RELIANCE INDUSTRIES“PURSUE YOUR GOALS EVEN IN THE FACE OF DIFFICULTIES, AND CONVERT ADVERSITIES INTO OPPORTUNITIES." - DHIRUBHAI HIRACHAND AMBANI.

Presented By:Sheryl(94)Smitha(97)Subasri(104)Upasana(112)

AGENDA Introduction

Current news The split

Mukesh Ambani’s group ADAG Gas Row in Detail SWOT BCG Recommendations Summary and Conclusion

INTRODUCTION India's largest business house Exports to more than 100 countries

the world over Reliance Group revenue is equivalent

to about 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

THE RELIANCE GROUP COMPANIES INCLUDE: 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

CURRENT NEWS RIL opts for consent route to settle insider-

trading issue RIL Chairman has set his eyes on no-frills,

low-cost housing. The initiative, still on the drawing board, could be kicked off by 2010.

The country’s biggest global acquisition if it emerges as the successful bidder for bankrupt LyondellBasell - one of the world’s largest polymers, petrochemicals and fuels company

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

The bid for the privatization of five airports was won by the Anil Ambani group's Reliance Airport Developers Ltd (RADL)

Flag Telecom is now part of Reliance Globalcom. On the 30th December 2008, Reliance

became the first telecom company in India to operate in both CDMA as well as GSM technologies.

The Reliance group’s Javagreen coffee retail chain, is run by Ambani sister Nina Kothari and brother-in-law ,B H Kothari ,along with Reliance’s WebWorld stores

Mukesh Ambani’s next foray: Education. Planning to launch a private university

Alliance with Brad Pitt’s production house, Plan B -

CSR Initiatives:1. CSR activities at Jamnagar2. Dhirubhai Ambani SSC - Merit Reward

Scheme & Dhirubhai Ambani Undergraduate Scholarship Scheme

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 development imperatives of the country

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 and polymer products .

Also in Telecom, Insurance and Internet Businesses, the Power Sector, Infrastructure

Dhirubhai has been one among the select Forbes billionaires and has also figured in the Sunday Times list of top 50 businessmen in Asia.

Backward vertical integration has been the cornerstone.

THE SPLIT

July 2002 Dhirubhai Ambani dies

November 2004 Feud becomes public

June 2005 Settlement brokered by Kokilaben

2006 Split: Mukesh = RIL; Anil = RNRL

July 2008 Mukesh claims shares in Reliance Communications

THE SPLIT Following Dhirubhai’s death in 2002, the

empire was split between the two sons Mukesh Ambani and Anil Ambani

Mukesh Ambani got RIL and IPCL – Reliance Industries, also owner of Mumbai Indians

Anil Ambani heads the Reliance Capital, Reliance Energy and Reliance Infocomm - Anil Dhirubhai Ambani Group (ADAG)

MUKESH’S KITTY

Reliance Industries Limited

Indian Petrochemical Corporation Limited (IPCL)

BUSINESSES

Exploration & Production

Petroleum refining & Marketing

Polymers

Polyesters

Polyester intermediates

Other Petrochemical

s

Petrochemicals

Textiles

Retail

MUKESH AMBANI’S GROUP

Reliance Industries Limited

Reliance Retail Limited

IPCL- Shares

MAJOR SUBSIDIARIES AND ASSOCIATES OF RIL

Reliance Petroleum Limited

Reliance Retail Limited

Reliance Global Management Services (P) Ltd

Reliance Biopharmaceuticals

Ranger Farms Ltd

Reliance Engineering Associates (P) Ltd

Reliance Oil & Gas Find (Petrochemicals Business)

JAMNAGAR REFINERY

Private sector crude oil refinery owned by RIL

Commissioned on 14 July 1999

Installed capacity 661,000 barrels/day

Largest greenfield refinery in the world

Jamnagar- ‘Refining Hub of the World’ (1.24 mn barrels per day)

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. (540000 barrels/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

PERFORMANCE REVIEW OF RPL

Product FY2008-2009 FY2007-2008Gases and distillates 28000 28500Fuel oils 4500 4600Total production 32450 33100

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

BRANDS UNDER RELIANCE RETAIL

RELIANCE FRESHfood and grocery specialty store

RELIANCE FOOTPRINT

-footwear specialty store

RELIANCE TIME OUT- books, music and entertainment

RELIANCE DIGITAL – electronics

specialty store

RELIANCE WELLNESS

health, wellness and pharma

specialty

RELIANCE TRENDZ-apparales

specialtyRELIANCE AUTOZONE

RELIANCE SUPER-mini hypermarket

RELIANCE MART all under 1 roof

supermarket

RELIANCE I-STORE- exclusive

apple storeRELIANCE HOME

KITCHENSRELIANCE JEWEL -

jewellery

RELIANCE GLOBAL MANAGEMENT SERVICES (P) LTD

Fast growing IT solutions and services provider with business

offices in USA, Hyderabad(India)

ERP, SAP, Application maintenance and

support, management-consulting services

Contract staffing as well as in-house competency

development

RELIANCE BIOPHARMACEUTICALS Reliance Biopharmaceuticals Reliance Life Sciences (Rabale, India)

Protein manufacturing facility at the Dhirubai Ambani Life Sciences 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 and 1000 litres of microbial cell culture

RANGER FARMS LIMITED

Reliance Fresh likely to be added to Ranger Farms

Deals in food, fruits and vegetables and consumer

products

Some verticals are expected to be hived to

reap higher profits

RELIANCE ENGINEERING ASSOCIATES PRIVATE 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

RELIANCE'S OIL & GAS FIND Natural gas in the Krishna Godavari basin off AP near Vishakapatnam in

2002

Largest discovery of natural gas in the FY 2002-2003

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

on April1,2009

7 trillion cubic fit in size, equivalent to 1.2 bn barrels but

only 5 trillion cubic feet extractable

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

PETROCHEMICALS

Polymer (PP, PE and PVC) production volumes decreased by 9% to 3076 KT due to planned shutdown 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 lower Propane 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

RIL’s 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)

INDIAN PETROCHEMICAL CORPORATION LIMITED (IPCL) RIL formally assumed control of IPCL in June 5, 2002 after which

Reliance’s 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

TEXTILES

Flagship brand – Vimal Shepherding a new era in fabrics New product initiatives:

Fresca anti-microbial and anti-bacterial work-wear apparel fabricsHome furnishing and auto-textilesSilk-Amino suiting fabricsFire-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

IN ANIL’S CORNER

ADAG

RNRL

Reliance Communications

Reliance Capital

Reliance Infrastructure

Reliance Power

Reliance Entertainment

Reliance Health

ADAG ranks among India's top three three private

sector business houses. has a market capitalization of US$ 22 billion,

net assets 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 largest in India

Spread over 4,500 towns and 300,000 villages in India, and 5 continents across the world.

RNRL incorporated on March 24, 2000 as Reliance

Platforms Communications.Com Private Limited

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

RNRL has been awarded four CBM blocks, with an acreage of about 3,251 sq. kms, for the exploration and production of coal bed methane (CBM), making it the second largest CBM player in India in terms of acreage. 

RELIANCE COMMUNICATIONS Reliance Communications, formerly known as

Reliance Infocomm flagship venture along with Reliance Telecom is part of Reliance Communications Ventures (RCoVL).

Began operations in 1999 and has over 50 million subscribers today

Offers a complete range of integrated telecom services also broadband services.

Offers both CDMA and GSM services in fact the first telecom company in India to operate in both technologies

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

RelCom has its presence across all B2C communications channel in one of the fastest growing markets in the world.

Also is the first telecom operator in the history of Indian telecommunications to simultaneously launch its GSM services in 17 circles

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

RELIANCE INFRASTRUCTURE Earlier called Reliance Energy India’s largest private sector enterprise in power

utility Focused on roads, Urban infrastructure (Sealink

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

Executing the first 100% private sector power transmission project for western grid

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

RELIANCE POWER Subsidiary of Reliance Energy Established to develop, construct and

operate power projects domestically and internationally

Currently developing 16 large and medium sized power projects with a combined planned installed capacity of 33,780 MW

Sole distributor of electricity to consumers in the suburbs of Mumbai

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

The Sasan project (Madhya Pradesh) is a 6x660 MW coal fired generator and is currently under construction and is planned to be completed in a span of less than five years

The 3500 MW Power Plant, Dadri in UP was set up in 2004 in the Ghaziabad District; aimed to be the biggest gas based power plant in the world.

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 Big IPTV.

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

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

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

Bigflix.com, an online DVD rental company, will spend $100 million in setting up 300 stores across the country.

The group has also announced a $ 500 million investment in the IPTV business along with Microsoft

Also into content distribution and delivery owns 200 cinema screens in the US, 51 in

Malaysia and 167 in India Also will increase his Zapak gaming cafes from

21 to 700. Also has launched its Direct To Home (DTH) TV

also, known as "Big TV".

Investing Rs. 6,800 crore, comprising a chain of medicine retail stores, four hospitals in West Bengal, Bangalore, Delhi and Mumbai, and two medi-cities in Jaipur and Nagpur.

Plans to act as a ‘national distributor’ for local and foreign drug manufacturing companies, and source drugs directly from the manufacturers to hospital pharmacies and retail chemists.

Medi Assist, a Third Party Administrator (TPA) for health insurance, forms a vital link connecting stakeholders across healthcare delivery.

RELIANCE HEALTH

OTHER BUSINESSES Reliance BPO is a premium BPO & KPO

service provider offering cutting edge solutions to global Communications, BFSI, Utility and Entertainment industries.

The Mudra Group, engaged in advertising, has more than 125 clients nationwide with three creative agencies, eight full service offices, seven specialised business units and an integrated media offering.

MOVING AHEAD ADAG will invest a whopping sum of Rs

40,000 crore in power sector, cement industry, cargo handling airport and technical institute in Madhya Pradesh.

Dreamworks – R-ADAG joint venture worth $700 mn.

Launch of BigOye.com and the tie-up with Future Group.

RELIANCE CAPITAL A constituent of S&P CNX Nifty and MSCI India One of India's leading, most valuable and fastest

growing privates sector financial services companies Has interests in asset management and mutual

funds; life and general insurance; private equity and proprietary investments; 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

THE DISPUTEBattling over

the delivery of gas from the Krishna Basin

Mukesh wants to revise the

price of gas at which Anil can buy from him

Price agreed upon is below market rates

deal was vetoed last year by the

Petroleum Minister Murli

Deora

Anil accused the minister of

being in league with his brother

Mukesh counters that

his brother must have known that the price would

fluctuate

Manmohan Singh has urged them to put the

nation’s interests on top

Seen as a case of corporate

greed, resulting in higher prices

of power

Hopes rest with Kokilaben

SWOT ANALYSIS

• Growing market• Political stability• Strong currency

• Substitute products• Trade barriers• High cost of funds

• No innovative products

• Lack of patent protection

• Operational inefficiencies

• Advanced technology• Strong R&D Base• Capacity utilization

Strengths

Weakness

Opportunities

Threats

BCG MATRIX

• Reliance oil & gas• Reliance

biopharmaceuticals• Ranger Farms Ltd

• Reliance Petrochemicals

• Reliance petroleum• Jamnagar refinery• Reliance global management

services• Reliance engineering associates

(P) Ltd• Reliance Retail Limited

Star (high growth, high market share) Question mark(high growth, low market share)

Cash cows (low growth, high market share)

Dogs (low growth, low market share)

BIBLIOGRAPHY http://www.whatisindia.com/issues/reliance/in

dex.html http://www.iloveindia.com/economy-of-india/t

op-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/21s

ld5.htm

VIDEO LINKS http://video.filestube.com/video,d3bc1489de

a68a2003ea.html- Conflict

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