Reliance Industries Ltd.

Reliance Industries (RIL) has finally entered the financial services space. This comes just days before the Reserve Bank of India is expected to announce the draft guidelines for entry of new banks. RIL has set up a joint venture with the DE Shaw Group to offer an array of financial services. RIL is free to enter almost any sector after the two Ambani brothers ended a pact last year that prevented them from entering sectors where the other was present. The partnership with DE Shaw will now see RIL compete directly with Anil Ambani’s Reliance Capital.

RIL’s presence in the financial services business will be formidable, as it is close to picking up a controlling stake in Infrastructure Leasing & Financial Services (IL&FS), which ended 2010 with assets of over Rs 7,000 crore. The non-banking finance company is the promoter of IL&FS Investment Managers, IL&FS Transportation, Noida Toll Road, IL&FS Engineering (erstwhile Maytas Infrastructure) and Maytas Properties.

The DE Shaw Group is a global investment and technology development firm. It is present in India since 1996 and has over 700 employees in Hyderabad, Gurgaon and Mumbai. The venture will incorporate the DE Shaw Group’s investment and technology expertise with Reliance’s operational knowledge and extensive presence across India to offer a comprehensive array of financial services to the Indian marketplace.crackcrack