Reliance: Leadership, Vision, and Growth
Reliance: Leadership, Vision, and Growth
Reliance is in the Refineries sector. The current market capitalisation stands at Rs 589,502.62 crore.
The company management includes Mukesh D Ambani - Chairman & Managing Director, Nita M Ambani
- Non Exe.Non Ind.Director, Nikhil R Meswani - Executive Director, Hital R Meswani - Executive Director,
P M S Prasad - Executive Director, Pawan Kumar Kapil - Executive Director, Mansingh L Bhakta -
Independent Director, Yogendra P Trivedi - Independent Director, Dipak C Jain - Independent Director,
Ashok Misra - Independent Director, Raghunath A Mashelkar - Independent Director, Adil Zainulbhai -
Independent Director, Raminder S Gujral - Independent Director, Shumeet Banerji - Independent
Director.
It is listed on the BSE with a BSE Code of 500325 and the NSE with an NSE Code of RELIANCE.
Its Registered office is at 3rd Floor, Maker Chambers IV,,222, Nariman Point, Mumbai,Maharashtra -
400021.
Founder Chairman
Dhirubhai Ambani (28 December 1932 – 6 July 2002) epitomised the dauntless entrepreneurial spirit of a
visionary always on the march to change the destiny of a nation. Acclaimed as the top businessman of the 20th
century and lauded for his dynamic, pioneering and innovative genius, Dhirubhai was an inspiring leader with
sterling qualities. His success story fired the imagination of a generation of Indian entrepreneurs, business
leaders and progressive companies. For many, he still remains an icon, a role model to be emulated.
Dhirubhai’s unique vision redefined the potential of the Indian corporate sector and he challenged
conventional wisdom in several areas. He was probably the first Indian businessman to recognise the strategic
significance of investors and discover the vast untapped potential of the capital markets and channelize it for
the growth and development of industry. The corporate philosophy he followed was short, simple and succinct:
“Think big. Think differently. Think fast. Think ahead. Aim for the best.” It was under Dhirubhai’s visionary
leadership the Reliance Group emerged as the largest business conglomerate in India, and carved out a distinct
place for itself in the global pantheon of corporate giants.
During the course of his entrepreneurial mission, Dhirubhai set a number of revolutionary precedents. His
contributions to the social and economic development of the nation were many and recognised by numerous
national and international organisations. He was honoured with the Padma Vibhushan – India's second highest
civilian honour – in 2016, for his ‘exceptional and distinguished’ service to trade and industry. Many other
prestigious awards and titles have been conferred on him, including the Lifetime Achievement Award (The
Economic Times), Man of the Century (Chemtech Foundation), Indian Entrepreneur of the 20th Century
(FICCI), and many more.
He visualised the growth of Reliance as an integral part of his grand vision for India. He was convinced that
India could become an economic superpower within a short period of time and wanted Reliance to play an
important role in realising this goal. Today, the Group's turnover represents nearly 3 percent of India's GDP.
In the late nineties, Mr. Mukesh Ambani spearheaded the creation of the world’s largest grassroots petroleum
refinery at Jamnagar in Gujarat, India, with a capacity of 660,000 barrels per day (33 million tonnes a year),
and integrated it with petrochemicals, power generation, port and related infrastructure. Further, he steered the
setting up of another 580,000-barrels-per-day refinery next to the first one in Jamnagar. With an aggregate
refining capacity of 1.24 million barrels of oil per day at a single location, Jamnagar has become the refining
hub of the world.
He also led Reliance’s development of infrastructure facilities and implementation of a pan-India organized
retail network spanning multiple formats and supply chain infrastructure. Today, Reliance Retail is the largest
organised retail player in India. He has created global records in customer acquisition for Jio, Reliance’s digital
services initiative. He led and established one of the world’s most expansive 4G broadband wireless network
offering end-to-end solutions that address the entire value chain across various digital services in key domains
of national interest, such as education, healthcare, security, financial services, government-citizen interfaces,
and entertainment.
Mr. Mukesh Ambani is a member of the Prime Minister’s Council on Trade and Industry, Government of
India, and the Board of Governors of the National Council of Applied Economic Research, India. He is the
Chairman of the Board of Governors, Pandit Deendayal Petroleum University in Gujarat. He is a Board
Member of the Interpol Foundation, and a member of The Foundation Board of the World Economic Forum.
    Mr. Mukesh Ambani is an elected Foreign Member of the prestigious United States National Academy of
    Engineering. Only nine other Indians have received this honour. He is the Chairman of Reliance Jio Infocomm
    Limited and Reliance Retail Ventures Limited, and a Director of Reliance Foundation and Reliance Europe
    Limited. At Reliance Industries, he is the Chairman of the Board of Directors and Finance Committee.
    Board Committees
    The Board has appointed various committees to assist it in discharging its responsibilities. The Board has
    adopted charters setting forth the roles and responsibilities of each of the committees as well as qualifications
    for committee membership, procedures for committee members' appointment and removal, committee
    structure and operations and reporting to the Board. The Board may constitute new committees or dissolve any
    existing committee as it deems necessary for the discharge of its responsibilities.
    Objective
    The Audit Committee assists the Board in its responsibility for overseeing the quality and integrity of the
    accounting, auditing and reporting practices of the Company and its compliance with the legal and regulatory
    requirements. The Committee's purpose is to oversee the accounting and financial reporting process of the
    Company, the audits of the Company's financial statements, the appointment, independence, performance and
    remuneration of the statutory auditors including the Cost auditors, the performance of internal auditors and the
    Company's risk management policies.
    Terms of Reference
    The terms of reference / powers of the Audit Committee are as under :
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    Products & Brands
    Our expertise lies in developing products and markets from 'concept to fruition' and beyond. Our constant
    focus on innovation has helped us to emerge as a trendsetter in various markets and be known worldwide for
    our unbeatable range of products. Our operations span from the exploration and production of oil and gas to
    the manufacture of petroleum products, polyester products, polyester intermediates, plastics, polymer
    intermediates, chemicals, synthetic textiles and fabrics.
      Hydrocarbon Products
In This Section
   About
   Leadership
   Manufacturing Excellence
   R&D
   Products & Brands
   Corporate Social Responsibility
    Brands
    Each of our brands is a natural extension of our philosophy of excellence. From Vimal to Recron, our brands
    are tuned to not only the needs, but also the aspirations of our customers. Today, our products and brands
    touch the lives and enhance the lifestyles of millions of Indians.
    Reliance entered the Exploration and Production (E&P) business by becoming a 30% partner in an
    unincorporated joint venture with Shell (erstwhile BG) and ONGC in the Panna Mukta and Mid and South
    Tapti blocks. Our domestic portfolio comprises of six conventional oil and gas blocks in Panna Mukta Tapti
    (PMT), Krishna Godavari, Mahanadi, Gujarat Saurashtra, & Cambay Basins and two Coal Bed Methane
    (CBM) blocks in Sohagpur East and West in Madhya Pradesh.
    Oil and gas is currently being produced from our PMT blocks and KG D6 blocks in India and shale gas JVs
    in the US.
RIL and its partners in conventional and Shale Business work closely together and channelize expertise
to target high quality prospects and optimise existing and future development plans.
Bring no harm to people and environment, safety is paramount (Zero accidents, 100% compliance)
Be recognised as a "Partner of choice" for our stakeholders, building strong relationships which are of mutual
advantage
Operations
Conventional
In 2002, Reliance struck gas in the D1-D3 field of KG D6 block. RIL is producing natural gas from the gas
fields D1-D3 since April 1, 2009, and light crude oil from the D26 oil field in KG D6 block, since September
17, 2008. Both projects have been commissioned in a record time – the D1-D3 fields in about six and half
years, and the D26 field in just a little over two years - from discovery.
These fields rank amongst one of the largest green-field deepwater oil and gas production facilities in the
world. D1-D3 fields are the first and only deepwater producing fields in India and remains among the most
complex reservoirs in the world. Reliance, along with its partners, has committed ~$6 billion for second wave
of projects in KG D6 over the next few years. To supplement the existing asset base, we continue to look at
new opportunities globally that are a strategic fit with capabilities and integrated petroleum value chain.
Coal Bed Methane
Development activities are underway in 2 CBM blocks (Sohagpur East and West) with first gas in 2017. As
part of CBM development program, Reliance has drilled more than 200 wells and set up two Gas Gathering
Stations and 8 Water Gathering Stations.
Reliance Gas Pipeline Limited (RGPL), one of the subsidiary of RIL operates 300 KM of natural gas pipeline
from Shahdol in Madhya Pradesh to Phulpur in Uttar Pradesh to transport gas from RIL’s CBM blocks.
The CBM project is the largest surface footprint hydrocarbon project of the country.
US Shale Gas
Reliance’s upstream joint ventures in US Shale gas include a 45% working interest (WI) partnership with
Pioneer Natural Resources in the Eagle Ford shale play and a 40% WI partnership with Chevron and a 60% WI
partnership with Carrizo Oil & Gas in the Marcellus Shale play.
All JVs remain focused on high-grading of development activities, improving costs and efficiencies and
managing the low price environment through prioritizing well capex in the most prolific areas.
Products
Our refinery at Jamnagar processes a wide variety of crude oils and produces a range of petroleum products for
exports as well as supply in the Indian market.
Products Applications
There are two types of business environment INTERNAL and EXTERNAL environment
Before coming on to the external forces, the internal forces should be made clear.
The internal forces are those forces which are controlled by the organisation itself such as the
resources knowledge and decision making
Reliance in the above context has a wide variety of resources such as well qualified employees and
infrastructure
As far as knowledge and decision making is concerned Because Reliance recruits very well qualified
persons thereby it reflects when it comes to the decision making process of the company
External business environment comprises of Political, Economic, Social and Technological factors.
These factors can have appositive as well as a negative impact on the company. There are two
types of external business environment i.e. micro and macro
      External micro factors are company's suppliers, transporters, agents, distributers, and
       wholesalers.
      External macro factors comprises of Political, Economic, Social and Technological factors.
The external micro factors can be influenced by the organisation whereas macro factors cannot be
influenced by the organisation
(P)OLITICAL FACTORS
Political factors include government policies relating to the industry, tax policies, laws and
regulations, trade restrictions and tariffs etc. As in any part of the world, political influence is highly
essential to start a business in India. Especially if you are planning to start a multi-billion business,
some sort of political patronage is an absolute necessity. Not only for safeguarding the interest of the
company but even to begin the process of getting the required sanctions, one requires hold in the
high echelons of politics and administrative circles.
Reliance industries also hold a high echelon of political and administrative circles so as to safeguard
the interest of a company and for getting the required sanctions.
(E)CONOMICAL FACTORS
The economic factors relate to changes in the wider economy such as economic growth, interest
rates, exchange rates and inflation rate, etc. These factors comprise of Government intervention in
the free market, infrastructure quality, economic growth rate, availability of labour, wage rate of
labour.
(S)OCIAL FACTORS
Social factors often look at the cultural aspects and include health consciousness, population growth
rate, age distribution, changes in tastes and buying patterns, etc.
Safety of a person overrides all the production targets' is the Health, Safety and Environment Policy
of Reliance.
Occupational Health Centres (OHCs) have been established to provide education on health and
awareness issues, diagnostic camps and health exhibitions are also arranged. RIL also offers
periodic medical examination of all the employees (including Contractors' employees) along with
their family members. In case of any hospitalisation RIL employees are supported by consistent co-
operation and cashless hospitalisation amenities from one corner of a country to another. The
company also provides fully equipped hospitals in all its major townships. The company also helps
conduct Periodic potable water sampling analysis and health audits for the canteens and guest
houses.
A new initiative was launched by RIL called (CASHe) programme i.e. Change Agents for Safety,
Health & workplace Environment. This initiative was launched to promote healthy workplaces and
reduce health and safety risks. It has also facilitated the Syndicate to advance its enactment on the
occupational health and safety front.
The company's long term objective is to address all environmental initiatives as they want to become
more positive about water conservation, carbon neutral and conduct the maximum possible recycling
and reuse of wastes. The company has further been reinforced in context of company's
management framework with roles responsibilities, group standards and defined structures.
RIL's Patlganga plant has changed over to use of a cleaner fuel. This resulted in substantial
reduction of suspended particulate substance and sulphur dioxide releases in the air.
RIL has indoctrinated a practice to be in coordination with nature and in this circumstance,
afforestation, upkeep of green belts and promoting lush green surroundings as they have decided to
planted around 1,00,000 plants at the OT, gardens, vermin-compost of waste and its use as manure,
they also reuse treated water for horticulture activities as a routine.
(T)ECHNOLOGICAL FACTORS
The technological factors relate to the application of new inventions and ideas such as R&D activity,
automation, technology incentives and the rate of technological change.
RIL has always laid emphasis on R&D, technology development and innovation. The reliance Group
(RTG) undergoes various research and technology functions which help them produce improved
value supply by leveraging all the abilities, and creating new prospects at the interfaces.
At the time of recession also RIL did not even step back their zeal to innovate helped them convert
the adversity into an opportunity. The company launched a ground-breaking initiative called "mission
kurukshetra" which was aimed at emerging the organisation to rise to the occasion and also help the
company to emerge stronger.
This initiative not only helped in combatting the challenges with a win but also identified serial
ideators; the enterprise facilitated them by rewarding them for their leadership. The Leading Expert
Access Programme (LEAP). The people at RIL are inspired by leaders and also provide them
access to global thought.
The RIL draws an agenda on innovation with the help of The Reliance Innovation Leadership Centre
(RILC) which helps the company to stay amongst one of the most innovative companies in the world.
RIL continues its journey to make improvement a way of life and want to confirm that the growth of
the next generation are led by innovation.
Advantages of PEST analysis:
PEST analysis is an effective and efficient tool, which provides a framework to an organisation for
effective decision making. By making effective use of PEST analysis, one can ensure affirmative
orientation of the business organisation. PEST analysis also helps an organisation in avoiding
decisions which should not be taken. PEST analysis helps in making lawful decisions for the
companies which are willing to enter into a new market.
Disadvantages of PEST analysis:
PEST analysis considers only the external business factors, but in reality all the factors should be
considered in order to make effective decisions for an organisation. Most of the data gathered
through this analysis is based on assumptions, which sometimes may not prove to be fruitful for an
organisation. The rapid changes in the world economy can also make it difficult in analysing PEST
factors for an organisation.
Another factor which comes under consideration is the SWOT analysis of the company SWOT
stands for strengths weakness opportunities and threats.
RIL's SWOT analysis is as follows:
(S)TRENGTHS
Consolidations:
There are only two main players of in petrochemicals and a solid consolidation has been seen in last
few years as 85% of polymer capacity is with these companies namely reliance and haldia
(W)EAKNESS
Low bargaining power from the suppliers:
The input prices form nearly 50-60% of the raw material costs. Reliance being a petrochemical
player does not have much of a negotiating power counter to the suppliers. Therefore they always
remain unprotected to the prices of the raw material.
(O)PPORTUNITIES
Low per capita income:
Currently, domestic per person polymer consumption is nearly 4 kgs while if we see the global
average it is nearly 20 kgs. This tells the fact that there is huge scope of volume expansion in INDIA
as the market to be selected is very massive.therefore there is a massive scope of product
development. Also, currently, India has a chemicals trade deficit of about US$ 1.5 bn a year, which
leaves enough investment opportunities in the industry.
(T)hreats
Customs duties:
The polymer industry has a protection from overseas competition by leveraging high import duties
imposed by the government. However, of late, Import duty on polymers has been steadily reduced
and is currently at 20%. As part of its commitment to various multilateral and bilateral trade
agreements, the government is likely to reduce duties.
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                                                                                       TODAY
Company                               Current Price      Change (%Chg)               Low / High       EPS        PE
Reliance Industries Ltd. 921.60 -9.00 (-0.97%) 919.55 / 929.30 18.58 49.61
Andrew Yule & Company Ltd. 29.25 0.90 (3.17%) 28.00 / 29.70 52.23 0.56
Apex Intertech Ltd. 0.00 -6.50 (-100.00%) 0.00 / 0.00 0.00 -0.57
Balmer Lawrie & Company Ltd. 225.00 -0.05 (-0.02%) 223.40 / 226.75 15.05 14.95
Century Textiles & Industries Ltd. 1,216.00 4.05 (0.33%) 1,201.00 / 1,220.95 129.37 9.40
DCM Shriram Ltd. 490.00 -4.20 (-0.85%) 486.05 / 498.80 15.24 32.14
Gillanders Arbuthnot & Company Ltd. 66.05 -0.95 (-1.42%) 65.30 / 67.25 138.91 0.48
Grasim Industries Ltd. 1,116.00 6.30 (0.57%) 1,102.35 / 1,125.00 47.02 23.73
Hanung Toys & Textiles Ltd. 2.92 -0.01 (-0.34%) 2.92 / 3.05 -0.08 -35.77
JIK Industries Ltd. 0.42 0.00 (0.00%) 0.42 / 0.42 -2.31 -0.18
Kesoram Industries Ltd. 119.50 1.45 (1.23%) 117.30 / 122.40 -12.01 -9.95
Nava Bharat Ventures Ltd. 140.50 -2.85 (-1.99%) 140.00 / 142.55 30.25 4.64
Orient Paper & Industries Ltd. 38.35 -0.55 (-1.41%) 38.15 / 38.85 16.08 2.38
Prakash Industries Ltd. 185.95 -0.45 (-0.24%) 181.80 / 189.45 36.02 5.16
Shreekrishna Biotech Ltd. 141.40 141.40 (0.00%) 141.40 / 141.40 6,965.52 0.02
The Andhra Sugars Ltd. 451.60 4.40 (0.98%) 440.60 / 465.05 10.16 44.46
Home » Marketing mix articles » Marketing mix of Reliance industries – Reliance industries
marketing mix
    Reliance Industries has nearly 123 subsidiaries and 10 associate firms. In the
    retail sector, it is the largest retailer with nearly 1466 outlets in India. All the
    outlets are located at prime locations with trained and efficient staff to garner
    maximum consumers.
    Home » Marketing mix articles » Marketing mix of Reliance industries – Reliance industries
    marketing mix
Reliance Industries contribution to total Indian exports is nearly 14%. The company is present in
numerous sectors like logistics, textiles, retail, natural resources, science and technology, health
care, energy, communications, construction and petrochemicals. Reliance Industries is also the
producers of Polyester Fibre, Mono-Ethylene Glycol (MEG), Purified Terephthalic Acid (PTA)
and Polypropylene (PP).
     Retail sector includes Reliance Fresh, Reliance Digital, Reliance Footprint, Reliance Trends,
      Reliance Mart, Reliance Home Kitchens, Reliance Time Out, Reliance Wellness, Reliance
      Autozone, Reliance Super, Reliance iStore, Reliance Market and Reliance Jewel.
     Reliance Life Sciences includes working around industrial and medicinal Biotechnological
      opportunities. It focuses on the branding, manufacturing and marketing of products that belong
      to Reliance Industries brand in clinical research and bio pharmaceuticals.
     Reliance Institute of Life Sciences is an institution that offers the chance for higher studies in
      numerous fields of life science and technology.
     Reliance Solar includes producing and selling systems related to solar energyto rural areas.
     Reliance Jio Infocomm is a service provider for broadband
     Reliance Industrial Infrastructure Limited has the primary objective of building and operating
      pipelines that are used for the transportation of petroleum products.
     Reliance Clinical Research Services is an organization for research programs.
Reliance Industries has nearly 123 subsidiaries and 10 associate firms. In the retail sector, it is
the largest retailer with nearly 1466 outlets in India. All the outlets are located at prime locations
with trained and efficient staff to garner maximum consumers.
It will be impossible to cover the number of cities and places that reliance industries has presence
in across India. This statement itself gives you a point of view of the large operations that are the
foundation of Reliance industries.
A fabric mill was established in the year 1966 at Naroda, Gujarat and this was the starting point
of Reliance Industries. It has manufacturing plants at various convenient sites like Jamnagar. The
petro chemical plant at Hazira was started in 1991.
The biggest Gas discovery was by Reliance Industriesat the Godavari- Krishna Basin. Reliance
Industries is a very old hand at each stage of circulation whether manufacturing, or hiring
wholesalers or contracting retailers. They have a wide network already in place for every facet
like channel, intermediary or distribution and their sound mechanism has taken them to such
unimaginable heights.
Price in the Marketing mix of Reliance industries
The pricing policy of Reliance Industries is different for different sectors. The policy for sectors
such as retail, telecommunications and health care that are in direct contact with the consumers is
mainly penetration pricing. This is because most of these sectors are question marks and their
outcome is undetermined as of now. Retail and telecommunication both suffer huge losses but
companies invest in them looking at the future.
If the fair pricing policy is in place, then automatically the volume will rise and in turn, it will
lead to better revenues. The policy for the sector petrochemicals is different as it is dependent
largely on the current global market, which is very flexible. The various market conditions along
with the costing and promotional expenses determine the pricing policies of the company.
 Reliance Industries has a special team of highly qualified individuals who are the main
determining factors behind every pricing policies and decisions and this is arrived after a
complete analysis and evaluation. In some sectors like Reliance Fresh showrooms, it has dropped
the services of intermediaries and bought the items directly from its source and hence has been
able to lower the prices of the products, due to which the sale is higher and it is able to survive in
the tough retail business.
Reliance has eagerly utilized the available advertising tools so that the best marketing strategies
could be implemented. Their promotional campaigns are clean, well made, trendy with an
emotional touch and up to the mark to attract the consumers. Reliance Industries also announces
discounts and schemes for its consumers.
However, promotions is a big expense for most companies and hence Reliance relies more on
spending less on promotions and reducing the prices so that customers are attracted to the
company. In fact, except for the retail sector, hardly any advertising is seen from Reliance. And
even if it uses advertising, it uses more of BTL then ATL.
It has been a regular sponsor of sports activities and has bought an IPL (cricket team). It also
holds various rehabilitation programs for the downtrodden people.