Reliance Industries Limited|
Growth is Life
History and Founded in 1957 by Dhirubhai Ambani | Started as a yarn trading business | In 1977, Reliance Textiles goes for IPO, Issue is
Evolution oversubscribed 7 times | Followed a strategy of backward integration by setting up mills and exploration units in Gujarat |
Largest integrated producer of polyester | Largest grassroots refinery in 2000 | Enters Infocomm business in 2002 | First
Indian Private Organization in Fortune Global 500 | Largest retailer by revenue in India |In 2009, established fastest green-
field deepwater oil development project in KGD6 block to complete backward integration journey| Reliance is first Indian
company to cross ₹6 trillion market capitalization |All activities span hydrocarbon exploration and production, petroleum
refining and marketing, petrochemicals, retail and telecommunications
Mission Create value for all stakeholders l Grow through innovation l Lead in good governance practices l Use sustainability to drive
product development and enhance operational efficiencies l Ensure energy security of the nation l Foster rural prosperity
Vision Through sustainable measures, create value for the nation, enhance quality of life across the entire socio-economic spectrum
and help spearhead India as a global leader in the domains where Reliance operate
Financials Annual (2018-19) Market Cap – INR 863,996 crore |Turnover- INR 622,809 Cr.(44.5% yoy) | PAT- INR 39,588 crore (13.1%
yoy) | Earnings per share- INR 60.9 Annual Report 2018-19
Quarterly Report ( 1st quarter 2019-20, ended on 30th June)- Turnover- INR 172,956 Cr. | PAT- INR 10,104 Cr. 1st Quarter
Report 2019-20
Logo Significance & The Jio logo seems to represent the past and future of Reliance. Oil is what had propelled Reliance to become India’s biggest
Motto company in the 20th century. When flipped over into the 21st, it’s probably going to be Jio.
The motto “Growth is Life” aptly captures the ever-evolving spirit of Reliance.
Culture – Values Corporate Citizenship, Customer Value, Respect, One Team, Ownership Mindset, Integrity, Safety and Excellence.
Key People Chairman and Managing Director- Mr. Mukesh Ambani, Chief Financial Officer – Mr. Alok Agarwal, President- Mr. Vinod
Ambani, MD, Reliance Jio- Mr.Sanjay Mashruwala
Website Link
PLACEMENT PREPARATION COMMITTEE, IIM INDORE
Business Verticals
Revenue INR 393,988 Cr. INR 172,065 Cr. INR 130,566 Cr. INR 5,005 Cr. INR 46,505 Cr. INR 5,116 Cr.
Refining & Retail
Petrochemicals (6th fastest growing Oil and gas Digital Services Media
Marketing retail firm)
• Processes a wide • Petrochemical products • Neighborhood stores, • Exploration, • Reliance Jio Infocomm • RIL acquired
variety of crude oils to including: high and low all under one roof development and offering 4G wireless Network18 has
produce a range of density polyethylene supermarkets, mini- production of crude oil services across India interests in television,
petroleum products, (PE), polypropylene marts. India’s largest by and natural gas • Pan India Brodband digital content, filmed
including (PP), polyvinyl chloride reach, revenue and • 12 conventional Wireless Access (BWA) entertainment, digital
transportation fuels for (PVC), poly butadiene profit. Exploration and spectrum commerce, magazines,
domestic & export rubber (PBR), polyester • Specialty formats Production blocks- 9 • Jio biggest by market mobile content and
markets yarn, and polyester offering consumer domestic and 3 share(revenue) and allied businesses.
• Production of liquefied fibers durables & information international ranked #1 in AGR - Network18, through its
petroleum gas (LPG), • Manufacturing technology, apparel & Adjusted Gross group companies
propylene, naphtha, operations across 11 accessories, health, Revenue
gasoline, jet/aviation locations in India wellness & beauty,
turbine fuel/superior footwear, jewelry,
kerosene oil, high books, music &
speed diesel, sulfur, entertainment,
and petroleum coke automotive products &
• Two refineries in services and home
Jamnagar ware, furniture,
kitchens, & furnishings.
• 1 in every 2 Indians Is a consumer of media content; Network18’s TV channels
• 331.6 million Jio subscribers touch lives of 70 crore Indians
• 10644 Retail stores across 6,700+ cities
PLACEMENT PREPARATION COMMITTEE, IIM INDORE
Company Analysis
Strengths Weaknesses
• Leading position in the market • RIL is heavily leveraged and trying to reduce debt
• Industry best operational efficiency achieved in refining • Investor doubt is climbing because of certain non convention
accounting practices
• Increasing presence of Reliance Retail • KD G 6 basin yields have been less than impressive
• The company has followed backward integration strategy • Entry in the gas market has not paid off at the rate at which it is
successfully in many of its business functions- Petroleum, expected
polyesters, retail, Telecom
• Increasing market share of Jio
Opportunities Threats
• Enhancing telecom services with growing smartphone penetration Declining production from major exploratory blocks in India
and data usage
• Divestment and relinquishment of international exploratory assets
• Network synergies, enhanced network capacity and will optimize limiting RIL’s growth globally
spectrum utilization and Capex efficiencies
• Increasing domestic competition
• Commissioning of new plants
• Telecom sector witnessing consolidation, with Vodafone-Idea
merger , Jio might lose market share and revenue
• Telecom competitors are reducing tariffs and plans. Jio cannot
survive through cash burning in long term
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Product & Service Portfolio Link
Polymers Polyesters Petroleum Textile Owned Retail Owned In store Digital
(9 brands) (22 brands) Retail Brands Brands Brands Services
• Repol • Recron (9 brands) (7 brands) (13 brands) (11 brands) (15 brands)
Polypropyl • Recron • Reliance Gas • Only Vimal • Reliance • Avaasa • Jio Digital
ene Superblack • Reliance • Georgia Fresh • Netplay Life
• Relene • Recron Petroleum Gullini • Reliance • Performax • MyJio
Polyethyle Superdye Retail • Vimal Gifting Smart • Point Cove • JioTV
ne • Recron 3s • Reliance • DEO2 • Reliance • Enzomatic • JioMusic
• Reon • Recron Aviation • Nice Market • JioChat
Polyvinyl FeelFresh • AutoLPG • Reliance
Chloride • Qwik Mart Digital
• RelPipe • Refresh • Reliance
• RelWood Jewels
• Relflex • Trends
• Reliance
Footprint
• Ajio.com
PLACEMENT PREPARATION COMMITTEE, IIM INDORE
Competitor Analysis
Telecommunication
Petroleum Organized Retail and Broadband Textile Media
Services
• IOCL, BPCL, HPCL, Essar • Pantaloons, Big Bazaar, • Vodafone, Bharti Airtel, • Grasim Industries, • CBS Corporation, 21st
Oil, MRPL, Nagarjuna Oil Star Bazaar, D Mart, Idea, BSNL Kesoram Textiles, Arvind Century Fox Inc
Shoppers Stop, Spencers Mills, Bombay Dyeing, • Star India, Zee
• Food Bazaar, Food World Raymonds, Vardhaman Corporation
• Croma Retail Textiles
• Most of the competitor
chains in retail are owned by
TATA Group and Biyani
Group
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CSR and Corporate Sustainability
CSR Campaigns Link
• Project Jagriti- A project to uplift and bring dyslexic students from the underprivileged segment into the main stream.
• Women & Youth Empowerment Programmes- Reliance nurtures and sponsors many projects designed to educate, employ and empower women and youth in
and around the catchment areas of its operations.
• Reliance Dhirubhai Ambani Protsaham Scheme- A scheme for supporting meritorious students and providing financial aid to the toppers for pursuing higher
studies in engineering and medical streams.
• Reliance Foundation- To provide impetus to various philanthropic initiatives of RIL, Reliance Foundation (RF) was set up in 2010 as an expression of its vision
towards sustainable growth in India. Reliance Foundation has taken the path of inclusive development to address their basic needs. Reliance Foundation has
cumulatively touched the lives of 4 million people in over 5000 villages and various urban locations
Energy Management
• RIL has registered eight CDM projects with the United Nations Framework Convention on Climate Change (UNFCCC). These projects are related to energy
efficiency, use of renewable energy and cleaner fuels.
Environment Responsibility
• Recron Green Gold Polyester Staple fibre is produced by a highly eco-friendly process; apart from being made from 100% recycled PET bottles, it also uses 90%
recycled water.
Occupational Health & Safety
• ‘REFERS’ (Reliance Employee & Family Emergency Response Services) offers 24x7 assistance in case of any medical accident, fire and security exigencies for
employees and their family members. “R-Swasthya” is a health & wellness initiative aims to create a culture where employees choose to live healthier
lifestyles.
Social Institution Building
Reliance Foundation’s Drishti program, which is run in association with the National Association for the Blind, Arvind Eye Hospital and Hyderabad Eye Institute,
has supported over 15,500 corneal transplants across the country since inception.
PLACEMENT PREPARATION COMMITTEE, IIM INDORE
In News
• Reliance-Microsoft cloud tie-up poses threat to Amazon, Google in India - India's Reliance Industries Ltd on Monday
announced a partnership with Microsoft's Azure cloud platform, in a move that deepens the offerings of its Jio telecoms unit
while posing a direct challenge to rival cloud services providers such as Amazon.com and Alphabet's Google .
• Saudi Aramco and sign deal to aquire 20% of RIL’s O2C business - Saudi Aramco and RIL have a long-standing crude oil supply
relationship of over 25 years. Saudi Aramco is the world’s largest and lowest cost-per-barrel producer of crude oil, is
geographically close to India
• Reliance and BP to create major world-class fuels partnership for India’s fast-growing market - Building on Reliance’s existing
Indian fuel retailing network and an aviation fuel business, the partners expect the venture to expand rapidly to help meet
the country’s fast-growing demand for energy and mobility.
• JIO LAUNCHES A DIGITAL LITERACY PROGRAM “DIGITAL UDAAN” FOR FIRST TIME INTERNET USERS - This new initiative
named ‘Digital Udaan’, will empower first-time internet users with digital literacy and understanding of the Internet.
• Reliance acquires global toy store chain Hamley’s – Founded in 1760, it is the oldest and one of the most celebrated toy retail
chain
• Jio is number one operator by revenue market share, Airtel second
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