RELIANCE INDUSTRY by ANOOP A S

Reliance


SUBMITTED BY,
ANOOP.A.S
1ST SEMESTER MBA 2009-11
ICM, POOJAPURA

SUBMITTED TO

PROF. JAYAMOHAN NAIR
ICM-IMK
POOJAPURA



CONTENTS


1. INTRODUCTION
2. INDUSTRIAL ENVIORNMENT
3. INDUSTRIAL STRUCTURE
4. INDUSTRIAL DIVISIONS
(1)ADAG
(2)RIL
5. INDUSTRIAL ATTRACTIVENESS
6. BASIC MARKETING STRATIGES
7. FUTURE FORECAST & GROWTH
8. CONCLUSION








Reliance

INTRODUCTION

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

DhirubhaiH.Ambani
FounderChairmanRelianceGroup
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, single-minded dedication and an unrelenting commitment to his goals.
Reliance, since then have been the biggest scraps in the market. Over the years,
Dhirubhai created an extensive marketing network consisting of over 500
distributors, 2500 showrooms and 34,000 retail outlets.






INDUSTRIAL ENVIRONMENT

Major Subsidiaries &Associates of Reliance

 Major Subsidiaries:
Reliance Petroleum Limited
Reliance Retail Limited
Retail Insurance Broking Limited
Reliance Retail Finance Limited
Reliance Service Solutions Limited
Reliance Strategic Investments Limited
Reliance Exploration & Production - DMCC
Reliance Global Management Services
 Major Associates:
Indian Petrochemicals Corporation
Limited
Reliance Industrial Infrastructure Limited
Reliance Europe Limited

.



















INDUSTRIAL STRUCTURE



RELIANCE

RIL ADAG

*Reliance industry *Reliance infocom
*IPCL * Reliance capital
* Reliance energy






Reliance Group
Reliance Energy
Reliance Mutual funds
Reliance Communications
Reliance Life Insurance
Reliance General Insurance
Reliance Portfolio Management
Reliance Big Entertainment….etc
Reliance – Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group founded by Shri Dhirubhai H Ambani (1932-2002), ranks among India’s top three private sector business houses in terms of net worth. The group has business interests that range from telecommunications (Reliance Communications Limited) to financial services (Reliance Capital Ltd) and the generation and distribution of power (Reliance Infrastructure Limited).
Reliance – ADA Group’s flagship company, Reliance Communications, is India's largest private sector information and communications company, with over 80 million subscribers. It has established a pan-India, high-capacity, integrated (wireless and wireline), convergent (voice, data and video) digital network, to offer services spanning the entire infocomm value chain.
Other major group companies — Reliance Capital and Reliance Infrastructure — are widely acknowledged as the market leaders in their respective areas of operation.



Anil D. Ambani

Regarded as one of the foremost corporate leaders of contemporary India,Shri Anil D Ambani, 48, is the chairman of all listed companies of the Reliance ADA Group, namely, Reliance Communications, Reliance Capital, Reliance Energy and Reliance Natural Resources limited.
He is also Chairman of the Board of Governors of Dhirubhai Ambani Institute of Information and Communication Technology, Gandhi Nagar, Gujarat.
Till recently, he also held the post of Vice Chairman and Managing Director of Reliance Industries Limited (RIL), India’s largest private sector enterprise.
Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every aspect of the company’s management over the next 22 years.
He is credited with having pioneered a number of path-breaking financial innovations in the Indian capital markets. He spearheaded the country’s first forays into the overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds. Starting in 1991, he directed Reliance Industries in its efforts to raise over US$ 2 billion. He also steered the 100-year Yankee bond issue for the company in January 1997.
He is a member of:
• Wharton Board of Overseers, The Wharton School, USA
• Central Advisory Committee, Central Electricity Regulatory Commission
• Board of Governors, Indian Institute of Management, Ahmedabad
• Board of Governors Indian Institute of Technology, Kanpur
In June 2004, he was elected for a six-year term as an independent member of the Rajya Sabha, Upper House of India’s Parliament a position he chose to resign voluntarily on March 25, 2006.




Awards and Achievements:
• Conferred the ‘CEO of the Year 2004’ in the Platts Global Energy Awards
• Rated as one of ‘India’s Most Admired CEOs’ for the sixth consecutive year in the Business Barons – TNS Mode opinion poll, 2004
• Conferred ‘The Entrepreneur of the Decade Award’ by the Bombay Management Association, October 2002
• Awarded the First Wharton Indian Alumni Award by the Wharton India Economic Forum (WIEF) in recognition of his contribution to the establishment of Reliance as a global leader in many of its business areas, December 2001
• Selected by Asiaweek magazine for its list of ‘Leaders of the Millennium in Business and Finance’ and was introduced as the only ‘new hero’ in Business and Finance from India, June 1999.
Relian ce Power
Reliance Power Limited is part of the Reliance Anil Dhirubhai Ambani Group and is established to develop, construct and operate power projects domestically and internationally. The Company on its own and through subsidiaries is currently developing 13 medium and large sized power projects with a combined planned installed capacity of 28,200 MW, one of the largest portfolios of power generation assets under development in India.
Reliance Health
In a country where healthcare is fast becoming a booming industry, Reliance Health is a focused healthcare services company enabling the provision of solution to Indians, at affordable prices. The company aims at providing integrated health services that will compete with the best in the world. It also plans to venture into diversified fields like Insurance Administration, Health care Delivery and Integrated Health, Health Informatics and Information Management and Consumer Health.
Reliance Health aims at revolutionising healthcare in India by enabling a healthcare environment that is both affordable and accessable through partnerships with government and private businesses.



Reliance Communications
1. Regulations in the Era of Rapid Technological Changes A presentation by Uday Mishra & Group On Reliance communication a new phase of Telecom development in india Greater Noida {Gsba }22 nd January, 2008
2. Reliance Communication Anil Dhirubhai Ambani Group Presented by group no – 6 th GSBA , G.Noida
3. Presentation Content of 15
o Current Telecom Scenario in India
o Reliance Communications – Over view
o Leading position across multiple segments
o Network Ahead of Exponential Growth
o Robust Infrastructure to Support Customers
Content so Welcome Everybody
4. Current Telecom Scenario in India
o Current subscriber base –about 273 million as on December 30, 2007
 Looks set to achieve the stated target of 500 million by 2010
o Gross revenues growth at CAGR of 21% since 2002
o Current Revenues stand at 20 billion USD.
o Accounts for 2% of GDP.
o 2 .87 million broadband customers growing at the rate of 7% per month.
o The combined market cap of four largest players over 100 billion USD.
of 15 The regulator and the government policies have been proactive in achieving these miles stones and providing the customers lowest tariff. For Example; introduction of Caller party pays regime etc.
5. Current Telecom Scenario (Contd …)
o Fixed lines 49.2 m
o Mobile lines 105.36 m
o WLL Fixed 6.79 m
o Total wireless lines 112.15 m
o Teledensity 15.12
o Internet connections 8.4 m
o Broadband connection 1.92 m
26 November 2006
6. Reliance Group of 15
7. of 15 Reliance communication Ltd. Type Public (BSE: RCOM) Founded 2004 Headquarters Navi Mumbai, India Key people Anil Ambani , Chairman and Managing Director [1] , Vice-Chairman Reliance-ADA Group S. P. Sukula CEO - Personal Business & Director - Reliance Telecom Industry Telecommunications Products CDMA service, GSM service, Broadband Internet Service Revenue US$ 4 Billion [2] Employees 33,000 Website www.rcom.com
8. Reliance Communications
o Largest integrated communications company in the private sector in India
o Serving over 40 million individual and corporate customers on a global basis
o More than 14,000 Towns covered.
o Strategic presence in all high growth segments - wireless, global and broadband
o One of the largest Next Generation Networks in the world – and only one in India
o Investment of USD 5 billion
o Market Cap of about USD 40.00 billion approx.
of 15 India’s fastest customer additions since launch
9. Reliance Communications
o World’s largest network roll-out covering almost a billion people in India
o World’s largest IP enabled optic fiber cable network - 230,000 Rkms
o Pioneered wireless affordability in India
of 17 Submarine cable assets Of 110,000 Rkms Terrestrial fiber cable metro & intercity Handset prices down from >$ 50 to <$ 20 Driven call rates down from >10 cents to <1 cent per minute Coverage increasing from 10,000 to 23,000 towns Covering almost 100% of rail & roadway routes Coverage + Affordability = Profitable growth Launching nationwide GSM services
10. Network Service of 15
11. Reliance Communications Personal Business Enterprise Business Infrastructure Business Global Business Integrated play covering the entire telecom value chain of 15
12.
o Consumer
o Mobile:
o 1..CDMA
o 2..GSM
o Wireless Phone
o Wireless Terminal
o BlackBerry
o Roaming
o Broad Net
o Reliance Landline
o Reliance Net connect
o R World
o Reliance India Call
o Reliance Passport
o Reliance IPTV
o Enterprises
o BlackBerry
o Office Centrex E1DID
o One Office Duo
o Audio Conferencing
o Reliance PCO
o Toll-Free
o ITFS
o Broadband
o Business Broadband Internet
o Leased Line IPLC VPN
o Video Conferencing
o Internet Data Center (IDC)
o Common Service Center
of 15
13. Leading position across multiple segments
o Largest in Enterprise data service ->50% market share
o Largest carrier of Wireless data
o Largest private Public Call Office (PCO) operator >50% Market share
o Carrier of International Long Distance (ILD) voice– >40% market share
o US-India retail voice carrier – 40% market share
o Internet Data Center (IDC) services – 50% market share
o Largest retailer of wireless handsets
of 15 1 # … and of course leading wireless customer base in India
14. Only Operator to Dimension Network Ahead of Exponential Growth of 15 Coverage at a Glance 54.66% % of Total Population Covered 6,000 Number of Towns Covered 80 million Customer Capacity 500000 Number of Villages Covered 93.19% % of Railway Covered 95.00% % of National Highway Covered 67.00% % of Rural Population Covered 98.25% % of Urban Population Covered Reliance- At a glance By group 6, Gsba (G. Noida)
15. Robust Infrastructure to Support Customers
o 23,000 towers by March 2009 in 23 circles with capacity of 414,000 towers co-tenants
o Broadband access in 42 Indian cities with 727,000+ buildings connected directly to network serving over 901,000 access lines
o Deploying Broadband and WiMax network in top 10 cities in the country to cover 4 million SMEs.
Telecom Infrastructure
o 140 acre plot – ten acres lush green lawns and eight acre lake
o 5.4 million sq. meter area; 14 buildings ; 12,000 personnel
o Several food courts, banks, ATMs & guesthouses
o Eco-friendly zero discharge facility ; 2252 parking slots; helipad
o Own HVAC and power distribution system
Dhirubhai Ambani Knowledge City
16. Robust Infrastructure to Support Customers
o Largest and most advanced NOC in the world
o 300,000 sq ft of data centre space – 4x the nearest competitor6 World class Level 3 Data Centers at Mumbai &Bangalore measuring 2.6L Sq.Ft.
o Hosting 9000+ Server Racks and 1400+ TB of storage capacity
o Expansion at Delhi, Chennai, Hyderabad &Kolkata resulting in an additional capacity of over 800,000 - Sq. ft.
Network Operations and Data Centers
o 2,000 exclusive Reliance World and Reliance Express stores 700+ Indian cities.
o Largest chain of digital entertainment centers in the country
o 5 lakh+ retailers sell connections or recharge of prepaid mobile and FWPs in our coverage footprint.
o 2nd largest retailer of handsets - with throughput capacity for over 24 million handsets per annum
Retail Presence
17. Robust Infrastructure to Support Customers
o Comprehensive range of service applications
o Popular across all user demographics and geographies
o Over 200 content partners and over 10,000 content items
o Credit Card on the Mobile
Reliance Mobile World Suite
 8,000-employee, multi-lingual contact centre facilities at Navi Mumbai & Chennai
 5L + customers serviced per day through with 10,000 users during peak hours
 Operates on 24x7 basis with online integration with other IT systems in RCOM
Contact Centers
18. Robust Infrastructure to Support Customers
 More than 1500 Million CDRs per day
 More than 1.5 million eRecharge per day
 More than 1,800 TB data storage
 IT support in more than 6,000 towns for over 60,000 IT users
 Data ware house growth : more than 160 GB a day
 More than 7 lakh emails a day across group
IT Operations New Products & Services
 DTH services to provide DVD quality picture & better viewing experience
 IPTV to provide interactive TV & Video services, movies & music on demand, interactive program guide and gaming
19. Black Berry
o BlackBerry 8703e ™ Best integrated e-mail and phone for travelling executives.
of 15 Black Berry 8830
20. Audio Conferencing
o Virtual Audio Bridge Service
o Reservation Based Conference Bridge Service
o Global Event Call Service
of 15
21. Video Conference of 15
22. Business Broadband Internet of 15 Business Broadband Internet
23. Leased Line
o The most efficient and cost-effective way to connect two offices is a leased line;
o it provides a clear and continuous channel between two end points. Little wonder that most large enterprises use leased lines for connectivity.
o Reliance's 'end-to-end leased line' is delivered through its state-of-the-art optic fiber network with its unique self-healing survivable architecture.
o With its 'fiber-to-building' approach, Reliance has reduced the last mile to just a few meters of in-building copper cabling.
of 15 VPN
 R eliance virtual private network (VPN) is a private communications network that can meet all the connectivity and remote access needs of an organization.
 VPN is the most effective way to achieve convergence of voice, video and data on a managed network.



RELIANCE INDUSTRIES LIMITED
Board of Directors of Reliance Industries Limited
Mukesh D. Ambani
Chairman & Managing Director
Nikhil R. Meswani Hital R. Meswani H.S.Kohli
Executive Director Executive Director Executive Director
Ramniklal H. Ambani Mansingh L. Bhakta Yogendra P. Trivedi
Dr. D. V. Kapur M. P. Modi S. Venkitaramanan
Prof. Ashok Misra Prof. Dipak C Jain Dr. RaghunathAnant Mashelkar
Products & Brands
The Company expanded into textiles in 1975. Since its initial public offering in 1977, the Company has expanded rapidly and integrated backwards into other industry sectors, most notably the production of petrochemicals and the refining of crude oil.
The Company now has operations that span from the exploration and production of oil and gas to the manufacture of petroleum products, polyester products, polyester intermediates, plastics, polymer intermediates, chemicals and synthetic textiles and fabrics.
The Company from time to time seeks to further diversify into other industries. In January 2006, the Company approved a plan to establish a retail business through a subsidiary Reliance Retail Limited that will operate, among other things, supermarkets, convenience stores and specialty stores across India. The Company approved initial expenditure of US$ 750 million to fund the initial stages of this plan.
The Company's subsidiary Reliance Jamnagar Infrastructure Limited is currently establishing infrastructure facilities such as roads and buildings for the proposed Special Economic Zone (SEZ) at Jamnagar, Gujarat.
The Company's major products and brands, from oil and gas to textiles are tightly integrated and benefit from synergies across the Company. Central to the Company's operations is its vertical backward integration strategy; raw materials such as PTA, MEG, ethylene, propylene and normal paraffin that were previously imported at a higher cost and subject to import duties are now sourced from within the Company. This has had a positive effect on the Company's operating margins and interest costs and decreased the Company's exposure to the cyclicality of markets and raw material prices. The Company believes that this strategy is also important in maintaining a domestic market leadership position in its major product lines and in providing a competitive advantage.
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 is the third largest refinery at a single location in the world.
The Company is:
• The world's largest producer of Polyester Fibre and Yarn
• 4th largest producer of Paraxylene (PX) and Purified Terepthalic Acid (PTA)
• 6th largest producer of Mono Ethylene Glycol (MEG)
• 7th largest producer of Polypropylene (PP)










INDUSTRIAL ATTRACTIVENESS
Reliance Industries net profit dips 11.5 percent
The net profit of oil-to-petrochemicals major Reliance Industries (RIL) dropped 11.5 percent to Rs.3,636 crore ($759 million) for the quarter ended June 30, compared to the Rs.4,110 crore it netted in the corresponding period last fiscal.
In a regulatory statement Friday, the company said it has registered a turnover of Rs.33,309 crore ($7 billion), a decrease of 22.6 percent from the Rs.43,050 crore it earned in the year-ago period.
RIL, ranked 117 in on the global list of Fortune 500 companies in 2009 based on profits, said a decrease in oil prices had hit revenues, though this was partially offset by higher volumes.
The Reliance scrip ended 1.2 percent down at Rs.2,013.75 Friday on the Bombay Stock Exchange (BSE). The results were announced after the markets closed.
Refining, which constituted about 65 percent of RIL's revenue for the first quarter of 2009-10, was impacted with earnings per barrel dipping to $7.5 from $15.7 a barrel in the corresponding quarter the previous fiscal.
However, lower refining margins can be offset in future with profits from gas production at the company's Krishna Godavari (KG) basin finds.
'Timely completion of the deep-water, oil and gas KG D6 block will play a significant role in shaping the future growth at RIL,' said RIL chairman and managing director Mukesh Ambani.
RIL currently supplies about 30 million units gas to 15 fertiliser, 15 power and two steel companies. Supply of an additional five million units is expected to commence soon.





Financial Milestones( Last 3 years)
2008
 Revenue crossed Rs. 130,000 crore mark (Rs. 139,269 crore, US$ 34.7 billion), Net Profit crossed Rs. 15,000 crore mark (Rs. 19,458 crore, US$ 4.9 billion) and Total Assets crossed Rs. 140,000 crore mark (Rs. 149,839crore, US$ 37.3 billion), unparalleled in the Indian Private sector.
 Exports crossed Rs. 80,000 crore mark (Rs. 83,492 crore, US$ 20.8 billion), 13.4% of India's total exports.
 RIL declares Dividend of 130%. Payout of Rs 1,631 Crore, highest in the Indian Private Sector.
2007
• Revenue crossed Rs. 100,000 crore mark (Rs. 118,354 crore, US$ 27 billion), Net Profit crossed Rs. 10,000 crore mark (Rs. 11,943 crore, US$ 2.75 billion) and Total Assets crossed Rs. 100,000 crore mark (Rs. 117,353 crore, US$ 27 billion), unparalleled in the Indian Private sector.
• Exports crossed Rs. 60,000 crore mark (Rs. 66,627 crore, US$ 15 billion), 12% of India's total exports.
• RIL declares Dividend of 110%. Payout of Rs 1,440 Crore, highest in the Indian Private Sector.
2006
• RIL places $300 million in US Private Placement Market. First ever Indian company to raise money through this route.
• RIL declares Dividend of 100%. Payout of Rs 1,393 Crore, Highest In Private Sector.
RPL a subsidary of RIL completes its US$ 1.2 billion Initial Public Offering of equity shares with an overwhelming response across different classes of investors. Chevron to Purchase 5 % Stake in RPL for USD 300 Million. Option to Increase Stake to 29 %.




BASIC MARKETINGSTRATIGES

Business Strategy

New Marketing Supply Chain
Product Strategy Strategy

New Marketing
Product and Operations Distribution Sales
Development sales
Service











FUTURE FORECAST & GROWTH
Growth through Consumer Products
Relaince Textile
Reliance’s Manufacturing Division at Naroda, Ahmedabad is one of the largest and most modern textile complexes in the world. The Company’s flagship brand VIMAL is one of the most trusted brands of premium textiles in the country. Main growth drivers for VIMAL are retail presence across India, innovation and focus on premium products and men’s formal wear.
The Company also plans to sharpen its focus on global automotive furnishing business. Aligned to this objective, the company has taken various steps to position its business globally:
• Increasing the domestic retail presence, by opening 23 additional Company outlets, and increasing the number of retail counters to 500 and promoting the products and services through Reliance Retail.
• Apart from being a major supplier of fabrics with all the leading US and European brands, Reliance proposes to enter into garment supplies, ensuring a one point solution for their needs.
• The textile division has achieved a major breakthrough in the domestic and American automotive markets aimed at obtaining a foothold in the world’s auto-textile segment, currently worth $ 5 billion.
• The manufacturing facility at Naroda, Ahmedabad has completed its modernization and upgradation.
New product initiatives
• Copol & Copol blended fabrics.
• Polyester / Wool / Bamboo blended fabrics with inherent antimicrobial, anti-odor and UV protection properties.
• Wool / Soya blended fabrics with having similar moisture absorption capabilities as cotton.
• Durable moisture management in 100% polyester sports wear fabrics.
• Fire-retardant and water proof tent fabric, providing additional safety from fire hazards.
• Water and oil repellant fabrics made from eco friendly recycled polyester

Reliance retails
With a vision to generate inclusive growth and prosperity for farmers, vendor partners, small shopkeepers and consumers, Reliance Retail Limited (RRL), a subsidiary of RIL, was set up to lead Reliance Group’s foray into organized retail.
With a 27% share of world GDP, retail is a significant contributor to overall economic activity across the world. Of this, organized retailing contributes between 20% to 55% in various developing markets. The Indian retail industry is pegged at $ 300 billion and growing at over 13% per year. Of this, presently, organized retailing is about 5%. This is expected to grow to 10% by 2011. RRL has embarked upon an implementation plan to build state-of-the-art retail infrastructure in India, which includes a multi-format store strategy of opening neighbourhood convenience stores, hypermarkets, specialty and wholesale stores across India.
RRL launched its first store in November 2006 through its convenience store format ‘Reliance Fresh’. Since then RRL has rapidly grown to operate 590 stores across 13 states at the end of FY 2007-08. RRL launched its first ‘Reliance Digital’ store in April 2007 and its first and India’s largest hypermarket ‘Reliance Mart’ in Ahmedabad in August 2007. This year, RRL has also launched its first few specialty stores for apparel (Reliance Trends), footwear (Reliance Footprints), jewellery (Reliance Jewels), books, music and other lifestyle products (Reliance Timeout), auto accessories and service format (Reliance Autozone) and also an initiative in the health and wellness business through ‘Reliance Wellness’. In each of these store formats, RRL is offering a unique set of products and services at a value price point that has not been available so far to the Indian consumer. Overall, RRL is well positioned to rapidly expand its existing network of 590 stores which operate in 57 cities.














CONCLUSION

End-to-end connectivity to end customers without reliance on external infrastructure
the only way to ensure high quality connectivity in the Indian context.
Reliance will lead the market with sustainable advantages in terms of cost and the ability to provide high quality service to customers.


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