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Transcript of ADAG Live Presentation_18 Sept
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Reliance ADA Group
CLSA Investors Forum
Hong Kong
September 2007
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Forward looking statements Important NoteThis presentation and the discussion that follows may contain forward looking
statements by Reliance ADA Group (Reliance ADAG) that are not historical in nature.
These forward looking statements, which may include statements relating to futureresults of operation, financial condition, business prospects, plans and objectives, are
based on the current beliefs, assumptions, expectations, estimates, and projections of
the directors and management of Reliance ADAG about the business, industry and
markets in which Reliance ADAG operates. These statements are not guarantees offuture performance, and are subject to known and unknown risks, uncertainties, and
other factors, some of which are beyond Reliance ADAGs control and difficult to predict,
that could cause actual results, performance or achievements to differ materially from
those in the forward looking statements. Such statements are not, and should not be
construed, as a representation as to future performance or achievements of Reliance
ADAG. In particular, such statements should not be regarded as a projection of future
performance of Reliance ADAG. It should be noted that the actual performance or
achievements of Reliance ADAG may vary significantly from such statements.
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Contents
Reliance ADA Group
Reliance Communications Reliance Energy
Reliance Natural Resources
Reliance Capital
Reliance Entertainment
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Reliance ADA Group
The vision of one man
If you can dream it
You can Do it
Our legendary founder
Sh. Dhirubhai Hirachand Ambani28th December 1932 - Forever
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Leadership Position in highest growth sectors
Film Production/Processing/Distribution Multiplexes FM Radio Stations Gaming & NetworkingPortals
Film Production/Processing/Distribution Multiplexes FM Radio Stations Gaming & NetworkingPortals
Exploration &Production
Coal Bed Methane Fuel Sourcing/Trading Transportation
Exploration &Production
Coal Bed Methane Fuel Sourcing/Trading Transportation
Mutual Funds Life/General Insurance Broking & Distribution Investments Consumer Finance
Mutual Funds Life/General Insurance Broking & Distribution Investments Consumer Finance
Infrastructure
Mumbai Metro Special Economic Zone Roads Bridges Real Estate Development
Infrastructure
Mumbai Metro Special Economic Zone Roads Bridges Real Estate Development
Generation Transmission Distribution Trading EPC
Generation Transmission Distribution Trading EPC
Mobile Wireless Enterprise Broadband Global Voice/Data Retail Stores
Mobile Wireless Enterprise Broadband Global Voice/Data Retail Stores
Over 100 million individual customers - 1 in every 10 Indians
7 million shareowners
100,000 young, trained and motivated people
Reliance ADA Group
Strong presence across high-growth consumer facing businesses
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Reliance ADA Group Key financials
Nil
Rs 6,000 Cr
Rs 10,000 Cr
Rs 41,000 Cr
Rs 50,000 Cr
Rs 175,000 Cr
Nil
$1.5bn
$2.5bn
$10bn
$12bn
$43 bn
-
# 4
# 3
# 3
# 3
# 3
Operating cash flow
Net worth
Assets
Market capitalization
Net debt
Profit after tax
Reliance ADA Group
Among Indias top 3 business groups
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Unprecedented value creation
Market capat June 2005
Market capat present
US$ XX bn11
xinc
rease
US$ 4 billion
US$ 43 billion
As on September 13, 2007
Reliance ADA Group
Value creation of US$40 bn in just two years
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80
100
120
140
160
180
200
220
240
260
280
Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07
Reliance Communications Reliace Energy Reliance Natural Resources Reliance Capital Sensex
All group companies have outperformed the Sensex
30%163%160%91%70%1 year returns
SensexReliance CapitalReliance Natural
ResourcesReliance EnergyReliance
CommunicationsAs of Sep 13, 2007
Share price performance (%)
Rebased to 100
Source: Bloomberg
Reliance ADA Group
Sensex
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High liquidity across group companies
5
5
MSCI
5
5
Sensex F&ONifty
Adlabs Films
Reliance Capital
Reliance Energy
Reliance Communications
5
5
5
5
5
5
Reliance ADA Group
Daily stock market turnover of Group companies >US$400 mn
Foreign portfolio investors own 20% in group stocks valued at US$ 8 bn
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Reliance Communications
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The largest telecom growth opportunity in the world
Indian Telecom Sector
Lowest in the world2.5 mnBroadband subscribers
Second highest~ 471 minutesWireless Minutes of Usage
3rd
largest189 mnWireless subscribers
In the top 5229 mnTelecom subscribers
Global positionCurrent statusParameter
Source: COAI, AUSPI, TRAI
even after adding 200 mn subscribers over the last 4 years
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0.4% 1.1%
9.2%12.0%
15.3%
55.5%
0%
10%
20%
30%
40%
50%
60%
France Japan UK US China India
16.9%
37.3%
79.0% 79.2% 79.6%
117.0%
0%
20%
40%
60%
80%
100%
120%
140%
India China France US Japan UK
Among the lowest penetration rates in the world
Low wireless penetration Leading to strong revenue growth
Source: Merrill Lynch Global Wireless Matrix; March ended 1Q07 March ended 1Q07 over March ended 1Q06
Indian Telecom Sector
Low penetration + High Revenue growth = Huge opportunity
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530
444
348
253
161
96
44%
38%
30%
22%
14%
9%
0
100
200
300
400
500
600
2006 2007 2008E 2009E 2010E 2011E
0%
10%
20%
30%
40%
50%
Mobile Subscribers (mn)
Penetration
Source: Industry estimates
Mobile subscribers expected to cross 500 mn in 3 years
Year end March 31
Indian Telecom Sector
CAGR
35%
even then there will be 800 mn unserved people in India
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22
31
84
18
65
6659
6877
62
0
10
20
30
40
50
60
70
80
90
2003 2004 2005 2006 2007E
Net annual subscriber adds have now surpassed China
Net annual wireless additions (million)Net annual wireless additions (million)
Source: Industry research
Indian Telecom Sector
Wireless subscribers India: 200 million vs. China: 500 million
China
India
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Among highest EBITDA margins globally
28.3%30.3%
33.2%35.1%
38.5% 40.1%41.4% 41.7% 42.2%
51.3% 51.8%54.0%
0%
10%
20%
30%
40%
50%
60%
70%
Briti
shTele
com
Deut
scheVe
rizon AT&T
Vodafone KPN Bh
artiTelstra
Reliance
Chin
aTelecom
Singtel
Chin
aM
obile
EBITDA Margins
Indian Telecom Sector
despite the lowest tariffs
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Personal Business Enterprise Business Infrastructure BusinessGlobal Business
RCOM: Indias Largest Integrated Telecom Company
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Leading position in the Asian telecom market
36 mnUS$ 28 bnReliance Communications
48 mnUS$ 39 bnBharti Airtel
52 mn*US$ 39 bnSingtel
244 mnUS$ 45 bnChina Telecom
338 mnUS$ 269 bnChina Mobile
SubscribersMarket capOperator
* Includes proportionate customers of affiliates
Ranks among top 5 telecom companies in Asia
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Market capat March 2006
Market capat present
US$ XX bn
De-mergedentity M-capUS$ 20 bn
+21
0%
US$ 9 bn
US$ 28 bn
Among the 3 most valuable private sector companiesin India
Market Capitalisation
As on 13 September 2007
Created shareholder wealth of US$ 19 billion in 19 months
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Who do we serve?
Over 36 million customers in India
Over 1 million individual global customers
Over 200 major global carriers
Over 250 MNCs
Over 800 out of Top 1,000 Indian large enterprises
Over 10,000 Indian SMEs
Unparalleled customer franchise in India and globally
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Dominant position across multiple segments
# Largest mobile network in the country: 85% population coverageLargest carrier of wireless data: >60% market share
Largest in enterprise data services: >50% market share
Largest private PCO operator: >50% market share
Largest carrier of international voice: >40% market share
Largest IP enabled optic fiber cable network in the world
Largest retailer of wireless handsets
Largest independent wireless infrastructure provider
Youngest, Fastest, Largest
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Partnerships with global leadersNetwork IT
Best in class technologies
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Business Segments: Wireless
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One of the fastest growing wireless companies globally Among Indias top 2 operators with over 34 mn wireless subscribers
- Prepaid subscriber additions drive growth - 85% of total subscribers
Key Performance Indicators
- EBITDA margins among the highest in the industry ~40%...
- despite the lowest tariffs in the world
- backed by the highest Minutes Of Usage 500 million minutes per day
Wireless Business
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Unrivalled wireless multimedia platformReliance Mobile
World
Top 10 global operator on mobile data/content penetration
Homogenous usage across demographics and geographies
Over 200,000 Indian and international content titles
Widely used services - popular across all segments
Over 20 million multimedia enabled phones active
Only platform globally to support WAP, Java, BREW, BREWVLE, Windows Mobile and Blackberry
Platform, phones and network superiority
Click, Browse and Select
Multi-media content delivery available on the entire rangeof handsets
Unparalleled user experience in India
Wireless Business
>4 times data-enabled phones as all GSM handsets put together
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Largest distribution network of 2,000 exclusive retailstores & >500,000 third party retailers
Wireless Business
By far the largest retail distribution network in the industry
Channel Dimensions Largest chain of company
owned and franchised stores Provides high level of branding
and visibility
Services include
- Multi-city, multi-player gaming- High speed internet surfing- Video conferencing- Wireless activation
- Customer service support
- Branded Java Green coffee shop
Channel strength of 2000 distributor &>500,000 retailers
Presence in >23,000 towns
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Worlds largest network roll-out
Covering almost a billion Indians
- Towers portfolio up from 14,000 to 40,000
- Coverage from 10,000 to >23,000 towns- Population coverage expansion from 55% to 85%
- Almost 100% coverage of railway routes
- Almost 100% coverage of national highways
Ability to host on 8,000 third party towers rentfree for the first 5 years
Wireless coverage
Wireless Business
Coverage and connectivity leadership
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Business Segments: Global (Voice + Data)
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Moving up in the value chain from pure bandwidth provider to value
added service provider
Global Business
At the forefront of US$ 90 bn enterprise data opportunity
Will change the way the world communicates & does business
55%
45%
65%
5%
Margin: 15-30%
Margin: 30-60%Value added
services
Capacityservices
FY2003 FY2007
GlobalInfrastructure
Flag NGN - worlds largest IP network oversubmarine cable system
Capacity to carry 2.5 bn voice calls, 300 mn
web chats and 52 mn video chats
CustomerRelationships
Over 200 international telco customers of FLAG 1,000 enterprise customers of Yipes 850 out of 1,000 corporates in India
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Significant asset base drives leadership in voice and data segments
Global Business
Worlds largest IP enabled optic fiber cable
230,000 Rkms of submarine and terrestrial optic fiber cable
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Leadership position in voice
- #1 International wholesale carrier
- #1 ILD and NLD operator in India
- #1 US to India calling service for retail
customers
Largest carrier of international voice: >40%market share
Only Indian company with > 1 million retail
customers in the US
Clients include several international
industry leaders and telcos
Achievements
Global Business
Acquired leadership rapidly across all segments
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Yipes is a leading Ethernet services company in the US
Yipes is highly profitable, with gross operating margins at 55% Plan to further expand Yipes network in US and in 40 new markets globally
Yipes Acquisition
RCOMs acquisition of Yipes to accelerate growth
9 22,000 Metro RKms
9 Demand growth: 32% p.a.
9 Acquired at an attractiveprice of US$ 300 mn
Los Angeles
Seattle
San J ose
San Francisco
San Diego
Miami
Houston
Dallas
Denver
ChicagoBoston
New YorkPhiladelphia
Washington DC
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Business Segments: Enterprise
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Market to grow by US$ 8 bn in the next 3 years alone
Broadband market segment revenue (US$ Bn)
Household SMB + SME Enterprise
FY06 FY09F
US$ 5.5 bn
US$ 13 bn
+US
$8bn
Source : Industry Report
Enterprise Business
Underserved market: Provides strong growth opportunity
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BFSI SegmentIT/ ITES Segment Media Segment
Strong in-roads into marquee accounts
Enterprise Business
representing leading players in the largest usage verticals
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FMCG Segment Services Segment Telecom Operators
850 of Top 1,000 Indian enterprises are our customers
Enterprise Business
Winning >50% of new business generated in the segment
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Achievements
Fiber
Ring Meshed Core
Atlantic
Pacific
>50% market share in highest growth dataproducts
- Internet data centers- Centrex solutions: virtual, multi-location PBX
- Virtual private networks
>600,000 buildings connected to our fibernetwork, to cross 1 mn by year end
Deploying Broadband and WiMax networkin top 10 cities in the country to cover 4
million SMEs
Enterprise Business
From start up to leading enterprise data franchise in 1st year
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RCOM Financials
RCOM Fi i l
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108
772
FY06 FY07
620
1,395
FY06 FY07
2,625
3,530
FY06 FY07
Revenue, EBITDA & Net Profit (US$ Mn)
Revenue
+34
%
EBITDA
+126
%
Net Profit
Highlights
+600
%
RCOM Financials
Consistent & Substantial increase in profitability
RCOM Fi i l
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98
125
171
226
250
301
Q4FY06 Q1FY07 Q2FY07 Q3FY07 Q4FY07 Q1FY08
2.5X PAT growth in 5 quarters...
Consistent Performance
138%301RelianceCommunications
35%263InfosysTechnologies
GrowthQ1 FY08 PAT(US$ Mn)
TCS
Bharti Airtel
Reliance Industries
293
372
796
100%
36%
28%
3rd highest in India
(US$ Mn) (US$ Mn)
Youngest company to achieve >US$ 300 mn quarterly PAT
RCOM Financials
RCOM Fi i l
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Strong Financial Platform
Total Assets US$ 13,659 mn
Net worth US$ 5,610 mn
OperatingCash Flow
US$ 1,463 mn*
*15 months period
Net debt to equity at 0.1 potential to borrow US$ 12 bn for growth
Raised US$ 2.5 bn, including US$ 1.5 bn through FCCBs
ROE 36%#
RCOM Financials
#1Q annualized and adjusted
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Key Recent Developments
Value Unlocking Initiatives
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5% of Towerco placed with major global investors Valuation Achieved
- Equity value of US$ 6.75bn
- Translates to Rs 135 per RCOM share- Capital gains of US$ 300 mn
Value Unlocking Initiatives
From 14,000 to 40,000 towers in six months
Towers built for passive infrastructure sharing
- Ability to initially host 4 tenants
- Expandable to 7 tenants at marginal cost
Optic fiber connectivity across all towers
RCOM is the anchor tenant through variousplatforms: CDMA, GSM, WiMAX, etc
Underleveraged net worth of US$ 1.2 bn
Value Unlocking Initiatives
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BPO
FLAG
Special Economic Zone
Value Unlocking Initiatives
Key mantra - Maximisation of shareholder value
Worlds largest IP network oversubmarine cable system
RCOM plans private placement
to unlock value
Strong capability to service BFSI, telecom &
utilities sector
Competency in front & back office operations
More than 8,000 strong people
40 acres SEZ in Mumbai
Strong interest from leading IT/ITES
companies to set up operations
Government approvals already received
Planned launch of DTH & IPTV
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India has 110 million TV households of which 50%are not connected through cable or DTH
Our DTH services will tap this opportunity
This modern network will provide DVD quality pictureand better viewing experience
DTH Network to launch before end of 2007
IPTV services to be launched in top cities
IPTV to provide interactive TV & Video servicesusing our existing Ethernet network
Our customers will enjoy movies and music ondemand, interactive programme guide andgaming
Planned launch of DTH & IPTV
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RCOM: Looking Ahead
India among the most attractive growth markets in the world
RCOM is Indias only integrated telecom company
RCOM to have worlds largest network covering a billion people in morethan 23,000 towns and 600,000 villages
RCOM is the most profitable telecom company in India with EBITDAmargin >42%
RCOM has an underleveraged balance sheet with the ability to financefuture growth through debt
The journey of growth has just begun
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Reliance Energy
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Indian Power Sector
Current Installed capacity of approx 135,000 MW only
Low per capita consumption of 600 kWh vis--vis world average of
2,510 kWh
Huge Demand Supply Gap
- Blackouts are common
- Power supply for a few hours in large parts of the country- Major cities not served with reliable power supply
- Rural India not even on the horizon
Power has multiplier impact on economic growth
Over US $ 100 bn investment required in the generation sector to
achieve Govt. target of per capita consumption of 1000 KWh by 2012
Power for AllLarge Opportunity given existing shortages
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Indian Power sector comparison with China Growth Story
622
517
441
391357339
319
132124118113102 105108
0
100
200
300
400
500
600
700
2000 2001 2002 2003 2004 2005 2006
InGigaWatts
China India
Over 100,000 MW
added in 2006
12%4%Power Sector Growth rate
1380600Per Capita Consumption (per kWh)
260,00022,000Capacity Addition in past 5 years
ChinaIndia
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Parallel from Telecom
0
10
20
30
40
50
6070
80
90
2003 2004 2005 2006 2007E 2008E 2009E 2010E
China India
Net annual additions in wi reless subscribers (million)Net annual additions in wi reless subscribers (million)
Source: Industry research
480195Mobile Subscribers (mn)
37%18%Teledensity
ChinaIndia
Net subscriber additions in India now exceed that in China
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Indian Power Sector: An attractive opportunity
Appropriate Regulatory framework in placeto attract private investments
Huge demand / supply mismatch
Lack of adequate financial resources withthe government to create adequate
capacity
Unlimited market for competitively pricedpower
Huge opportunity
for
private sector
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Indias No. 1 integrated private powerutility company
Presence in entire value chain ofGeneration, Transmission, Distribution andTrading
Distributes over 5000 MW including toptwo cities i.e. Mumbai & Delhi
Strong Project Management and EPCexperience Order book over US$ 1.3 bn
Now diversified into Infrastructure projects
Overview
Fully integrated Utility & Infrastructure company
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REL Initiatives
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Develop future power generation assets in India and overseas
across fuel type
- Coal- Gas
- Hydro
- Renewable
- Nuclear
Current Plan
- Develop, construct and operate 25,000 MW of generating
capacity
- One of the largest development pipelines in the world
Generation
Significant growth opportunity in a power starved economy
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Diversity across fuel type coal, gas
and hydro
Diversity of fuel supply sources
pithead coal, domestic gas and
imported fuels
Diversified locations 12 projects
located in 5 states across India
Risk diversification fuels, locations,
offtake, technology, vendors, financing
10280 MW
42%
10620 MW
44%
3300 MW
14%
Coal Gas Hydro
Attractive and Diversified Portfolio
Diversified portfol io in an attractive sector
Fuel Diversity
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Transmission Sector is now open to 100% private
equity participation
Only 3 private sector players intransmission space
Lowest bidder in first 100% privatesector participation project
Will develop 2,000 ckms.(US$ 700 mn)
14 ultra mega transmission projectsannounced for private sector
participation (US$ 7 bn)
Integrate with generation assetsportfolio
To be the largest private sector player
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Phase 1 of Mumbai Metro Corridorproject is under construction
- 12 kms of elevated corridor with project
cost : US$ 600 million- Concession period of 35 years
Phase II of Mumbai Metro Corridor hasbeen bid
- 32 kms stretch with estimated projectcost US$ 1.5 bn
Qualified for bidding for Hyderabad Metro(US$ 3 bn) and Delhi Airport link (US$ 1bn)
7 additional lines in Mumbai will beshortly available for bidding (US$ 5 bn)
Infrastructure : Transportation
Only private sector player in India..
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Infrastructure: Highways Largest developer in the Highway Projects
- Developing 5 projects covering > 400 kms
- Project Cost of US$ 800 mn
- Largest road project of over 136 kms
Pursuing Mega Projects
- Jaipur Ring Road : Project Cost of US$ 1.5 bn(Awarded on Swiss Challenge basis)
- Western Freeway Sea Link : Project Cost ofUS$ 1.3 bn (One of the two short listed parties)
Indias largest road projects company on BOT basis
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Real Estate Developing a Trade Tower & Business
District over 80 acres of land in
Hyderabad- Will have 100 storeys tower
- Project cost of US$ 1.6 bn
- Built-up area of 11 mn sq ft.
- Phase I : 5.5 mn sq ft to be completed in
4 years
Initiated the real estate foray..
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0.7
0.8
FY06 FY07
146
185
FY06 FY07
1,033
1,513
FY06 FY07
Revenue, Net Profit & EPS (US$ mn)
Revenue
+46%
Net Profit
+
27%
EPS
+14%
Financial Highlights
New projects to drive growth
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Financial Strength
Net worth in excess of US$ 2.0 bn
Debt free at net level
Cash & Cash equivalent of US$ 2.5 bn
Enjoys top-end rating of AAA and IndAAA assigned by CRISIL and FITCHrespectively
Strong financials to support growth ambitions
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Reliance Natural Resources
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A complete fuels company in the making Youngest business in Reliance ADA Group
Demerged as Gas Power Undertaking Business,
supplying gas to power plants Dealing in natural resources including:
- Natural Gas, LNG, CBM
- Coal
- Liquid & other fuels Activities:
- Production
- Sourcing and Supply
- Transportation (Pipelines)- Distribution
An integrated fuel Company
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Exploration and Production
Coal Bed Methane
Maiden foray in E&P Sector
Won 4 out of 10 blocks offered by Govt
2nd Largest CBM player in India in terms
of acreage
- Area : 3251 Sq. Km
Oil & Gas
Secured 1 Block in Mizoram
- Area : 3691 Sq. Km
Total acreage 7,000 sq kms
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Natural Gas Pipeline Cross country pipeline to facilitate
complete fuel management services
Applied for 1,600 Km pipeline- Kakinada (A.P.) to Dadri (U.P.)
- Among longest pipeline in the country
- Investment of over US$ 3.9 bn
States Covered Andhra Pradesh,
Maharashtra, Madhya Pradesh and
Uttar Pradesh
To cover India through single pipeline
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City Gas Distribution
Applied for CGD Networks in
Mumbai, Delhi and the National
Capital Region
Integrated approach for Gas and
Power in India
Common facilities to reduce cost
and increase customer comfort
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Coal related activities Responsible for Coal Supply to 500 MW
Dahanu Power Plant
- 500,000 Tonne Coal Imported in 2006-07- Agreement for washing 2.4 mn tones/Yr
RNRL will undertake Mine Development& Coal Transportation
- Group companies applied for 8 blocks
- Complete Fuel Management Services togroup companies and others
Success in Sasan Ultra Mega Power
Project will create opportunity to provide
solutions for >10 mn tonnes of coal p.a.
Poised to capitalise on the growing opportunity
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Reliance Capital
Reliance Capital
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Right mix for growth
Robust GDP growth - 9.2%
Increasing per capita income FY09E US$ 1,050
Rising savings rate - 32%
Young population Median age 25 years
Low penetration 55% savings in bank deposits
US $ 1 trillioneconomy
US $ 320 billionsavings
Demand for financialproducts & services
Robust growth, savings rate & attractive demographics
Reliance Capital
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Low penetration
Only 3% population invests in mutual funds & 1% in equities
Population1100 mn
Bank A/cs
320 mn30 mn
DepositoryAccounts
Mutual FundsAccounts
9 mn
Reliance Capital
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33% of US population invests in mutual funds, India barely 3%
Mutual funds AUM barely 12% of banking deposits
Life insurance market expected to grow @ 35% CAGR over next
3 years to US$ 72 billion
Only 4.9% of household sector financial savings invested in
equity/equity related assets
Penetration of retail credit, amongst lowest globally, only 10%of GDP, as against 37% in Malaysia
High Potential
Low penetration offers tremendous opportunity for growth
Reliance Capital
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Business mix
R
ELIANCE
CAPITA
L
ASSETMANAGEMENT
INSURANCE
BROKING &
DISTRIBUTION
CONSUMERFINANCE
Private equity Investments &proprietary trading
Mutual Fund Portfolio Management Offshore fund
Life Insurance General Insurance
Stocks &
Derivatives
CommoditiesFx & offshore
Investments
Third party
products
Mortgages Personal Loans Vehicle Loans SME Finance
INVESTMENTS
Creating Indias leading financial superstore
Reliance Capital
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Indias fastest growing financial services company
Indias #1 mutual fund
Among the top 2 general insurers and top 5 life insurers Indias most competitive online broker
6 million customers
Unparalled distribution network with 5,000 branches/outlets &200,000 distributors in over 700 towns/cities across India
13,500 employees Average age of 29 years
Among Indias 20 most valuable private sector companies
..targeting leadership in all its businesses
Asset Management
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Largest Indian mutual fund- AUM - US$ 17 billion
Largest mutual fund customer base 4 million customers
6 fold increase in AUM & investor base over last 2 years
Reliance Growth fund & Reliance Vision fund ranked no. 1 & 2 over a 5 year
time period among 13,771 ranked globally by Lipper
Ranked Indias most trusted mutual fund brand, 2 years in a row
Only 100% owned Indian private sector mutual fund
Indias #1 Mutual Fund
Life Insurance
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Among top 5 private life insurers
Only 2nd life insurance company in
India to receive ISO certification
382% - YoY growth in FY07
Reach across 700 cities with 130,000 agents
Only 100% Indian owned private sector
life insurer
Indias fastest growing life insurance company
General Insurance
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Among Indias top 2 private general insurers
Over 1 million retail customers
Corporate customers range across sectors
ports, steel, power plants, railways etc.
Strong reinsurance network GIC, Scor Re,
Allianz, Mitsui Sumitomo, Helevtia 462% - YoY growth in FY07
Only 100% Indian private sector general
insurance company
Indias fastest growing general insurance company
Broking & distribution
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Convenient & effective Anytime & anywhere
financial transaction capability Launched in April 2007
Flat fees
150,000 customers within 5 months
4,000 outlets across 700 towns/cities
Average daily turnover US$ 300 million
Indias most competitive online broker
Consumer Finance
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Mortgages, Vehicle loans, Personal
loans, Small & medium enterprise
loans
Launched in May 2007
10 branches
1200 distributors
Net interest margin 4%
Disbursals of US$ 400 million within 3 months of launch
Reliance Capital
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Financial performance
235
528
FY06 FY07
140
173
FY06 FY07
Revenue, Net profit & Net worth
Revenue
(US$ million)
+126%
Net profit
(US$ million)
Net worth
(US$ billion)
1.0
1.3
'Jun-06 'Jun-07
+23%
+
30%
Low leverage Debt: Equity ratio 0.44
Unrealized gains of US$ 850 million on listed investments
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Reliance Entertainment
Movies
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102 multiplex screens, with aggressive
expansion underway #1 in Hindi film processing market, with
over 70% market share
Strong presence across the value chain:
Production, Processing, Distribution andExhibition
Produced some of the most successful
programs in the television entertainment
Indias largest integrated movie venture
FM broadcasting
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45 FM licenses in 45 cities acrossIndia, including all metros
33 stations already launched
#1 position in 29 of them
Listenership of over 15 million
Indias largest private FM radio venture
Online gaming
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More than 1 million registered users
acquired in first 4 months of launch
Current user base of 3 million
Vibrant youth brand
Four gaming cafes launched in Pune,Bangalore, Hyderabad and Chennai more
than 100 cafes in 30 cities planned in FY08
MMOG launch in 3Q FY08
#1 online gaming portal in South Asia
Web 2.0 social networking
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Indias very own social networking
platform for web and mobile Web 2.0 technology framework for
user-generated content
Innovative and comprehensive product
with unique youth centric appeal
Registered user base of 0.5 millionwithin 2 months of launch
Launch on mobile platform planned in3Q FY08
Indias unique social network targeting youth
Home movie distribution
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Movie download and rental services, aimedto redefine home entertainment business
- Movie download portal launched in August2007
- DVD rental services to start in September2007 in Pune, Hyderabad and Chandigarh
Distribution through national retail chain of
500 outlets in 3 years
Largest integrated movie rental service in India
Reliance Entertainment
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Indias largest integrated media and entertainment venture
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Reliance ADA Group: Key takeaways
Among top 3 business groups in India
Leadership position in highest growth sectors:
- 100 million individual customers
- 7 million shareowners and
- 100,000 young trained and motivated people
Handsomely rewarded investors with additional value creationof more than US$ 40 billion in two years
Our key mantras: Profitable growth and maximisation ofshareholder value
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Thank you
September 2007