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Arun

ADAG tag dropped, master brand to now be called RELIANCE

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Thursday, December 30, 2010 at 21:35

CNBC-TV18

The Anil Ambani group will have a new identity. The group will drop the ADAG tag and will be known as just the RELIANCE group, reports CNBC-TV18’s Siddharth Zarabi.

Clearly this is a re-branding that has happened. Almost five years after Reliance ADAG was born as a separate group. It comes several months after the rapprochement and the peace between the two groups. If you look at it the fact remains that the name of the company the group does not change. The master websites still carries The Anil Ambani Dhirubhai Group mention. But what is crucial to note here is that the branding for all the services and remember Reliance ADAG as a group now works in seven sectors with almost 27 businesses and most of these are consumer facing businesses.

About 250 million people are being contacted by some Reliance business or the other almost on a daily basis. So Reliance Communications for instance the service will only be sold as Reliance, and similarly a product from Reliance Capital or Reliance Entertainment. If you look at the website which we have looked at extensively barring the master website everything else is RELIANCE and it says Reliance Capital or Reliance and it says Reliance Entertainment.

Sanjay Behl, who is the head of brand and marketing at the group, explained that from hereon the ADAG group’s identity remains but it will not be the master brand in any manner. It will be RELIANCE. The difference with the other Reliance, the Reliance of Mukesh Ambani’s Reliance Industries – if you look at it is that while Reliance is written in lower case the ADAG RELIANCE at this stage is full caps.

There are some changes, it is blue, there is now a triangle, the lines have been taken off. So clearly the larger sense that one gets from it is that some sort of commonality is being achieved between the two brands. Although when I asked Behl this could cause conflict, he made the point that Reliance Industries is a B2B business. It generally works with business consumers and not retail customers. Therefore there would be no confusion.

But finally I think it is a big change that has happened. It is being done over the last several months it has been carried out. From here forth all the Reliance services will only be sold under the Reliance name the ADAG name will remain, the promoter remains but it will perhaps be a sub text in all the branding from hereon.

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One more sign that something behind the scenes is going on between the two brothers for more collaboration.

An imaginary scenario mentioned here http://www.rimweb.in...post__p__207174 turning to reality?

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One more sign that something behind the scenes is going on between the two brothers for more collaboration.

An imaginary scenario mentioned here http://www.rimweb.in...post__p__207174 turning to reality?

yes my dear Rajan i think this is gonna be it...

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Something more needs to be done!!!!! I think their image has taken a beating much more than they can imagine. Just look at their Stock prices. They have faced the wrath of investors who were fed with nothing but empty promises and rightly the stocks have been punished. I dont think this makeover is going to have a positive impact. The only advantage is that it brings in a sense of Unity among the brothers and this might jack up the so called ADAG stocks whenever there is a rally in the RIL stock(owing to the common name).

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Good now we will have the MuDA and AnDA Reliance. Hopefully, they will still be identified!

Edited by sgiitk

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I wonder if this is this is a sign of merger between the groups?

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@sgiitk good one...

ADAG has failed miserably in all its venture. all power cos are fairing well, while Reliance power is deep trobule. similar case is with RNRL and other cos.. so this may also have prompted 2 bros to come together before the market cap is eroded.

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Anil Ambani Firms Stock Price Rise on Reconciliation Speculation

Bloomberg - Business Week

December 31, 2010, 2:11 AM EST

Anil Ambani group companies rose in Mumbai after the billionaire’s decision to remove his name from corporate branding stoked speculation he may forge closer ties with brother Mukesh, investors such as Jayesh Shroff said.

“It’s possible the market is reading the new branding as a reconciliation between the brothers,” said Shroff, who manages $1.4 billion in equities at SBI Funds Management Pvt. in Mumbai.

Reliance Communications Ltd., Anil’s flagship company and India’s second-largest mobile phone provider, gained as much as 4.7 percent, the biggest intraday gain in a week, to 144.90 rupees and changed hands up 4.1 percent at 11:35 a.m.

Gaurav Wahi, a spokesman for Reliance Communications, didn’t answer a call made to his mobile phone. Manoj Warrier, a spokesman for Reliance Industries, denied the company was planning to buy Anil Ambani-owned companies. Tony Jesudasan, a spokesman for the Anil Dhirubhai Ambani Group, didn’t immediately respond to a text message and a call made to his mobile phone.

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@arun: These things take time after all.

Rome was not built in a day.

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