SYNOPSIS

- Group 5

Company Reliance Anil Dhirubhai Ambani Group (Reliance ADAG)

Reliance ADAG is an Indian conglomerate, headquartered in Navi Mumbai, India and headed by Anil
Ambani. It has a market capitalisation of US$14 billion and net assets worth US$28 billion. Reliance
Group has four listed companies: Reliance Power, Reliance Communications, Reliance Infrastructure,
and Reliance Capital, with a shareholder base of over 12 million. The group provides telecom, financial
services, construction, entertainment, power, health care, manufacturing, defence, aviation, and
transportation services.

Key Focus Areas

The Group sees opportunities worth of Rs 1 lakh crore per annum with a focus to become a
manufacturer and supplier of advanced weapon platforms and military hardware to meet the
requirements of the Navy, Indian Air Force and the Army driven by the governments Make in
India and Skill India policies
The Groups divergence from highly capital-intensive projects with back-loaded returns such as
roads and cement and focus on Reliance Power and Reliance Capital (to tap insurance sector)
i.e., financial services, telecom and power.
In power, renewable energy, R-Power plans to develop a 6,000 Mw solar energy park in
Rajasthan. Reliance Industries with its partner BP pledged to infuse Rs 40,000 crore in the
deepwater gas fields of the Krishna-Godavari (KG) D6 block on the countrys east coast.

Key Concerns

Shares of Reliance Group companies on an all-time low. Shares of Reliance Communication fell
to 10-year low of Rs.26, Reliance Capital and Reliance Infrastructure were down 7 per cent and 6
per cent to Rs.578 and Rs.494, respectively, while Reliance Power and Reliance Defence and
Engineering slipped 5 per cent and 8 per cent to Rs.42 and Rs.56, respectively in May 2017.
Rating agencies CARE and ICRA have downgraded Reliance Communication on deteriorating
capital structure and huge chunk of foreign debt on its book. The company reported net loss of
Rs.531 crore in December quarter against net profit of Rs.303 crore logged in the same period
preceding year.
The major reason for downgrade of rating and lower share price is the huge debt in each of the
Groups Companies on standalone basis, resulting in the sale of maj0or assets of the companies.