The Telegraph
Since 1st March, 1999
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BSES seeks approval of shareholders to diversify

Mumbai, Feb. 4: BSES, the power utility recently anointed as a Reliance group company, has sought shareholders’ approval for its foray into businesses as diverse as telecom, mining, construction, trading house, film production, mutual fund and insurance.

Incidentally, the Rs 57,120-crore Reliance Industries is already involved in these businesses.

The company has convened an extra-ordinary general meeting of shareholders on February 15 in this regard.

In a notice to shareholders, BSES said it would seek their nod to manufacture, market and distribute all types of telephone instruments, including mobiles, fixed wireless terminals, personal digital assistants, car phone, wireless systems and desk tops.

BSES would look at building, acquiring, constructing, installing and providing infrastructure facilities for ports, jetties, wharfs, docks and embankments. A proposal to set up an asset management company, a mutual fund and an insurance company would also be placed at the EGM.

Sharad Bailur, who heads corporate communications in BSES, told The Telegraph that “the move to seek shareholders’ approval was to ratify new directors and the alterations to the object clause are strictly enabling provisions and do not necessarily reflect future plans”.

However, an analyst said the company should get the best out of the synergies available in power and telecom but was not very sure whether the company should get into movie production, mutual funds and insurance.

“Telecom and power distribution have a lot of synergies that could be captured by BSES now that it is in the Reliance fold,” he said.

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