Corporate Level Strategies of Reliance Industries Limited

 Driving growth, value, innovation and transformation in society

- Reliance is pursuing its strategy to grow, by leveraging its existing know-
how and asset base and investing in opportunities strategic to its existing
businesses and those of the future. Reliance initially focuses on activities
and investment in India to take advantage of the large domestic market, as
it currently holds a leadership position in it. It builds competencies that
can be rolled out on a global scale. Reliance’s business creates value for
its shareholders, employees, customers and society, and each new
opportunity it pursues must meet these criteria or it does not invest in it.
 Leadership position in existing business
- Reliance Industries Limited owns the world’s largest refinery – Jamnagar
Refinery in Jamnagar, Gujrat, India.
- Amongst world’s leading petrochemical producers.
- Largest retailer in India based on revenue and footprint.
 Taking Reliance Industries Limited to a global scale
- Provides 1.5% approximately of world’s transportation fuel.
- 2nd largest producer of polyester fibre and yarn in the world.
 Investing in new businesses
- Investment in excess of US$35 billion in existing and new businesses.
 Innovation
- 22 start-ups successfully graduated from GenNext Hub.
 Transformation
- State-of-the-art pan India digital services business being rolled out by Jio,
aimed at significantly lifting India’s global ranking on mobile broadband
subscriptions.

How it creates value

 Shareholder Value
- Reliance drives shareholder value through active portfolio management to
continuously enhance the quality of its business portfolio, consistently
deliver shareholder returns and maintain a focus on long term growth
potential.
 Employee Value
- Reliance creates value for its employees, by ensuring their prosperity as
the organization grows. Specifically, it creates employee value through
continuous learning, structured career progression opportunities and an
industry-leading employee value proposition.
 Customer Value
- Reliance drives customer value through its product innovation, application
and service levels, ability to deliver a consistently high consumer
experience and its overall reputation and brand promise in the markets it
 operates in.
- Societal Value
- Society provides Reliance with a license to operate, and with this privilege
comes a responsibility to create value. Reliance drives societal value
through job creation, both directly and indirectly, social innovation
through products and services and its respect for ecology and environment

Business Level Strategies of Reliance Industries Limited

 Refining and Marketing – Petroleum

- The Jamnagar manufacturing division is the world’s largest refining hub.
It was built in a record time at globally competitive capital costs. Its scale
flexibility, level of automation and degree of integration heralded the way
refineries of the future would be built. It has transformed India from being
a net importer of petroleum products to a net exporter, thereby ensuring
the nation's energy security.
- Reliance's technical, operational and logistic strengths act as the fulcrum
to leverage its refineries' asset utilization and optimization, the key
components of the R&M business model. These strengths, coupled with
our highly integrated plants and automated processes, augment our
R&M business's operating efficiencies. Moreover, our refineries are
strategically located on the west coast of India, offering the benefits of
low transportation costs for feedstock and proximity to high-growth
markets.
- The goal of R&M business is to deliver industry leading returns and be a
source of medium-term growth, while focusing on health, safety and
environment.

 Retail
- In a short time, it has forged strong and enduring bonds with millions of
consumers by providing them unlimited choice, outstanding value
proposition, superior quality and unmatched experience across all its retail
stores
- Since its inception in 2006, Reliance Retail has grown to cater to millions
of customers and thousands of farmers and vendors. Our nationwide
network of retail outlets delivers a world class shopping environment and
unmatched customer experience powered by our state- of- the – art
technology and seamless supply chain infrastructure.
- Reliance Retail has adopted a multi-prong strategy and operates
neighborhood stores, supermarkets, hypermarkets, wholesale cash & carry
stores, specialty stores and online stores and has democratized access to
all types of products and services across all segments for all Indian
consumers.
- Reliance Retail has achieved the distinction of being the largest retailer in
the country.
Reliance Retail’s commitment to bettering lives has been embodied in its
pursuit to make a difference on social socio-economic issues in India. The
initiative has brought large number of farmers and small producers to the
forefront of the retail revolution by partnering with them for growth.
- Deep insight into India’s economic, cultural and consumption diversity
drives Reliance Retail’s vision in the retail universe. The operating model
is based on customer centricity, while leveraging common centres of
excellence in technology, business processes and supply chain. More
importantly, it has built a strong and unwavering foundation through its
extraordinary people.
- Reliance Retail has emerged as the partner of choice for international
brands and has established exclusive partnerships with many revered
international brands such as Armani Exchange, Burberry, Canali, Pottery
Barn, Diesel, Superdry, Hamleys, Ermenegildo Zegna, Marks and
Spencer, Paul & Shark, Thomas Pink, Brooks Brothers, Steve Madden,
Grand Vision and many more.
- Reliance Retail operates over 10,000 stores pan India with ~22
million square feet of retail space and is growing rapidly.
- Within the textile business, the manufacturing division at Naroda houses
one of the largest and most modern textile complexes in the world, an
achievement recognized by The World Bank. Through Vimal, we
brought in a new era in fabrics. Vimal became not only a flagship brand
of Reliance, but also one of the most trusted in brands the country. It is
also the first major retail chain in the country.
- The most distinctive feature of the Naroda complex is its sophisticated
infrastructure, which can support the manufacturing of varied product
groups – each requiring different creative techniques. The complex is
well equipped and houses all textile manufacturing facilities. The textile
division is a vertically integrated plant consisting of manufacturing,
weaving and finishing of both synthetic and worsted yarns. Fabrics of
various types - suiting, shirting, home textiles, and automotive furnishing
– are manufactured here with world-class quality and production
standards.
- Worsted Spinning: State-of-the-art machines with the capability of
spinning 24s to 120s metric fabrics.
- Synthetic Spinning: Modern facilities to produce synthetic fabric blends
of polyester and viscose.
- Weaving: Air Jet looms from Japan and Rapiers from Switzerland cater
to the stringent quality requirements.
- Processing: Capacity to process 1.8 million meters per month.

 Petrochemicals
- Its been our constant endeavor to develop products that provide world-
class experiences to our customers across a range of applications –
packaging, agriculture, automotive, housing, and healthcare among others.
- Beside a host of industry specific solutions, our comprehensive solutions
like project identification, new product design, product and market
development raw material selection and testing has helped the
petrochemicals business grow into the world’s largest integrated producer
of polyester fibre and yarn

- Reliance continues to set global benchmarks in product quality, standards

and services. Superior technologies, strong focus on R&D, latest IT-
enabled services and end-to-end solutions across the value chain reinforce
our leadership in the industry.

 Digital Services
- Reliance envisages creation of a digital revolution in India
- Reliance’s vision for India is that broadband and digital services will no
longer be a luxury item. Rather Reliance envisions an India where these
are necessities to be consumed in abundance by consumers and small
businesses alike, as much in far flung villages as in our largest cities. The
initiatives are truly aligned with the Government of India’s ‘Digital India’
vision for our nation.
- The three-pronged focus on broadband networks, affordable smartphones
and the availability of rich content and applications has enabled Jio to
create an integrated business strategy from the very beginning, and today,
Jio is capable of offering a unique combination of telecom, high speed
data, digital commerce, media and payment services.

 Oil & Gas (Exploration and Production)

- This 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 five conventional oil and gas
blocks in Panna Mukta Tapti (PMT), Krishna Godavari, Mahanadi &
Gujarat Saurashtra and two Coal Bed Methane (CBM) blocks in Sohagpur
East and West in Madhya Pradesh.
- Oil and gas are currently being produced from our PMT, KG D6 & CBM
blocks in India and shale gas joint ventures in the US.
- Reliance and Bharat Petroleum entered into transformational partnership
with focus on delivering growth and adding value to India’s energy sector.
The partnership is a perfect blend of Bharat Petroleum’s deep-water and
 development expertise with Reliance’s project management skills. We
have also forged strategic partnerships with Chevron and Ensign Natural
Resources for development of shale gas resources in US.
- Reliance Industries Limited and its partners in conventional and Shale
Business work closely together and channelize expertise to target high
quality prospects and optimize existing and future development plans.

 Media and Entertainment

- India is a growing entertainment economy. It is at the crossroads of an
exiting phase that will shape its cultural and social framework forever.
- Reliance Entertainment has evolved out of the group’s vision of meeting
young India’s aspirations and assuming a leadership position in
communications, media and entertainment. Alongside we are gearing up
to create a significant presence in business across various sectors of
content, internet, broadcast and retail services, as well as platforms for
distribution.
- The company strives to create converged services and platforms for
masses to access innovation and cutting-edge content. Key content
initiatives include production and strategic collaboration in areas such as
gaming, movies, animation, music, broadcast, DTH and user generated
content, amongst others.

Strategic Business Units of Reliance Industries Limited

 Refining and Marketing – Petroleum

- Largest single – site refinery with robust configuration
- Consistently maintaining high refinery utilization and delivering superior
refining margins
- Among lowest cost producer globally with flexible product slate
- Engaging with local communities to provide employment and improve
living standards

 Retail
- India’s largest retail infrastructure and supply chain providing solid
foundation for growth
- Deploying omni – channel model to enhance the customer experience and
reach
- Tie up with international brands to bring the best in class products to the
Indian market
- Expanding the reach to tier 2 and tier 3 cities to touch lives of Indians
everyday
  Petrochemicals
- Presence in one of the fastest growing markets
- One of the most integrated petrochemical producers globally with industry
leading profitability
- State – of – the – art production facilities with balanced cracker portfolio
- Wide product portfolio with leadership position across product categories

 Digital Services
- World’s largest and fastest growing mobile digital services data network
- Transformative customer value propositions
- Fully digitized operations from onboarding through fulfillment
- Only ubiquitous 4G coverage in India with high speed and quality coverage

 Oil & Gas (Exploration & Production)

- Developing deep water resources in KG – D6 block
- Partnership with industry leading players in domestic blocks and US shale
- Operating one of the most complex and largest deep-water block KG – D6
- Ramping up unconventional CBM production

 Media and Entertainment

- Network 18 aims to create unparalleled reach to enable tapping the
unexplored segment of population
- No. 1 news network by reach
- Building strategic alliances with local and global bests in the media
industry
- Robust bouquet of channels across various genres – business,
entertainment, infotainment and kids

Market Segmentation

Market consists of buyers and buyers differ in one or more ways. They may differ
in terms of the wants, resources, locations, customer buying behavior and customer
buying attitudes.

Petroleum, Oil and Gas Industry:

Reliance divided its market into the following segments:

 Demographic segmentation:
- Reliance segmented the market based on age, gender, education, income,
family, size, occupation and social class.
- It introduced their products for upper class, upper middle class and middle
 class. In other words, it produces products for everyone who owns an
automobile.

 Geographic segmentation:
- It divided the market based on region, density and cities.
- Reliance provides facilities of petroleum and oil and gas to urban as well as
rural areas.

- Segmentation basically depends on

 Population of that area

 Living standards of people

Retail:

 Reliance segmented its retail industry its terms of geographic,

demographic and lifestyle related behavior.
 It makes use of gender related segments where it offers wide variety of
apparel in its apparel store reliance trends for men, women and children.
Other retail stores such as Reliance fresh, segment audience based on their
ability to purchase products. Reliance fresh offers wide variety of
groceries, fruits and vegetables in its stores and offer discounts on
products and offer price bundling services by giving them discount on
combo packages rather than buying individual products which would cost
them high.
 Reliance digital concentrates on tech savvy and teenagers who are tech
friendly and can influence the middle-aged customers to buy the products.
 Reliance trends segments customers based on their geographic locations in
which climate plays a major indicator for segmentation. In the winter
season the store would provide a sale for woolen clothes and jackets.

Media and Entertainment:

 Reliance has segmented the market based on the demographic

characteristics such as age and gender. The content of the shows which are
viewed in Jio TV, Jio cinemas and network 18 and the songs played in Jio
Saavn are all segmented based on the shows which are viewed by kids,
teenagers and middle-aged people. Also, the content and the songs are
segmented based on their gender as well.
 The media and entertainment of Reliance is also segmented based on the
location of people of India. The people of North India will view much of
Hindi shows and South Indians view shows from different languages like
Tamil, Kannada, Malayalam and Telugu.
 Also, the content will be segmented based on the people’s education.
 Educated people will be interested to watch English shows and series but
the people who are mostly living in rural areas will not be willing to view
the English shows or they will want the subtitles to be viewed so that they
can understand the accent in those shows.

Digital Services:

 The digital services of Reliance are segmented based on the customer’s

income. The Jio 4G plans, for example are segmented on the purchasing
power of the customers. Plans are customized for low income individuals
as well as upper middle-class people.
 Jio chat, Jio security and Jio net all these applications are segmented based
on the education levels of people and based on their geographic locations.
All the applications are customizable in the respective languages of the
customers.
 Educated people can access applications in English but the people living
in urban areas prefer access in the languages through which they
communicate in their daily lives.

Distribution Channels:

Petroleum, Oil and Gas Industry:

Three types of distribution channels are used by Reliance to sell and deliver
products to their customers.

 Retailers: These are the most obvious type of sale to the public which
covers sales of gasoline, diesel, and petrol directly to end customers.
 End users: These customers comprise of airlines, utilities and chemical
plants. They generally take delivery from reliance refineries in large
quantities (even hundreds of thousands of barrels) into their storage tanks.
 Resellers: Sometimes called “jobbers” or “distributors” they are
considered middlemen. In Reliance, they conduct the business of
purchasing refined petroleum products and reselling them- without
substantially changing their form. Reliance resellers handle the products
of one refiner only.

Retail:

 Reliance retail has created an ecosystem consisting of farmers,

manufacturers, suppliers, supply chain, and logistics partners, distribution
partners with a scalable and integrated network of infrastructure.
 It has adopted a multi retail strategy and has integrated offline-online
models to truly differentiate the customer experience.
 For the food and grocery category, reliance retail directly partners with a
 large number of farmers and small vendors in a farm-to-fork model.
 Reliance has an taken an initiative to take Reliance Smart Omni channel to
build an online sales channel for grocery needs of consumers.
 Reliance digital offers a large assortment of consumer durables through
catalogues and web sales and has established Jio store and Jio points to
cater to the customers.
 For fashion and lifestyle category, Reliance retail has adopted a multi-
model approach in reaching out to its customers through various retail
concepts that cater to customer segments from value to premium and
luxury.
 Reliance trends is vertically integrated with complete control over fashion
value chain from designing to fabric sourcing, manufacturing, logistics
and distribution.
Digital Services:

 Jio along with its business partners, is focused on making all the
components of the digital value chain available to customers.
 To deliver such end to end solutions, Jio continues to partner and
collaborate with technology developers, service providers, infrastructure
providers, application partners and device manufacturers.
 To enhance capabilities in content, technology platforms and applications
space while leveraging group synergies, a strategic transaction was
announced for combination of Jio music with Saavn, leading global music
OTT platform, to form India’s largest platform for music, media and
artists.
 To bolster content during the year, a strategic partnership with Eros Media
was agreed upon to jointly set up a Rs. 1000 crore fund for production and
acquisition of Indian films and digital originals across all languages.

Media and Entertainment:

 Reliance media portfolio includes Network 18 group and investment in

partnerships to strengthen content for Jio platforms.
 Network 18’s widespread portfolio of media and digital commerce
properties are geared towards touching the daily lives of Indians across
geographies, genres and mediums.