RIL hires McKinsey to help it grow even bigger: report
14 Apr 2011
Reliance Industries Ltd, India's most valuable business house, has hired consultancy firm McKinsey to advice it on a business transformation plan, which would catapult the company's enterprise value by another $ 80 billion in the next 10 years, says a report.
Mukesh Ambani's company RIL will also take help from its independent director and former dean of Kellogg's management school Dipak Jain to chart out the new business reorganisation plan, according to business channel ET Now report.
Citing three independent sources (none of them named), the publication says the new corporate structure would lead to changes in the top management team.
Though the current core team comprising Manoj Modi, P M S Prasad and Kamal Nanavati will remain untouched, a few new faces will be hired to head 'new economy' businesses like telecom, retail and financial services. RIL has already tapped head-hunting firms for a talent hunt.
RIL is seeking to foray into new growth areas, says the report. The plan includes mergers and acquisitions, apart from setting up new businesses. In the last one year, Reliance has made some big ticket acquisitions in the shale gas assets in the US.
In India, Reliance bought a 14.8-per cent stake in Oberoi Hotels and spent Rs4,500 crore on taking over Infotel Broadband to launch 4G telecom services in the country.
The company recently sold a 30-per cent stake in its Krishna Godavari based gas assets for $ 7.2 billion to BP. The new corporate restructuring is expected to enable RIL transform itself into one of the world's biggest conglomerates.