Mumbai, Sep 23 (UNI) The Anil Dhirubai Ambani group (ADAG) led Reliance Natural Resources Limited (RNRL) will soon make a foray into shipping sector for its captive requirement.
RNRL Chairman told the Company AGM today that a decision had been taken to enter the shipping sector to keep a control over the cost of transportation, which formed a substantial component of fuel cost. ''A control over this element will not only make us more competitive but also ensure reliable supply of fuel to our group companies,'' he told the shareholders.
He said as fuel resources are unevenly scattered all over the globe, one of the major factors affecting their procurement is transportation.
He said, ''We believe that our entry into shipping is a logical step in backward integration with our core business activities.'' Mr Ambani also announced that the Company was actively exploring business opportunity in cement manufacture as a natural progression of the Company's integration. Over 40 per cent of the cost of manufacturing cement comes from coal, flyash, limestone and power. ''We are proposing to set up nearly 20 million tonnes of cement capacities at select locations, where we have synergies with our energy business as well as the presence of a growing market within easy distance,'' he said adding that the first plant would be in Madhya Pradesh in the next four to six years.
''Given the business interests of our Group, we will have power, coal and flyash, a by-product of power generation -- in great abundance,'' he said adding, ''This gives us a competitive head start.'' He said, ''The Company would also be in a position to outsource limestone at competitive prices as we have obtained four prospecting licences for limestone mines in Madhya Pradesh.'' Mr Ambani said RNRL was poised at the threshold of a huge growth opportunity traversing the full spectrum of the energy value chain, from exploration and production of oil and gas, to import, transportation, and mining of coal, to the distribution of gas to retail consumers in the cities. ''This will pave the way for our emergence as an end-to-end global fuel management services company,'' he added.
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