Reliance estimates that the market price of the gas is $4.8 per mmbtu. Though the matter is under litigation and charges fl y thick and fast, there is little doubt that Anil’s power sector ambitions will get completely derailed if he doesn’t get gas at a discounted price. Till the matter is settled in his favour (if it is), the third prong of Anil’s growth strategy will remain weak. Meanwhile, Mukesh continues to showcase his audacious growth strategy. In corporate jargon, you could well say that he wants to be both the Exxon Mobil and Wal-Mart of India, rolled into one. Anil, in turn, seems to be aiming to become the GE of India (GE is a big player in financial services, media and power, apart from other things). At the moment though, it does look as if the elder brother has the upper hand.
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Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative