A

SYNOPSIS
ON
“ANALYSIS OF COMPANY VALUATION”
“Reliance Infocomm”

SUBMITTED TO

R.T.M. NAGPUR UNIVERSITY NAGPUR IN PARTIAL

FULFILLMENT FOR AWARD OF
BACHELOR OF BUSINESS ADMINISTRATION

SUBMITTED BY

POOJA C. PAZARE
B.B.A. Final Year

GUIDED BY
Mr. Pawan Lingayat

SHRI BINZANI CITY COLLEGE

UMRER ROAD, NAGPUR - 09
(2009-2010)
INTRODUCTION OF RELIANCE COMMUNICATIONS:-
Reliance Communications are the retail and customer service
outlets of Reliance Communications.
Reliance Communications are franchised stores in the
neighbourhood of customer providing service & support to
customers of Reliance Mobile and Reliance India Phone.
Reliance Communications (formerly Reliance Infocomm),
along with Reliance Telecom and Flag Telecom, is part of Reliance
Communications Ventures (RCoVL). It is an Indian
telecommunications company. According to National Stock
Exchange data, Anil Dhirubhai Ambani controls 66.77 per cent of
the company, which accounts for more than 1.36 billion shares.[3]
It is the flagship company of the Reliance-Anil Dhirubhai Ambani
Group, comprising of power (Reliance Energy), financial services
(Reliance Capital) and telecom initiatives of the Reliance ADAG. It
uses CDMA2000 1x technology for its existing CDMA mobile
services, and GSM-900/GSM-1800 technology for its
existing/newly launched GSM services.
RelCom is also into Wire line Business throughout India and has
the largest optical fiber communication (OFC) backbone
architecture [roughly 110,000 km] in the country.
Reliance Communications has interests in Direct to Home (DTH)
TV also, known as "Big TV". It plans to launch its DTH business by
July 2008. Once launched, RelCom will have presence across all
B2C communications channel in one of the fastest growing
markets in the world.
 Type Public (BSE: RCOM)

Founded 2004

Headquarters Navi Mumbai, Maharashtra, India

Anil Ambani
(Chairman) & (MD) [1]

Key people Vice-Chairman Reliance-ADA Group

S. P. Shukla
(CEO)

Industry Telecommunications

Wireless
Telephone
Products
Internet
Television

Revenue US$ 4.26 billion (2008)[2]

Net income US$ 1.35 billion (2008)

Total assets US$ 19.31 billion (2008)

Employees 33,000

Website www.rcom.co.in

SERVICES
Bid for Hutch
In 2007, Reliance Communications had bid for 67% of Hutch but
lost to Vodafone, which had been led by its CEO at the time Mr.
PIYUSH. P.
share holder’s value
In July 2007, the company announced it is buying US-based
managed ethernet and application delivery services company
Yipes Enterprise Services for a cash amount of Rs. 1200 crore
rupees (equivalent of USD 300 million). The deal was announc
overseas acquisition, the Reliance group has amalgamated the
United States-based Flag Telecom for $ 211 million [roughly Rs
950 crore (Rs 9.50 billion)].
RECENT NEWS
On the 19th December 2008, one of the flag telecom cables in the
Mediterranean sea was damaged. Flag Telecom is now part of
Reliance Globalcom.
On the 30th December 2008, Reliance became the first telecom
company in India to operate in both CDMA as well as GSM
technologies.
MARKETING STRATEGIES & PRODUCTS
On the 30th December 2008, Reliance Communications became
the first telecom operator in the history of Indian
telecommunications to simultaneously launch its GSM services in
17 circles, namely Andhra Pradesh, Chennai, Delhi, Gujarat,
Haryana, Jammu & Kashmir, Karnataka, Kerala, Maharashtra,
Mumbai, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh(East &
West) thereby establishing itself as a pan-India operator.[4] It
already operates GSM services in 8 circles namely Assam, Bihar &
Jharkhand, Himachal Pradesh, Kolkata, Madhya Pradesh &
Chattisgarh, North Eastern states, Orissa, West Bengal.
 INDEX

 INTRODUCTION OF RELIANCE COMMUNICATIONS

 OBJECTIVES

 RESEARCH METHODOLOGY

 CONCLUSION

 SUGGESTION

 BIBILIOGRAPHY
Objective of Study

Study of company past financial performance industry and

economic analysis could lead into estimating future cash flow for the
company.

The future cash flows will be used for estimating net present value
of current investments and its impact of share holder’s value.