No personal holding in REL, says Anil

Mumbai, Nov 28 | Updated: Nov 29 2004, 05:37am hrs
Reliance Energy Ltd (REL) chairman and managing director Anil Ambani, in an e-mail message to REL employees on Sunday, said he has no personal shareholding in REL. Like most of you, I am here as a professional to serve the interests of all our stakeholders. For me, professionalism is a value system, a state of mind, and above all, a culture of respect for all, Mr Ambani said.

Reliance Energy is owned by Reliance Industries to the extent of about 50% (directly and indirectly), followed by domestic institutional investors with 21%, foreign institutional investors 21% with the balance 8% held by nearly 1,00,000 retail investors, Mr Ambani said in his mail.

We have created tremendous value for each of them. Our greatest strength is our ability to work together as a team, he said. The e-mail message, copies of which were sent to the media, said that the REL board, at a meeting in the next few days, would consider the resignations of RELs executive vice chairman Satish Seth, Amitabh Jhunjhunwala (RIL representative), KH Mankad (director-finance), SC Gupta (director-operations), JP Chalasani (director-business development) and Prof J Ramachandran (IIM Bangalore).

The REL board has a scheduled meeting lined up for December 8, but may advance the board meeting to this week, probably to Tuesday or Wednesday. This development, widely commented upon in the media, has left all of you with a sense of anguish and uncertainty. I fully understand and appreciate these concerns. The board of directors of Reliance Energy is meeting in the next few days to consider these resignations. In the meanwhile, I have requested each of the six directors to continue to serve the company, and to carry out their assigned roles and responsibilities, as before, Anil Ambani said in the mail.

Mr Ambanis mail made no mention of his elder brother and RIL chairman and managing director Mukesh Ambani.

With RIL acquiring the controlling stake in BSES, it was my honour to be nominated by the RIL board as a director on the board of BSES, he added. This decision was unanimously approved by the shareholders of the company at their general body meeting on 15th February 2003, he noted.

Mr Ambani went on to mention that it was in furtherance of Dhirubhai Ambanis vision that BSES became a part of the Reliance group on January 18, 2003, about six months after Dhirubhai Ambanis demise. In February 2004, BSES was renamed Reliance Energy, and achieved the proud distinction of being `A Dhirubhai Ambani Enterprise, he wrote.

Mr Ambani claimed that in the brief period of about 22 months as REL CMD, the company has strived ceaselessly to embrace Dhirubhai Ambanis dream of transforming BSES, now Reliance Energy, into a beacon of excellence. I have always had the highest respect for you, the more than 25,000 professionals in the Reliance Energy team across various companies; and I consider it a privilege to count each one of you amongst my colleagues, he said.

Mr Ambani pointed out that RELs market capitalisation has multiplied three times from Rs 3,000 crore to over Rs 10,000 crore; profits have more than doubled from Rs 162 crore to Rs 367 crore; and the net worth has gone up nearly 3 times from less than Rs 2,500 crore to Rs 6,200 crore.

In all our endeavours, we must always keep uppermost in our minds the best interests of our millions of customers, and deliver the highest standards of quality, reliability, competitiveness, and customer care to them. The opportunities, and the challenges, in the power sector are enormous. I am confident that, together, we each one of us will work with commitment, dedication and devotion, to realise the vision and dreams of our beloved founder, Dhirubhai Ambani, he concluded.