RIL, DE Shaw to bond core strengths in financial JV

Mukesh Ambani-led RIL has said it will capitalise on the core strength of its businesses and expertise of global investment major DE Shaw in its proposed foray into the financial services sector.

Reliance Industries Ltd (RIL) has entered into a joint venture with DE Shaw as part of its plans to enter the fast growing financial services sector in the country.

"This  JV (with DE Shaw) will incorporate DE Shaw's expertise in investment and related technology with Reliance's operational knowledge and extensive presence across India to offer a wide array of financial services to Indian consumers," RIL said last evening while announcing its annual results.

RIL chief Mukesh Ambani said the company was fully geared to participate in India's growth and continued global recovery in the coming years.

"Our committed investments in core business and new initiatives are expected to result in sustained earnings growth," he noted.

RIL is working on some significant initiatives for the financial services business, especially those where it can utilise its expertise and presence in sectors like energy and retail, as also its proposed telecom and power ventures.

Emailed queries to both RIL and DE Shaw were not answered.

Besides DE Shaw, RIL would also look at some other partners for various specific financial service businesses, as it has done in its retail business and to some extent in its energy operations, sources have said.

The businesses that RIL could undertake include energy trading, private equity, mutual fund, distribution of financial products, infrastructure funding and various other consumer and corporate-focussed financial service offerings.

The group would look at serving both corporate and individual customers through its financial services offerings.

RIL has been working on its financial sector foray for about a year now and a final blueprint on this front may be finalised in the next few weeks.

The finer contours of its partnership with DE Shaw and other potential alliances may have been discussed at RIL's board meeting yesterday, according to sources.

Between the two Ambani brothers, financial services hitherto has been the domain of younger sibling Anil Ambani, but abolition of their non-compete agreement last year paved the way for Mukesh to pursue this business.

However, the groups led by two brothers may still keep away from any direct competition in this space, at least for initial years, sources said.