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Old 25th February 2017, 00:20   #16
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Default Re: Rumour: Reliance to buy all black & yellow taxis of Mumbai

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Originally Posted by GTO View Post

The 5 lakh payment is less for the cab and more for the licence.
Do Ola and Uber get licences from the government?

If not, then I'd expect some back-door 'regulations' hitting these guys and their business; especially if Reliance bags the licences from the taxis; they never play straight.
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Old 25th February 2017, 08:48   #17
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Originally Posted by ajmat
From the top of my head, considering

1: Reliance has substantial debt which it just about services
2: The newer ventures - Retailing and Jio are currently money pits
3: The current government will not tolerate ventures resulting in non performing assets

It looks unlikely. But again, this is India and Reliance - anything can happen
This will be probably be the next round of capex. The previous capex cycle of 8 years in petroleum, telecommunications, retail is coming to an end and these projects will begin to be monetised next financial year onwards. Reliance has proven itself to execute large projects in India well and has access to cheap foreign capital. They are also able to issue rupee denominated bonds in the international market now. Europe and USA are probably headed for a long stagflation like Japan. India is an attractive place to invest and Reliance is an excellent local partner. Two years ago reliance had 80k cheap foreign loans and 80k cash invested in India earning decent returns in India. Reliance has been the most capital efficient of the large Indian groups this past decade. TATA, BIRLA, BHARTI etc have all made major bets outside India that didn't work out. Reliance stands out in this respect.

With reliance getting into fuel retail in a big way, I can see them setting up CNG first kind of fuel stations across India too. And then take advantage of they by having a CNG fleet too!

They might also be able to wring out support from the government for 'Green technologies'.

Last edited by GTO : 25th February 2017 at 19:35. Reason: As requested :)
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Old 25th February 2017, 10:21   #18
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Default Re: Rumour: Reliance to buy all black & yellow taxis of Mumbai

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Originally Posted by SDP View Post
You missed the point about "<the price> will include the license rights as well". RTO issues only a limited licenses/permits. So the licenses are possibly worth more than the old vehicles.
Precisely. The vehicles will be sold as scrap.

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Originally Posted by ninjatalli View Post
If not, then I'd expect some back-door 'regulations' hitting these guys and their business; especially if Reliance bags the licences from the taxis; they never play straight.
In the days of the quota-permit raj Reliance had rightly built up the reputation of never playing straight. In a way it was necessary to survive in that environment. I personally feel that Reliance has become far more professional, and are no more the buccaneers of old.

Remember some ventures like RIL-Petro are truly world class. They have been surviving and doing exceedingly well in the global environment (remember when the GoI refused to give the subsidy to the privateers. In a way Rajasthan oil survived due to RIL as it was rejected out of hand for 'high wax content' by the sarkari refineries. Only when RIL declared they are willing to buy did the PSUs relent.

We all know whose fuels are considered to be the best!
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Old 25th February 2017, 10:56   #19
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Default Re: Rumour: Reliance to buy all black & yellow taxis of Mumbai

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1: Reliance has substantial debt which it just about services
2: The newer ventures - Retailing and Jio are currently money pits
Reliance has very easy access to cheap money.
  1. Unsecured loans are available to reliance at 2 - 5% fixed rate
  2. Reliance has an entity in US which basically just raises funds and gives it to RIL India
Quote:
Originally Posted by ajmat View Post
3: The current government will not tolerate ventures resulting in non performing assets

Since RIL does not use loans form banks in India (Overseas loans are way cheaper), NPA should not be a concern to govt.



If cost per car is 16 lakh (Car + License + Business/IT overheads) , RIL can easily raise $ 1.4 Bn required for this business.



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Last edited by NetfreakBombay : 25th February 2017 at 10:57. Reason: Changing image size to handle T-BHP logo overlap
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