,000 crore for expansion and new businesses like banking and exchange space.
Hopping from one AGM to another in a span of a few hours, Ambani told shareholders of Reliance Power, Reliance Capital and Reliance Communications that the investments were not just about creating wealth but sharing it with them.
"We enjoy the trust of over 1 crore shareowners across the Group - the largest such family anywhere in the world," he said invoking the philosophy of his father late Dhirubhai Ambani that wealth should be shared. Most of the investments, announced by Ambani, would go into setting up power plants.
Also, a major part of the funds to be raised would be through the power ventures. A whopping Rs 1,20,000 crore would go into creating thermal, hydro and gas-fired power plants.
An estimated Rs 80,000 crore would be used for creating 20,000 MW of thermal generation capacity by 2015, Rs 30,000 crore for hydro and Rs 10,000 crore for gas-based projects. Besides, Reliance Power would raise Rs 50,000 crore in what will become the largest fund raising exercise in the corporate history of the country, he said.
Other fund-consuming businesses, as listed by Ambani, would be telecom arm Reliance Communications, which was also listed as a major fund-raising avenue by sale of shares in it, as also subsidiary Reliance Infratel.
He also named insurance business as another area for raising funds through share sale. At the same time, Ambani also made clear his intentions to enter new businesses such as banking and the exchange space, besides expanding further his presence in segments like other financial services, power and telecom.
"Our group is by far the youngest of all large business houses in India, but we already rank among the top 5 on every important financial and operating parameter," Ambani said.
In banking, he said that the group's ambition was to set up a world-class bank. In telecom, he said that not much capex would be required now onwards, but Reliance Communications would seek to raise funds through sale of up to 26 per cent stake in the company.
Besides, the company would consider raising funds through sale of shares to strategic and financial investors as also through an IPO in telecom tower arm Reliance Infratel.
Incidentally, a deal for raising funds through sale of shares in Reliance Infratel failed, while an unsuccessful attempt was made in the past for the company's IPO.
He said Rcom has spent nearly Rs 35,000 crore in capex in the last three years, and its investment this year is projected to be around Rs 3,000 crore and a similar trend of declining capex cycle expected to continue.
Stock market also reacted positively to the announcements made by Ambani, although gains were modest for the shares of three group companies. Reliance Capital rose 0.3 per cent to close at Rs 814, RCOM gained 0.4 per cent to Rs 170.3, while R-Power rose the maximum by 1.7 per cent to close at Rs 163.25 at the BSE.
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