1.

Strengths of Reliance Capital Limited

As one of the leading organizations in its industry, Reliance Industries has numerous strengths that
help it to thrive in the marketplace.

Free Cash Flows – The company has free cash flows that provide resources to expand into new
projects and help in expansion.

Strong Brand Portfolio – Over the years Reliance Industries has built a strong brand portfolio and the
company has a great name due to its parent group.

Strong Distribution Network – Over the years Reliance Industries has built a reliable distribution
network that can reach the majority of its potential market.

2. Weaknesses of Reliance Capital Limited

Weaknesses are internal factors of the company which is the cause of loss to the company. Let’s look
at some of the weaknesses of Reliance Capital.

High Inventory – Reliance Capital has a high inventory which can hammer the long-term growth of
the company.

Lack of Planning – Financial planning is not done properly and efficiently. The current asset ratio of
the company shows that it can plan the finance decision more efficiently.

Limited Success – If we look at the success of Reliance Capital without taking into account its parent
group, we can say it is still limited.

Business Model – The structure of the company is compatible with only the present business model
of the company.

3. Opportunities of Reliance Capital Limited

Taxation Policy – The new taxation policy can significantly impact the way of doing business and can
open new opportunities for established players such as Reliance Industries to increase its
profitability.

New Environmental Policies – The new environmental policies will bring new opportunities for the
company, it can take advantage of them.

Lower Cost of Transportation – Decreasing the cost of transportation because of lower shipping
prices can also bring down the cost of Reliance Industries Its products thus providing an opportunity
to the company.
4. Threats of Reliance Capital Limited

Intense competition – Stable profitability has increased the number of players in the industry over
the last two years which has put downward pressure on not only profitability but also on overall
sales.

Resignation of Top Management – The resignations of core people of the company is a red flag,
leading to fluctuations in decision making.