Reliance Industries Ltd is expected to invest Rs 30,000 crore (Rs 300 billion), of the total Rs 70,000 crore (Rs 700 billion) announced, in its telecom arm Reliance Jio Infocomm over the next two years, credit rating firm Moody's said on Monday. The investment in the telecom business is a credit negative for RIL because RJio will not generate any EBITDA (an indicator of cash flows) for at least next 12 months, it said. Moody's added however that RJio will be a formidable competitor in the sector making it a credit negative for top telecom operators already in the field. "Based on RIL's March 2014 annual report, we estimate that it has already invested about Rs 400 billion (Rs 40,000 crore) in Reliance Jio, and we expect RIL to invest the next Rs 300 billion in Reliance Jio over the next two years," Moody's Investors Service said in a statement. RIL recently announced that it will launch commercial 4G telecom service of RJio in 2015 entailing investment of Rs 70,000 crore. RIL has said that RJio will initially cover about 5,000 towns and cities accounting for over 90 per cent of urban India, as well as over 215,000 villages in India and the target is to expand this to over 600,000 villages. Moody's said RJio will be a "formidable competitor in India's telecom sector" as it will enter the business with financial muscle. RJio's entry into highly competitive telecom sector is also credit negative for incumbent mobile operators and market leaders Bharti Airtel and Vodafone India because "it will undoubtedly result in intensified competition that will lead to declines in average revenue per user and margins". But, it also said that strong spectrum holding of incumbents; existing large subscriber-bases and well- established brand equity; offering 2G and 3G services (apart from 4G services being launched) as well as marketing and distribution architecture mitigate much of the near-term competitive threat from Reliance Jio for them. "Furthermore, given issues of language and literacy, large parts of rural India remain a substantially voice-based market where near-term demand for 4G services may be muted," Moody's said.
He is one of a group of young players who have helped to make golf the fastest-growing sport in urban India.
While chits and the formal financial sector are not 'largely substitutable', users like the commitment to savings that these enforce and the flexibility in borrowing, reports N Sundaresha Subramanian from New Delhi.
The consumer confidence in urban India has increased by 9 points.
More than 100 million new users added in just one year; mobile internet usage seen as next frontier.
In the heat and dust of a Baramati rally with Supriya Sule.
Hails country's recent digital highways and predicted India to become digital content capital of world.
It said 33,510 slums were estimated to be in the urban areas of the country of which 41 per cent were notified.
Telecom operator Reliance Jio Infocomm has arranged credit facilities worth $1.5 billion with lenders, including Bank of America and Barclays, to refinance existing loans.
Using the western concept of a wedding registry, many couples are directing the attention of their friends and relatives to a donation registry and encourage them to give directly to their favourite charity in lieu of a gift.
Most adult Indians should have access to bank deposits, credit and remittance facilities as well as insurance and mutual fund products in the next decade, and technology will play a big role in this transformation, says Tamal Bandyopadhyay.
'A war is being fought in South Kashmir.' 'Do not underestimate your enemy, be sensible and cautious and be prepared for the worst if you choose to move in the region unprotected,' advises Sanjeev Nayyar.
Our busy schedules, our living conditions where sunlight is often a luxury, pollution as also social mores that frown upon exposure are collectively responsible.
The real estate sector presents a daunting picture with revival prospects appearing to be bleak.
The licensee will have to ensure that at least half the areas under rural telecom exchanges gets the required street level coverage.
Mythological and historical shows are lapped up not just by the young, but equally by grown men and women.
'Parents are like customers and the customer is king.' 'As a result, disciplining by teachers is also frowned upon.' 'One of my teachers gave a student a C in some subject and the father says to me: "I didn't send my son to an expensive school like this for him to get a C!"'
We don't know what percentage of new fathers in the Indian corporate sector take their parental responsibilities seriously enough to use the leave, says Kanika Datta.
Solving problems through science was the key takeaway from the Prime Minister's speech.
"Nobody can forget June 25-26 in the history of India. 40 years ago, the country was bound with chains of Emergency and turned into a jail for the lust for power," he said.
They can carry huge amounts of data, have a lot of bandwidth, but operate at short ranges, between 200 metres and 2-3 km reports Surajeet Das Gupta
TTV Dinakaran's road to reaching the poll stage could still be strewn with legal difficulties, as much as political problems from other new players, like actors Kamal Hassan and Rajinikanth, says N Sathiya Moorthy.
'Even if you are aping the West, if you customise the idea for the Indian market, localise it based on the Indian ethos, it will succeed.'
HSBC analysts believe the UV which might sell about 3,000 units a month might fail to be an aspirational product in urban India.
India's demographic dividend may not automatically give rise to tangible economic gains -- at least not with immediate effect -- but it is likely to have a big impact on the coming Lok Sabha elections, Mayank Mishra
The Congress is hopeful that the new messiah of the middle classes will cut into the BJP's votes in urban India, thus damaging the chances of the saffron party and its prime ministerial candidate Narendra Modi, believes Renu Mittal
This development can strengthen the case for interest rate cut by the RBI.
T E Narasimhan/Business Standard reports from Chennai on how the Future group plans to shore up its small store network in the South.
Dhruv Gupta explains how, as more and more young people fall prey to diabetes, organisaions get affected and how companies can contain the losses due to drop in productivity.
Author Sahil in his latest book talks about the extravagant spending at Indian weddings.
R K Narayan's house has been preserved as a simple museum with his memorabilia, thanks to the imagination of a commissioner of Mysore, who stopped its sale by RKN's successors to a property developer and purchased it for the government.
India Inc is facing threat from non-traditional sources.
'For now, the AAP is the conversation,' Lord Meghnad Desai tells Rediff.com's Sanchari Bhattacharya. 'Everyone is talking about the 'Delhi model'. They have made so much difference. They have changed politics.'
Armed with deep customer knowledge, low operational overheads, new funding opportunities and help from online marketplaces, the local brand is turning David to every Goliath that steps into its neighbourhood, says T E Narasimhan.
'The middle class stood by the BJP, especially after demonetisation, and they expected something in return.' 'Some section of the BJP believes the middle class is condemned to vote for the BJP as they have no other choice.' 'They think they can treat them any way, still the middle class will run to vote for it.' 'That's what the Budget seems to convey.'
Physical security for women, the first step towards getting them into factories and offices, is all but absent in most Indian cities, notes Kanika Datta.
Adhuna Bhabani reveals that her love for hair styling began at a young age when her mother would take her to the hairstylist.
500 cities will be developed under AMRUT scheme.
The ordinance has returned near absolute power of discretion in land acquisition, except in tribal areas, into the hands of the bureaucracy yet again
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