MGMs Institute of Management, Aurangabad.

MBA 1st year (Istsem)

Presentation On
Reliance Industry

Guided by
Mr. Sushil Deshmukh

Introduction
The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002) It is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of US$ 28 billion.

It is a Fortune Global 500 company

INTRODUCTION
The Reliance group which is founded by diru

"Growth has no limit at Reliance. I keep revising my vision. Only when you can dream it, you can do it."

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of US$ 58 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India. Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully integrated along the materials and energy value chain.

The Reliance Group is among Indias top three private sector business houses on all major financial parameters, with assets in excess of Rs.180,000 crore, and net worth to the tune of Rs.89,000 crore. Across different companies, the group has a customer base of over 100 million, the largest in India, and a shareholder base of over 12 million, among the largest in the world. Through its products and services, the Reliance Group touches the life of 1 in 10 Indians every single day. It has a business presence that extends to over 20000 towns and 4.5 lakhs villages in India, and 5 continents across the world.

 History: Dhirubhai started off as a small time worker with Arab merchants in the 1950s and moved to Mumbai in 1958 to start his own business in spices. After making modest profits, he moved into textiles and opened his mill near Ahmedabad Dhirubhai founded Reliance Industries in 1958 and today the company, with over 85,000 employees. provides almost 5% of the Central Government's total tax revenue. Ambani was one of the first entrepreneurs to draw retail investors to the stock markets.

 Growth Driver:Responcible Factor for growth

 Current view

Mukesh Ambani

The Mukesh Ambani led RIL Group's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles and retail. Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products. His personal stake in Reliance Industries is 48%. On the 29th of August' 2011, Reliance Industries regained its status as the most valued firm in India, after a heady contest with ONGC and Coal India Ltd., both public sector units as well as energy giants.

Product Mix
Composition of RILs sales

Oil & Gas 3% Fibre Int. 32%

Chem icals 10%

Plastics & Int. 32% Polyester 22% Fabrics 1%

Consistent Growth in Exports Revenues

35000 30000 25000 20000 15000 10000 5000 86 0 95-96 107 7,786

Exports

Total Sales 25,731 19,968 14,533

13,404 8,730

366 97-98

685 98-99

1,478 99-00

2,960

96-97

00-01

 Reliance Industries Ltd is set to drive its future business growth

RIL is expected to generate free cash flows of $18 billion between fiscal year 2011 and 2014. It took three decades for Reliance to create an enterprise value of over $80 billion. Standards to pursue such growth targets by venturing into various new sectors.

How is it logically possible to grow a business from $80 billion to $160 billion in size in a short span of 10 years?

The announcements related to the new business opportunities for RIL following a patch-up between both the brothers made people all over the world sit and take note of the potential of Indias largest private listed company.

ORGANIC EXPANSION IN THE CORE PETROCHEM SEGMENT COMMITMENT TO THE SYNTHETIC RUBBER INDUSTRY

LEAPING AHEAD TO FOURTH GENERATION TECHNOLOGY

EMPOWERING ULTRA-BIG DREAMS MODERN RETAILING AT ITS BEST SHELLING OUT FOR THE NEW ENERGY SOURCE

Leadership:Leadership in the Corporate Sector

Reliance groups pre-eminent role in the Indian corporate sector: - 30% of the total profits of the private sector - 10% of the profits of the entire corporate sector - over 12% of total market capitalisation - weightage of 22% in the Sensex

- weightage of 19% in the Nifty

- 1 out of every 4 investors in India is a Reliance shareholder

Growth has no limit at reliance. I keep revising my vision. Only when you can dream it, you can do it

Dhirubhai H. Ambani Founder Chairman Reliance Group December 28, 1932 - July 6, 2002

Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global leader in the materials and energy value chain businesses. He is credited to have brought about the equity cult in India in the late seventies and is regarded as an icon for enterprise in India. He epitomized the spirit 'dare to dream and learn to excel'. The Reliance Group is a living testimony to his indomitable will, singleminded dedication and an unrelenting commitment to his goals.

Shri Mukesh D. Ambani Chairman & Managing Director

Is a Chemical Engineer from the Institute of Chemical Technology, Mumbai (earlier the University Department of Chemical Technology, the University of Bombay). He has pursued MBA from Stanford University, USA. He joined Reliance in 1981 and initiated Reliance's backward integration journey from textiles into polyester fibres and further into petrochemicals, petroleum refining and going up-stream into oil and gas exploration and production. He created several new world-class manufacturing facilities involving diverse technologies that have raised Reliance's petrochemicals manufacturing capacities from less than a million tonnes to about twenty million tonnes per year.

Corporate Social Responsibility

RIL's contribution to the community are in areas of health, education, infrastructure development (drinking water, improving village infrastructure, construction of schools etc.), environment (effluent treatment, tree plantation, treatment of hazardous waste), relief and assistance in the event of a natural disaster, and miscellaneous activities such as contribution to other social development organisations etc. RIL's CSR teams across its manufacturing divisions interact with the neighbouring community on regular basis.

 Education - A network of nine schools caters to 13,251 students spread across geographies in India - Reliance Dhirubhai Ambani Protsaham Scheme - Mumbai Indians Education for All Initiative Community Health Care - The Primary Health Centre (PHC) - Dhirubhai Ambani Hospital Safety initiatives for community

- Road Safety System is most cost effective and easy to use tool for improving public safety

 Environment initiatives for the community - A zero garbage campaign - A disease-free environment Community Development Rural Development Trust - Livelihood Support Programmes - Environment initiatives for the community - Improving quality of agricultural produce
- Reliance

Contribution Towards Indian Econom

Reliance and the Indian Economy

Reliance groups leadership position in the Indian economy, is reflected in its all-round contribution: - 3% of Indias GDP - 5% of Indias total exports - Nearly 10% of governments indirect tax revenues

Reliance makes

significant
contributions to the Indian economy

on various
parameters

-2.3% of the gross capital formation in the

country, in the last 5 years

 Main Line Of Bussiness

The Company's operations can be classified into four segments namely: Petroleum Refining and Marketing business Petrochemicals business Oil and Gas Exploration & Production business Others The Company's refinery at Jamnagar with refining capacity of 6,60,000 barrels per day (bpd) is the third largest refinery at a single location in the world.

Sector Wise
Reliance Petroleum

Reliance Petroleum Limited was set up by Reliance Industries Limited one of India's largest private sector companies. The refinery is able to process a wide variety of crudes- from very light to very heavy (from 18 to 45 degree API) and from sweet to very heavy (with sulphur content from 0 to 4.5%). With an annual crude processing capacity of 580,000 barrels (92,000 m3) per stream day (BPSD), RPL will be the sixth largest refinery in the world

Petrochemical business
Petrochemicals Business Polymer production volumes decreased by 9% to 3,076 KT.

RIL produced 1,755 KT of ethylene and 696 KT of propylene

Oil & Gas - Review

RIL is Indias largest private sector E&P operator in India

Number of properties increased from just 2 to 25 over the last 2 years

Four new exploration blocks awarded in Q1, in second round of bidding under New Exploration Licensing Policy (NELP)

100 strong team currently manning operations

Fiscal incentives to enhance overall returns from this business

Others
Reliance Dairy Foods Limited Reliance Retail Limited Reliance Jamnagar Infrastructure Limited Reliance Digital Retail Limited Reliance Service Solutions Limited