There are some pointers to what Mukesh Ambani-led Reliance Industries Ltd will do in financial services along with DE Shaw. The Indian industrial giant had signed an agreement last month with the global financial services firm for a joint foray into the financial services business in India.
"This JV (with DE Shaw) will incorporate DE Shaw's expertise in investment and related technology with Reliance's operational knowledge and extensive presence across India to offer a wide array of financial services to Indian consumers," RIL said while announcing its annual results, according to Press Trust of India.
So what exactly are the ares they will foray into?
PTI reported, quoting sources, that RIL and DE Shaw will foray into energy trading, private equity, mutual fund, financial service distribution, infrastructure funding as also equity and debt funding for corporate sector. That is a whole range of financial services businesses.
RIL's entry into financial services comes a year after the Mukesh Ambani ended a non-compete agreement with his younger brotehr Anil Ambani who is already present in financial sector through Reliance Capital.
As for the entry into the telecom space (where Anil Ambani's Reliance Communications is already present), RIL said its subsidiary Infotel Broadband Services Ltd "plans to set up a world class broadband wireless network using state-of-the-art technologies", PTI report says. RIL had acquired a 95% stale in Infotel which was promoted by Mahendra Nahata. Infotel had emerged as the successful bidder in all the 22 circles of the auction for broadband wireless access (BWA) spectrum.
"Infotel is in the process of finalising the arrangement with leading global technology players, service providers, infrastructure providers, application developers, device manufacturers and others to help usher the 4G revolution into India," RIL said.
"This is a unique opportunity for RIL to take a leadership position in this sector and provide India with an opportunity to be in the forefront among the countries providing world-class 4G network and services," the copany said.
The company reported a 25% higher net profit of Rs 20,286 crore in the 2010-11 fiscal from Rs 16,236 crore of the previous financial year.