Reliance Capital Blog

Reliance Capital, India's Berkshire Hathaway

Thursday, August 30, 2007

Reliance Capital buys 26% in VTSL

Reliance Capital (RCL) has picked up 26% stake in Victory Transformer & Switchgear (VTSL), a fully-integrated transformer manufacturing company, for Rs 75 crore.

VTSL is a Hyderabad-based company, promoted by Vaddineni Venkatappaiah Naidu in 1996. It is currently managed by his son - Mahindra Vaddineni. A Reliance Capital spokesperson declined to comment.

The company primarily manufactures power transformers, but it is vertically integrated and manufactures related products such as unitised substation, transformer core, vacuum circuit breaker, insulators and transformer oil. The company supplies to state electricity boards across India and to major EPC contractors.

The company’s revenue has grown at a CAGR of 89% over the last two years, and it has an order book of over Rs 200 crore. VTSL is raising funds for expanding the existing transformer capacity and is considering acquisitions in the near future.

Tuesday, August 14, 2007

Reliance Money inks deal with Rural Relations

Reliance Money, the financial products distribution company of Reliance Capital, has signd an agreement with non-government organisation Rural Relations to create a network of entrepreneurs for marketing products like insurance and mutual fund schemes to villagers.

Sudip Bandyopadhyay, chief executive officer, Reliance Money said the arrangement is intended to serve the dual purpose of participating in the financial inclusion of the rural masses and create a new creed of entrepreneurs who bring financial services products closer to the villagers.

Rural Relations will lead the process of identifying suitable youngsters to drive the initiative. Bandyopadhyay said the initiative will cover 5,000 tehsils in the country in the first year. "A lot of thrust will be on savings and insurance products as the rural masses do not have enough access to life cover and cover for their belongings or cattle," Bandyopadhyay added.

Rural Relations founder Pradeep Lokhande said the organisation has already covered about 1,000 tehsils in the country, and is ready to roll out the outlets at these locations. The first two outlets - at Bhor and Saswad tehsils in Pune district - were opened on Monday.