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Company Snapshot
Company Snapshot
Reference Code : A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7 Reliance Communications Limited H Block 1st Floor Dhirubhai Ambani Knowledge City Navi Mumbai 400 710 India Fax: 91 22 3037 6622 Phone: 91 22 3037 3333 Website: www.rcom.co.in Industry: Communications Publication Date: June 2011 Revenues (US$m) : 4,367 Net profit (US$m): 982 Employees: 30,974 Primary Stock Exchange (Ticker): Mumbai Stock Exchange (532712 )
Overview
Reliance Communications (RCOM or "the company") is an integrated communications service provider in India. The company is part of the Reliance Anil Dhirubhai Ambani Group. RCOM serves consumer, enterprise and carrier customers. It operates a full spectrum of wireless, wireline, and long distance, voice, data, video and internet communication services. It also offers direct-to-home (DTH) TV services under the brand, Big TV. The company also participates in submarine cable network infrastructure, and owns, operates and develops telecom infrastructure, such as wireless communications sites and towers. The company primarily operates in India, where it is headquartered in Mumbai and employs 30,974 people. The company recorded revenues of INR206,850.5 million ($4,366.6 million) during the financial year ended March 2010 (FY2010), a decrease of 0.3% over 2009. The operating profit of the company was INR34,380.7 million ($725.8 million) in FY2010, a decrease of 32.9% over 2009. Its net profit was INR46,550 million ($982.7 million) in FY2010, a decrease of 23% over 2009.
SWOT
Strengths Well integrated operations Strong brand recognition Significant operations of Reliance Globalcom and Reliance Communications Infrastructure Weaknesses Decreasing ARPU Concentrated geographic operations Significant debt
Key Employees
Employee Name Hasit Shukla Job Title President, Company Secretary and Manager Board Senior Management
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Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
Company Snapshot
Financial Overview
Reliance Communications Limited: Revenue to Net Income (2007-2010) Reliance Communications Limited: Profitability Ratios (2007-2010)
Recent Developments
Date Feb 22, 2011 Jan 18, 2011 Headline Reliance selects Ericsson's eStore platform Reliance Globalcom deploys Ciena for 40G optical networking solution Reliance Globalcom signs five-year contract with Attijariwafa bank Reliance Communications and Verizon Wireless sign distribution agreement Category Sourcing Sourcing
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Table of Contents
Table of Contents
Company Snapshot __________________________________________________________________ 2 Table of Contents ____________________________________________________________________ 4 Reliance Communications Limited: Company Overview ____________________________________ 8 Reliance Communications Limited: Overview and Key Facts ____________________________ 8 Reliance Communications Limited: Overview __________________________________________ 8 Reliance Communications Limited: Key Facts __________________________________________ 8 Reliance Communications Limited: Key Employees __________________________________ 10 Reliance Communications Limited: Key Employee Biographies ________________________ 11 Reliance Communications Limited: Major Products and Services _______________________ 13 Reliance Communications Limited: Company History _________________________________ 15 Reliance Communications Limited: Management Statement ___________________________ 17 Reliance Communications Limited: Locations and Subsidiaries ________________________ 20 Reliance Communications Limited: Key Competitors _________________________________ 22 Reliance Communications Limited: Company Analysis ___________________________________ 23 Reliance Communications Limited: Business Description _____________________________ 23 Reliance Communications Limited: SWOT Analysis __________________________________ 25 Reliance Communications Limited: SWOT Overview ___________________________________ 25 Reliance Communications Limited: Strengths _________________________________________ 25 Reliance Communications Limited: Weaknesses ______________________________________ 27 Reliance Communications Limited: Opportunities ______________________________________ 28 Reliance Communications Limited: Threats ___________________________________________ 29 Reliance Communications Limited: Financial Analysis ________________________________ 31 Reliance Communications Limited: Financial Overview __________________________________ 31 Reliance Communications Limited: Five Year Company Financials ________________________ 32 Reliance Communications Limited: Key Income Statement Data __________________________ 32 Reliance Communications Limited: Key Balance Sheet Data _____________________________ 33 Reliance Communications Limited: Key Cash Flow Data ________________________________ 34 Reliance Communications Limited: Key Market Data ___________________________________ 35 Reliance Communications Limited: Corporate Financial Deals Activity ______________________ 37 Reliance Communications Limited: Financial Deals Overview __________________________ 37 Reliance Communications Limited: Targets and Partners ______________________________ 39 Reliance Communications Limited: Top Deals 2007 -YTD*2011 _________________________ 40
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Table of Contents
Reliance Communications Limited: Advisors ________________________________________ 41 Reliance Communications Limited: Top Legal Advisors _________________________________ 41 Reliance Communications Limited: Top Financial Advisors _______________________________ 41 Reliance Communications Limited: Mergers and Acquisitions__________________________ 43 Reliance Communications Limited: Partnership ______________________________________ 44 Reliance Communications Limited: Divestments _____________________________________ 45 Reliance Communications Limited: Private Equity and Ownership ______________________ 46 Reliance Communications Limited: Recent Developments_________________________________ 47 Reliance Communications Limited: News and Events Summary ________________________ 47 Reliance Communications Limited: Contracts _______________________________________ 48 Reliance Communications Limited: Financial Performance ____________________________ 49 Reliance Communications Limited: IT Spending Announcements _______________________ 49 Appendix __________________________________________________________________________ 50 Contact Us ____________________________________________________________________ 50 Methodology ___________________________________________________________________ 50 Definitions _____________________________________________________________________ 51 About Datamonitor ______________________________________________________________ 55
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Table of Contents
List of Tables
Table 1: Reliance Communications Limited: Key Facts _________________________________________________ 8 Table 2: Reliance Communications Limited: Key Employees____________________________________________ 10 Table 3: Reliance Communications Limited: Locations and Subsidiaries _________________________________ 20 Table 4: Reliance Communications Limited: Key Competitors __________________________________________ 22 Table 5: Reliance Communications Limited: Deal Activity by Deal Type - Volume (TTM) _____________________ 37 Table 6: Reliance Communications Limited: M&A Activity by Geography (TTM) ____________________________ 37 Table 7: Reliance Communications Limited: Deal Activity by Deal Type - Volume (2007 - YTD*2011) ___________ 38 Table 8: Reliance Communications Limited: M&A Average Deal Size - Value (US$m) _______________________ 38 Table 9: Reliance Communications Limited: Targets and Partners _______________________________________ 39 Table 10: Reliance Communications Limited: Top Deals 2007 -YTD*2011 _________________________________ 40 Table 11: Reliance Communications Limited: Legal Advisor Ranking by Value (US$m)______________________ 41 Table 12: Reliance Communications Limited: Financial Advisor Ranking by Value (US$m) __________________ 41 Table 13: Reliance Communications Limited: M&A Volume and Value Trend (2007 - YTD*2011) ______________ 43 Table 14: Reliance Communications Limited: M&A Activity by Geography (2007 - YTD*2011) ________________ 43 Table 15: Reliance Communications Limited: Partnership Volume and Value Trend (2007 - YTD*2011)_________ 44 Table 16: Reliance Communications Limited: Partnership Trend by Deal Type (2007 - YTD*2011) _____________ 44 Table 17: Reliance Communications Limited: Divestments Volume and Value Trend (2007 - YTD*2011) ________ 45 Table 18: Reliance Communications Limited: Divestments by Geography (2007 - YTD*2011) _________________ 45 Table 19: Reliance Communications Limited: Private Equity and Ownership Volume and Value Trend (2007 - YTD*2011) _______________________________________________________________________________________________ 46 Table 20: Reliance Communications Limited: Private Equity and Ownership Volume by Deal Type (2007 - YTD*2011) 46 Table 21: Reliance Communications Limited: News and Events Summary ________________________________ 47 Table 22: Reliance Communications Limited: Contracts _______________________________________________ 48 Table 23: Reliance Communications Limited: Financial Performance ____________________________________ 49 Table 24: Reliance Communications Limited: IT Spending Announcements _______________________________ 49
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Table of Contents
List of Figures
Figure 1: Reliance Communications Limited: Revenue to Net Income (2007-2010) __________________________ 32 Figure 2: Reliance Communications Limited: Revenue/Employee to Net Income/Employee (2007-2010) ________ 32 Figure 3: Reliance Communications Limited: Current Assets to Current Liabilities (2007-2010) _______________ 33 Figure 4: Reliance Communications Limited: Assets, Liabilities to Total Equity (2007-2010) _________________ 33 Figure 5: Reliance Communications Limited: Free Cash Flow to Cash from Operating Activities (2007-2010) ___ 34 Figure 6: Reliance Communications Limited: Net Change in Cash (2007-2010) _____________________________ 34 Figure 7: Reliance Communications Limited: Market Capitalization to Year-end Share Price (2007-2010) _______ 35 Figure 8: Reliance Communications Limited: Enterprise Value (2007-2010) _______________________________ 35 Figure 9: Reliance Communications Limited: Deal Activity by Deal Type - Volume (TTM) ____________________ 37 Figure 10: Reliance Communications Limited: M&A Activity by Geography (TTM) __________________________ 37 Figure 11: Reliance Communications Limited: Deal Activity by Deal Type - Volume (2007 - YTD*2011) _________ 38 Figure 12: Reliance Communications Limited: M&A Average Deal Size - Value (US$m) ______________________ 38 Figure 13: Reliance Communications Limited: M&A Volume and Value Trend (2007 - YTD*2011) ______________ 43 Figure 14: Reliance Communications Limited: M&A Activity by Geography (2007 - YTD*2011) ________________ 43 Figure 15: Reliance Communications Limited: Partnership Volume and Value Trend (2007 - YTD*2011) ________ 44 Figure 16: Reliance Communications Limited: Partnership Trend by Deal Type (2007 - YTD*2011) ____________ 44 Figure 17: Reliance Communications Limited: Divestments Volume and Value Trend (2007 - YTD*2011) _______ 45 Figure 18: Reliance Communications Limited: Divestments by Geography (2007 - YTD*2011) ________________ 45 Figure 19: Reliance Communications Limited: Private Equity and Ownership Volume and Value Trend (2007 - YTD*2011) Figure 20: Reliance Communications Limited: Private Equity and Ownership Volume by Deal Type (2007 - YTD*2011)46 46
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Table 1: Reliance Communications Limited: Key Facts Corporate Address: H Block 1st Floor Dhirubhai Ambani Knowledge City Navi Mumbai 400 710 Country: Fax: Phone: Web Address: Turnover (US$m): Employees: Financial Year End: Industry: India 91 22 3037 6622 91 22 3037 3333 www.rcom.co.in 4,367 30,974 March Communications
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Job Title President, Company Secretary and Manager Director Chairman Director Director Director
Board Senior Management Non Executive Board Non Executive Board Non Executive Board Non Executive Board Non Executive Board
Age 47 64 51 61 53 71
DATAMONITOR
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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A. K. Purwar Mr. Purwar is a Director at RCOM. He was the former Chairman and Managing Director at State Bank of India (SBI). Mr. Purwar also served as the Managing Director at State Bank of Patiala. He is a Director at Vardhman Textiles, Jindal Steel and Power, Jindal Power, India Infoline Investment Services, Deccan Infrastructure and Land Holdings, Apollo Tyres, Engineers India, IL&FS Renewable Energy and India Infoline. Mr. Purwar has been associated with a number of prestigious academic institutions, committees set up by various State and Central Governments and international institutions. Board: Non Executive Board Job Title: Director Age: 64
Anil D. Ambani Mr. Ambani is the Chairman at RCOM. He is also the Chairman at Reliance Capital, Reliance Infrastructure, Reliance Natural Resources and Reliance Power. Mr. Ambani also serves on the Board at Reliance Infratel and Reliance Anil Dhirubhai Ambani Group. He is the President at Dhirubhai Ambani Institute of Information and Communication Technology, Gandhinagar, Gujarat. Mr. Ambani has been associated with a number of prestigious academic institutions in India and abroad. He is currently a Member at Wharton Board of Overseers, The Wharton School; Board of Governors, Indian Institute of Management, Ahmedabad; and Executive Board, Indian School of Business, Hyderabad. Board: Non Executive Board Job Title: Chairman Age: 51
Deepak Shourie Mr. Shourie is a Director at RCOM. He has more than 39 years' exposure with an emphasis on media, consumer goods, and corporate affairs. Mr. Shourie was the Executive Vice President and Managing Director at Discovery Communications of India.
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J. Ramachandran Mr. Ramachandran is a Director at RCOM. He is the Chair Professor of Business Policy at the Indian Institute of Management, Bangalore. Mr. Ramachandran is a qualified Chartered Accountant and Cost Accountant. He is also a Director at Reliance Communications Infrastructure, Sasken Communication Technologies, Redington (India), Bhoruka Power, Indofil Organic Industries, Tejas Networks and Infotech Enterprises. Board: Non Executive Board Job Title: Director Age: 53
S. P. Talwar Mr. Talwar is a Director at RCOM. He was a former Deputy Governor at Reserve Bank of India. Mr. Talwar also served as the Chairman-cum-Managing Director at Bank of Baroda, Union Bank of India and Oriental Bank of Commerce. He has vast experience in financial services sector in India. Mr. Talwar is also a Director at Crompton Greaves, Reliance Communications Infrastructure, Reliance General Insurance, Reliance Infratel, Videocon Industries, Reliance Life Insurance, AB Hotels, Housing Development and Infrastructure, Kalpataru Power Transmission, Uttam Galva Steels and GTL Infrastructure. Board: Non Executive Board Job Title: Director Age: 71
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Consumer: Mobile (CDMA and GSM) Calling cards Wireless phone Wireless terminal BlackBerry Roaming Landline phone Fixed wireless phone Handsets Wireless broadband Virtual calling cards Direct-to-home TV IPTV 3G services Global calling Business services: Voice solutions Office centrex E1-DID OneOffice duo Audio conferencing Toll free services ITFS Data solutions Internet Business broadband internet Leased line Ethernet leased lines IPLC VPN SSL VPN WDVPN Video conferencing Internet data center: DC build and maintain Colocation services Managed hosting services IT infrastructure services
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Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Reliance Globalcom - UAE Masaood Tower 7th Floor Al Maktoum Street Dubai United Arab Emirates 971 4 227 1880 971 4 223 8275
Reliance Globalcom - UK Units 1 & 2 Great West Plaza Riverbank Way Brentford Middlesex TW8 9RE United Kingdom 44 208 636 1700 44 208 636 1701
Reliance Globalcom - Egypt Nile City Towers North Tower 23rd Floor Cornish El Nil Cairo Egypt 202 2461 8590 202 2461 8501
Reliance Globalcom - France Tour Ariane 5 place de la Pyramide La Defense 9 92088 Paris La Defense France 33 1 46 96 54 00 33 1 46 96 54 01
Reliance Globalcom - Germany Triforum Haus A1 Frankfurter Strasse 233 63263 Neu-Isenburg Germany 49 6102 785555 49 6102 785556
Reliance Globalcom - Hong Kong Suite 3901-02 39/F Lippo Centre Tower Two 89 Queensway Hong Kong Special Administrative Region of China 852 2848 0077 852 2848 0081
Reliance Globalcom - Italy Torre Tonda P.zza Don Mapelli, 1 20099 Sesto San Giovanni Milano Italy 39 02 2412191 39 02 2409422
Reliance Globalcom - Argentina Edificio Laminar Plaza Ing Butty 240 4 Piso C1001AFB Capital Federal
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
Reliance Globalcom - Australia Suite 102 Level 1 201 Elizabeth Street Sydney
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Reliance Globalcom - Brazil Avenida Paulista 2300 - andar Pilotis Cerqueira Cesar Sao Paulo Brazil 55 11 2847 4700 55 11 2847 4550
Reliance Globalcom - China 1208, Tower C1 Oriental Plaza 1 East Chang An Ave Dongcheng District Beijing 100738 China 86 10 8515 1188 86 10 8515 0837
Reliance Globalcom - Japan Sawada Kojimachi Bldg. 5F 1-10 Kojimachi Chiyoda-ku Tokyo 102-0083 Japan 81 3 3511 5760 81 3 3511 5757
Reliance Globalcom - Netherlands Boeing Avenue 1-3 1119 PC Schiphol-Rijk Netherlands 31 20 316 5250 31 20 316 5255
Reliance Globalcom - New York 600 3rd Avenue 7th Floor New York New York 10016 United States 1 212 891 5980 1 212 750 0225
Reliance Globalcom - Singapore No. 4 Shenton Way 07-05/06 SGX Centre 2 Singapore 068807 Singapore 65 6281 1181 65 6533 3343
Reliance Globalcom - South Korea Suite 2303 23/F City Air Tower 159-9, Samsung-Dong, Kangnam-Ku Seoul 135-973 Republic of Korea 82 2 60003400 82 2 60003410
SOURCE: DATAMONITOR
DATAMONITOR
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Strengths Well integrated operations Strong brand recognition Significant operations of Reliance Globalcom and Reliance Communications Infrastructure
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Figure 5: Reliance Communications Limited: Free Cash Flow to Cash from Operating Activities (20072010)
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Figure 7: Reliance Communications Limited: Market Capitalization to Year-end Share Price (2007-2010)
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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SOURCE: DATAMONITOR
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Table 5: Reliance Communications Limited: Deal Activity by Deal Type - Volume (TTM) Deal Type Acquisition Partnership Corporate Venturing Capital Raising Divestments Private Equity
SOURCE: DATAMONITOR
Table 6: Reliance Communications Limited: M&A Activity by Geography (TTM) Geography Asia-Pacific Europe Middle East and Africa North America South and Central America
SOURCE: DATAMONITOR
Deal Volume 1 1 -
DATAMONITOR
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Figure 11: Reliance Communications Limited: Deal Activity by Deal Type - Volume (2007 - YTD*2011)
Figure 12: Reliance Communications Limited: M&A Average Deal Size - Value (US$m)
SOURCE: DATAMONITOR
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SOURCE: DATAMONITOR
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Table 7: Reliance Communications Limited: Deal Activity by Deal Type - Volume (2007 - YTD*2011) Deal Type ACQ CR CV DIV Pship PE Total 2007 1 2 3 2008 3 3 1 7 2009 1 1 2010 1 2 1 4 2011 -
Table 8: Reliance Communications Limited: M&A Average Deal Size - Value (US$m) Year 2007 Deal Volume 1 3 1 Average Deal Size (US$m) 300 25.3 DATAMONITOR
SOURCE: DATAMONITOR
DATAMONITOR
*ACQ = Acquisition; CR = Capital Raising; CV = Corporate Venturing; DIV = Divestment; Pship = Partnership; PE =Private Equity & Ownership
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Deal Headline
Deal Type
Deal Date
Reliance Communications to form business alliance with Nokia India Reliance Communications to acquire Digicable
Partnership
Acquisition
Partnership
Partnership
Reliance Communications and MTN Group mutually end talks for business combination Reliance Globalcom to acquire Vanco Reliance Communications forms joint venture with Alcatel-Lucent Reliance Globalcom acquires eWave World
Acquisition
Jul 18, 2008 May 26, 2008 May 12, 2008 Apr 24, 2008 Apr 07, 2008 Feb 21, 2008 Dec 16, 2007 Nov 16, 2007
Acquisition
76
Partnership
Acquisition
Reliance Communications forms joint venture with Electroteks Reliance Communications acquires Anupam Global Soft (U) Reliance Communications acquires Yipes Holdings Airtel, Reliance and Tata lose bid to acquire 51% stake in Telkom Kenya
Partnership
Acquisition
Acquisition
300
Acquisition
DATAMONITOR
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Deal Headline GTL Infrastructure withdraws acquisition of tower assets from Reliance Infratel Securities and Exchange Board of India approves Reliance Infratel IPO Reliance Globalcom to acquire Vanco Life Insurance Corporation increases stake from 4.99% to 5.01% in Reliance Communications Reliance Communications acquires Yipes Holdings Reliance Communications may sell further stake in Reliance Telecom Infrastructure (RTIL) Reliance Communications sells 5% stake in Reliance Telecom Infrastructure
Deal Date
Deal Status
Deal Type
31 Aug 2010
Terminated
Acquisition
11,000
24 Sep 2009
Announced
IPO
1,023
26 May 2008
Announced
Acquisition
76
13 Mar 2008
Completed
Acquisition
16 Dec 2007
Completed
Acquisition
300
08 Aug 2007
Announced
Acquisition
1,736
08 Aug 2007
Completed
Private Equity
338
SOURCE:DATAMONITOR
DATAMONITOR
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Table 11: Reliance Communications Limited: Legal Advisor Ranking by Value (US$m) Company Name Amarchand & Mangaldas & Suresh A. Shroff & Co.
SOURCE:DATAMONITOR
Deal Volume 2
Table 12: Reliance Communications Limited: Financial Advisor Ranking by Value (US$m) Company Name JP Morgan Chase & Co Deutsche Equities India Private Limited Enam Securities Private Limited HSBC Securities and Capital Markets (India) Private Limited ICICI Securities Limited J.P. Morgan India Private Limited JM Financial Consultants Private Limited (formerly JM Morgan Stanley Private, Ltd.) Macquarie Capital Advisers (India) Private Limited UBS Securities India Private Limited Macquarie India Advisory Services Private Limited SBI Capital Markets Limited Kotak Mahindra Capital Company Limited Lehman Brothers Securities Private Limited Deal Volume 1 2 2 2 2 2 Deal Value (US$m) 338 128 128 128 128 128
128
1 2 1 1 1
128 128 -
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SOURCE: DATAMONITOR
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SOURCE: DATAMONITOR
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Table 13: Reliance Communications Limited: M&A Volume and Value Trend (2007 - YTD*2011) Year 2007 2008 2009 2010 2011
SOURCE: DATAMONITOR
Table 14: Reliance Communications Limited: M&A Activity by Geography (2007 - YTD*2011) Geography Asia-Pacific Europe Middle East and Africa North America South and Central America
SOURCE: DATAMONITOR
Deal Volume 1 3 1 -
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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SOURCE: DATAMONITOR
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Table 15: Reliance Communications Limited: Partnership Volume and Value Trend (2007 YTD*2011) Year 2007 2008 2009 2010 2011
SOURCE: DATAMONITOR
Table 16: Reliance Communications Limited: Partnership Trend by Deal Type (2007 - YTD*2011) Deal Type Commercialization Joint Venture
SOURCE: DATAMONITOR
Deal Volume 3 2 -
Deal Volume 3 2
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Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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SOURCE: DATAMONITOR
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Table 17: Reliance Communications Limited: Divestments Volume and Value Trend (2007 YTD*2011) Year 2007 2008 2009 2010 2011
SOURCE: DATAMONITOR
Table 18: Reliance Communications Limited: Divestments by Geography (2007 - YTD*2011) Geography Asia-Pacific Europe Middle East and Africa North America South and Central America
SOURCE: DATAMONITOR
Deal Volume 2 -
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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SOURCE: DATAMONITOR
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Table 19: Reliance Communications Limited: Private Equity and Ownership Volume and Value Trend (2007 YTD*2011) Year 2007 2008 2009 2010 2011
SOURCE: DATAMONITOR
Table 20: Reliance Communications Limited: Private Equity and Ownership Volume by Deal Type (2007 YTD*2011) Deal Type Acquisition Private Equity
SOURCE: DATAMONITOR
Deal Volume 1 1 -
Deal Volume 1 1
DATAMONITOR
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Supply contracts
Aug 3, 2009
Financial
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Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
Performance Reliance Communications has reported a net profit of INR16.37 billion, for the first quarter ended June 30, 2009, up 8.3% compared to INR15.12 billion for the same quarter ended June 30, 2008.
SOURCE: DATAMONITOR DATAMONITOR
Category
Sourcing
Sourcing
Supply contracts
Sourcing
Supply contracts
Communications and a provider of managed network and communication services, has announced the launch of Clearview International's Texas Fiber Web, a fiber-connected network of Clearview's information technology gateways.
SOURCE: DATAMONITOR DATAMONITOR
SOURCE: DATAMONITOR
DATAMONITOR
SOURCE: DATAMONITOR
DATAMONITOR
*YTD The period beginning January 1st of the current year up until today's date.
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Appendix
Appendix
Contact Us
We hope that the data and analysis in this brief will help you make informed and imaginative business decisions. If you have further requirements feedback please contact us at: cpqueries@datamonitor.com For further information on Datamonitor and our range of business information services please visit www.datamonitor.com
Methodology
Datamonitor company reports are prepared under an established and tested methodology which ensures proper checks and controls to capture and validate the quality and accuracy of data. The information is primarily sourced through: Company Annual Reports Company Analyst Relations Company websites SEC filings (10-K, 20-F, 10-Q etc) Media releases Investors presentations Datamonitor proprietary databases
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Definitions
Parameters Income Statement Total Revenues Total revenues generated by the company from its business activities such as sale of goods, rendering of services etc during the financial year. COGS include cost of material, labor expenses, and all other direct expenses. Where the company generates revenue by way of sale of goods and rendering services then COGS includes cost of goods sold plus cost of services. Gross Profit is the difference between revenue and COGS. It refers to the profit made by the company before deducting SG&A expense and other operating expenses. Operating expenses includes all operating expenses (other than COGS) like Selling, General and Administration, Research & Development and other operating expenses. Operating income refers to the profit made by the company during the financial year from its core activities. Certain adjustments like restructuring expenses, impairment of assets were made to the operating profit reported by the company for comparability purpose. Due to these adjustments operating profit may differ from the figures reported by the company. Net Income is the profit made by the company during the financial year both from its operating as well as non operating activities. Net income is adjusted for minority interests share of profit. Definitions
Gross Profit
Operating Expenses
Operating Income
All assets of the company which are realizable with in one year from the Balance sheet date. Total Current assets is the sum of accounts receivable, inventory, cash & bank balance and other current assets. Total assets include both current and non-current assets of the company. It includes tangible assets, intangible assets, investments, current assets and any other asset. All liabilities payable by the company within a period of one year from the balance sheet date. It includes accounts payable, short term debt and other current liabilities. Short term debt includes short term debt and current portion of long term debt. Total liabilities include current liabilities and long term liabilities of the company. Long term liabilities include minority interest, long term debt and other long term liabilities. Total Shareholders Equity refers to the total equity attributable to the shareholders of the company. It includes share capital, additional share capital, retained earnings, comprehensive income/loss and treasury stock.
Total Assets
Total Liabilities
Cash Flow Cash from Operating Cash generated from operating activities of the company.
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Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Activities
Operating activities are the principal revenue-producing activities of the company. Cash generated from investing activities of the company. Investing activities are the acquisition and disposal of long term assets and other investments. Cash generated from financing activities of the company. Financing activities are activities that result in change in share capital and borrowings of a company. Closing cash balance refers to the closing cash balance as reported by the company in its Cash Flow statement. This is arrived at by adjusting opening cash balance and effect of foreign exchange to the net change in cash during the year.Net change in cash is the sum of cash generated from operating activities, investing activities and financing activities. Free Cash Flows is arrived at by deducting Capital expenditure from Cash generated from operating activities
Total Common shares outstanding refer to the shares outstanding as on Balance sheet date. It is calculated by adjusting treasury stock to common stock of the company as on Balance Sheet. Where there are different classes of shares with different par values, equivalent shares are calculated. Year-end Share Price is the closing share price of the company as on the Balance sheet date. Market Capitalization is arrived at by multiplying share price with total shares outstanding Enterprise value is the sum of Market Capitalization, Minority Interest, Preferential stock and Net Debt. Net debt is arrived at by deducting cash reserves from total debt of the company. Number of Employees indicates the total full time employees of the company as on the Balance sheet date as reported by the company.
Enterprise Value
P/E ratio indicates the number of times the EPS is valued in relation to price per share of the company. P/E Ratio is arrived at by dividing Year end closing share price by Earnings per Share. EPS refers to Earnings per share of the company during the financial year. Earnings per share is computed by dividing net income available to equity share holders by total shares outstanding as on balance sheet date. EV/EBITDA is computed by dividing Enterprise Value by EBITDA. EBITDA refers to Earnings before Interest, Tax, Depreciation and Amortization. EBITDA, and is arrived at by adding Depreciation & Amortization to the operating profit of the company (EBIT). EV/Sale is computed by dividing Enterprise Value by Sales.
EV/EBITDA
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Gross margin is gross profit upon sales. Operating margin is operating profit upon sales. Operating margin indicates the margins generated by the company from its core activities. Net Income Margin is net income upon sales. It reflects the overall margins made by the company during a financial year. Higher net income margins as compared to the industry averages, competitors and previous financial years is a good indicator of the companys profitability.
Management Efficiency Ratio Return on equity refers to the return generated by the company during a financial year over its average shareholders equity. Average shareholders equity is the average of opening and closing equity. Minority interest doesnt form part of shareholders equity Return on Capital Employed is computed by dividing Operating profit by capital employed by the company. Capital Employed is calculated by deducting total current liabilities from total assets of the company. Return on Assets is arrived at by dividing net income by average total assets of the company. An average total asset is the average of opening assets balance and closing assets balance.
Return on Equity
Quick ratio is calculated by dividing quick assets by current liabilities. Quick assets include all current assets except inventory which is considered less liquid. Interest coverage ratio reflects the number of times companys operating profit covers its interest expense. The higher the interest coverage ratio the better it is to the company. It is calculated by dividing Earnings Before Interest and Tax (EBIT) by interest expense of the company. Debt to Equity ratio is calculated by dividing total debt by shareholders equity
Assets turnover ratio is calculated by dividing revenues with average assets of the company. Average Assets is the average of total opening assets and closing assets. Receivable turnover ratio is computed by dividing revenues by average accounts receivable. Average accounts receivable are the average of opening and closing accounts receivable. The inventory turnover ratio measures how fast the stock is moving. Revenue generated per employee is arrived at by dividing net income by number of employees Net income per employee is calculated by dividing net income by number of employees
Inventory Turnover Ratio Revenue per Employee Net income per Employee Other
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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Capex to Revenues
Capex to Revenues is calculated by dividing Capital expenditure by revenues of a company during a financial year. Capex includes purchase of both tangible and intangible assets by the company during a financial year. Disposal of tangible and intangible assets is not considered. Acquisitions made by the company during the financial year dont form part of Capex.
DATAMONITOR
Capex
SOURCE: DATAMONITOR
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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About Datamonitor
The Datamonitor Group is an independent, premium business information and market analysis company that assists clients with operational and strategic decision-making. As a world-leading provider of premium global business information, Datamonitor delivers independent data, analysis and opinion across the Automotive, Consumer Packaged Goods, Energy & Sustainability, Financial Services, Logistics & Express, Pharmaceutical & Healthcare, Retail, Sourcing, Technology and Telecoms industries. We combine our industry knowledge and experience to assist over 6000 of the worlds leading companies in making better strategic and operational decisions Delivered online via our user-friendly web platforms, our market intelligence products and services ensure that you will achieve your desired commercial goals by giving you the insight you need to best respond to your competitive environment. The Datamonitor Groups research and analysis products are compiled by an extensive global network of researchers, in-house analysts and industry specialists. We collect our own data through an extensive global network using audited methodologies. We monitor more than 75,000 business including company websites, key business publications and stock market sites round-the-clock to provide you with powerful business insights and real time updates. This is further supported and substantiated by our global primary research team engaged in producing original analysis covering key verticals. The Datamonitor Group's consulting team offers a customized research and analysis service, addressing specialized research requirements of clients. Datamonitor is headquartered in London, and has 20 regional offices in Manchester, Hull, Paris, Hyderabad, Dubai, Durban, Sydney, Melbourne, Canberra, Seoul, Tokyo, Hong Kong, Beijing, Taipei, New York, Boston, Chicago, Scranton, Canandaigua and Silicon Valley.
Strategy, SWOT and Corporate Finance Report, June 2011 Product Code: A060C499-CED5-46CB-9F4E-BCDB9A0EFDF7
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