As the feud between the Ambani brothers seems to be reaching an initial point of settlement, it gets clearer Anil Ambani would get Reliance Infocomm, Reliance Energy and Reliance Capital besides a cash component of at least US$1 billion. Mukesh Ambani would keep Reliance Industries along with IPCL.
RIL posted a turnover of Rs 73,164 crore in 2004-05. Reliance Infocomm has earned a maiden profit of Rs 51 crore on total revenue of Rs 5,387 crore in 2004-05.
It has been suggested that the Reliance Infocomm, the telecom arm that has been critical to the family split, may match the flagship company, Reliance Industries Ltd, in turnover as well as net profits over the next four years. Infocomm is projected to post a revenue of over Rs 86,000 crore by the year 2009. The net profit of Reliance Infocomm is likely to grow on an even keel, several hundred times a year due to:
· Higher revenue streams coming from the assets and tax benefits available to similar telecom service providers.
· The company's ability to provide a spectrum of all imaginable telecom services, IT-enabled information services and entertainment services to institutions as well as home segment besides making mobile communications available to the masses.
· Its integrated infrastructure as well as multi-pronged initiatives to develop content for delivery on mobile, landline, broadband Internet and digital television
· Its ability to reap the benefits of convergence of technologies and services on Information Communication & Entertainment (ICE) platform.
· Reliance Infocomm is targeting a subscriber base of 100 million by 2008, up from the existing 10 million, which would make it one among the top three telecom service providers in the world along with China Telecom and China Unicom.
Will Infocomm overshadow RIL in 5-7 seven years in much the same way as refining has overshadowed petrochemicals within RIL? However, it is worth noting that initially Reliance Infocomm was earlier hyped as the elder brother's dream project, which by many observers also seems to be the initial major cause of spilt between the brothers.
08-Jun-05 
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