Reliance Industries Limited and Reliance ADA Group had entered into a non compete agreement in January 2006. However, both the companies today signed an agreement which ends all such agreements. Instead, the groups signed a new agreement, which is much simpler and more comprehensive. The new agreement is based only on a non compete policy on the generation of gas based power.
Traditionally, RIL, which is led by Mukesh Ambani, has dealt only in businesses of refining, oil and power, whereas Reliance ADAG led by Anil Ambani, deals in the more modern retail, telecom, entertainment and finance. The cancellation of the earlier agreement means that RIL can now enter into the domain of entertainment, telecom and finance. This leaves Reliance ADAG free to enter into the refining business.
These latest developments are a move towards resolving the previous disputes between the two brothers and ensuring that such disputes do not occur in the future. Both the groups hope that this new agreement will make the environment friendlier for both the groups to operate harmoniously. It is also believed that the two groups will now be able to coexist peacefully and that there will now be more cooperation between the two groups.
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