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ADAG in talks with global firms for equipment manufacturing

ADAG in talks with global firms for equipment manufacturing
PTI
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First Published: Mon, Jan 07 2008. 01 17 PM IST
Updated: Mon, Jan 07 2008. 01 17 PM IST
New Delhi: Anil Ambani-led Reliance Power, which is targeting a generating capacity of 28,000 MW in next five years, on 7 January said the company is in talks with leading global firms to venture into power equipment manufacturing.
“We are in dialogue with two-three of world’s major equipment manufacturers for a cooperation agreement. This could be in the form of joint venture or sourcing of equipments like turbines and boilers,” chairman Ambani said.
There would be some development in the next couple of months, he told reporters while announcing details of the company’s initial public offer from 15 January to raise up to Rs11,700 crore.
Identifying availability of quality equipment and their timely delivery as one of the major constraints in power generation, Ambani said the proposed move would ensure large scale availability of equipment at competitive rates to meet the ambitious targets.
The Reliance Power chairman said a concerted effort was made to create problems and he expected more troubles but exuded confidence of overcoming all the hurdles.
“SEBI has not responded to our complaint but the best response has come in the form of their approval for the IPO,” he said, when queried about the market regulator’s response to the complaints lodged by his group alleging that many officials of elder brother Mukesh-run Reliance Industries, including key executive Manoj Modi, were sabotaging the IPO.
On whether he expected further troubles before the IPO that is hitting the market on 15 January for raising up to Rs 11,700 crore, Anil said: “There will be hurdles. Our challenge is to cross those hurdles and proceed with further growth and value creation.”
Without naming anyone who was named in Reliance Energy’s complaint to SEBI, he said complaints from 40-50 parliamentarians against the IPO were sent to government and other agencies. “All the complaints were identical in draft and even in spelling mistakes. Those behind it should have thought of preparing at least 25-30 different drafts,” he quipped.
In the run up to the clearance for IPO, the Finance Ministry had sent a number of complaints received by it to the Corporate Affairs Ministry and SEBI.
At the same time, ADA group company Reliance Energy had written a letter naming 13 officials and associates of Reliance Industries alleging their involvement in sabotaging the initial public offer.
Asked if the IPO could make him India’s richest man ahead of elder brother Mukesh, he said: “These reports and figures amuse me. These are all financial indicatiors. These keep us on our toes and sometimes awake even during the night.”
As per the Forbes latest listing, Anil Ambani’s wealth was put at $45 billion as on 2 November, 2007 while Mukesh was ranked ahead with $49 billion.
On the prospects of he becoming the richest man by virtue of promoters holding in Reliance Power, Anil Ambani talked about the legacy of his father and Reliance founder Dhirubhai Ambani who had created wealth for shareholders.
He said promoters holding in Reliance Power would be close to about $22 billion if the company is listed at the lower end of the price band of Rs405-450.
Reliance Power is jointly promoted by Reliance Energy and AAA Ventures of Reliance Innoventures Pvt Ltd, a 100% family-owned entity.
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First Published: Mon, Jan 07 2008. 01 17 PM IST