Thursday, 5 May 2011

Today's Energy Giant, Tomorrow's Walmart For Digital Services: Ril Chairman, Mukesh Ambani

The best way to understand Mukesh Ambani's mind is to think of Reliance as a company with two businesses: energy and consumer. In a conversation with Bodhisatva Ganguli & Himangshu Watts, Ambani says RIL will find more hydrocarbons and build a new-age digital and consumer business from scratch. Excerpts.

The tie-up with BP is a paradigm shift for RIL. Historically, you have controlled 100% of your core assets. So, what is the thinking behind this? And is this also the way forward in future?

Well, if you have followed Reliance, you should have noticed that Reliance now has over 50 JVs. The general principle of business is that once you achieve critical mass and size in any market, then to expand the domain or the market you need partnerships. The whole idea behind doing the BP piece is that we are determined to grow faster than before. It's general industry practice. If you look at the E&P industry globally, nobody holds 100% of a basin forever, including a Chevron or an Exxon .


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