24081541 Reliance Industries Overview

7/29/2019 24081541 Reliance Industries Overview

1/48


2/48

RELIANCE INDUSTRIESPURSUEYOURGOALSEVENINTHEFACEOFDIFFICULTIES, ANDCONVERTADVERSITIESINTOOPPORTUNITIES." - DHIRUBHAI HIRACHAND AMBANI.

Presented By:

Sheryl(94)

Smitha(97)

Subasri(104)Upasana(112)


3/48

AGENDA

Introduction

Current news

The split

Mukesh Ambanis groupADAG

Gas Row in Detail

SWOT

BCG Recommendations

Summary and Conclusion


4/48

INTRODUCTION

India's largest business house

Exports to more than 100 countries theworld over

Reliance Group revenue is equivalent toabout 3.5% of India's GDP

Largest polyester yarn and fibre producer in

the world Among the top five to ten producers in the

world in major petrochemical products


5/48

THE RELIANCE GROUP COMPANIESINCLUDE:

Reliance Industries Limited

Reliance Retail Limited

Indian Petrochemicals Corporation Ltd.

Reliance Capital Limited Reliance Industrial Infrastructure Limited

Reliance Telecom Limited

Reliance Infocomm Limited

Reliance General Insurance Company Limited

Reliance Power and Reliance Energy Limited.

Other Businesses and Subsidiaries


6/48

CURRENT NEWS

RIL opts for consent route to settle insider-tradingissue

RIL Chairman has set his eyes on no-frills, low-costhousing. The initiative, still on the drawing board,could be kicked off by 2010.

The countrys biggest global acquisition if it

emerges as the successful bidder for bankruptLyondellBasell - one of the worlds largest

polymers, petrochemicals and fuels company

Reliance Industries has reopened 900 gas stations,which were shut down when state firms were sellingheavily subsidised fuel


7/48

The bid for the privatization of five airports was wonby the Anil Ambani group's Reliance AirportDevelopers Ltd (RADL)

Flag Telecom is now part of Reliance Globalcom.

On the 30th December 2008, Reliance becamethe first telecom company in India to operate inboth CDMA as well as GSM technologies.

The Reliance groups Javagreen coffee retail chain,

is run by Ambani sisterNina Kothari andbrother-in-law ,B H Kothari ,along with ReliancesWebWorld stores


8/48

Mukesh Ambanis next foray: Education. Planning

to launch a private university

Alliance with Brad Pitts production house, Plan B -


9/48

CSR Initiatives:

1. CSR activities at Jamnagar

2. Dhirubhai Ambani SSC - Merit Reward Scheme &

Dhirubhai Ambani Undergraduate ScholarshipScheme

3. 'Reliance Kargil Scholarship Scheme

4. Healthcare Initiative- Blood donations, free

medical check up etc5. Mukesh plans to setup a Rs 500-crore Reliance

Foundation to address the social developmentimperatives of the country


10/48

THE BEGINNING

Founded in 1958 as a textile company.

Brought about the equity cult in India.

Sectors involved: petrochemicals, textiles,

production of crude oil and gas, polyester andpolymer products .

Also in Telecom, Insurance and InternetBusinesses, the Power Sector, Infrastructure

Dhirubhai has been one among the select Forbesbillionaires and has also figured in the SundayTimes list of top 50 businessmen in Asia.

Backward vertical integration has been thecornerstone.


11/48

THE SPLIT

July 2002DhirubhaiAmbani dies

November 2004Feud becomes

public

June 2005Settlementbrokered byKokilaben

2006 Split:Mukesh = RIL;Anil = RNRL

July 2008Mukesh claimsshares inRelianceCommunications


12/48

THE SPLIT

Following Dhirubhais death in 2002, the empirewas split between the two sons Mukesh Ambaniand Anil Ambani

Mukesh Ambani got RIL and IPCL RelianceIndustries, also owner of Mumbai Indians

Anil Ambani heads the Reliance Capital, RelianceEnergy and Reliance Infocomm - Anil Dhirubhai

Ambani Group (ADAG)


13/48

MUKESHSKITTY


Indian Petrochemical CorporationLimited (IPCL)


14/48

BUSINESSES

Exploration &Production

Petroleum

refining &Marketing

Polymers

Polyesters

Polyesterintermediates

OtherPetrochemicals

Petrochemicals

Textiles

Retail


15/48

MUKESH AMBANIS GROUP



IPCL- Shares


16/48

MAJORSUBSIDIARIESANDASSOCIATESOFRIL

Reliance Petroleum Limited


Reliance Global Management Services (P) Ltd

Reliance Biopharmaceuticals

Ranger Farms Ltd

Reliance Engineering Associates (P) Ltd

Reliance Oil & Gas Find (Petrochemicals Business)


17/48

JAMNAGAR REFINERY

Privatesectorcrude oilrefineryowned by

RIL

Commissioned on 14 July1999

Installedcapacity661,000barrels/day

Largestgreenfieldrefineryintheworld

Jamnagar-

Refining Hubof the World(1.24 mnbarrels perday)


18/48

RELIANCE PETROLEUM LIMITED

Strategic alliance with Chevron India Holdings , Singapore (5% equity stake)

Refining activities carried out at Jamnagar with refining capacity of 27 mn tonnes p.a. (540000barrels/stream day)

Annual crude processing capacity of 580000 BPSD(Barrels Per Stream Day)

Sixth largest refinery in the world

Processes wide variety of crudes

Very light to very heavy(18 to 45 degree API)

Sweet to very heavy (Sulphur content from 0 to 4.5%)

Awarded International Refiner of the Year

Nearly zero-emissions refinery


19/48

PERFORMANCEREVIEWOF RPL

Product FY2008-2009 FY2007-2008

Gases and distillates 28000 28500

Fuel oils 4500 4600

Total production 32450 33100


20/48

RELIANCE RETAIL LIMITED

Pan-India network of retail outlets in multiple formats

A world class shopping environment

State of art technology and Seamless Supply Chain infrastructure

Host of value-added services and unmatched customer service


21/48

BRANDSUNDER RELIANCE RETAIL

RELIANCE FRESH

food and groceryspecialty store

RELIANCEFOOTPRINT

-footwear specialtystore

RELIANCE TIMEOUT- books, musicand entertainment

RELIANCE DIGITAL electronicsspecialty store

RELIANCEWELLNESS

health, wellness andpharma specialty

RELIANCETRENDZ-apparales

specialty

RELIANCEAUTOZONE

RELIANCE SUPER-mini hypermarket

RELIANCE MART

all under 1 roofsupermarket

RELIANCE I-STORE- exclusive

apple store

RELIANCE HOMEKITCHENS

RELIANCE JEWEL -jewellery


22/48

RELIANCE GLOBAL MANAGEMENT SERVICES(P) LTD

Fast growing ITsolutions and servicesprovider with business

offices in USA,Hyderabad(India)

ERP, SAP, Applicationmaintenance and

support, management-consulting services

Contract staffing as wellas in-house competency

development


23/48

RELIANCE BIOPHARMACEUTICALS

Reliance Biopharmaceuticals Reliance Life Sciences (Rabale,India)

Protein manufacturing facility at the Dhirubai Ambani LifeSciences Center at Rabale, near Mumbai

Investment plans of above Rs 9 bn ($200 mn)

Mamallian cell + Microbial fermentation technology = proteins

Initial capacity for 10,000 litres of mammalian cell culture and1000 litres of microbial cell culture


24/48

RANGER FARMS LIMITED

Reliance Fresh likely to beadded to Ranger Farms

Deals in food, fruits andvegetables and consumer

products

Some verticals are expectedto be hived to reap higher

profits


25/48

RELIANCE ENGINEERING ASSOCIATESPRIVATE LIMITED (REAL)

Engineering procurement and construction

Services

Part design for molding

Mold design

Prototype

Product tooling Pre-production prototyping

Full-scale manufacturing of precision thermoplastic and thermoset plastic parts

Contract manufacturing services for OEMs

Procurement

Build-to-print assembly of low to moderate volume products


26/48

RELIANCE'S OIL & GAS FIND

Natural gas in the Krishna Godavaribasin off AP near Vishakapatnam in

2002

Largest discovery of natural gas inthe FY 2002-2003

Natural gas production from D-6block in the KG basin commenced

on April1,2009

7 trillion cubic fit in size,

equivalent to 1.2 bn barrels butonly 5 trillion cubic feet extractable

On Oct8,2008 RNRL took RIL tothe Bombay HC to uphold a MoU


27/48

PETROCHEMICALS

Polymer (PP, PE and PVC) production volumes decreased by 9% to 3076 KT due to plannedshutdown of PP plant at Jamnagar in October 2008

1755 KT of ethylene and 696 KT of propeylene , a decrease of 7% each year due to lowerPropane Cracking

Polyester (PFY,PSF and PET ) production volume decreased by 2% to 1534 KT

Focus on specialty products which accounts for 55% of PSF and 38% of PFY production

RILs fibre materials (PX,PTA,MEG) production decreased by 3% to 4583 KT

Revenue from the segment decreased marginally from Rs 53000 crores to Rs 52767 crores(US$10.4bn)


28/48

INDIAN PETROCHEMICAL CORPORATIONLIMITED (IPCL)

RIL formally assumed control of IPCL in June 5, 2002 after which

Reliances controlling share was 47.3%

IPCL was managed by a board nominated by the govt till 2002 and 26% of

the equity shares was divested in favor of Reliance Petroinvestments Ltd

through a bidding process

6 polyester companies amalgamated with IPCL

Appollo Fibres Ltd (AFL)

Central India Polyesters Limted (CIPL)

India Polyfibres Limted (IPL)

Orissa Polyfibres Limted (OPL)

Recron Synthetics Limited (RSL)

Silvassa Industries Private Limited (SIPL)

Battle between the brothers over the then Rs 90,000 Crores Reliance empire

Merger at a swap ratio of 1:5


29/48

TEXTILES

Flagship brandVimal

Shepherding a new era in fabrics

New product initiatives:

Fresca anti-microbial and anti-bacterial work-wear apparel fabrics

Home furnishing and auto-textilesSilk-Amino suiting fabrics

Fire-retardant and water-repellent tent fabrics for defence/ police

services

Insect & mosquito repellent nets, as per WHO standards, which will

find usage in several areas of the world affected by mosquitoes /

insects


30/48

IN ANILS CORNER

ADAG

RNRL

Reliance Communications

Reliance Capital

Reliance Infrastructure

Reliance Power

Reliance Entertainment

Reliance Health


31/48

ADAG

ranks among India's top three three private sectorbusiness houses.

has a market capitalization of US$ 22 billion, netassets in excess of US$ 7 billion, and net worth to

the tune of US$ 6 billion.

Has a customer base of over 50 million, the largestin India

Spread over 4,500 towns and 300,000 villages in

India, and 5 continents across the world.


32/48

RNRL

incorporated on March 24, 2000 as ReliancePlatforms Communications.Com Private Limited

Engaged in the business of sourcing, supply andtransportation of gas, coal and liquid fuels

RNRL has been awarded four CBM blocks, with anacreage of about 3,251 sq. kms, for the explorationand production of coal bed methane (CBM), makingit the second largest CBM player in India in terms of

acreage.


33/48

RELIANCE COMMUNICATIONS

Reliance Communications, formerly known asReliance Infocomm flagship venture along withReliance Telecom is part of RelianceCommunications Ventures (RCoVL).

Began operations in 1999 and has over 50 millionsubscribers today

Offers a complete range of integrated telecomservices also broadband services.

Offers both CDMA and GSM services in fact thefirst telecom company in India to operate in bothtechnologies


34/48

Wireline Business throughout India and has thelargest optical fibre communication (OFC)backbone architecture [roughly 110,000 km] in thecountry.

RelCom has its presence across all B2Ccommunications channel in one of the fastestgrowing markets in the world.

Also is the first telecom operator in the history of

Indian telecommunications to simultaneouslylaunch its GSM services in 17 circles

Reliance Globalcom, a division, owns the worldslargest private undersea cable system.


35/48

RELIANCE INFRASTRUCTURE

Earlier called Reliance Energy

Indias largest private sector enterprise in powerutility

Focused on roads, Urban infrastructure (Sealink

and Airports), Specialty Real Estate (businessdistricts, trade towers, convention centre), and SEZ(IT & ITES SEZ and non IT SEZ) as well as FTZs.

Executing the first 100% private sector powertransmission project for western grid

Emerging as one of the leading players in India inthe Engineering, Procurement and Construction(EPC) segment of the power sector


36/48

RELIANCE POWER

Subsidiary of Reliance Energy

Established to develop, construct and operatepower projects domestically and internationally

Currently developing 16 large and medium sizedpower projects with a combined planned installedcapacity of 33,780 MW

Sole distributor of electricity to consumers in thesuburbs of Mumbai

The 7,480 MW project to be located at Dadri inUttar Pradesh is expected to be the largest gas-fired power project at a single location in the world.


37/48

The Sasan project (Madhya Pradesh) is a 6x660MW coal fired generator and is currently underconstruction and is planned to be completed in aspan of less than five years

The 3500 MW Power Plant, Dadri in UP was setup in 2004 in the Ghaziabad District; aimed to bethe biggest gas based power plantin the world.


38/48

RELIANCE ENTERTAINMENT

Mostly comes under the BIG banner.

Includes Reliance Big Entertainment, Big Pictures,Big Music and Home Entertainment, Bigflix.com,and Bigadda.com. Soon it will also have Big

Broadcast, Big TV, the DTH business, and BigIPTV.

The BIG name started off with the now householdname - Big 92.7 FM

Big Pictures will spend $ 1 billion in producing 10mainstream Hollywood films by 2010

Also spend another $300 million on 69 Hindi andregional language films.


39/48

Bigflix.com, an online DVD rental company, willspend $100 million in setting up 300 stores acrossthe country.

The group has also announced a $ 500 million

investment in the IPTV business along withMicrosoft

Also into content distribution and delivery

owns 200 cinema screens in the US, 51 in Malaysiaand 167 in India

Also will increase his Zapak gaming cafes from 21to 700.

Also has launched its Direct To Home (DTH) TValso, known as "Big TV".


40/48

Investing Rs. 6,800 crore, comprising a chain ofmedicine retail stores, four hospitals in WestBengal, Bangalore, Delhi and Mumbai, and twomedi-cities in Jaipur and Nagpur.

Plans to act as a nationaldistributor for local andforeign drug manufacturing companies, and sourcedrugs directly from the manufacturers to hospitalpharmacies and retail chemists.

Medi Assist, a Third Party Administrator (TPA) forhealth insurance, forms a vital link connectingstakeholders across healthcare delivery.

RELIANCE HEALTH


41/48

OTHER BUSINESSES

Reliance BPO is a premium BPO & KPO serviceprovider offering cutting edge solutions to globalCommunications, BFSI, Utility and Entertainmentindustries.

The Mudra Group, engaged in advertising, hasmore than 125 clients nationwide with threecreative agencies, eight full service offices, sevenspecialised business units and an integrated media

offering.


42/48

MOVING AHEAD

ADAG will invest a whopping sum of Rs 40,000crore in power sector, cement industry, cargohandling airport and technical institute in MadhyaPradesh.

Dreamworks R-ADAG joint venture worth $700mn.

Launch of BigOye.com and the tie-up with FutureGroup.


43/48

RELIANCE CAPITAL

A constituent of S&P CNX Nifty and MSCI India

One of India's leading, most valuable and fastestgrowing privates sector financial services companies

Has interests in asset management and mutual funds;

life and general insurance; private equity and proprietaryinvestments; stock broking; depository services;distribution of financial products; consumer finance etc.

Subsidiaries Reliance Mutual Fund

Reliance Life Insurance Reliance General Insurance

Reliance Money

Reliance Consumer finance


44/48

THE DISPUTE

Battling over thedelivery of gas fromthe Krishna Basin

Mukesh wants torevise the price ofgas at which Anilcan buy from him

Price agreed uponis below market

rates

deal was vetoedlast year by the

Petroleum MinisterMurli Deora

Anil accused theminister of being in

league with hisbrother

Mukesh countersthat his brother

must have knownthat the price would

fluctuate

Manmohan Singhhas urged them to

put the nationsinterests on top

Seen as a case ofcorporate greed,

resulting in higherprices of power

Hopes rest withKokilaben


45/48

SWOT ANALYSIS

Growing market

Political stability

Strong currency

Substitute products

Trade barriers

High cost of funds

No innovativeproducts

Lack of patentprotection

Operationalinefficiencies

Advancedtechnology

Strong R&D Base

Capacity utilization

Strengths Weakness

OpportunitiesThreats


46/48

BCG MATRIX

Reliance oil & gas

Reliancebiopharmaceuticals

Ranger Farms Ltd

ReliancePetrochemicals

Reliance petroleum Jamnagar refinery

Reliance globalmanagementservices

Reliance engineeringassociates (P) Ltd

Reliance RetailLimited

Star (high growth,high market share)

Questionmark(high growth,

low market share)

Cash cows (lowgrowth, highmarket share)

Dogs (low growth,low market share)


47/48

BIBLIOGRAPHY

http://www.whatisindia.com/issues/reliance/index.html

http://www.iloveindia.com/economy-of-india/top-50-companies/reliance-group.html)

http://www.business-standard.com/india/news/reliance-ipcl-boards-approve-15-swap-ratio/277292/ )

http://valuenotes.com/valuenotes/research/articles.

asp?cap=43&cn=35&next=2

http://en.wikipedia.org/wiki/Reliance_Capital

http://inhome.rediff.com/money/2005/jun/21sld5.htm
http://www.whatisindia.com/issues/reliance/index.htmlhttp://www.whatisindia.com/issues/reliance/index.htmlhttp://www.iloveindia.com/economy-of-india/top-50-companies/reliance-group.htmlhttp://www.iloveindia.com/economy-of-india/top-50-companies/reliance-group.htmlhttp://www.business-standard.com/india/news/reliance-ipcl-boards-approve-15-swap-ratio/277292/http://www.business-standard.com/india/news/reliance-ipcl-boards-approve-15-swap-ratio/277292/http://www.business-standard.com/india/news/reliance-ipcl-boards-approve-15-swap-ratio/277292/http://valuenotes.com/valuenotes/research/articles.asp?cap=43&cn=35&next=2http://valuenotes.com/valuenotes/research/articles.asp?cap=43&cn=35&next=2http://en.wikipedia.org/wiki/Reliance_Capitalhttp://inhome.rediff.com/money/2005/jun/21sld5.htmhttp://inhome.rediff.com/money/2005/jun/21sld5.htmhttp://inhome.rediff.com/money/2005/jun/21sld5.htmhttp://inhome.rediff.com/money/2005/jun/21sld5.htmhttp://en.wikipedia.org/wiki/Reliance_Capitalhttp://valuenotes.com/valuenotes/research/articles.asp?cap=43&cn=35&next=2http://valuenotes.com/valuenotes/research/articles.asp?cap=43&cn=35&next=2http://www.business-standard.com/india/news/reliance-ipcl-boards-approve-15-swap-ratio/277292/http://www.business-standard.com/india/news/reliance-ipcl-boards-approve-15-swap-ratio/277292/http://www.business-standard.com/india/news/reliance-ipcl-boards-approve-15-swap-ratio/277292/http://www.business-standard.com/india/news/reliance-ipcl-boards-approve-15-swap-ratio/277292/http://www.business-standard.com/india/news/reliance-ipcl-boards-approve-15-swap-ratio/277292/http://www.business-standard.com/india/news/reliance-ipcl-boards-approve-15-swap-ratio/277292/http://www.business-standard.com/india/news/reliance-ipcl-boards-approve-15-swap-ratio/277292/http://www.business-standard.com/india/news/reliance-ipcl-boards-approve-15-swap-ratio/277292/http://www.business-standard.com/india/news/reliance-ipcl-boards-approve-15-swap-ratio/277292/http://www.business-standard.com/india/news/reliance-ipcl-boards-approve-15-swap-ratio/277292/http://www.business-standard.com/india/news/reliance-ipcl-boards-approve-15-swap-ratio/277292/http://www.business-standard.com/india/news/reliance-ipcl-boards-approve-15-swap-ratio/277292/http://www.business-standard.com/india/news/reliance-ipcl-boards-approve-15-swap-ratio/277292/http://www.business-standard.com/india/news/reliance-ipcl-boards-approve-15-swap-ratio/277292/http://www.business-standard.com/india/news/reliance-ipcl-boards-approve-15-swap-ratio/277292/http://www.iloveindia.com/economy-of-india/top-50-companies/reliance-group.htmlhttp://www.iloveindia.com/economy-of-india/top-50-companies/reliance-group.htmlhttp://www.iloveindia.com/economy-of-india/top-50-companies/reliance-group.htmlhttp://www.iloveindia.com/economy-of-india/top-50-companies/reliance-group.htmlhttp://www.iloveindia.com/economy-of-india/top-50-companies/reliance-group.htmlhttp://www.iloveindia.com/economy-of-india/top-50-companies/reliance-group.htmlhttp://www.iloveindia.com/economy-of-india/top-50-companies/reliance-group.htmlhttp://www.iloveindia.com/economy-of-india/top-50-companies/reliance-group.htmlhttp://www.iloveindia.com/economy-of-india/top-50-companies/reliance-group.htmlhttp://www.iloveindia.com/economy-of-india/top-50-companies/reliance-group.htmlhttp://www.iloveindia.com/economy-of-india/top-50-companies/reliance-group.htmlhttp://www.whatisindia.com/issues/reliance/index.htmlhttp://www.whatisindia.com/issues/reliance/index.html


48/48

VIDEO LINKS

http://video.filestube.com/video,d3bc1489dea68a2003ea.html- Conflict

http://www.youtube.com/watch?v=sE_bREd0WxU-Abt Dhirubhai Ambani and formation of reliance
http://video.filestube.com/video,d3bc1489dea68a2003ea.html-http://video.filestube.com/video,d3bc1489dea68a2003ea.html-http://www.youtube.com/watch?v=sE_bREd0WxU-http://www.youtube.com/watch?v=sE_bREd0WxU-http://www.youtube.com/watch?v=sE_bREd0WxU-http://video.filestube.com/video,d3bc1489dea68a2003ea.html-http://video.filestube.com/video,d3bc1489dea68a2003ea.html-http://video.filestube.com/video,d3bc1489dea68a2003ea.html-

24081541 Reliance Industries Overview

Documents