Evolution & Growth of Reliance : Full Integration along Materials & Energy Value Chain

Nikhil R MeswaniMember of Board

Reliance Industries Ltd

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Contents

• India: At Inflection Point

• Reliance: History & Evolution

• Reliance: Growth Plan

• Conclusion

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India : Foundation of Growth

• Democracy

– World’s largest democracy

– Reducing regulatory hurdles as reforms kick-in

• Diversity

– 22 official languages, >1600 dialects

– 7 major religions

– Distinct culture in every province

39Unity in Diversity

• Demography

– 65% of population below 35 years

– Half of population below 25 years

– Growing middle class to touch 50% of population

• Digitisation

– Among top software development centers

– Large English speaking population

– 5 million graduates pass out every year

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India : Foundation of Growth

Becoming Richer before getting Older

• Development

– Historic political mandate

– Focus on manufacturing, infrastructure

development & job creation

– Emergence of Digital India with 4G

– Swaach Bharat / Clean India to improve

quality of life

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India’s Hour has Arrived

GDP: US$ 1.8 trillion (2013) US$ 5.0 trillion (2025)

“Growth is Life”

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Founder Chairman

$0.03

8

$61

1977 2014

23%

Total Assets

US$ billion

$0.08

$67

1977 2014

Revenues

$0.0

1

$50

1977 2014

26%

Market Cap

37 Year CAGR

Fortune 500 ranking for 2014: 114

20%

“Growth has no limit at Reliance, I keep revising my vision”

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Textiles Polyester Plastics

Refining &Markets Oil & Gas

Infrastructure & Services

1970s 1980s 1990s 2000s 2010s

FabricsPillows

Fibre & YarnAromaticsLAB

Polymers Transportation fuels

Crude oilNatural gas

TelecomRetail

Massive expansion

“What is good for India is good for Reliance”

“Give youth proper environment. Motivate them. Each one of them has infinite source of energy”

Tenets of Value Creation

• Ability to identify and pursue high growth businesses

• Execution capabilities in setting up world-class projects in record time

• Global competitiveness and leadership position in most businesses

• Low cost manufacturer and quality service provider

• Integration across the value chain

• Financial conservatism and prudent financing norms

• High standards of Health, Safety and Environment

44Average Age ~30 years

“Think big. Think fast and think ahead. Ideas are no one’s monopoly”

““““To continuously grow on a To continuously grow on a To continuously grow on a To continuously grow on a

sustainable basis and be the largest,sustainable basis and be the largest,sustainable basis and be the largest,sustainable basis and be the largest,

the most innovative, the most profitable andthe most innovative, the most profitable andthe most innovative, the most profitable andthe most innovative, the most profitable and

the most admired producer in the worldthe most admired producer in the worldthe most admired producer in the worldthe most admired producer in the world””””

Captive

Availability of

Raw materials

Cost Leadership

Green Field

Expansions /

Acquisition

Market Leadership

Best Practices

Responsible Care

Global Acceptance

R&D

Product / Technology

Leadership

Innovation Leadership

"If you work with determination and perfection, success will follow."

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� Integrated petrochemicals player� World’s largest polyester fibre and yarn producer� Amongst world’s top 10 producers of PP, PTA & MEG

� To become leading player in digital space

� Among the world’s largest deep-water operators

� Operator of two of world’s largest & most complex refineries

� World’s largest refining capacity in one location

Organic Growth Story

�Retail market leader

�More than 11 Mn sq. ft of retail space

“Pursue goals even in the face of difficulties, & convert adversities into opportunities”

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Petrochemical Cycle

Polyester

start up

Polyester /

PP/ PVC/ PE

start up

Cracker/ PET/

MEG/ PTA

start up

Refinery/

Polyester / PP

reinvestment

Acquisition

of IPCL

Refinery

start up

Shale gas

investment

Investments timed to Capture Opportunities

$ 15 Bn new investments in

Petchem

“Meeting the deadlines is not enough, beating the deadline is my expectation”

48Scale, Complexity and Cost to withstand Swings

�Petcoke gasification

�Double petchem capacity

�Feedstock integration

�Launch of digital infrastructure

�World class convention center

New capacity

$ 25 Bn

Reliance in India Today

49Conservative Financial Approach

• Strong operating cash flows

• Net debt 0.01%

• 15% of Indian exports

• 4% of Indian market capitalisation

• Two notches above India’s sovereign credit rating

• First Asian company to issue 100 year bond

US$ bn FY 2014

Revenue 67

EBITDA 6.6

Net Profit 3.7

• Largest recycler of PET bottles in India

– 1.5 billion bottles recycled every year

• All polyester sites are zero waste plants

• Product development geared to environment protection

• Zero discharge at Jamnagar, 100% use of treated effluent

• 0.5 Million mango trees planted at refinery forming largest orchard in the world

• Reliance Foundation supports Education, Health, Rural development and Sports

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Societal Value Creation

A “Responsible Care” Company

“What is good for World is good for Reliance”

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Global scale of operations, Cost of funds at international prices, Exports to more than 100 countries, Multi ethnic workforce and global standards

To pursue those opportunities

that create value for the

society, consumer, employees

and shareholder in that order

Mukesh AmbaniGrowth aligned to Society’s needs

Thank you

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