I always wondered why Ambanis are not in IT yet ? Is it too late ? Will they disturb current equations in Indian IT market ?

Source : BS
Anil Ambani nurturing Tech Reliance

V. Rishi Kumar

Hyderabad, Jan. 1 For Reliance groups, it has always been about scale be it petrochemicals, communications, entertainment, power or finance. Now, Tech Reliance, under wraps, technology consultancy services provider of the ADAG Group, is set to make a splash shortly.

The ADAG group is growing this less known company at a rapid pace and expects to pitchfork it into the top five league within two years. Tech Reliance has four centres. The development centre in Hyderabad focusses on $100 billion IT consulting and services and infrastructure management. This arm would build on the group synergies, including FLAG.

According to sources, Mr Anil Ambani, Chairman of ADAG, is armed with a chest of $2 billion that would help the company virtually compress time and leapfrog into the big league.

Traditionally, Reliance has grown its businesses and expects to do so with Tech Reliance. However, some of the missing pieces of the technology services could be bridged through some acquisitions too, according to sources.

According to sources, Mr Anil Ambani has personally handpicked a team of IT professionals to lead this initiative which includes current employees working in Reliance ADAG. The company is in the process of attracting talent from some of the leading consultancy firms.

A Reliance spokesperson refused to comment on the development. He said “The group continuously explores avenues for enhancing value for our stakeholders’. A formal announcement about Tech Reliance is likely soon.

Its not for nothing I call him Anil "Cowboy" Ambani

 I am not sure about the ability of the younger Ambani in successfully execeuting a company, as most of his companies we see today are either started by the father or elder brother. If you can have more companies, you can take more money from the public. If you have the ability to maintain the stock price at a higher price, at least shareholders do not question. That is happening with RNRL now and may happen with other companies also.

     One way I feel that ADAG can make it big in tech and that is by sequentially offloading chunks of equity to key employees and ESOPS.But then there is the Ambani way-a massive public issue and pay high salaries.
  Building client relationships will not be easy.


Edited by Ajith - 03/Jan/2008 at 1:06pm