0% found this document useful (0 votes)
158 views20 pages

Reliance: Leadership, Vision, and Growth

Reliance is a large Indian conglomerate with a market capitalization of Rs 589,502.62 crore. It operates in the refineries sector and is listed on the BSE and NSE stock exchanges. The company was founded by Dhirubhai Ambani and has grown tremendously under the leadership of current Chairman and MD Mukesh Ambani to become one of the largest companies in India with major businesses in refining, petrochemicals, organized retail, digital services, and more.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
158 views20 pages

Reliance: Leadership, Vision, and Growth

Reliance is a large Indian conglomerate with a market capitalization of Rs 589,502.62 crore. It operates in the refineries sector and is listed on the BSE and NSE stock exchanges. The company was founded by Dhirubhai Ambani and has grown tremendously under the leadership of current Chairman and MD Mukesh Ambani to become one of the largest companies in India with major businesses in refining, petrochemicals, organized retail, digital services, and more.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 20

About Reliance

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.

Their Registrars are Karvy Computershare Private Ltd.

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.

Chairman & Managing Director


Our fundamental belief is that for us growth
is a way of life and we have to grow at all times.
Mr. Mukesh D. Ambani (DIN 00001695) is a Chemical Engineer from the Institute of Chemical Technology,
Mumbai (erstwhile the University Department of Chemical Technology, University of Mumbai). He pursued
an MBA from Stanford University in the US. He has been on the Board of Reliance since 1977. He initiated
Reliance’s backward integration journey – from textiles to polyester fibres and further onto petrochemicals and
petroleum refining, and going upstream into oil and gas exploration and production. He created multiple new
world-class manufacturing facilities involving diverse technologies that have raised Reliance’s petrochemicals
manufacturing capacities from less than a million tonnes to about 21 million tonnes per year.

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. Ambani is also a member of the following forums:


 - Indo-U.S. CEOs’ Forum
 - India Advisory Council of The British Asian Trust (as Chairman)
 - International Advisory Council of The Brookings
 - McKinsey & Company International Advisory Council
 - Global Advisory Council of Bank of America
 - The Business Council
 - India Advisory Group of the London School of Economics

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 :

A. Powers of the Audit Committee

 To investigate any activity within its terms of reference.


 To seek information from any employee.
 To obtain outside legal or other professional advice.
 To secure attendance of outsiders with relevant expertise, if it considers necessary.

B. The role of the Audit Committee includes


 Oversight of the Company’s financial reporting process and the disclosure of its financial information to
ensure that the financial statement is correct, sufficient and credible;
 Recommending the appointment, remuneration and terms of appointment of statutory auditors, including
cost auditors of the Company;
 Approving payment to statutory auditors, including cost auditors, for any other services rendered by them;
 Reviewing with the management, the annual financial statements and auditors report thereon before
submission to the Board for approval, with particular reference to:
o Matters required to be included in the Directors’ Responsibility Statement to be included in the Board’s
Report in terms of clause (c) of sub-section 3 of Section 134 of the Companies Act, 2013;
o Changes, if any, in accounting policies and practices and reasons for the same;
o Major accounting entries involving estimates based on the exercise of judgement by the management;
o Significant adjustments made in financial statements arising out of audit findings;
o Compliance with listing and other legal requirements relating to financial statements;
o Disclosure of any related party transactions; and
o Modified opinion(s) in the draft audit report.
 Reviewing, with the management, the quarterly financial statements before submission to the Board for
approval;
 Monitoring and reviewing with the management, the statement of uses/ application of funds raised through
an issue (public issue, rights issue, preferential issue, etc.), the statement of funds utilised for purposes
other than those stated in the offer document/prospectus/notice and the report submitted by the monitoring
agency monitoring the utilisation of proceeds of a public or rights issue, and making appropriate
recommendations to the Board to take up steps in this matter;
 Reviewing and monitoring the auditors’ independence and performance, and effectiveness of audit process;
 Approval or any subsequent modification of transactions of the Company with related parties;
 Scrutiny of inter-corporate loans and investments;
 Valuation of undertakings or assets of the Company, wherever it is necessary;
 Evaluation of internal financial controls and risk management systems;
 Reviewing, with the management, the performance of statutory auditors and internal auditors, adequacy of
internal control systems;
 Formulating the scope, functioning, periodicity and methodology for conducting the internal audit;
 Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit
department, staffing and seniority of the official heading the department, reporting structure coverage and
frequency of internal audit;
 Discussion with internal auditors of any significant findings and follow-up thereon;
 Reviewing the findings of any internal investigations by the internal auditors into matters where there is
suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the
matter to the Board;
 Discussion with statutory auditors before the audit commences, about the nature and scope of audit as well
as post audit discussion to ascertain any area of concern;
 To look into the reasons for substantial defaults, if any, in the payment to depositors, debenture holders,
shareholders (in case of non-payment of declared dividends) and creditors;
 To review the functioning of the Vigil Mechanism and Whistle Blower mechanism;
 Approval of appointment of CFO (i.e. the whole-time Finance Director or any other person heading the
finance function or discharging that function) after assessing qualifications, experience and background,
etc. of the candidate;
 Carrying out any other function as is mentioned in the terms of reference of the Audit Committee;
 Reviewing financial statements, in particular the investments made by the Company’s unlisted subsidiaries;
 Reviewing the following information:
o The Management Discussion and Analysis of financial condition and results of operations;
o Statement of significant related party transactions (as defined by the Audit Committee), submitted by
management;
o Management letters/letters of internal control weaknesses issued by the statutory auditors;
o Internal audit reports relating to internal control weaknesses;
o Reviewing the appointment, removal and terms of remuneration of the Chief internal auditor / internal
auditor(s); and
 statement of deviations:
o (a) quarterly statement of deviation(s) including report of monitoring agency, if applicable, submitted to
stock exchange(s) in terms of Regulation 32(1) of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015.
o (b) annual statement of funds utilized for purposes other than those stated in the offer
document/prospectus/notice in terms of Regulation 32(7) of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015.

HomeOur Company Products & Brands

 A-

 A+
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.

Exploration & Production


Reliance is one of the largest exploration and production players in India having a balanced domestic
conventional and unconventional hydrocarbon portfolio.
Portfolio Snapshot
RIL’s upstream business comprises the complete chain of activity starting from exploration, appraisal,
development and production of hydrocarbons.

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.

Partnering for Growth


Partnerships represent an important dimension of the E&P business. Reliance and BP entered into
transformational partnership with focus on delivering growth and adding value to India’s energy sector.
The partnership is a perfect blend of BP’s deepwater and development expertise with Reliance’s project
management skills. We have also forged strategic partnerships with Chevron and Pioneer Natural
Resources for development of shale gas resources in 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.

In the upstream business, Reliance aspires to:


Be among the top 10 global independent hydrocarbon producers in next 10 years with a target sustainable
production of 1 MMBOEPD

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

Be India's top player across the gas value chain

Have best-in-class people, processes and technology

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

Liquefied Petroleum Gas (LPG) Domestic and industrial fuel

Propylene Feedstock for polypropylene

Naphtha Feedstock for petrochemicals

Gasoline Transport fuel

Jet /Aviation Turbine Fuel Aviation fuel

Superior Kerosene Oil Domestic fuel

High-Speed Diesel Transport fuel

Sulphur Feedstock for fertilizers and pharmaceuticals

Petroleum Coke Fuel for power plants and cement plants


Reliance Industries Limited
Business Environment Analysis
Business environment is the constraints and opportunities that surround our businesses. This is
about exploring the nature of the business in which it is being carried out.
The analysis in this essay will be on business environment in which Reliance Industries Limited
operates.
Reliance Industries Limited or RIL is commonly known as Reliance. The company was founded by
Shri. Dhirubhai H. Ambani in 1977 the company was initially started as a textile company and led its
evolution as a world leader in materials and the energy value chain
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

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

Polypropylene market in India


Over the past forty years polypropylene growth has exceeded that of other major plastics and has
become the largest volume commodity resin. Throughout the history of PP through research efforts
of various companies, PP has continued to rapidly evolve with new generation of catalyst and post
reactor technology. Because of the improvements made to process and application technology, this
polymer has developed into one of the cost-effective bulk thermoplastic. Polypropylene is the world's
fastest growing polymer with an average growth rate of about 7-8%.
It is very important for a company to understand and try to manage the external micro factors i.e.
PEST forces as discussed above

(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.

Low bargaining to from the customers:


As there is an increase in the input cost therefore the companies are not able to offer any price
reductions or bargains to the customers.

(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.
Video: Discover UK Essays!

Request Removal
If you are the original writer of this essay and no longer wish to have the essay published on the UK
Essays website then please click on the link below to request removal:
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

3M India Ltd. 20,199.85 -26.65 (-0.13%) 20,070.05 / 20,300.00 94.52 213.72

Alchemist Ltd. 10.50 0.02 (0.19%) 10.25 / 10.99 -0.13 -79.06

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

Beardsell Ltd. 51.00 -3.90 (-7.10%) 51.00 / 51.50 21.73 2.35

Century Textiles & Industries Ltd. 1,216.00 4.05 (0.33%) 1,201.00 / 1,220.95 129.37 9.40

Cimmco Ltd. 90.50 0.50 (0.56%) 88.70 / 90.50 -17.29 -5.24

DCM Shriram Ltd. 490.00 -4.20 (-0.85%) 486.05 / 498.80 15.24 32.14

EICL Ltd. 47.15 -0.65 (-1.35%) 46.55 / 49.50 8.98 5.25

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

Mercator Ltd. 34.25 -0.25 (-0.72%) 34.00 / 34.50 -33.91 -1.01

Nava Bharat Ventures Ltd. 140.50 -2.85 (-1.99%) 140.00 / 142.55 30.25 4.64

Nesco Ltd. 565.05 2.80 (0.50%) 553.00 / 568.40 23.50 24.05

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

SM Dyechem Ltd. 0.00 0.00 (0.00%) 0.00 / 0.00 0.00 -0.93

The Andhra Sugars Ltd. 451.60 4.40 (0.98%) 440.60 / 465.05 10.16 44.46

Voltas Ltd. 641.95 2.40 (0.38%) 637.95 / 645.40 43.69 14.69


Reliance industries Marketing analysis Project
1. 1. A Project on Reliance Industries Limited Presented by: Arnab Ray Karan Mehta Kunal
Lalwani Gaurav Sapre
2. 2. Introduction • The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is
India's largest private sector enterprise, with businesses in the energy and materials value
chain. • Reliance Industries Limited is a Fortune Global 500 company and is the largest
private sector company in India.. • The Group's activities span exploration and production of
oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates,
plastics and chemicals), textiles, retail, infotel and special economic zones. • Reliance enjoys
global leadership in its businesses, being the largest polyester yarn and fibre producer in the
world and among the top five to ten producers in the world in major petrochemical products.
3. 3. Reliance Textile Business • 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. • RIL is distinctly known for shepherding a new era in
fabrics. The flagship brand VIMAL is one of the most trusted brands of premium textiles in
the Country. • Major growth drivers for VIMAL continued to be retail presence across India,
constant innovation in products, cost efficiency and improved customer service.
4. 4. New product Initiatives • Fresca anti-microbial and anti-bacterial work-wear apparel fabrics
• Home furnishing and auto-textiles • Silk-Amino suiting fabrics • Fire-retardant and water-
repellent tent fabrics for defence/ police services
5. 5. Important Milestone – RIL Textiles Business “RIL commissioned new Polyester Filament
yarn plant at Silvassa which is the most automated and one of the most environment-friendly
plants global.”
6. 6. Important Raw Materials and Finished Products • Polyester Oriented Yarn used for
making final product as Polyester Textures Yarn. • Polyester Chips is the raw material used
for making Polyester Oriented Yarn. • Polyester Texturised Yarn is the raw material used for
making Polyester Fabrics. • Polyester Terephthalic acid is the raw material required for
making Polyester Oriented Yarn.
7. 7. Important Raw Materials and Finished Products Polyester Chips Polyester Oriented Yarn
Polyester Texturised Yarn
8. 8. Production Process of Vimal Brand Worsted Spinning • State of the art machines which
has the capability of Spinning 24s to 120s Metric, with blends of Wool, poly and specialty
fibers such as silk, flax, bamboo and all kinds of animal fibre. • A plant where 90% of its
production caters to the Export market, demanding the highest of standards with respect to
shade, performance and high quality. • The highlight is that of the shade matching criticality
where the demands are Mix & Match fabrics – where we could rate ourselves as amongst
the best in the world. • Facilities for manufacturing - Yarn dyeing both for the Suiting’s and
automotives. Machines are from world renowned NSC, Zinser, SSM, etc leaders of Textile
machine producers in the world. Synthetic Spinning • Modern plant producing synthetic
fabrics blends of polyester and viscose. State of the art machines producing yarns of the
highest quality for both domestic and international customers .
9. 9. Production Process of Vimal Brand Weaving • To enhance and cater to the stringent
quality requirements, Reliance had added another 100 looms to the existing set up – Air Jet
looms from Japan and Rapiers from Switzerland. • Sixty air-jet weaving machines were
installed to produce high-quality fabrics at the lowest possible cost. Reduced air consumption
by up to 20 percent; maximum speed of up to 1Very high to the new weft insertion system
and new frame structure; and a central processing unit. • Processing • Capacity of 1.8 million
meters of men ’s wear per month – consisting of both fibre dyed and piece dyed fabrics
finished to the requirements of both Domestic and International requirements.
10. 10. Production Process of Polyester Yarn
11. 11. Marketing Strategy of Vimal Brand Target market selection • Identified “well-to-do
urbanites of India” as its target market • High quality, high priced fabrics • Target was
sophisticated segment with a taste for the good things of life and willingness and capacity to
pay the price on basis of value for money Positioning • Positioned on Fashion theme with
additional ‘value dimension’ with help technology attribute • Superior product with superior
value Product strategy • Premium Product on modern technology: (collaboration with usa
based Dupont) • Comprehensive product range: (saris, suitings,shirtings and dress
materials) • Contemporary designs
12. 12. Marketing Strategy of Vimal Brand • Wide variety and choice: (employed 200
designers,10,000 designs in suitings,400 new every month in saris,500 new in dress
materials) • Emphasis on quality: (premium quality:created,communicated and delivered)
Place (Distribution) strategy • Exclusive retail outlets • Set 1800 vimal outlets • Promoted
through showrooms • Vimal showrooms: “the largest nationwide retail network”there is one
near to you • Created jumbo showrooms
13. 13. Marketing Strategy of Vimal Brand Pricing strategy • Premium Pricing • Didn't go with
defensive pricing • Focused on Value pricing due to target market it has chosen Promotion
strategy • Initial budget was 5 crore PA • Different approaches to different
products/audiences • Segmented its target further to: ---business people/executive
community --- middle class gentlemen who go by retailers • Only Vimal idea:only reliance
was producing crimped polyester yarn,only reliance had advanced R&D,10,000
designs,rated by world bank • The Fashion show idea.
14. 14. HR Strategy of Reliance Industries • People: Energizing and engaging the existing work
force, building a pipeline for the future and creating an exciting work place. • HR Processes:
To ensure that RIL continues to have the world's best practice and processes, existing
processes are being reengineered and new processes are being introduced. • Policies: The
focus was to make the policies employee friendly keeping in view employee specific needs.
The HR policies are being reviewed and benchmarked with world class organizations. • HR
Shared Service Centre: The Centre was established last year to ensure efficient and
effective delivery of HR services to RIL employees.
15. 15. Key Financial Ratios of Reliance Industries • Current Ratio = Current Assets = 1.1 ---------
---------- Current Liabilities • Quick Ratio = Quick Assets = 1.03 ------------------- Current
Liabilities • Debt Equity Ratio = Total Liabilities = 0.43 ------------------------- Total Stockholders
equity • Debtors Turnover Ratio = Debtors * 100 = 34.61 ----------- Sales • Gross Profit Ratio
= Gross Profit = 5.66 ------------------- Net Sales • Net Profit Ratio = Net profit after tax = 5.50 -
------------------------- Net Sales
16. 16. Stock Market Analysis of Reliance Industries • Market Cap (Rs Cr.):317,660 • EPS
(Rs):68.00 • P/E Ratio (x):14.40 • Face Value (Rs):10.00 • Latest Div. (%):95.00 • BSE stock
price: 976.70 (As on 18th July, 2014) • NSE stock price: 976.75 (As on 18th July, 2014)
17. 17. RIL Stock performance
18. 18. Future growth of Textile Industry • The textile industry in India is one of the flourishing
sectors of Indian economy. • Union Ministry of Textiles certified Apparel Export Promotion
Council (AEPC) has taken the responsibility to motivate the foreign investors to invest in
Indian Textile industry by exhibiting it massive unexplored domestic market. • The
government of India has also taken few initiatives to promote the textile industry by
permitting 100% Foreign Direct Investment in the market..
19. 19. Future growth of Reliance Industries • The core business of RIL continues to be in the
field of polyester and petrochemical operations even as it plans to foray into diverse sectors.
The company announced a major organic expansion plan for this division over the next five
years. • The company’s investment in the new polyester and petrochemical manufacturing
facilities is expected to touch a whooping $9 billion, which could easily be its single largest
capacity addition in polyester, underscoring the prospective strength of its textile and fibre
division in the years to come.
20. 20. Conclusion • Reliance is a convergent play between the manufacturing and services
businesses • A company at the crossroads of the old and new economy • Reliance’s superior
operational and financial performance reflects its global competitiveness, prudent business
strategies, and ability to maintain profitability through business cycles • Reliance is
committed to a conservative financial framework, and a consistent endeavor to maximize
overall shareholder value.
21. 21. Thank You!

Home » Marketing mix articles » Marketing mix of Reliance industries – Reliance industries
marketing mix

Marketing mix of Reliance industries – Reliance industries marketing mix


By Hitesh Bhasin January 9, 2018 inTagged With: Marketing mix articles
Home » Marketing mix articles » Marketing mix of Reliance industries – Reliance industries
marketing mix

Marketing mix of Reliance industries – Reliance industries marketing mix


By Hitesh Bhasin January 9, 2018 inTagged With: Marketing mix articles

Reliance Industries is an Indian Multinational corporation with its headquarters in Mumbai,


India. This public company was founded in the year 1966 by Dhirubhai Ambani and at present is
headed by its MD and Chairman Mukesh Ambani. The operations of the company include
dealings in petrochemicals, production and exploration, retail, marketing and refining and
telecommunications. Reliance Industries is ranked second in India in terms of revenue
collections and comes under the hundred largest corporations in the world. In terms of market
capitalization, RIL comes second in the publicly traded sector. Some of the companies that are
competitors of Reliance industries are as follows –
Page Contents [hide]
 Product in the Marketing mix of Reliance industries
 Place in the Marketing mix of Reliance industries
 Price in the Marketing mix of Reliance industries
 Promotions in the Marketing mix of Reliance industries

 Indian Oil Corporation in the petrochemical sector


 Sahara Q in the retail sector
 Airtel in Telecommunication sector

Product in the Marketing mix of Reliance industries

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.

Place in the Marketing mix of Reliance industries

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

Marketing mix of Reliance industries – Reliance industries marketing mix


By Hitesh Bhasin January 9, 2018 inTagged With: Marketing mix articles

Reliance Industries is an Indian Multinational corporation with its headquarters in Mumbai,


India. This public company was founded in the year 1966 by Dhirubhai Ambani and at present is
headed by its MD and Chairman Mukesh Ambani. The operations of the company include
dealings in petrochemicals, production and exploration, retail, marketing and refining and
telecommunications. Reliance Industries is ranked second in India in terms of revenue
collections and comes under the hundred largest corporations in the world. In terms of market
capitalization, RIL comes second in the publicly traded sector. Some of the companies that are
competitors of Reliance industries are as follows –

Page Contents [hide]


 Product in the Marketing mix of Reliance industries
 Place in the Marketing mix of Reliance industries
 Price in the Marketing mix of Reliance industries
 Promotions in the Marketing mix of Reliance industries

 Indian Oil Corporation in the petrochemical sector


 Sahara Q in the retail sector
 Airtel in Telecommunication sector
Product in the Marketing mix of Reliance industries

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.

Place in the Marketing mix of Reliance industries

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.

Promotions in the Marketing mix of Reliance industries

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.

You might also like