23 October 2019

Newsbreakers

POSITIVE AGGRO

To those who thought the younger of the Ambani siblings was nothing but all gas, Anil has recently served a warning that he too is no less than motabhai in the business stakes. Dhirubhai’s second son may have seen his fortune slide since 2008 when he was worth $42 billion but he is back into profitable deals. His firm Reliance Power is now all set to set up a 3,000 megawatt power plant and a 2 million ton a year floating LNG import terminal at Maheshkali Island in Cox Bazar, Bangladesh at a total investment of $3 billion.  This will be the largest foreign investment in Bangladesh which faces acute power shortages. A little before that he made an entry into the defence business with a big bang having acquiring Pipavav Shipyard.  Anil has raised not just raised 11 companies — each of them targeting a potential market of at least `10,000 crore – but in the past few weeks applied to the Department of Industrial Policy and Promotion (DIPP) for over a dozen licenses to make defence and aerospace products to design, develop and manufacture military equipment ranging from UAVs, missiles,   spacecraft and satellites, submarine systems engines for various platforms, turbines and radar equipment, and helicopters. He has already spent more than $200 million to increase his stake in telecom arm Reliance Communications to 60 per cent. In February, Japan's Nippon Life increased its holding in his mutual fund to 35 per cent. His firm Reliance Infrastructure is also credited with launching Mumbai's first metro line. Papa would have been proud!

 

FLIGHT PATH

Dr. Gunupati Venkata Krishna Reddy, Founder Chairman and Managing Director of
GVK Power & Infrastructure, the diversified Hyderabad-based conglomerate, may have already left his company’s imprimatur in the areas of airport development but is now is further extending his focus on the segment by listing his Group’s planeport arm. GVK Airport Developers is looking to raise over `3,000 crore with an IPO. Incidentally the GVK group which has developed Chhatrapati Shivaji International Airport, Mumbai, and Kempegowda International Airport, Bengaluru, is also developing two airports in Indonesia. The main reason for its continued focus  is the infrastructure company’s consolidated revenue growth of 21 per cent has been driven mainly by the airports segment, which accounts for about three-fourth of its business. This has been spurred by strong growth in passenger traffic at Mumbai and Bengaluru, along with a moderate rise in cargo traffic, which pushed up airport segment revenue by nearly 25 per cent from the year-ago period. Meanwhile his company’s energy segment posted a loss at the operating level, given its woes of lack of fuel supply against mounting fixed costs.GVK Power & Infrastructure Ltd has sold its 217 MW (Phase 1) Power Plant situated at Jegurupadu in Andhra Pradesh to AP Transco. For someone who pioneered the development of infrastructural projects by setting up India’s first independent power plant in Andhra Pradesh in 1997, and expanded his company’s footprint in the energy sector by setting up thermal and hydro power projects, Reddy certainly knows where his bread is buttered and how to cut his losses. 

 




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