Friday, June 8, 2012

NEWS & VIEWS TODAY = 08th, JUNE, 2012 = RIL TO INVEST Rs.1 lakh cr IN VARIOUS PROJECTS = SET TO DOUBLE PROFITS ( IN 4-5 YEARS) = GLOBAL INVESTORS MEET (KARNATAKA)2012 = TATAs ANNOUNCE A 6 Mn TONNE PLANT IN KARNATAKA


NEWS & VIEWS TODAY
08th, JUNE, 2012

RIL TO INVEST Rs.1 lakh cr IN VARIOUS PROJECTS

SET TO DOUBLE PROFITS ( IN 4-5 YEARS)

GLOBAL INVESTORS MEET (KARNATAKA)2012
TATAs ANNOUNCE A 6 Mn TONNE PLANT IN KARNATAKA


1.    NEWS :RIL is facing a huge downside in its gas output from KG-D6 fields. Its profits are coming down. But, on the positive side, RIL has huge cash reserves, which if it invests in the right businesses can yield huge profits. Now, the question is – is RIL identifying such highly profitable ventures with reasonable accuracy?

What are its targets ?

RETAIL BUSINESS : set to expand by 6 times in about 4 years.

SHALE GAS BUSINESS FROM US : Ten fold increase targeted

KG D6 FIELDS : Reaching 60million cubic meters per day – on a sustained basis

2 coal bed methane projects in MP:  Output to begin in 2015, if approvals are received

4G COMMERCIAL ROLL-OUT : RIL plans to provide end-to-end solutions that will address the complete Digital Value Chain. We have to watch for the complete Roll-out Plans.

Over Rs.1 Lakh crores of Investment is planned – to double the profits from current levels in next 5 years. While KG D6  was a disappointment for RIL,    Others are faring reasonably well. But, which is the next biggest opportunity? Is it 4 G or Retail? We need to wait and watch.

The second point is – all plans are for the long term – minimum 3-4 years. What is there for investors in the next 2 quarters? That – unfortunately, is not clear as yet.

2.    GLOBAL INVESTORS MEET (KARNATAKA) 2012 : TATA steel announced the plan to set up a Rs.30,000 Cr steel Plant (6 million tonne per annum capacity)in Karnataka,  at this Global Investors meet organized by Karnataka Government. Aditya Birla Group also announced Rs.7000 cr investment in the state – including a cement plant. The state is aiming to sign MOUs worth Rs.6. lakh crores at this meet. If Politics take Back seat, Progress walks in automatically.
Karnataka must ensure that all the MOUs – will actually see fruition – and for that, it has to adopt the Modi style of FAST TRACK FUNCTIONING.

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