Reliance and BP will form a 50:50 joint venture for the sourcing and marketing of gas in India which will also accelerate the creation of infrastructure for receiving, transporting and marketing natural gas
Reliance Industries Ltd (RIL) and BP today announced the completion of BP's acquisition of a 30% stake in 21 oil and gas production sharing contracts (PSCs) that Reliance operates in India, including the producing KG D6 block.
This significant step will commence the planned alliance which will operate across the gas value chain in India, from exploration and production to distribution and marketing. The completion of the deal delivers one of the largest ever foreign direct investments into India.
The two companies will also form a 50:50 joint venture for the sourcing and marketing of gas in India which will also accelerate the creation of infrastructure for receiving, transporting and marketing natural gas.
Mukesh Ambani, chairman and managing director, Reliance Industries, said "The alliance with BP will boost our efforts to realize the true potential of India's hydrocarbon reserves. The globally renowned expertise of BP and the in-depth domestic experience of Reliance make for a formidable alliance which will deliver unparalleled value for the country in its pursuit of energy security."
"This is the beginning of what we expect to be a long and successful working partnership with Reliance, building on the strengths of each company," said Bob Dudley, BP group chief executive. "This major investment is directly aligned with our strategy of creating long-term value by forming alliances with strong national partners, gaining material positions in significant hydrocarbon basins and increasing our exposure to growing energy markets."
BP will pay RIL an aggregate consideration of $7.2 billion subject to completion adjustments for the interests to be acquired in the 21 production sharing contracts. Further performance payments of up to $1.8 billion could be paid based on exploration success that results in development of commercial discoveries.
On Tuesday, RIL ended 3.64% up at Rs781.50 on the Bombay Stock Exchange, while the benchmark Sensex closed 1.59% up at Rs16,676.75.
Prime Comfort expects to achieve a turnover of Rs450 crore in the next three years on the back of new products and enhanced capacity during the period
Mattress maker Prime Comfort Products said it would invest up to Rs200 crore in the next three years to set up new plants and brand building.
The company, which became operational last year, said it expected to achieve a turnover of Rs450 crore in the next three years on the back of new products and enhanced capacity during the period.
"In the next three years, our total investment will be around Rs100 crore to Rs200 crore. This is will go on our capacity expansion, product development and other marketing initiatives," Prime Comfort Products Managing Director Praduman Patel said.
The city-based firm is planning to set up two more plants across the country in the next three years. While one of them will be set up in Gujarat and is expected to be operational by 2012, the company is planning to build another facility in South India.
"In the next three years, we want to have three plants across the country. We have started looking for land. One of them will come up in Gujarat and shall be operational by September next year," he said.
The company is planning to set up the third plant in South India, most probably near Hyderabad, he said but did not provide the timeline.
At present, the company has one facility at Greater Noida and has a capacity of making 10,000 tonnes of foam annually. It has already made an investment of Rs50 crore on the plant.
The firm plans to fund the investment through debt and internal accruals. However, the company said it would look for an IPO or foreign collaborations after two years when its business has stabilised.
"At present our focus is on building the brand and enhancing the distribution. We want our products to be available in around 3,000 outlets in next three years. At present, we around 1,000 dealers," Patel said.
According to the firm, the Indian mattress market is estimated to be Rs5,000-6,000 crore and is dominated by brands like Sleepwell and Kurl-On.
"We have to achieve a turonver of around Rs450 crore to be among the top three players in the sector. We expect that as we expand our capacity and business we will be able to achieve that in next three years," Patel said.
The company expects to close the fiscal with a turnover of Rs80 crore on back of its new product range launched under the brand name 'Refresh'.
BGR Energy Systems designs and manufactures 22 high technology equipment for power, process and infrastructure projects for world markets
Engineering, procurement and construction company BGR Energy Systems has bagged Rs444.48 crore order from Nuclear Power Corporation of India.
The order involves supply, erection, testing and commissioning of main plant electrical systems, including nuclear Island electricals at Kota Rajasthan for 2x700 MW and Kakrapara in Gujarat 2x700 MW has been given to the electrical projects division of city-based BGR Energy Systems, a company statement here said.
The two projects are expected to be completed between September 2015 and March 2016, it said.
"This happens to be the single biggest order for main plant electricals received by BGR Energy so far and would facilitate qualifications in the future," BGR Energy Systems CEO V Balakrishnan said.
BGR Energy Systems designs and manufactures 22 high technology equipment for power, process and infrastructure projects for world markets. As of March 2011, the company achieved a turnover of Rs4,763 crore, the statement added.
On Tuesday, BGR Energy ended 3.89% up at Rs324.30 on the Bombay Stock Exchange, while the benchmark Sensex gained 1.59% to 16,676.75.