RELIANCE INDUSTRIES

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

AGENDA

Introduction
Current news y The split
y

Mukesh Ambanis 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 insidertrading issue RIL Chairman has set his eyes on no-frills, lowcost housing. The initiative, still on the drawing board, could be kicked off by 2010. The countrys biggest global acquisition if it emerges as the successful bidder for bankrupt LyondellBasell - one of the worlds 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 groups Javagreen coffee retail chain, is run by Ambani sister Nina Kothari and brother-in-law ,B H Kothari ,along with Reliances WebWorld stores

Mukesh Ambanis next foray: Education. Planning to launch a private university Alliance with Brad Pitts production house, Plan B


1. 2.

3. 4.

5.

CSR Initiatives: CSR activities at Jamnagar Dhirubhai Ambani SSC - Merit Reward Scheme & Dhirubhai Ambani Undergraduate Scholarship Scheme 'Reliance Kargil Scholarship Scheme Healthcare Initiative- Blood donations, free medical check up etc 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

June 2005 Settlement brokered by Kokilaben November 2004 Feud becomes public July 2002 Dhirubhai Ambani dies

2006 Split: Mukesh = RIL; Anil = RNRL

July 2008 Mukesh claims shares in Reliance Communicatio ns

THE SPLIT
Following Dhirubhais 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)

MUKESHS KITTY

Reliance Industries Limited

Indian Petrochemical Corporation Limited (IPCL)

BUSINESSES

Polymers Exploration & Production Petroleum refining & Marketing Petrochemicals Other Petrochemicals Textiles Polyesters Polyester intermediates

Retail

MUKESH AMBANIS 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

Installed capacity
661,000

Largest greenfield refinery in the world

JamnagarRefining Hub of the World (1.24 mn barrels per day)

Commissione d on 14 July 1999 Private sector crude oil refinery owned by RIL

barrels/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 Gases and distillates Fuel oils Total production

FY2008-2009 28000 4500 32450

FY2007-2008 28500 4600 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 FRESH food 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 specialty

RELIANCE AUTOZONE

RELIANCE SUPER-mini hypermarket

RELIANCE MART all under 1 roof supermarket

RELIANCE ISTORE- exclusive apple store

RELIANCE HOME KITCHENS

RELIANCE 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, managementconsulting 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 y Part design for molding y Mold design y Prototype y Product tooling y Pre-production prototyping y Full-scale manufacturing of precision thermoplastic and thermoset plastic parts y 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

RILs 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 Reliances 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 y Appollo Fibres Ltd (AFL) y Central India Polyesters Limted (CIPL) y India Polyfibres Limted (IPL) y Orissa Polyfibres Limted (OPL) y Recron Synthetics Limited (RSL) y 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 fabrics Home furnishing and auto-textiles Silk-Amino suiting fabrics Fire-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 ANILS 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 Indias 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 gasfired 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".

RELIANCE HEALTH
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.

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
y y y y y

Reliance Mutual Fund Reliance Life Insurance Reliance General Insurance Reliance Money Reliance Consumer finance

THE DISPUTE
f ttli li t i t f i i t f t i t t i f il i P i i l t t

t t t i t t tt l fl t i t t

il i i t i l t

f it

t i i

l l t P t l i i t D

t t li

Si t tt i t ti t t t

S t lti i i i

f , f

H il

it

SWOT ANALYSIS
Advanced technology Strong R&D Base Capacity utilization No innovative products Lack of patent protection Operational inefficiencies Strengths

Weakness

Threats

Opportunities

Substitute products Trade barriers High cost of funds

Growing market Political stability Strong currency

BCG MATRIX
Jamnagar refinery Reliance global management services Reliance engineering associates (P) Ltd Reliance Retail Limited Reliance petroleum

Star (high growth, high market share)

Question mark(high growth, low market share)

Dogs (low growth, low market share) Reliance Petrochemicals

Cash cows (low growth, high market share) Reliance oil & gas Reliance biopharmaceuticals Ranger Farms Ltd

BIBLIOGRAPHY
http://www.whatisindia.com/issues/reliance/index .html http://www.iloveindia.com/economy-of-india/top50-companies/reliance-group.html) http://www.businessstandard.com/india/news/reliance-ipcl-boardsapprove-15-swap-ratio/277292/ ) http://valuenotes.com/valuenotes/research/article s.asp?cap=43&cn=35&next=2 http://en.wikipedia.org/wiki/Reliance_Capital http://inhome.rediff.com/money/2005/jun/21sld5.h tm

VIDEO LINKS
http://video.filestube.com/video,d3bc1489dea68a2 003ea.html- Conflict http://www.youtube.com/watch?v=sE_bREd0WxU - Abt Dhirubhai Ambani and formation of reliance