Company Profile: Reliance Industries Limited (Ril) : Objective

COMPANY PROFILE: RELIANCE INDUSTRIES LIMITED (RIL)
 Objective:
This report provides a company profile for Reliance Industries Limited. The main objective of
this report is to gather the relevant facts on Reliance Industries Limited and the industry it
operates in. (All the data gathered from secondary source.)
 Company Description:
The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector
enterprise, with businesses in the energy and materials value chain. The flagship company, Reliance
Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India.
The Company operates in three business segments: petrochemicals, refining, and oil and gas.
1) The petrochemicals segment includes production and marketing operations of petrochemical

products, including polyethylene, polypropylene, polyvinyl chloride, poly butadiene rubber,
polyester yarn, polyester fiber, Purified Terephthalic Acid (PAT), paraxylene, ethylene glycol,
linear alkyl benzene, butadiene, acrylonitrile, caustic soda and polyethylene terephthalate.
2) The refining segment includes production and marketing operations of the petroleum
products.
3) The oil and gas segment includes exploration, development and production of crude oil and
natural gas.
The other segment of the Company includes textile, retail business and special economic zone
(SEZ) development.
 Key Company Data:
Industry Conglomerate
Founded 1966 as Reliance Commercial Co-operation
Founder Late Shri Dhirubhai Ambani
Chairman & M.D. Mukesh D. Ambani
(Present)
Headquarters Mumbai, Maharashtra, India
Company Type Public
Exchanges Listed on Bombay Stock Exchange(BSE), National Stock Exchange(NSE), London
Stock Exchange(LSE)
Employees 23,365
Website www.ril.com
 Products & Brands:

The Company's major products and brands, from oil and gas to textiles are tightly integrated
and benefit from synergies across the Company.
Reliance Industries Limited has a wide range of products from petroleum products,
petrochemicals, to garments (under the brand name of Vimal), 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 Company's operations can be classified into four segments namely:
 Petroleum Refining and Marketing business

 Petrochemicals business
 Oil and Gas Exploration & Production business
 Others
The Company has the largest refining capacity at any single location.
The Company is:
 Largest producer of Polyester Fibre and Yarn

 4th largest producer of Paraxylene (PX)
 5th largest producer of Polypropylene (PP)
 7th largest producer of Purified Terephthalic Acid (PTA) and Mono Ethylene Glycol
(MEG)
 Industries Where Reliance Industries Limited Competes
 Oil & Gas Refining, Marketing & Distribution

 Chemicals
 Energy & Utilities
 Industrial Manufacturing
 Retail
 Grocery Retail
 Significant contribution to India’s Economic Growth
 14.5% of India’s total exports.

 5.6% of the Government of India’s Indirect Tax Revenues.
 5.7% of the total market capitalization in India.
 Weightage of 12.8 % in the BSE sensex.
 Weightage of 10.6% in the S&P CNX Nifty Index.
 Financial Stability
 Turnover : Rs. 2,00,400 crore ($44,632 million)

 PBDIT : Rs. 33,014 crore ($7,359 million)
 Cash Profit : Rs. 27,933 crore ($6,221 million)
 Net Profit : Rs. 16,236 crore ($3,616 million)
 Net Profit 10 years CAGR : 21%
 Total Assets : Rs. 2,51,006 crore ($55,903 million)
(Source – RIL Annual Report 2009-10)

 10 years Trend:
 Positioning of company in the BCG Matrix:
1) STARS (high growth, high market share):
 Jamnagar Refinery: The rating on Reliance Industries Ltd. reflects the company's global
scale of integrated operations with a strong competitive position in its core petrochemical
and oil refining business and intermediate financial risk profile.
 Reliance Global Management Service.
 Reliance Engineering Associates (P) Ltd.
 Reliance Retail.
2) QUESTION MARK (high growth rate, low market share):
 Reliance Petroleum: In the current market, this is something equalizing to high growth
rate and low market share.
3) CASH COWS (low growth rate, high market share):
 Reliance Oil & Gas: Gas production is expected to transform India’s energy landscape
having low growth rate and is expected to double market share the current level
of indigenous gas production.
 Reliance Biopharmaceuticals.
 Reliance Ranger Farms Ltd: Ranger Farm deal in Fruits, vegetables and consumer
products that hasn’t achieved a dominant market position, that wont generate more cash.
4) DOGS (low growth rate, low market share):
 Reliance Petrochemicals: In recession period the company’s market share came down in
a highly low growth market.
 SWOT ANALYSIS:
1) Strength:
 Leading market position.

 Operational efficiency in refining.
 Strong financial performance.
2) Weakness:
 Increasing Long Term Debt.
3) Opportunity:
 Joint venture with NOVA chemicals.

 Increasing demand for transportation fuel.
 Growing demand for petroleum product.
4) Threat:
 Intense domestic competition.

 Rising petrochemical supply in Middle-East.
 Fluctuating crude oil prices.
 Top Reliance Industries Limited Competitors:
 Bharat Petroleum Corporation Limited

 Indian Oil Corporation Limited
 Tata Group of Companies
 Corporate Ranks & Ratings:
1) RIL continues to be featured, for the fifth consecutive year, in the Fortune Global 500 list of
the “World’s Largest Corporations”; ranking for 2009 is as follows:
 Ranked 264th in terms of sales

 Ranked 117th in terms of profits
2) RIL is ranked 75th in 2009, in the FT Global 500 (up from previous year’s 80th rank).
3) RIL has been ranked as the 5th sustainable value creator globally by the Boston Consulting
Group (BCG) in their report on the Top 25 sustainable value creators that have been most
successful at attaining superior value creation over a longer period of time.

Company Profile: Reliance Industries Limited (Ril) : Objective

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Company Profile: Reliance Industries Limited (Ril) : Objective

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COMPANY PROFILE: RELIANCE INDUSTRIES LIMITED (RIL)

1) The petrochemicals segment includes production and marketing operations of petrochemical

 Products & Brands:

The Company's operations can be classified into four segments namely:

 Petroleum Refining and Marketing business

The Company is:

 Largest producer of Polyester Fibre and Yarn

 Industries Where Reliance Industries Limited Competes

 Oil & Gas Refining, Marketing & Distribution

 Significant contribution to India’s Economic Growth

 14.5% of India’s total exports.

 Turnover : Rs. 2,00,400 crore ($44,632 million)

(Source – RIL Annual Report 2009-10)

1) STARS (high growth, high market share):

2) QUESTION MARK (high growth rate, low market share):

3) CASH COWS (low growth rate, high market share):

4) DOGS (low growth rate, low market share):

 Leading market position.

 Increasing Long Term Debt.

 Joint venture with NOVA chemicals.

 Intense domestic competition.

 Top Reliance Industries Limited Competitors:

 Bharat Petroleum Corporation Limited

 Corporate Ranks & Ratings:

 Ranked 264th in terms of sales

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