The new agreement allows RIL to enter the thermal power arena. “Considering the prospects in the power sector, there is no doubt that Mukesh will look at tapping the opportunity,” the source said. However, a spokesperson for the company declined to comment on any move in this direction. RIL already supplies around 800 Mw to Jamnagar and Hazira.

An ADAG executive brushed aside as rumours newspaper reports of RIL picking up a stake in the group’s power business. However, the executive clarified that the focus of the current talks is on reaching a conclusion on the gas agreement as directed by the apex court. Future plans of the group will be disclosed in due course, he said.

Analysts are of the view that the verdict which favoured RIL will add to the company’s cash flows gas from KG basin will bring in more money to the kitty. The new agreement says Saeed Jaffery, research analyst, Ambit Capital, is a thumb up for RIL.  “Though there will be free cash flow from the KG basin and we will have to wait and see how this money is deployed as there are no brownfield or greenfield projects in RIL’s kitty at present. For RNRL, the gas agreement with RIL is crucial as the entire Dadri power plant will depend on the gas supply. The only room left now for negotiation is the duration of gas supply and the quantity of allocation,” Jaffery said.

The new no-compete leaves Mukesh Ambani free to enter the power sector through thermal power projects. “He may bid for the next round of UMPPs. But we expect him to stay away from telecom and financial services as RIL is a B2B company and has little B2C experience,” Jaffery pointed out.

RIL’s B2C experience till date has been a failure – both Reliance Retail and the retail fuel businesses had a tough time breaking into the market as did the telecom business in the initial days. The family source referred to earlier said that one of the reasons was the arrogance of the employees and they way they treat the consumer. “Mukesh comes across as a humble person but the people around him are not. Unfortunately, this does not bode well for their retail business ambitions,” said the family source. He added, “If people surrounding Mukesh like Manoj Modi and Anand Jain are not in the picture, the two brothers may actually come to work together.” 

While the battle in the courts is over, the next rounds of the Ambani brothers’ battle looks set to be fought in the market place

Also Read

• Ambanis signs new non compete agreement
• RIL may enter thermal power sector
• Ambani brothers sign gas supply agreement
• Ambani brothers battle: SC verdict favours Mukesh
• Reliance Power, RNRL may merge

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