Strategy Digest Volume 3

Religare Technova in strategic partnership with Chase Cooper

(Expansion strategy)

Religare Technova Global Solutions Pty Ltd (RTGS) (a global IT solutions provider for capital markets) has formed a strategic partnership with Chase Cooper Ltd (a leading international provider of enterprise wide operational risk management and compliance solutions), following the acquisition of a major equity stake in its parent holding company. The global recession has re-emphasised the need for firms to focus on their governance risk and compliance (GRC) framework, of which an essential part is operational risk. Hence, Religare has recognised the risk management sector as an upcoming market especially with global regulators introducing stricter capital adequacy requirements and stringent standards like Basel II. It is to tap this sector that Religare has gotten into this partnership as this will add risk and compliance solutions to their portfolio, give them sector expertise and a greater global presence.

Algeria invites India Inc for $10-bn gas pipeline project

(Risk management strategy)

Algeria is interested in India investing in the 4000 km long ambitious trans-Saharan gas pipeline originating from Nigeria via neigbouring Niger. The reason for their interest is that they do not want only European partners for the project, since Europe being so close puts political pressure on them. Hence, involving Indian partners in capital and capacity building helps them hedge their partnership risks. The Algerian government has had good experiences with the Indian public sector firm- Indianoil and wants to increase relations with India from the current $2 billion to $5 billion over a gamut of sectors.

Reliance Broadcast forms JV with CBS to own TV channels

(Expansion Strategy)

Anil Ambani Group firm Reliance Broadcast Network (RBN) has completed its negotiations with US media conglomerate CBS Corp to form a joint venture (JV) to own and operate TV channels. The JV will be 50:50 RBN and CBS, and will own, operate and promote a portfolio of television channels in India, Nepal, Bhutan, Sri Lanka, Bangladesh, the Maldives and Pakistan. The first phase will involve launch of three new English entertainment channels that will be provide access to CBS programs, but will be customised for the Indian audience. The second phase will concentrate upon regional language and Hindi channels. This expansion is expected to be very successful, and the increase in share price of RBN following this announcement reflects that the markets agree.

Bharti eyes mobile market leadership in Kenya

(Market Penetration Strategy)

The next 18 months will be interesting for the 20 million strong mobile phone users market in Kenya, as Zain plans to invest aggressively around $308.1 million through Zain Kenya, to attain market leadership. Till now, the Kenyan counterpart- Kencell - had only concentrated its efforts on the top end of the market. Now they will move to solutions that will cater to a huge portion of the market, the masses. It is planned that distributers will be increased from 80 to 200, 3G internet access would be launched by year end etc. If successful, the economies of scale that this effort will entail will be enormous. In fact, in terms of the pricing and getting the cost structure right, the strategies followed in India are being emulated in this scenario.