PROJECT PLANNING ANALYSIS AND MANAGEMENT

FINANCIAL FEASIBILITY REPORT

On
RELIANCE INDUSTRIES LIMITED

Submitted

To

Mr.K.A.SHREENIVASAN

Asst.professor

School Of Management

Sastra University.

Submitted by

S.K.SUDHAN

S.VEDHAGANESH

M.SARANYA

J.SATHESHKUMAR

P.SIVARANJANI
RELIANCE INDUSTRY

INTRODUCTION

Reliance Industries Limited is India’s largest private sector conglomerate company by market
value, with an annual turnover of US $45.09 billion and profit of US$3.6 billion for the fiscal
year ending in March 2010 making it one of the largest India's private sector companies, being
ranked at 264th position in the Fortune global 500(2009).

HISTORY

Reliance was founded by the Indian industrialist Dhirubhai Ambani in 1966.Under the name
Majin Commercial Corporation in partnership with Champaklal Damani, his second cousin,
Majin was to import polyester yarn and export spices to Yemen. The first office of the Reliance
Commercial Corporation was set up at the Narsinatha Street. Dhirubhai was a known risk taker
and he believed in building inventories, anticipating a price rise, and making profits.Sensing a
good opportunity in the textile business, Dhirubhai started his first textile mill inAhemdabad in
the year 1966. Textiles were manufactured using polyester fibre yarn. [4] Dhirubhai started the
brand "Vimal

STOCK

Reliance has more than 3 million shareholders, making it one of the world's most widely held
stocks. Reliance Industries Ltd, subsequent to its split in January 2006 has continued to grow.
Reliance companies have been among the best performing in the Indian stock market.
PRODUCTS

Reliance Industries Limited has a wide range of products from petroleum products,
petrochemicals, to garments Reliance Retail has entered into the fresh foods market as Reliance
Fresh and launched a non-veg chain called Delight Reliance Retail and NOVA Chemicals have
signed a letter of intent to make energy-efficient structures.

The primary business of the company is petroleum refining and petrochemicals. It operates a 33
million tonne refinery at Jamnagar in the Indian state of Gujarat. The company is also involved
in oil & gas exploration and production.

BUSINESSES

Major subsidiaries and associates

 Reliance Life Sciences is a research-driven, biotechnology-led, life sciences organization

that participates in medical, plant and industrial biotechnology opportunities.
 Reliance Industrial Infrastructure Limited (RIIL) is engaged in the business of setting up /
operating Industrial Infrastructure that also involves leasing and providing services
connected with computer software and data processing
 Reliance Institute of Life Sciences (Rils), established by Dhirubhai Ambani Foundation,
is an institution of higher education in various fields of life sciences and related
technologies.
 Reliance Logistics (P) Limited is a single window solutions provider for transportation,
distribution, warehousing, logistics, and supply chain needs, supported by in house state
of art telematics and telemetry solutions.
 Reliance Clinical Research Services (RCRS), a contract research organization (CRO)
and wholly owned subsidiary of Reliance Life Sciences, has been set up to provide
clinical research services to pharmaceutical, biotechnology and medical device
companies
  Reliance Solar, The solar energy initiative of Reliance aims to bring solar energy systems
and solutions primarily to remote and rural areas and bring about a transformation in the
quality of life
 Relicord is the first and one of the most dependable stem-cell banking services of South
East Asia offered by Mukesh Ambani controlled by Reliance Industries.\
 Infotel Broadband is a broadband service provider, it is wholly owned by RIL for 4,800
crore (US$1.04 billion)

PRESENT STATUS

Top-line below estimates on lower-than-expected Refining volumes: RIL's top-line was

below estimates on account of lower-than-expected refining volumes as we had not considered
the refinery shut down for 22 days during the quarter.. The petrochemical segment registered
8.2% yoy increase in top-line driven by higher polymer and polyester prices. Crude oil processed
during the quarter was lower by 3% yoy to 16.1mn tonnes (16.6mn tonnes). KG-D6 gas
production fell qoq with average production at 54.5mmscmd (58.5mmscmd).

higher
petroleum and refinery margin lead to the increase in sales. , margins stood lower on qoq basis
by 38bp due to lower capacity utilisation of the refinery .
Depreciation, other income increase: Depreciation during the quarter increased 20.2% yoy
primarily on account of higher depletion charge in the oil & gas segment and increased
depreciation in the refining business. Interest expenditure stood flat both on qoq and yoy basis.
Other income increased by 45.9% yoy to Rs.741cr (Rs.508cr) and 10.3% qoq on account of
higher cash balance.

PAT grew 28.1%: PAT grew 28.1% yoy to Rs.5,136cr (Rs.4,008cr), which was below our
expectation of Rs.5,535cr. The deviation was mainly on account of the lowerthan- expected
refining volumes and margins.
SALES AND REVENUE

MUMBAI, Jan. 31

A RISE in petrochemical revenues has led to a 24 per cent jump in Reliance Industries Ltd's net
profit for the third quarter ended December 31, 2002 at Rs 1,083 crore from Rs 873 crore. The
company had an extraordinary income of Rs 358 crore in the corresponding period in the
previous year from sales of shares of L&T.

Gross turnover in the quarter rose 13.54 per cent to Rs 15,600 crore from Rs 13,739 crore.

Net turnover (less inter-divisional transfers and excise on sales) during the quarter rose 6.9 per
cent to Rs 10,973 crore (Rs 10,266 crore).

According to Mr Anil Ambani, Vice-Chairman and Managing Director, RIL, the company's
future growth will be "driven by investments in oil and gas exploration and production, retail
marketing of petroleum products, power and infocom.

Total expenditure for the quarter was at Rs 8,831 crore, up from Rs 8.479 crore last year. Interest
payments were lower at Rs 401 crore (Rs 464 crore) while depreciation was at Rs 657 crore (Rs
712 crore). Tax provisions for the quarter were at Rs 213 crore (Rs 239 crore).

MARKET

Reliance Retail is the retail business wing of the Reliance business. Many brands like Reliance
Fresh, Reliance Footprint, Reliance Time Out, Reliance Digital, Reliance Wellness, Reliance
Trendz, Reliance Autozone, Reliance Super, Reliance Mart, Reliance iStore, Reliance Home
Kitchens, and Reliance Jewel come under the Reliance Retail brand
PRODUCTION CAPACITY

Reliance Steel & Aluminum (RS) said its third-quarter profit surged 17% on slightly improved
demand and prices, though shares still tumbled on missed expectations and a bleak outlook.

The Los Angeles-based company posted net income of $48.7 million, or 65 cents a share,
compared with $41.8 million, or 57 cents, in the same quarter last year, widely missing the
Street’s view of 73 cents.

Revenue for the nation’s largest metal servicer was $1.65 billion, up 33% from $1.24 billion a
year ago, far below average analyst estimates polled by Thomson Reuters of $1.56 billion.

The higher year-over-year earnings were driven by 11% growth in tons sold and 20%
improvement in average prices per ton sold.

ENERGY CONSERVATION

Energy conservation is one of our key focus areas. A number of best practices, studies and
improvement projects have been implemented in past six years that have made our Jamnagar
refinery a “Pacesetting Refinery” in the world. We regularly benchmark our energy consumption
levels with global standards, and consistently work towards improving efficiencies further.

The energy consumption of all our manufacturing units and utility blocks are monitored
constantly and corrective steps are immediately taken to utilise the energy in the most optimal
manner. All units utilise energy resources in a responsible and efficient manner with a focus on
productivity improvement measures that result in the reduction of energy consumption.

The extensive energy saving efforts at Jamnagar brought down Energy Indices resulting in fuel
savings during the year 2006-07.

For a greater emphasis on energy conservation, our Energy Policy has been revised during the
year. A detailed review is made on a continuous basis by the Management with a focus on
energy conservation and extensive monitoring is also being done by the Energy Cell with the
help of automation making ours a model refinery in the world.

The operation of our Captive Power Plants at Vadodara, Nagothane and Gandhar are
benchmarked on a monthly basis with a view to making continuous improvements in the
efficiency.
POLLUTION CONTROL MEASURE

Environment

In its pursuit of excellence towards sustainable development and to go beyond compliance, RIL
continued to integrate its ISO:14001 EMS, ISO:9000 QMS and ISO:18001 OSHA management
systems. All environmental initiatives were addressed to the Company's long term objective of
becoming water positive, carbon neutral and conduct the maximum possible recycling and reuse
of wastes. A management framework with defined structures, roles and responsibilities, group
standards, audits and training has further been strengthened.

Continuing the journey towards world class environmental performance through systems and
robust processes, in FY 2009-10, nine new RIL group standards, covering various environmental
aspects were developed and issued. This was further supported by the development and release
of second party audit protocols for the standards. RIL strongly believes that these actions will be
the change agent for reducing the Company's environmental risks.

Environment impact assessment and risk analysis have been performed for all new and major
expansion projects. In this context, this year the Company has also developed and issued a RIL
group standard and second party audit protocol on 'Environmental requirements for new projects'
with an objective to incorporate necessary measures to mitigate adverse environmental impact at
the planning stage of project implementation.

Rainwater harvesting

RIL continues to give top priority to maintenance and performance improvements of all pollution
abatement facilities like effluent treatment plants, inside battery limits area, air emission control
and waste disposal facilities at its manufacturing divisions. Rainwater harvesting and treated
effluent recycling is being carried out at most manufacturing divisions to reduce water
dependence on other natural sources. To further improve the environmental foot print a
significant step, RIL has changed over to use of cleaner fuel at Patalganga, Jamnagar
manufacturing divisions. This has resulted in considerable reduction of suspended particulate
matter and sulphur dioxide emissions in the air.

Environmental awareness

Training, awareness and learning have been always at the forefront of RIL's journey to become
world class in environmental performance. To meet this objective, RIL focused on internal and
advanced training programmes, inter-site meets, virtual classes, etc. involving subject experts;
participation at national and international conferences, workshops and courses as well as
networking/collaboration with universities, research institutes, regulatory bodies, industrial and
professional associations, etc. All manufacturing divisions celebrated the World Environment
Day, Earth Day, Water Day, Ozone Day, etc and created environmental awareness among
employees and surrounding communities and schools.
In these improvement efforts, audits play an important role. Trained and qualified internal
auditors perform internal environmental audits of the environment management system at regular
intervals. RIL also offered its sites to third party environment audits such as audit by Gujarat
Pollution Control Board (GPCB) recognized auditors in the state of Gujarat; ISO-14001:2004
audits by accreditation agencies, National Safety Council environment audit at Hazira
Manufacturing Division and Five Star environment audit by British Safety Council, UK at the
Jamnagar, Dahej and Nagpur manufacturing divisions.

Green Revolution

RIL has inculcated a habit to be in harmony with nature and in this context, afforestation,
maintenance of green belts, gardens, vermi-compost of waste and its use as manure, reuse of
treated water in horticulture activities are routine.

RIL continues to give top priority to all environmental regulatory compliances at KG-D6 block
and tried for optimum water consumption and reuse of treated waste water.

RIL is committed to creating greenery in and around the KG-D6 project site by developing a
green belt and promoting lush green surroundings at the OT, Gadimoga to be in harmony with
nature.

The green belt is being carried out at the OT site, Infrastructure area at Gadimoga terminal, haul
road and all yards as well as the Vakalapudi shore base terminal site with a cumulative plantation
of over 1,00,000 plants.