ADAG floats Tech Reliance for IT debut

The Anil Ambani group has already readied a war chest for the new initiative.

The Reliance Anil Dhirubhai Ambani group (ADAG) is foraying into the information technology consulting and services segment, for which it has formed a subsidiary, Tech Reliance.

The group is also looking to poach management- and senior-level executives from major IT firms in the country.

The group is planning to bring in all its IT departments under the subsidiary. Tech Reliance, apart from providing services to the group companies, will also provide services to diverse industry sectors in the country, a source close to the development said.

The planned services would include consultancy, business process outsourcing and software development, among others.

The company will initially look at providing services to industry sectors such as telecommunications, financial services, utilities, entertainment and healthcare.

The company intends to take on existing IT biggies, including Infosys Technologies, Tata Consultancy Services, Wipro, IBM and Accenture, by providing similar services in the country.

Anil Ambani has already hand-picked a core team of 15 members, including employees working within the group, to head the initiative.

The group is also looking at roping in senior-level executives from the existing IT firms in the company, the source said.

When contacted, a Reliance ADAG spokesperson declined to comment, but added, "The group continuously explores new avenues for growth and enhancing value for our stakeholders".

Reliance ADAG has also readied a war chest for its IT foray, which, sources say, is "considerably large". However, the amount of investments planned by the group could not be ascertained.

The company is looking at the IT foray, believing this will help the group enhance investor value. Despite its late entry into the sector, Tech Reliance is aiming at becoming one of the top-10 IT companies within the ensuing two-year period.

The IT arm would utilise the group's existing domestic and international presence to win contracts and clients.

Reliance ADAG has a presence in the domestic enterprise and small and medium enterprise market through its flagship company, Reliance Communications.

The group also has an in-house technology innovation division that was engaged in R&D, and testing of new technologies.

NEW ENTRANT

The group will bring all its IT departments under the subsidiary

Tech Reliance will be providing services to the group companies and will also cater to diverse industry sectors

The company intends to take on Infosys Technologies, Tata Consultancy Services, Wipro, IBM and Accenture

A 15-member team is busy in doing the spadework for the new entity