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reetesh
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Joined: 01/Sep/2006
Location: India
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Posts: 793
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   Posted: 29/Jun/2007 at 2:12am |
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This is after all my Viv Richards category stock!!! That is the reason why...
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When going gets tough, that’s when tough (people) gets going.
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deveshkayal
Senior Member
Joined: 04/Sep/2006
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Posts: 3903
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Posted: 16/Jul/2007 at 11:00pm |
Margin woes delay Reliance retail plans (NDTV)
It is not just escalating real estate costs but also supply hurdles that are causing delays for Reliance retail's hypermarket and apparel plans.
Big does not always get you the best bargains and the heat is on for the Reliance retail with competition increasing everyday and margins under presser. Now comes a delay in executing its plans for both hypermarkets and its apparel brand.
Hypermarkets, which were to be launched in April will now come up end July while the apparel brand will come to the market by November, it was earlier planned for August.
According to sources, what making it tough for the Reliance is negotiating for lower prices for household products and cloths with manufacturers.
And that is why the company wants to focus on private labels, to begin with along with more local garment brands than go for luxury and global ones. "We will be focusing on domestic brands and private labels," said Raghu Pillai, CEO, Reliance Retail.
New format stores
The hypermarkets will come up by the end of the month with Ahmedabad as first stop. According to sources new format stores Reliance Super will offer grocery, health & beauty, clothing and stationery, but no fruit or vegetables, in a bid to appease the protestors.
These stores will range from 4,000-10,000 square feet. While there are no protests at the digital stores expensive land deals have also put expansion on hold.
Sources say that the average rate of real estate is 125 sq feet while the company makes just about Rs 200 a sq feet. Add wages and promotion costs to that and there is hardly any margin left.
What is clear is that even though low margins are a reality, no one expected real estate costs to hit Reliance so hard. Reliance was surely hoping its size and scale would give it the muscle power to get better bargains but since the entire sector is struggling, looks like no one is taking chances.
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It wont be easy for Reliance while no one can doubt MA's execution skills.
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"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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deveshkayal
Senior Member
Joined: 04/Sep/2006
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Posts: 3903
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Posted: 17/Jul/2007 at 11:11am |
Here's how MA compared the secod refinery at Jamnagar to RPL shareholders,to give them a sense of the magnitude of his gigantic project.
"The civil concreting works at the site will consume cement equivalent to 35CN towers in Canada,the worlds tallest building.The structural steel eing used is enough to lay railway tracks from Kashmir to Kanyakumari.It uses 5200 km of pipes,equivalent to twice the length of the Ganga and the power and control cables of 11000 km is enough to go around the moon twice."
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RIL holds 75% in RPL..It makes sense to hold RIL rather than RPL..
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"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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basant
Admin Group
Joined: 01/Jan/2006
Location: India
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Posts: 18403
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Posted: 17/Jul/2007 at 11:28am |
Absolutely. RPL was listed to highlight the value of RIL's investment in RPL but RIL is a better bet compared to RPL.
While all this is fine stock prices do not move on the volume of material used in cosntructing industries. There is already a market cap sitting against all those cement and power and cables. Prices move on EPS/RoE and growth rates and that is what investors should bet on.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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CHINKI
Senior Member
Joined: 07/Feb/2007
Location: India
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Posts: 2827
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Posted: 24/Jul/2007 at 10:09pm |
THE OTHER SIDE OF SEZS
We don't want Reliance to colonise us, say farmers
MUNDHA KHERA, INDIA: It's a hot, humid Sunday morning in northern India, but the oppressive heat does not deter a group of about 15 farmers from trudging door-to-door, offering advice and sometimes warnings.
"Do not sell your precious land. Even if you are offered millions of dollars, do not sell. It is your only source of livelihood," Mahavir Gulia, the leader of the group, tells a villager in Mundha Khera, 100 kilometres (60 miles) from New Delhi.
FOR FURTHER DETAILS READ HERE: ET
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TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO
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CHINKI
Senior Member
Joined: 07/Feb/2007
Location: India
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Posts: 2827
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Posted: 24/Jul/2007 at 11:56pm |
Reliance Industries planning fertiliser plant, says report
This has always been the case with RIL. Very focussed, Long Term Vision, Agressive, & doesn't change their plans. Infact they change everybody else's plans.
Imagine one refinery at Jamnagar, solved LPG availability problems in this country once for all. Some of the PSUs plans for constructing refinery are yet to come out of the planning room even after 10 years.
Their venture into oil discovery with latest technologies should solve our requirement of crude oil within next few years. As of now, we import more than 75% of our requirement.
Inspite of flush with funds, ONGC couldn't do better because of Govt's inaction.
Now they are planning to venture into Fertilizers. This would be very good for our Agriculture and particularly for Farmers. 
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TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO
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Mohan
Senior Member
Joined: 09/Feb/2007
Location: United States
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Posts: 1855
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Posted: 24/Jul/2007 at 2:38am |
Originally posted by CHINKI
Reliance Industries planning fertiliser plant, says report
This has always been the case with RIL. Very focussed, Long Term Vision, Agressive, & doesn't change their plans. Infact they change everybody else's plans.
Now they are planning to venture into Fertilizers. This would be very good for our Agriculture and particularly for Farmers. |
Chinkiji,
This venture into fertilizers will also benefit retail as these same farmers will sell to Reliance Retail. Ek teer do nishane 
Backward Integration Relaince Ishtyle.
Also potential consolidation of Fertilizer industry. Future market leader Reliance Fertilizer ???
Edited by Mohan - 24/Jul/2007 at 2:42am
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Be fearful when others are greedy and be greedy when others are fearful.
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kulman
Senior Member
Joined: 02/Sep/2006
Location: India
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Posts: 9319
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Posted: 24/Jul/2007 at 7:51am |
Backward Integration Relaince Ishtyle.
Also potential consolidation of Fertilizer industry. Future market leader Reliance Fertilizer ???
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Hey bhagwan! Another tagline: "Mere papa ka sapna, har khet mein Urea apna!"
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Life can only be understood backwards—but it must be lived forwards
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