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Anil Ambani-led Reliance Capital initiated its drive to deepen the penetration of microfinance

at the grassroots level and has partnered with microfinance institutions (MFIs) in Gujarat and
Maharashtra.

Anil Ambani-led Reliance Capital initiated its drive to deepen the penetration of
microfinance at the grassroots level and has partnered with microfinance institutions
(MFIs) in Gujarat and Maharashtra. The company is joining hands with two Gujarat-
based microfinance institutions, MAS Financial Services and Vardan Trust, for the project.
Tina Ambani, wife of Anil Ambani, Chairman, Anil Dhirubhai Ambani Group, launched the
initiative by handing over the first two disbursement cheques, worth Rs.5 crore and Rs.40
lakh, to the new partner companies.
"Our vision is to provide access to finance at the grassroots level by partnering with MFIs
serving rural and semi-urban areas," Tina Ambani said.

Reliance Capital plans to fund MFIs in Gujarat and Maharashtra in the first phase and
subsequently establish national presence. Since Reliance has its base in Gujarat, the project
has been launched there and in Maharashtra initially as Tina Ambani elaborated.

A part of Reliance Consumer Finance, the initiative will have a startup corpus of Rs.100
crore and is expected to be ramped up further.

"This initiative is in line with the group's(Reliance Capital's) commitment to play a serious
role in bringing value to the lives of the underprivileged and the aged in India," Tina Ambani
said.

Reliance Capital's President, Amitabh Chaturvedi added to that, "The project is a part of the
group's expansion of services as well as of its corporate social responsibility."

K.V. Srinivasan, Deputy CEO, Consumer Finance, Reliance Capital, said, "The initiative
envisages lending to MFIs who would then be lending them to self help groups, individuals
and joint liability groups as per their norms."

Mukesh Gandhi, Director, MAS Financial Services, said that MFIs often find raising capital a
difficult proposition and has welcomed this new initiative.

"This unique partnership will help us in optimally utilizing our expertise in distribution of credit
to small enterprises for income generation activities, consumption and emergency needs,"
Mukesh Gandhi said.
MUMBAI: Reliance Capital, the financial services arm of Reliance ADA group, has

launched its microfinance initiative in partnership with two Gujarat


-based mcrofinance institutions (MFIs).

Reliance plans to fund MFIs in Gujarat and Maharashtra in the first phase and
subsequently have a national presence. The company is joining hands with two Gujarat-
based microfinance institutions — MAS Financial Services and Vardan Trust — for the
project.

The initiative, a part of Reliance Consumer Finance, will have an initial corpus of Rs 100
crore and is expected to be ramped up further.

Whether the project is a part of the group’s corporate social responsibility (CSR) or is
expected to contribute to the balance sheet, group president Amitabh Chaturvedi said it
would be a bit of both. He further explained that the initiative was launched in the two
states initially, only because the group already has a presence in them.

The project, aimed at enhancing penetration of microfinance in the country at the grass
roots level, was kicked off by handing over the first disbursement cheques. The two
cheques worth Rs 5 crore and Rs 40 lakh were handed over to the heads of two MFIs on
the occasion.

In the coming decade, the potential micro-finance client base in India is likely to be at
300 million to 400 million, according to a survey done by Sa-Dhan, the apex body of
micro-finance institutions in the country. It is exactly this space that Reliance ADA group
is looking to tap.

“We envisage lending to MFIs, which would then be on-lending finances to self help
groups, individuals and joint liability groups as per their norms,” Reliance consumer
finance’s deputy CEO KV Srinivasan told reporters at a press conference on Monday.

Reliance Capital Limited


Industry Structure and Developments:
The operations of Non Banking Financial Companies (NBFCs) are
regulated and supervised by the Reserve Bank of India vide powers
conferred under chapter III- B of Reserve Bank of India Act, 1934. The
regulatory and supervisory framework for NBFCs have been continuously
strengthened in order to ensure strong and healthy functioning, by limiting
excessive risk taking practices and protecting the interest of deposit
holders.
The NBFC sector in India has become very mature with reduced
dependence on the acceptance of public deposits as part of its overall
funding. The NBFC sector is now represented by a mix of a few large
companies with nationwide presence and a large number of small and
medium-sized companies with regional focus.
Opportunities:
With GDP growth forecasts of 7%-8% over the next few years, the
Indian economy will continue to provide several attractive growth
opportunities. The increased thrust on the infrastructure sector, including
power, roads, ports, telecom and other urban infrastructure projects, will
continue to provide excellent investment opportunities in the future.
In addition, the services sector, which is growing at rapid pace and
contributes substantially to GDP, will provide many new opportunities for
the financial services industry in India.
RCL sees huge growth opportunities in each of its existing business
areas, and will also be expanding the focus of activities to new areas,
arising from the strong growth momentum in the economy.
Challenges:
The NBFC sector continues to face competitive pressures from the
banking sector and financial institutions, due to their increased penetration
in the consumer financing market, with comparatively low cost of funds
at their disposal. The spreads in the lending business have also narrowed
considerably, bringing risk-adjusted margins to generally unviable levels.
RCL's strong financial position, reflected by its low debt equity ratio, and
adoption of prudent business strategies have enabled it to consistently
post satisfactory performance despite these difficult conditions.
Outlook:
The financial services sector is one of the key growth sectors of the
economy. Globally, 5 of the top 20 Fortune 500 companies are financial
services companies. Nearly 16% of total revenues and 28% of total
profits of all Fortune 500 companies are generated by the financial
services sector, the largest by any single sector.
RCL intends to actively pursue growth opportunities in the fast growing
financial services sector in the country, to become a full service financial
services company with activities encompassing, inter alia, asset
management and mutual funds, life and general insurance, stock broking,
private equity and proprietary investments, and other financial services.
Risks and Concerns:
RCL is exposed to specific risks that are particular to its businesses and
the environment within which it operates, including interest rate volatility,
economic cycle, market risk, and credit risk. RCL manages these risks
by maintaining a conservative financial profile and by following prudent
business and risk management practices.
Adequacy of Internal Control:
An extensive system of internal controls is practised by RCL to ensure
that all its assets are safeguarded and protected against loss from
unauthorized use or disposition and that all transactions are authorised,
recorded and reported correctly.
RCL ensures adherence to all internal control policies and procedures as
well as compliance with all regulatory guidelines.
The Audit Committee of Directors reviews the adequacy of internal
controls.
Human Resource Development :
RCL has a team of able and experienced professionals. The number of
employees as on March 31, 2006, stood at 140.
Subsidiaries:
During the year, Reliance Asset Management (Mauritius) Ltd. and
Reliance Asset Management (Singapore) Pte. Ltd. (subsidiaries of Reliance
Capital Asset Management Ltd.) have become subsidiaries of the
Company.
In terms of the approval granted by the Central Government under
section 212(8) of the Companies Act, 1956, a copy of the Balance Sheet,
Profit and Loss Account, Report of the Board of Directors and Auditors
of the Subsidiaries have not been attached with the Balance Sheet of the
Company. These documents will be made available upon request by any
member of the Company interested in obtaining the same. However, as
directed by the Central Government, the financial data of the subsidiaries
have been furnished under 'Details of Subsidiaries', which forms part of
the Annual Report. Further, pursuant to Accounting Standard AS-21
issued by the Institute of Chartered Accountants of India, Consolidated
Financial Statements presented by the Company include financial
information of its subsidiaries.

Social responsibility

(New Delhi, Jan 11) Reliance


Capital, a member of the Reliance - Anil Dhirubhai Ambani
Group, has joined hands with Norwest Venture Partners and TV18 Group to fund
an online travel services company, Yatra Online.

"The investors are also committed to support Yatra through its subsequent stages of
growth to make it the top travel services company in India," the company said in a
statement Wednesday.

Norwest Venture Partners (NVP) is Promod Haque's leading venture capital firm, while
Television 18 Group (TV18) is part of news broadcaster CNBC's bouquet of channels.

"We are thrilled to be funded by such strategic leaders such as Reliance Capital, Norwest
Venture Partners and TV18 Group who have backed our team's vision to make the travel
experience more affordable and enjoyable in India," said Dhruv Shringi, co-founder and
board member of Yatra.

Witnessing a tremendous boom in both business and family/leisure travel, the Indian
travel market is estimated to reach approximately $40 billion in 2006.

Aiming to capitalise on the travel boom, Yatra Online (www.yatra.in) will try to offer all
services including helping the travellers find, compare and select the best flight and hotel
packages and deals, and make reservations at the lowest cost.

To be operational in the first half of this year, Yatra's multi-language customer service
centre will cater to the needs of both business and family/leisure travellers.

Press Releases
Feb 15, 2007

Reliance Capital Now a Principal Agent of Western Union in India

ENGLEWOOD, Colo., Feb 15, 2007 (BUSINESS WIRE) -- The Western Union Company (NYSE: WU), a leading
provider of global money transfer services, today announced that Reliance Capital Ltd, the Anil Dhirubhai Ambani
Group financial services firm, is now one of Western Union's principal agents in India.

This relationship has come into effect after Reliance Capital acquired a 100 percent stake in Kuoni Group's foreign
exchange unit Travelmate Services (India) Pvt Ltd in November 2006. Travelmate has been Western Union's
principal agent for more than 10 years.

The 36,000 strong Western Union Agent location network comprises more than 3,000 Travelmate locations.

Anil Kapur, Managing Director-South Asia, Western Union Financial Services, said, "Western Union's association
with Reliance Capital, one of the leading business groups of India, is a very significant benchmark for us at
Western Union. We are looking forward to a mutually beneficial and long-term relationship with Reliance Capital by
reaching out to many customers who depend on the Western Union network to receive money sent to them from
their loved ones abroad."

According to The World Bank's Global Economic Prospects report - 2006, India is the world's largest receiver of
remittances, with 23.4 billion US dollars being remitted into India.
Reliance Capital is one of India's leading and fastest-growing private-sector financial services companies, and
ranks among the top three private-sector financial services and banking companies in terms of net worth. Reliance
Capital has interests in asset management and mutual funds, life and general insurance, private equity and
proprietary investments, stock broking and other activities in financial services.

About Western Union

Western Union, together with its affiliates Orlandi Valuta and Vigo, are leading providers of global money transfer,
providing people with fast, reliable and convenient ways to send money around the world, pay bills and purchase
money orders through a network of approximately 300,000 Agent locations in over 200 countries and territories.
For more information, visit

About Reliance Capital

Reliance Capital Ltd is a part of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of India's
leading and fastest-growing private-sector financial services companies, and ranks among the top three private-
sector financial services and banking companies in terms of net worth. Reliance Capital has interests in asset
management and mutual funds, life and general insurance, private equity and proprietary investments, stock
broking and other activities in financial services.

WU-G

SOURCE: Western Union

Reliance Capital group to buy Adlabs in Rs 360 crore deal

20% open offer to follow; stock price surges 20%

CORPORATE BUREAU
Posted online: Friday, July 01, 2005 at 0009 hours IST

MUMBAI, JUNE 30: Reliance Land Pvt Ltd, a part of the Anil Ambani-led Reliance Capital
group, on Thursday said it planned to acquire 51% equity in Adlabs Films Ltd for around Rs
360 crore.

Reliance Land will first invest about Rs 250 crore in Adlabs through a preferential offer. The
deal is subject to Sebi’s takeover regulations, and shareholder and other requisite approvals.
The acquisition price is Rs 183 per share.

Rs 100 crore more would be pumped in to buy the stake of Vasanji A Mamania, one of the two
promoters of the company. Reliance Land will then make an open offer for a further 20% of
the company, which if fully subscribed will entail an investment of another Rs 150 crore. Ambit
Finance will be the lead manager for the open offer. Reliance Capital already holds 5.84% in
Adlabs.

The Adlabs acquisition by the Reliance Capital group, which now comes under the newly
carved out Anil Dhirubhai Ambani Enterprises after the settlement between the Ambani
brothers, is the first major acquisition by the group. The group sources said more such
acquisitions are being planned.

The Adlabs stock was locked at the 20% upper circuit on both the exchanges on Thursday. On
the Bombay Stock Exchange, the stock ended the day at Rs 240.6, up Rs 40.10. Over 16 lakh
shares changed hands on the BSE, while onNSE, the stock ended 20% higher to end at Rs
241.50.