KRIBHCO and Reliance Communications Infrastructure forge Rural Marketing Joint Venture

• First-of-its-kind Joint Venture to bridge the Urban - Rural Divide.
• KRIBHCO Reliance Kisan Limited, JV Company to market Telecom and Non-Telecom Products and Services.
• KRIBHCO Reliance Kisan Limited to cover 72% of Indian population.
• JV to market Reliance Mobile GSM and CDMA services.
• JV to roll-out a range of customized products and Value Added Services for Rural India

New Delhi, June 9th, 2009: KRIBHCO, a premier co-operative society with an unparalleled marketing network in rural India and Reliance Communications Infrastructure Limited, India's largest telecom service provider, today announced signing of a Joint Venture. KRIBHCO Reliance Kisan Limited, the Joint Venture Company, would synergize the respective strengths of KRIBHCO and Reliance ADA Group to catalyze tele-density growth and provision of state-of-the-art products and services to the rural people in India.

"KRIBHCO has been at the forefront of catalyzing agricultural and rural development by selecting, financing and managing socially desirable and commercially feasible ventures and initiatives. This joint venture with Reliance Communications Infrastructure is a significant step forward which would result in an unmatched platform that would go a long way in providing each and every product/ service in Rural India at par with urban India", It's our dream at KRIBHCO to develop cooperatives into dynamic rural business hubs. There is no other network in INDIA that matches the strength, reach and extensiveness of the cooperatives which is unparallel and KRIBHCO is one organization that is venturing to make this network more financially sound and empower the stakeholders-rural people, through this initiative "said Mr. B.D. Sinha, Managing Director - KRIBHCO.

KRIBHCO' expertise in the rural marketing and its commitment to develop the cooperative sector provides an unmatched opportunity to develop cooperative rural business hubs across country converting the primary cooperatives in to thriving business ventures fully owned by farmers' and supported by the best in the telecome industry. The value added services would spark the process of converting farming in to a more profitable business venture one hand and create meaning full opportunities for employment.

KRIBHCO Reliance Kisan Limited, Joint Venture Company would create a first-of-its-kind distribution model covering 72% of Indian population through its network of over 25,000 cooperatives, 6300 member cooperatives and 60 "Krishi Seva Kendras" spread across the length and breadth of the country. The unique distribution model created by the Joint Venture Company would distribute a range of telecom and non-telecom services to bridge the Urban-Rural divide.

"Bridging the Urban - Rural Digital Divide has been among the fundamental reasons for inception of Reliance Communications. Over the last few years Reliance ADA Group has achieved significant success in making telephony available and affordable to millions of Indians living in rural areas. We are confident that KRIBHCO Reliance Kisan Limited would emerge as one of the most significant milestones in enhancing the Rural Teledensity in the country", said Mr. S.P. Shukla, President - Wireless , Reliance Communications. " Over and above the state-of-the-art and most-affordable range of GSM and CDMA services, Reliance Communications would soon be unveiling a wide range of products and Value Added Services customized for the rural markets", he added.

KRIBHCO would hold 60% equity in the Joint Venture Company with the balance 40% held by Reliance ADAG.

KRIBHCO Reliance Kisan Limited would also distribute in future products and services of other business enterprises of Reliance ADA Group including Reliance Capital, Reliance Entertainment and BIG TV DTH. The Joint Venture would provide additional source of business to Agricultural Cooperative Societies and help in strengthening the rural economy and the cooperative movement of the country.

About KRIBHCO

Krishak Bharati Cooperative Limited (KRIBHCO) the world premier fertilizers producing cooperative has an outstanding track record to its credit in all spheres its activities. Incorporated in April, 1980 as a national level cooperative society to manufacture and distribute chemical fertilizer and allied farm inputs, KRIBHCO has fully imbibed the cooperative philosophy and has made sustain efforts towards promoting the cause of modern agriculture and cooperatives in the country. Having its genesis in farmers cooperatives, social development and humane facts have always been of prime focus it its growth and philosophy - an organization which owes its existence to the farmers, by the farmers and for the farmers of this great country. KRIBHCO has been marketing its product i.e. Urea, Bio-Fertilisers, Seeds through cooperatives and institutional Agencies. Besides, providing its products to Apex Level cooperative Federations / Institutions in most of the states.

KRIBHCO has achieved excellent financial results for the financial year 2008-09. The society has earned a before tax profit of Rs. 269.35 Crores. The net worth of the society is Rs. 2549.42 Crores as on March 31st 2009. The society maintains its track record of paying the maximum permitted dividend of 20% on its share capital to its share holders.

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