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Group Members: 07. Deep Desai 08. Rakesh Dhimmar 58. Viral Vaghani submitted to: Prof: Hiren patel.

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Presentation on theme: "Group Members: 07. Deep Desai 08. Rakesh Dhimmar 58. Viral Vaghani submitted to: Prof: Hiren patel."— Presentation transcript:

1 Group Members: 07. Deep Desai 08. Rakesh Dhimmar 58. Viral Vaghani submitted to: Prof: Hiren patel

2  Mr. Dhiru bahi Ambani founded the Reliance Industry Ltd in 1966. it was started mainly for oil & Gas corporation.  Headquarters : Navi Mumbai, India  Key people : Mukesh Ambani, Chairman & Managing Director  Position in fortune top 500 company.

3  Only indian company who added into Forbes’s 100 most respected company.  In India, from every 4 share holder there is 1 reliance share holder.  Total share holder in India is more than 3 Million.  They have the largest refinery at Jamnagar in India.

4 Dhirubhai H. Ambani Founder Chairman Reliance Group December 28, 1932 - July 6, 2002

5  Constitution of a Board of Directors of appropriate composition, size, varied expertise and commitment to discharge its responsibilities and duties.  Ensuring timely flow of information to the Board and its Committees to enable them to discharge their functions effectively.  Independent verification and safeguarding integrity of the Company’s financial reporting.  A sound system of risk management and internal control.  Timely and balanced disclosure of all material information concerning the Company to all stakeholders.  Transparency and accountability.  Compliance with all the applicable rules and regulations.  Fair and equitable treatment of all its stakeholders including employees, customers, shareholders and investors.

6 ParticularsRs.[ IN CRORE] TURN OVER1,39,269 PBDIT24,201 CASH PROFIT25,205 NET PROFIT19,458 TOTAL ASSETS1,49,792

7 Textile productPolyester product Sutings PSF Surtings POY P.CHIPS Pillow PFY Furnishing LAB FabricsPTAX

8 Plastic productOil & Gas product PVCCrude oil PIPESNatural Gas EthyleneE & P

9 Refining productInvestment in product LPGPower GasolineRetail Naphtha ATF Infrastructure KeroseneLogistics PetrolFinance

10  Revenue equivalent to 3% of Indian GDP.  13.4 % of India's total export.  4.9% of the Govt. of India’s tax revenue.  6.6 % of total market capitalization in India.  Weightage of 16.5% in BSE sensex.  Weightage of 12.5 % in Nifty index.

11  Indian Petrochemical Corporation Ltd  Reliance Biopharmaceuticals  Reliance Retail  Reliance Industrial Infrastructure Limited  Reliance's Oil & Gas find

12  Vision "Growth has no limit at Reliance. Our dreams have to be bigger. Our ambition higher. Our commitment deeper. And our efforts greater. This is my dream for Reliance and for India."

13 1. Changing according to Economy It all started when opportunity in the textile industry was sensed because higher disposable incomes were leading to Indians buying better, more expensive clothes. Clearances to manufacture cloth from polyester fiber were received and first textile mill in Naroda was opened. ANALYSIS: Economic condition of the country and buying power of the customers were quickly identified and Reliance forayed into business with high margins.

14 2. Expansion through Integration In 1982 Ambani began the process of backward integration, setting up a plant to manufacture polyester filament yarn. He subsequently expanded into chemicals, gas, petrochemicals, and plastics. Backward integration is a part of vertical integration which is used when company starts making new products that serve its own needs. This was a brilliant strategy which provided them with a better control over their value chain by creating access to and control of supply and demand. This complete vertical integration led to reduction in prices at each stage and also better control. Because of this they were able to meet the competition in a better manner. Now the products manufactured by them are not only used by them but also by their competitors.

15 3. Expansion through Diversification  Reliance’s diversification occurred in the 1990s when the company turned aggressively towards petrochemicals and telecommunications. Diversification strategy is used mainly to reduce risk. The diversification strategy that Reliance adopted was Conglomerate in nature as it diversified into those businesses which were totally unrelated to its existing businesses for example telecom and power. They adopt growth policy in different segment which is given below.

16  Growth through Energy Security for India Over the years the E&P industry has registered significant growth, primarily due to spiraling crude oil and gas prices. With growing competition and ever growing demand for energy, especially from developing countries, the focus is on energy security. The International Energy Agency forecasts the global demand for oil to grow by 1.5% to 87.2 million BPD in 2008. IN 2007 saw an increase in global oil demand to 86.0 million BPD, resulting in an increase of 1.3% over 2006.

17  Reliance’s E&P portfolio Reliance with its subsidiaries is India’s largest exploration acreage holder in the private sector with a portfolio comprising the following:  30% interest in Panna-Mukta and Tapti (PMT) fields  33 exploration blocks awarded under the NELP and Pre-NELP licensing rounds  5 coal bed methane (CBM) blocks  Exploration interests in Yemen, Oman, East Timor, Kurdistan (Iraq), Colombia and Australia

18  Growth through Consumer Products Reliance’s Manufacturing Division at Naroda, Ahmadabad is one of the largest and most modern textile complexes in the world. The Company’s flagship brand VIMAL is one of the most trusted brands of premium textiles in the country. Main growth drivers for VIMAL are retail presence across India, innovation and focus on premium products and men’s formal wear.

19  Growth through Value Creation With a vision to generate inclusive growth and prosperity for farmers, vendor partners, small shopkeepers and consumers, Reliance Retail Limited (RRL), a subsidiary of RIL, was set up to lead Reliance Group’s foray into organized retail. RRL has embarked upon an implementation plan to build state-of- the-art retail infrastructure in India, which includes a multi-format store strategy of opening neighbour hood convenience stores, hypermarkets, and specialty and wholesale stores across India.

20 4. Generation of finances in earlier days for expansion purposes It was judged that further expansion, especially into related sectors, would depend on access to a cheap source of capital. Rather than turning to the banking system, Ambani decided to tap Bombay stock exchange, pioneering an equity cult that was to transform the corporate financing system in India. Reliance went public in 1977 and its initial public offering saw 58,000 investors buying shares. Currently the numbers of Reliance shareholders are more than three million.

21  5. Six Sigma With a mission to achieve Zero Defect work culture, Reliance launched the Six Sigma initiatives In February 2004. Six Sigma was deployed across all aspects of businesses, manufacturing and service functions to help us improve processes, boost Productivity, reduce inventory and improve quality. A team of 25 full-time Black Belts is spearheading cross-functional high impact projects throughout the company. Benefits from ongoing projects have been assessed at Rs 140 crore. Three of their Six Sigma projects were rated as the top three projects at the 50th year Celebrations of the Indian Statistical Institute, Bangalore in March 2005.

22  Impossible is an inspiring word  "Hands on thinking, hands off execution  First time it is learning. Second time it is a mistake  Sense of urgency  Think. Anticipate. Be prepared  Dreams and Vision are the most potent fuels in the world  Measuring success differently  Asking the right questions

23 StrengthOpportunity WeaknessThreat SWOT

24 Dominant Foothold in the MarketSubstantial Exports Strong Financial Growth Experience work forceGood market reputation

25 Poor Corporate Governance Lack of Midstream Operations social factor

26 Growing Demand for Energy in India. Natural Gas Field Discovery. Retail Boom in India

27 Highly Competitive Domestic Market. Government Regulations

28 Five force model New entryCompetitorBuyerSupplierSubstitute

29  Mumbai, April 6, 2009: The shareholders and the creditors of Reliance Industries Limited(RIL) approved the Scheme of Amalgamation of Reliance Petroleum Limited (RPL) with RIL. In the Court convened Meeting of Equity Shareholders, Secured Creditors and Unsecured Creditors of RIL held on Saturday, April 4, 2009, 98.86% of the shareholders present in Person/proxies, representing 99.9998% of the total value of the equity shares held by them, Voted in favour of the Scheme of Amalgamation. Shareholders representing 0.0002% of the total value of shares voted against the Scheme. 100% of the Secured and Unsecured Creditors present in person/proxies voted in favour of the Scheme of Amalgamation.

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