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Reliance Communications is rapidly integrating across the telecom domain
In the rapidly developing business hub of Navi Mumbai, a mini technology enclave has become the object of tremendous respect and admiration. It’s the Dhirubhai Ambani Knowledge City, home to Reliance Communications, a company that has now come into its own, and is now within striking distance of Bharti TeleVentures, when it comes to market share. Once you step inside the Knowledge City, magnificent steel architecture and glass buildings grab your attention even from a distance; pretty much the way Anil Ambani’s crazy expansion spree has boggled the minds of all and sundry. And as you move a little inside the National Operation Centre (which monitors the entire cellular and land line network of Reliance across the country), you can’t help but get inspired, yet again, from the very familiar words inscribed alongside the picture of the legendary Dhirubhai Ambani – “Growth has no limit at Reliance. Only when you dream it, you can do it.”
Standing true to Dhirubhai Ambani’s words, RCL has emerged as one of the fastest growing companies in India with a momentous 612% increase in its net profi ts (which now stand at $734 million) for the financial year, ending March 31, 2007. “During the year, each of our businesses recorded strong revenue growth and expanded their margins, deriving leverage from the growing scale of operations. We are delighted at the many firsts and record achievements at Reliance Communications, in the first year of our listing,” said a proud Anil Ambani. While the wireless business witnessed a growth of 46%, reaching $2.48 billion, the broadband business performed exceptionally well with revenues of $265 million, registering a staggering 123% increase.
Of course there have been troubling developments as well. Perhaps the most critical one was losing out in the bidding for Hutch, further exacerbated by the fact that Vodafone has gained an entry into the Indian telecom Armageddon. And their planned entry into GSM remains... well... in the planning stage! Would such stumbling blocks kill the RCOM dream? Or can the younger Ambani pull a rabbit off his multi flavoured hat?..
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Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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