Reliance Infrastructure was incorporated in 1929 as 'Bombay Suburban Electric Supply Limited'. In 1992 the name was changed to 'BSES Limited' as the company entered into various activities besides supply of electricity. Later, Indian business conglomerate Reliance Industries has picked up a 26.6% stake in BSES. Reliance was entering the broadband business and expanding its power business in a big way by way of exploiting its synergies with BSES. From a modest licensee supplying power to the suburbs of Bombay, company is today a multi location and multidimensional enterprise.

In the process it has emerged as the country's leading integrated power company with activities spanning the entire power process right from concept to consumption of electrical energy. Name of the company was changed from BSES to Reliance energy later. Company provides a portfolio of value added services in electrical contracting, engineering, procurement and construction (EPC) contracts and computer services. Company has the Quality Management System as per ISO 9001:2000. In April 2008, Anil-Dhirubhai Ambani group changed the name of Reliance Energy to "Reliance Infrastructure".

Products & services:

Company is one of the largest private sector enterprise in power utility and also the largest private sector player in many other infrastructure sectors of India. Company is involved in generation, transmission, distribution and trading of electricity and constructing power plants as EPC partners. In the infrastructure space the company is focused on roads, urban infrastructure which includes MRTS, Sea-link and Airports, Specialty Real Estate which includes business districts, trade towers, convention centre and SEZ which includes IT & ITES SEZ and non IT SEZ as well as free trade zones. Company is currently pursuing several gas, coal, wind and hydro- based power generation projects in Maharashtra, Uttar Pradesh, Arunachal Pradesh and Uttaranchal with aggregate capacity of over 12,500 MW. These projects are at various stages of development.

Reliance Infrastructure distributes more than 28 billion units of electricity to cover 25 million consumers across different parts of the country including Mumbai and Delhi in an area that spans over 1, 24,300 sq. kms. It also generates 941 MW of electricity, from power stations located in Maharastra, Andhra Pradesh, Kerala, Karnataka and Goa.

Company's network is made of 4124 distribution sub-stations, 2912 km of high tension (HT) and 2966 km of low tension (LT) cable. Company has an installed distribution transformer capacity of about 2422 MVA. The network has lowest distribution losses of 13.37% and maintains an uptime of 99.98%. Company is also executing the first 100% private sector power transmission project for western grid with an investment worth Rs 2,250 crores. Company uses CAD/CAM technology to develop river & railway bridges, power line crossing etc. The Company has 3 state-of-the-art transmission stations at Versova, Ghodbunder & Aarey with total installed capacity of 300 MVA, 300 MVA &
400 MVA respectively.

Contracts and EPC Division: The division offers value added services in Engineering, Procurement and Construction. Some of the prestigious projects executed include:

-210 MW Gas Based Combined Cycle Power Plant for BSES Andhra Power Limited at Samalkot.
-24 MW Bagasse fired Power Plant of Godavari Sugar Mills in North Karnataka.
-20MW project of Suryachakra Power Corporation Limited at Andaman.
-Development of Electrical System for Nuclear Power Corporation of India

Company has following subsidiary & associate companies:

-BSES Kerala Power Ltd.
-BSES Rajdhani Power Ltd.
-BSES Yamuna Power Ltd.
-Reliance Energy Trading Ltd.
-Reliance Energy Transmission Ltd.
-Utility Powertech Ltd.

North Eastern electricity Supply Company of Orissa Ltd. (NESCO) Western Electricity Supply Company of Orissa Ltd. (WESCO) Southern Electricity Supply Company of Orissa Ltd. (SOUTHCO)

Valuations:

Reliance Infrastructure is expected to infuse about Rs 16.50 billion in various projects by the end of 2009-10. At current market price, stock is trading at 18.62 P/E multiple of its FY2010 Estimated EPS. We recommend investors buy "Reliance Infrastructure Ltd" with medium to long- term investment horizon.