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a
PU rea SWOT
PEELE)
Submitted by - Abhishek Sharma
FSrevaniiercte codecs Mens trelCntents of
the Report
Part 1: Industry overview of Reliance
Part 2: Company profile of Reliance
Part 3: Company vision and mission
Part 4: Key products and services
Part 5: Concept of SWOT analysis
Part 6: SWOT of Reliance
part 7: SWOT matrix of Reliance
Part 8: Conclusion
Part 9: suggestionReliance industries in one of the biggest compnay of india. The company hold its
business
in textile, petroleum , energy , refining , petrochemicals,
telecommunication , retail etc .
1- Textile industry - Reliance came into existence with textile business and is still a
big player in textile market with competition like Suele , Arvind and Vardhman
textile. Textile industry contributes around 2 percent in Indian GDP . Textile
industry valued at 150 billion US dollar and it is estimated to cross 200 billion dollar
in 2023,Introduction
Industry overview of reliance
Petroleum Industry - Reliance also owns a big share in petroleum industry where it
owns a big share in this market also. The petroleum industry of India is growing at at
average of 3 percent a year and India is the 3rd largest consumer of Diesel in world. It is
also estimated that usage of natural gases will increase three times by 2030. Reliance has
competition with giants like ONGC , Bharat Petroleum and Indian Oil.
Telecommunication Industry- India ranks as the world’s second largest market in terms of
total internet users. The total number of internet subscribers increased to 757.61 million in
January 2021. The total wireless or mobile telephone subscriber base increased to 1,163.41
ETON UNE Uer eon ESAT OM BP ccsn see UN TET On Res
second-largest telecommunications market. The total subscriber base in the country stood at
1,183.49 million, as of January 2021. Reliance Jio is in competition with giants like Airtel and
Vodafone India.Introduction
Industry overview of reliance
Media Sector - India has 5th largest media and entertainment market in the world.
ener ceo mut ne mre cited
film induserey in terms of ticket sold films made. India also has Second largest TV
market in the world, Media sector has 1.7 trillion dollar of market valuation and is
expected to grow to 2 trillion dollars in 3 years. Reliance has major competition like
Caer ee aca een ene cm
Retail market - Retail market is also a big market in India. Total valuation of the
PE oe OnE Seen ome ERR Remon nrc Ca cOm benae ene Coad
oe CGS Resa ceo RC eee CR eon taccsCompany profile
of Reliance
Reliance is headquartered in Mumbai. It was started by Dhirubhai Ambani in
1966 as a textile based company which main business was making yarn.
Reliance is now biggest producer of yarn and textile in the world. In 30 years
of opening company made its way in fortune 500 list . Today Reliance is the
most profitable company in India and is leading profit maker. Total operating
income of the Reliance is reported at US 11 billion dollars with net income of
75 billion dollars. Company has Total assets of 190 billion and total equity of
97 billion.ATED
FOR Nene ie Rn ne Cee oa
Per R We gol Te Meng er ee ere ogee
centric approach and their employees motivating catalysts in the
Se eos
Vision
To lead the industry while
generating value to the
ei Me nee
in setting ethical standard
eee ees atod
WETS Toya)
SCR et ua ag tvs)
eM Mao ates eee
Cae
PNM Org gle
Eee ree marc
ee a Co RON)
Ne RO ae oe ACs
learning and carrear development.Key GAPCO feria i
Products deli -
and Services Gon Bry
ICE areolar Lava cele LU (aicy
Eales a eRe
textile, petroleum , energy
refining , petrochemicals,
telecommunication , retail etc 7
= Network [:} ES) 61 ir |Key products and
services Of
reliance
Refining and marketing - Refining and marketing have three subsets
which are refining , GAPCO , petroleum retail. Where through refining
company extracts propylene , naphtha , gasoline , kerosene etc. In
petroleum retail company owns subsets like Reliance gas, reliance petroleum
retail , AutoLPG etc. Gulf Africa Petroleum Corporation (GAPCO) a
company registered in Mauritius, is a subsidiary of Reliance Industries
Limited, one of the largest conglomerate and listed company in India
engaged, inter alia, in exploration and distribution of oil and gas, petroleum
refining and marketing.Retail network - Retail network of reliance has brands
like Reliance retail , Reliance Fresh , RelianceMarket,
Reliance digital etc. Reliance has tapped every major
retail network existing in india. Reliance fresh is selling
vegetable , fruits and grocery whereas reliance digital
sells major electronic products and home appliances
whereas Reliance trends sells clothing and fashion
products.Company also sells Jewelery with the brand
Reliance jewels.
aMTextile Industry
RG eee ETOa ae emt a cots
Ce nea aren ym EUR ciel este
brands which works under reliance umbrella.
Fea (eels
Pdr reel aya)
Reliance gives its most of the digital services under
Semen h Om eed cena eee can
Ro eae rare ee ars
such as Jio beats, Jio drive, Jio mags , Jio security , Jio
aeMedia and
Entertainments
Reliance owns many brands under its media and
entertainments business. It owns Viacom18 which deals in
film entertainment business. It owns moneycontrol.com,
Firstpost News18.com which gives out digital content.
Company has also invested in ecommerce businesses
such as HomeShop18 , bookmyshow and Ajio. Reliance
owns news]18 networks , CNBC networks colors networks
, etv networks too.Concept of SWOT
PE eLe
SWOT (strengths, weaknesses, opportunities, and threats)
analysis is a framework used to evaluate a company's competitive
position and to develop strategic planning. SWOT analysis
assesses internal and external factors, as well as current and future
potential. SWOT analysis was first used to analyze businesses.
NE Re com yO n tn nM oe OME CUR Tate RET TCO
Fito ite tos rN occ ret Rov CoenStrenght of Reliance
Reliance industries is one of the biggest
Pemsiaco)at:4 industries in India.Company owns many
mre major brands of India like Reliance gas,
Network 18, Jio , Viral, LYF etc. This diverse
brand portfolio helped reliance to capture
| most of market share in every major
etelascollte business sector .Company became the first
Indian company to cross 200BN Dollar
market cap.
position and
diverse brand2 - Strong free flow and capital
expenditure
Reliance is a company with big cash inflow and revenue. Company
got a average profit margin of 8 percent in last 10 years and is
growing rapidly. Company is having an average of 10 percent
return of equity in last 10 years
3 - Operation and business
expansion advatage
Reliance statrted its business with textile industry. It always
focused on expanding its business . From textile reliance
expanded its business to petrochemicals and refinery.
reliance also expanded its business to retail , media and
telecommunication.Reliance Jio and
digital services
Reliance Jio has turned out to be the best business expansion for the
company. Jio became the strength of Reliance as it continues to be
the biggest telecom company of India. Company also offers many of
its digital services under brand of Jio.
Major fundraiser which
cleared debt
Reliance got fundsof 22 billion dollars which cleared its debts.
Company became debt free and is growing with big no .Weakness
1 - Getting success in only
major brands
Where Reliance industries has got success in major brands but it
has failed to get success in minor brands. Reliance owns more than
130 brands in which only few have got the success. This is a big
weakness of Reliance.
2- Less Investment in R&D
Reliance industries has always seen a setback in creating new
products due to their low investment in R&D. Company should
invest more in its R&D to get new innovative product lineups.Weakness
Production declining in
exploratory blocks:
RIL’s gas production from two of its major plants, KG-D6
project and Tapti Fields is decreasing due to various natural
and operational challenges. A decrease in production affects
supply and operational margins.Opportunity
Tapping new digital market -
Reliance industries has tapped in digital market very aggresively
but there are many digital ventures in which it has not invested.
For ex Education Industry etc.
Strong 5g networks -
As India's telecom sector is now dominated by two telegiants Airtel and Jio.
Reliance has a very good opportunity to build 5g networks better than
Airtel which can lead to increase in market share of jio.Threats
Huge competition in all sectors
The very strength of Reliance is its weakness also. With business
diversification in every major business sector of India company
faces huge competition from every giant in the business. For Ex
Airtel in telecom, Indian Oil in petroleum , ZEE networks in media
and entertainment etc.
Less Social brand value due to low CSR
Reliance faces a lot of social backlash due to its low CSR . Company has
not increased its brand value in the eyes of normal Indian . Company
should increase its CSR to compete with the brands like TATA which
has made its goodwill by doing a good ammount of CSR.Threats
Legal proceedings and
litigations:
RIL has been subjected to various legal proceedings
and litigations in the past. Recently, RIL has had to
pay a hefty penalty amount to the government. Such
instances impact the reputation of the company.Seow
1 -Strong brand value and diverse brand 1 - Getting success in only major brands
portfolio
2- Strong free flow and capital expenditure
' [ [ 2 - Less investment in R&D
3 - Operation and business expansion advantage
4- Reliange jio and digital services 3 - Production declining in major
5- Major fundraiser to clear debt exploratory blocks
rend fies
1- Tapping new digital markets 1 - Huge competition in all sectors
2 - Strong 5G networks 2 - Less social brand value
3 - Legal proceedings and litigationConclusion and
suggestion
In this SWOT analysis of Reliance we found out that reliance is at
very good position in market . Company is growing with big no
with increase in revenue and market share. Reliance industry has
the potential to become the global brand in future.
Suggestion to Reliance will be to draw a line for business diversification.
Company should stick to its main business and should not over
diversify. Company should also increase its CSR policy fund to make
their social brand image stronger.