COMPANY ANALYSIS OF RELIANCE INDUSTRIES LTD.

INTRODUCTION:
Reliance Industries Limited (RIL) is the largest private sector business enterprise in India. It
is the only private sector company from India to feature in the Fortune Global 500. RIL’s
operations include exploration and production of crude oil and gas, refining and marketing of
petroleum, and, production of petrochemicals and textiles. Also, the company recently
forayed into retail business and has aggressive future growth plans for this segment .RIL is
the largest Oil & Gas acreage holder among the Private sector companies in India with 34
domestic exploration blocks covering an area of about 331,000 sq. km.

Reliance Industries Limited (RIL) is an Indian conglomerate holding company headquartered

in Mumbai, Maharashtra, India. Reliance owns businesses across India engaged in energy,
petrochemicals, textiles, natural resources, retail, and telecommunications. Reliance is the
most profitable company in India, the largest publicly traded company in India by market
capitalization, and the second largest company in India as measured by revenue after the
government-controlled Indian Oil Corporation. The company is ranked 215th on the Fortune
Global 500 list of the world's biggest corporations as of 2016.

It is ranked 8th among the Top 250 Global Energy Companies by Platts as of 2016. Reliance
continues to be India’s largest exporter accounting for 8% of India’s total merchandise
exports with a value of Rs 147,755 crore and access to markets in 108 countries.[8]Reliance
is responsible for almost 5% of India’s total revenues from customs and excise duty and is
also the highest Income tax payer in the private sector in India.

Reliance Retail has opened its first retail store in November 2006 and now holds over 135
retail stores covering 16 cities with a total square footage of over 370,000 sq. ft. RIL
operates mainly in India but has business activities and customers in more than 100
countries around the world. The company has entered into a merger agreement with Indian
Petrochemical Corporation Ltd. (IPCL) and awaits approval from appropriate authorities.
Reliance Industrial Infrastructure Limited and Reliance Europe Limited are RIL’s other two
major associate companies. Reliance Industries Limited (RIL) is a Fortune Global 500
conglomerate with operations including the entire hydrocarbon value chain, retail shopping
and textiles. RIL is currently buoyed by high gross refining margins, high refinery utilization
rates and increased demand for petrochemical products.

STRATEGIES – CORE COMPETENCIES:

 One of RIL’s core competencies is to conceptualise & implement multi-billion dollar

projects ontime & in a cost efficient manner.
 RIL has proven successfully track record of successfully implementing large
projects,including its existing refinery & petrochemicals complex at Jamnagar in
Gujrat , its petrochemicals complex at Hazira in Gujrat and another petrochemicals
complex at Patalganga in Maharastra.

 These 3 facilities together accounted for approximately 84 % of RIL’s

gross fixed assets for the year ended march 31st,2005.

Swot Analysis :

Strengths

 Technological Skills
 Distribution channels
 Production Quality
 High resource & surplus
 Unique growth visibility

Weakness

 Failure in Forward Integration

 Un-utlised high resource & surplus

Opportunities

 Increase in demand in Chinese & Indian market

 Gas from KG basin
 Local Indian market visibility & growth

Threats

 Possibility of 100 % FDI

 Windfall taxes
 Competition
 Government

RIL Product Mix :

Oil & Gas Chemicals

3% 11%

Fibre Int.
29%
Plastics & Int.
Polyester 34%
22%

Fabrics
1%
Shareholder’s Pattern :

Holder's Name No of Shares % Share Holding

Promoters 1463923343 44.76%
ForeignInstitutions 562481618 17.20%
GeneralPublic 412494014 12.61%
FinancialInstitutions 260668783 7.97%
SubsidiaryCompanies 171883624 5.26%
OtherCompanies 161838311 4.95%
Others 122910567 3.76%
NBanksMutualFunds 85190150 2.60%
ForeignNRI 24356714 0.74%
CentralGovt 4967212 0.15%