Vedanta can give RIL tough competition
With the entry of Vedanta, which is a major mining company in the world, RIL will face some real-time competition, a source said.
By Prabhakar Sinha, TNN |
NEW DELHI: With the acquisition of majority stake in Cairn India, Vedanta will enter the petroleum sector and has the potential to become a formidable player in the sector.
After ONGC, Mukesh Ambani controlled RIL is the biggest player in the sector. Vedanta has also interest in coal-based power sector, in which RIL has also shown interest.
With the entry of Vedanta, which is a major mining company in the world, RIL will face some real-time competition, a source said. At present , while ONGC has a proven reserve of around 5 billion barrel of oil equivalent, RIL owns around 2.5 billion barrel.
With this acquisition, Vedanta will also control oil and gas reserves of over 1 billion barrel of oil equivalent. Cairn energy will have the third largest reserve in the country , followed by Oil India and Gujarat State Petroleum Corporation.
Entry of Vedanta will affect the dominant position of RIL in the sector, the source added. Normally, a senior banker said, RIL is known for its aggressive nature of operation, which always makes life tougher for its competitors.
It's to be seen now whether Vedanta can change this impression.
After ONGC, Mukesh Ambani controlled RIL is the biggest player in the sector. Vedanta has also interest in coal-based power sector, in which RIL has also shown interest.
With the entry of Vedanta, which is a major mining company in the world, RIL will face some real-time competition, a source said. At present , while ONGC has a proven reserve of around 5 billion barrel of oil equivalent, RIL owns around 2.5 billion barrel.
With this acquisition, Vedanta will also control oil and gas reserves of over 1 billion barrel of oil equivalent. Cairn energy will have the third largest reserve in the country , followed by Oil India and Gujarat State Petroleum Corporation.
Entry of Vedanta will affect the dominant position of RIL in the sector, the source added. Normally, a senior banker said, RIL is known for its aggressive nature of operation, which always makes life tougher for its competitors.
It's to be seen now whether Vedanta can change this impression.
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