Reliance Industries

“Pursue your goals even in the face of difficulties, and convert adversities into opportunities." - Dhirubhai Hirachand Ambani.

Presented By:

Sheryl(94) Smitha(97) Subasri(104) Upasana(112)

AGENDA

Introduction
 Current

news  The split

Mukesh Ambani’s group  ADAG  Gas Row in Detail  SWOT  BCG  Recommendations  Summary and Conclusion
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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
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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 country’s biggest global acquisition if it emerges as the successful bidder for bankrupt LyondellBasell - one of the world’s largest polymers, petrochemicals and fuels company  Reliance Industries has reopened 900 gas stations, which were shut down when state firms were selling heavily subsidised fuel
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The bid for the privatization of five airports was won by the Anil Ambani group's Reliance Airport Developers Ltd (RADL)  Flag Telecom is now part of Reliance Globalcom.  On the 30th December 2008, Reliance became the first telecom company in India to operate in both CDMA as well as GSM technologies.  The Reliance group’s Javagreen coffee retail chain, is run by Ambani sister Nina Kothari and brother-in-law ,B H Kothari ,along with Reliance’s WebWorld stores

Mukesh Ambani’s next foray: Education. Planning to launch a private university  Alliance with Brad Pitt’s production house, Plan B 

CSR Initiatives: 1.CSR activities at Jamnagar 2.Dhirubhai Ambani SSC - Merit Reward Scheme & Dhirubhai Ambani Undergraduate Scholarship Scheme 3.'Reliance Kargil Scholarship Scheme‘ 4.Healthcare Initiative- Blood donations, free medical check up etc 5.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

The Split
Following Dhirubhai’s death in 2002, the empire was split between the two sons Mukesh Ambani and Anil Ambani  Mukesh Ambani got RIL and IPCL – Reliance Industries, also owner of Mumbai Indians  Anil Ambaniheads the Reliance Capital, Reliance Energy and Reliance Infocomm Anil Dhirubhai Ambani Group (ADAG)
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Mukesh’s kitty

Businesses

Mukesh Ambani’s Group

Major subsidiaries and associates of RIL

Jamnagar Refinery

Reliance Petroleum Limited

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

Brands under Reliance Retail

Reliance Global Management Services (P) Ltd

Reliance Biopharmaceuticals

Ranger Farms Limited

Reliance Engineering Associates Private Limited (REAL)
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Engineering procurement and construction Services  Part design for molding  Mold design  Prototype  Product tooling  Pre-production prototyping  Full-scale manufacturing of precision thermoplastic and thermoset plastic parts  Contract manufacturing services for OEMs  Procurement  Build-to-print assembly of low to moderate volume products

Reliance's Oil & Gas Find

Petrochemicals

Indian Petrochemical Corporation Limited (IPCL)
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RIL formally assumed control of IPCL in June 5, 2002 after which Reliance’s controlling share was 47.3% IPCL was managed by a board nominated by the govt till 2002 and 26% of the equity shares was divested in favor of Reliance Petroinvestments Ltd through a bidding process 6 polyester companies amalgamated with IPCL  Appollo Fibres Ltd (AFL)  Central India Polyesters Limted (CIPL)  India Polyfibres Limted (IPL)  Orissa Polyfibres Limted (OPL)  Recron Synthetics Limited (RSL)  Silvassa Industries Private Limited (SIPL) Battle between the brothers over the then Rs 90,000 Crores Reliance empire Merger at a swap ratio of 1:5

Textiles
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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 Anil’s Corner

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.
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RNRL
incorporated on March 24, 2000 as Reliance Platforms Communications.Com Private Limited  Engaged in the business of sourcing, supply and transportation of gas, coal and liquid fuels  RNRL has been awarded four CBM blocks, with an acreage of about 3,251 sq. kms, for the exploration and production of coal bed methane (CBM), making it the second largest CBM player in India in terms of acreage. 

Reliance Communications
Reliance Communications, formerly known as Reliance Infocomm flagship venture along with Reliance Telecom is part of Reliance Communications Ventures (RCoVL).  Began operations in 1999 and has over 50 million subscribers today  Offers a complete range of integrated telecom services also broadband services.  Offers both CDMA and GSM services in fact the first telecom company in India to operate in both technologies

Wireline Business throughout India and has the largest optical fibre communication (OFC) backbone architecture [roughly 110,000 km] in the country.  RelCom has its presence across all B2C communications channel in one of the fastest growing markets in the world.  Also is the first telecom operator in the history of Indian telecommunications to simultaneously launch its GSM services in 17 circles  Reliance Globalcom, a division, owns the worlds largest private undersea cable system.

Reliance Infrastructure
Earlier called Reliance Energy  India’s largest private sector enterprise in power utility  Focused on roads, Urban infrastructure (Sealink and Airports), Specialty Real Estate (business districts, trade towers, convention centre), and SEZ (IT & ITES SEZ and non IT SEZ) as well as FTZs.  Executing the first 100% private sector power transmission project for western grid  Emerging as one of the leading players in India in the Engineering, Procurement and Construction (EPC) segment of the power sector

Reliance Power
Subsidiary of Reliance Energy  Established to develop, construct and operate power projects domestically and internationally  Currently developing 16 large and medium sized power projects with a combined planned installed capacity of 33,780 MW  Sole distributor of electricity to consumers in the suburbs of Mumbai  The 7,480 MW project to be located at Dadri in Uttar Pradesh is expected to be the largest gas-fired power project at a single location in the world. 
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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.
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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.
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Reliance Capital
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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
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Reliance Reliance Reliance Reliance Reliance

Mutual Fund Life Insurance General Insurance Money Consumer finance

The Dispute

SWOT Analysis

BCG Matrix

Bibliography

http://www.whatisindia.com/issues/reliance/index.html  http://www.iloveindia.com/economy-of-india/top-50-com )  http://www.business-standard.com/india/news/reliance)  http://valuenotes.com/valuenotes/research/articles.asp http://en.wikipedia.org/wiki/Reliance_Capital  http://inhome.rediff.com/money/2005/jun/21sld5.htm

Video Links

http://video.filestube.com/video,d3bc1489dea68a2003e Conflict  http://www.youtube.com/watch?v=sE_bREd0WxU - Abt Dhirubhai Ambani and formation of reliance

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