IIPM Admission

Wednesday, October 31, 2007

Thriving on challenges….

While Thriving on challenges...analysts are quite impressed with Reliance’s stellar performance on a consistent basis, they are quite cautiously optimistic about the sustainability of the company’s performance. States Raj Gandhi, “Reliance is undertaking too many projects at the same time. The execution of these projects may become a headache for Reliance in the long term. And with Reliance venturing into myriad businesses, they also give rise to newer challenges. States Anshukant Taneja, Analyst, Standard & Poor’s (which rates RIL as stable with respect to its financial obligations, but susceptible to changing economic conditions), “The ratings remain constrained by RIL’s exposure to highly cyclical industries, large capital commitments in refining & petrochemicals business and uncertainty in developing its reportedly large gas reserves.

Add Mukesh Ambanito that the myriad investment plans in new capital intensive ventures like retail, SEZs (where the company is lining up investments of around Rs.400 billion)and life sciences. Take the instance of retail, where the company has committed investments of Rs.250 billion and is now expanding to other retail formats like consumer durables (Reliance Digital), FMCG, healthcare & apparel. Bijay Sahoo; President & Chief People Officer of Reliance Retail, mentions while speaking exclusively to B&E on how they plan to handle the emerging situation in the sector, “Our plan is to build the supply side of the talent. We have done the need analysis and are working on the development plan; in this country we have a lot of raw talent and we need to transform that talent... the industry has limited availability...”

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2007

An
IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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