RELIANCE INDUSTRIES LTD.

Reliance Industries Limited (RIL) is an Indian conglomerate company headquartered in Mumbai, Maharashtra, India. The company operates through these business segments:     petrochemicals, refining, and oil and gas, other segment of the company includes textile, retail business, special economic zone (SEZ) development and telecom/broadband business.

RIL is one of the largest publicly traded company in India by market capitalisation and is the second largest company in India by revenue after Indian Oil Corporation. It is also India's largest private sector company by revenue and profit. The company is ranked 99th onFortune Global 500 list of the world's biggest corporations for the year 2012. Reliance Retail has opened its first retail store in November 2006 and now holds over 135 retail stores covering 16 cities with a total square footage of over 370,000 sq. ft. RIL operates mainly in India but has business activities and customers in more than 100 countries around the world. The company has entered into a merger agreement with Indian Petrochemical Corporation Ltd. (IPCL) and awaits approval from appropriate authorities. Reliance Industrial Infrastructure Limited and Reliance Europe Limited are RIL’s other two major associate companies. Reliance Industries Limited (RIL) is a Fortune Global 500 conglomerate with operations including the entire hydrocarbon value chain, retail shopping and textiles. RIL is currently buoyed by high gross refining margins, high refinery utilization rates and increased demand for petrochemical products. The company’s strategy to integrate upstream in the oil and gas industry and foray into the retail industry will provide significant opportunities for growth. Given RIL’s reputation for prompt execution, we expect rapid expansion of its retail stores. The company’s active participation in acquisition of hydrocarbon assets and track record of finding productive oil wells increases the probability of finding large new reserves.

GROWING IMPORTANCE ACROSS THE GLOBE
      Largest refining capacity at any single location Largest producer of Polyester Fibre and Yarn l 5th largest producer of Paraxylene (PX) l 5th largest producer of Polypropylene (PP) l 8th largest producer of Purified Terephthalic Acid (PTA) and Mono Ethelen Glycol (MEG)

VISION Through sustainable measures, create value for the nation, enhance quality of life across the entire socio-economic spectrum and help spearhead India as a global leader in the domains where we operate. MISSION       Create value for all stakeholders Grow through innovation Lead in good governance practices Use sustainability to drive product development and enhance operational efficiencies Ensure energy security of the nation Foster rural prosperity

VALUES Our growth and success are based on the ten core values of Care, Citizenship, Fairness, Honesty, Integrity, Purposefulness, Respect, Responsibility, Safety and Trust.
The top competitors of Reliance are:
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Bharat Petroleum Corporation Limited Indian Oil Corporation Limited Tata Group

SWOT ANALYSIS : Strengths      Technological Skills Distribution channels Production Quality High resource & surplus Unique growth visibility

Weakness   Failure in Forward Integration Un-utlised high resource & surplus

Opportunities    Increase in demand in Chinese & Indian market Gas from KG basin Local Indian market visibility & growth

Threats     Possibility of 100 % FDI Windfall taxes Competition Government

RIL PRODUCT MIX:

RIL Product Mix :
Oil & Gas 3% Fibre Int. 29% Polyester 22% Plastics & Int. 34% Chemicals 11%

Fabrics 1%

Strategies – Core competencies:
  Building and sustaining leadership position across its product categories in the domestic markets; Pursuing attractive export opportunities;

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Implementing vertical integration; Improving its technology; Achieving economies of scale; Focusing on prudent financial management; and Investing in high growth opportunities.

In the petrochemical and refining business, RIL's strategy is to:    Strive for global leadership and to be amongst the lowest cost producers worldwide; Continue to invest in research, quality, safety and the environment; and Pursue inorganic growth opportunities, which are strategic to its intents and will have the potential to create greater value for its shareholders.

GROWTH  Reliance Industries Limited (RIL) ‘s Broadband launch has been highly awaited. While there is a high level of speculation regarding its aggressive participation in the 2G auction, sources say that it has already set the ball rolling for its 2013 Broadband launch. It has already come to the fore by employing people, engaging in talks with vendors for networks and devices and development of applications. It may also decide on its partner ecosystem during the 1st quarter of 2013. Reliance Infotel seems to be highly resolute about its services being the finest, when it rolls it out. Reliance Infotel is currently the only pan – India 4G license holderthat intends to have its 4G services based on the LTE (Long Term Evolution) technology. The 2G auction holds a lot of significance for the telecom players as voice telephony still serves to be a fundamental feature that tethers with the masses at least until the time data services makes it big in the country. Besides, it will take time for India to get the grip of the pure play data offering and a dual model – voice cum data services, has high chances of being a successful formula. Growth in refinery capacity addition is expected to outpace growth in demand and will keep a check on operating rates. Demand in Europe and the US is expected to shrink or at best stay unchanged. European refiners are already facing the brunt of economic slowdown and high oil prices. FY 2011-12 witnessed several refinery closures in Europe and the US. RIL continued to hold top rankings in polyester and feedstock markets, constantly reaping the benefits of backward integration. Consolidated polyester capacity of RIL stood at 2.4 MMT. According to PCI, RIL held the 1st rank in polyester fibre and filament capacity, 5th rank in PX and 8th in PTA and MEG. RIL catered to 38% of the domestic market and exported to over 100 destinations.

The key drivers for growth and transformation in retail industry are:  Increasing Urbanisation: Urban India has grown by nearly five times in the last fifty years. Urbanisation indicates growing proportion of people in middle and upper income classes, providing impetus to retail growth.

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Changing demographic profile: With 65% of the Indian population under the age of 35 and a median age of 26 years, India has one of the world’s youngest populations. A Combination of young population, nuclearisation of families and increasing number of working women acts as major growth driver in retail. Rising incomes and propensity towards disposability: Rapid economic growth over the last few years has resulted in a sustained increase in per capita incomes in India, resulting in discretionary household spending, which in turn leads to retail growth. Aspirational lifestyle: Rapid globalisation, media proliferation and increasing internet penetration have led to an increase in awareness levels about world class brands and products. With rise in disposable income levels, the consumer is willing to spend more on self, giving impetus to retail. Financial Sector: The increased availability of credit cards and retail loans has boosted the organised retail industry.

A PROJECT REPORT ON

RELIANCE INDUSTRIES LTD.

Submitted to :

Submitted by: Prachi Jain MBA- 3rd sem Finance Roll no- 25

Department of Business Administration, Lucknow University