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Mumbai, 3rd March, 2010: Reliance Technology Ventures Ltd, the corporate venture

capital arm of the Reliance ADA Group today announced that it is rebranding the
as Reliance Venture Asset Management Ltd. (, with immediat
e effect. This development reflects and signifies the company s revamped strategy
and vision for future to target sectors beyond its erstwhile focus of technology
enabled businesses.
Since its inception in early 2006, the company has advised and / or invested in
deals to the tune of over $4 billion. Going forward, the company will look at op
portunities in disruptive and sustainable companies following a sector, stage an
d geography agnostic investment approach.
Speaking on the company s new strategy, Harshal J. Shah, CEO, Reliance Venture Ass
et Management Ltd. averred, Over the last four years of existence, we have succes
sfully established our niche as India s leading corporate VC company exploiting in
vestment opportunities globally and in India, especially in technology enabled c
ompanies. Today the global VC industry is at an inflection point with the emerge
nce of exciting prospects in newer and fast growing sectors. Being opportunistic
in our philosophy, we have revamped our strategy to exploit the investing poten
tial in sectors such as clean technology, aerospace, defence, media and entertai
nment in addition to our mainstay of technology enabled companies. In line with
this strategy, we are expected to close 3-6 deals in H1 2010 worth a cumulative
investment of USD 50 million.
In a sector, where historically, global VCs have forayed into India for investme
nt opportunities, Reliance Venture Asset Management has, in a reversal of sorts,
successfully invested in the US, France and other countries apart from leveragi
ng opportunities in India. The company s global investment portfolio comprises of
promising companies such as, Suvidhaa Infoserve, Stoke Inc, Pelago Inc
, Sequans Communications, E-Band Communications, Seedfund and two MIT-startups,
Dhama Innovations and Scalable Display Technologies.
The company was recently ranked 30th in the Red Herring Top 100 Global Venture C
apital Firms out of 1800 VC firms in 32 countries and was the only India based c
orporate VC company to feature in the ranking. The company also received the Exce
llence Award from the Institute of Economic Studies, one of India's premier resea
rch institutes.

About Reliance Venture Asset Management Ltd
Reliance Venture Asset Management Ltd is the corporate venture capital arm of th
e Reliance ADA Group. Since its inception in early 2006, the company has advised
and / or invested in deals to the tune of over $4 billion. Stage, geographic an
d sector agnostic in its investment philosophy, Reliance Venture Asset Managemen
t has a global portfolio to its credit and has invested in promising companies s
uch as India's largest online travel portal,, Suvidhaa Infoserve, Stok
e Inc, Pelago Inc, Sequans Communications, E-Band Communications, Seedfund and t
wo MIT-startups, Dhama Innovations and Scalable Display Technologies. Some of th
e transactions they had advised the Reliance ADA Group on include the $300 milli
on all-cash acquisition of San Francisco-based, Yipes Inc. by Reliance Communica
tions, $82 million acquisition of UK-based, Vanco plc, and eWaveWorld, a $500 mi
llion initiative to bring 3G and 4G to 50 countries around the world by 2012. He
aded by Mr. Harshal J. Shah, an MBA alumnus of Wharton School of Business, a Tru
man Gray Scholar with dual degrees from MIT, and an Andover Scholar from Phillip
s Academy in Andover, USA, the company comprises of professionals who bring over
50 years of cumulative experience and a solid academic base (MBAs - Ivy League,
Technologists from premier Indian & International Universities & Chartered Acco

Till 2003. high levels of industry specific taxes and inadequate margins due to high levels of competition. To generate revenues in such a market.00 0 to $13. Sales were on the rise and operators had been bombarding the public with promotional offers and v alue added services in order to increase their subscriber base.untants). Though it faced a lot of teething problems in the initial stages. This was the case u ntil the entry of Reliance. Cur rent Liabilities. One in ten Indians had access to safe drin king water but one in three had a color television and one in seven had a cable television. Abstract: The objective of the case study is to understand the significance of working cap ital management that deals with the minimum amount of resources required by a co mpany to cover the manufacturing costs and expenses. The inability on the part o f a company in maintaining efficient working capital would have a bearing on the profitability of the company. The company was recently ranked 30th in the Red Herring Top 100 Global Venture Capital Firms in 2009 and was the only India based corporate VC company to feature in the ranking. The case study mainly focuses on the working capital requirements of two compani es Bharati Airtel and Reliance Communications operating in the same industry. Reliance entered the mobile market in a massive way through its subs idiary known as Infocomm and targeted the mass market by adopting cost leadershi p strategy. Gross Working Capital. the case study also discusses how the working capital requirement of companies vary with the nature of the industry they operate in. Working Capital Management. A company which is incapable of maintaining a sat isfactory level of working capital is likely to become insolvent and may even be forced into bankruptcy. the case deals with the variations in the working capital requirements of both the companies and analyses the factors effe cting the working capital requirements of both the companies. Net Working Capital. Telecommunications Industry. The service providers operated using GSM or CDMA technology. into the mobile indust ry in 2003. In spite of the low income levels. it generated the lowest revenue in the world due to the poverty of masses. a typical upper middle class household had an annual income of $10. Keywords : Financial Management. Indian Telecommunications Indust ry It was the year 2006. Current Assets. Considering this fact. India s largest business house. Liquitidy. technology wa s an important criterion for Indians.000 and acquiring a GSM handset required $60 while CDMA handsets requir ed about $80 and at times more. mobile operators had to concentrate on th e upper segment of the society and charge a premium pricing. Though India had a huge number of subscribers.boom time in the Indian Mobile Industry. Th e telecom industry being an industry with high fixed costs requires very less wo rking capital. Further. Pedagogical Objectives: To discuss the concept of working capital management taking into consideration i ndustry-wise factors To discuss and debate why two companies operating in the same industry have diff erent levels of working capital requirements. Negative Working C apital. it was able to overcome them all and achieve the second position in the Indian mob .

The case briefly examines the cost reduction strategies adopted by Infocomm. The higher average revenue per user (ARPU) an d economies of scale of GSM technology also enabled the GSM competitors to reali se a much higher profit than Infocomm. The success formula of Infocomm helped b y changes in government policy enabled Infocomm s competitors to adopt a business model similar to that of Infocomm. the parent company of Infocomm planned to enter the GSM segment as we ll. This le ft the company in a dilemma about the shift. It wo uld also have to incur handset switching costs and infrastructure costs. thus acting as a serious threat to it. Pedagogical Objectives: Cost leadership strategy used by Infocomm Various strategic changes adopted by Infocomm and the technological dilemma. It also discusses the strategic changes and the feasibility of its GSM venture. But it faced government restrictions which would limit its operations. Du e to this.ile market within a short span of time. .GSM vs CDMA.