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    Ambani Ambani Document Transcript

    • A REPORT ONLIFE AND ACHEIVEMENTS OF DHIRUBHAI AMBANI
    • Dhirubhai AmbaniWhen you hear the term "Rags to Riches", the name that springs tomind is "Reliance", and the man who created it,Dhirubhai Ambani.From near nothing to one of the largest companies in the world in a spanof 50 years. This is the story of a hard-working man who refused toallow life to control him, and always preferred to control life.  Dhirubhai Ambani was born on 28 Dec. 1932 as the third son to a school teacher in Gujarat with moderate means. Ambani moved to Aden, Yemen when he was 16 for a livelihood. He started his career as a dispatch clerk before becoming the distributor for Shell Products. He was later promoted as a manager in an oil filling station at the port of Aden.  D.A. returned to India after 10 years and found Reliance Commercial Company with a capital of Rs.15000/= in Masjid Bunder in Mumbai in a 350 Sq.ft. space with one telephone, one table, three chairs and with a business mission of importing polyester yarn and exporting spices.  Within a few years, he set up his own factory manufacturing textiles in Ahmadabad. He gained prominence steadily in the textile markets, more so because of his fair dealings and excellent product quality. He began to be called "Dhirubhai" affectionately by all. 1
    •  His personal life progressed, too. Dhirubhai married Kokilaben, and they had four children Mukesh and Anil, and daughters Dipti and Nina. The family of 6 lived in a one-room apartment in the Jai Hind Society in Mumbai, a tenement building that housed 500 families. Those were the difficult days, and often, Anil and Mukesh used to share each others clothes. In 1966, Dhirubhai set up a textile mill in Naroda, Gujarat to manufacture fabrics for suits and saris. This was a big move for him, which paid off. Within one year, the net profit from this venture was Rs.13 lakhs. Dhirubhai knew he was on the right track and wanted to expand. He plowed money back into the mill to buy more machines, and the business grew by leaps end bounds. At that time, Dhirubhai was marketing fabric under the "Vimal” brand, named after the son of his older brother, Ramniklal Ambani. In 1968, the Ambani family moved out of their one-room home in the Jai Hind Society building to a more spacious apartment in a better locality. Dhirubhai started driving a Cadillac and later a Mercedes-Benz. In 1982, Dhirubhai moved from making polyester fabric at his mills to manufacturing the polyester filament yarn that goes into the fabric. 2
    •  In 1985, Reliance had over 1.2 million stock and bond holders. Dhirubhai held the companys annual general meeting at a Mumbai football stadium. This was lauded as a "never before" event. About 12,000 shareholders attended this meeting with awe, each of them proud to be part of the Reliance realm. In this meeting, Dhirubhai announced that he was dropping the word "Textile" from the companys name, reflective of the great diversification that was taking place in the group. The company came to be known as "Reliance IndustriesLimited". In February 1986, a stroke left Dhirubhai‟s right side partially paralyzed, but this did not diminish his involvement in Reliance. By then both his sons Mukesh and Anil were totally involved in the companys affairs. On June 24, 2002, Dhirubhai suffered a second stroke and slipped into a coma. He died 12 days later in a Mumbai hospital. He was mourned all over the world by millions of people. Dhirubhais legacy and vision lives on in every inch of the mammoth business empire that he built. 3
    • AcheivementsJune, 1998 : Leading business magazine, Business Barons placedDhirubhai Ambani in its list of „India‟s 25 Most Influential Business andFinancial Leaders‟.June, 1998 : Chosen as ‘Star of Asia’ by Business Week, USA.June, 1998 : Awarded the Dean‟s Medal by the Wharton School,University of Pennsylvania for setting an outstanding example ofleadership.October, 1998 : Dhirubhai Ambani is the only Indian industrialist tofeature in the „Business Hall of Fame‟ in Asiaweek.July, 1999 : Declared as the „Most Admired Indian Business Leader‟ byThe Times of IndiaAugust, 1999 : Placed amongst „The Power 50 - India‟s 50 mostpowerful decision-makers in Politics, Business & Finance„, BusinessBarons.December,1999 :Voted as „Indian Businessman of the Century‟ inBusiness Barons Global Multimedia Poll. 4
    • December, 1999 : Chosen by the Indian Merchants Chamber as „AnOutstanding Visionary of the 20th Century‟ in recognition of his uniqueachievements and contribution in the development of industry andcapital markets in India.January, 2000 : Voted as „Creator of Wealth of the Century’ in TheTimes of India poll.January, 2000 : Voted the most admired Indian of the millennium in thefield of Business & Economics in „Legends - A Celebration ofExcellence‟ poll audited by Ernest & Young for Zee Network.January, 2000 : Chosen as one of the three „makers of equity‟ by IndiaToday in its special millennium issue „100 People Who Shaped India inthe 20th Century‟.March, 2000 : Indian Entrepreneur of the 20th Century‟ award byFICCI, for his meticulous scripting of one of the most remarkable storiesof business endeavor of the 20th Century.November, 2000 : „Man of the Century‟ award by ChemtechFoundation and Chemical Engineering World for his contribution to thegrowth and development of the Indian chemical industry.August, 2001 : The Economic Times Award for Corporate Excellenceand Lifetime Achievement.February, 2002 : Conferred the Lifetime Achievement Award by IndiaHRD Congress. 5
    • Names of major Companies: Reliance Industries Limited, ReliancePetroleum Limited. These are Indias top two private sector companies.Description of Groups Business: Reliance Group is Indias largestbusiness house with total revenues of Rs 60,000 crores (US$ 12.5billion), cash flow of over Rs 7,000 crores (US$ 1.4 billion), net profit ofover Rs 4,500 crores (US$ 950 million) and exports of Rs 9,370 crores(US$ 2 billion). The Group has total assets of Rs 55,000 crores (US$11.5 billion). The groups activities span petrochemicals, syntheticfibres, fibre intermediates, textiles, oil & gas, financial services, refining& marketing, power, insurance, telecom and infocom initiatives.Reliance emerged as Indias Most Admired Business House in a TaylorNelson Sofres - Mode (TNS-Mode) survey for 2001 conducted forBusiness Barons magazine, June 2001.Marital Status: Married to Kokilaben, has four children: two sons,Mukesh, who is Vice-Chairman & Managing Director and Anil,Managing Director of Reliance Industries and two daughters, DiptiSalgaocar who lives in Goa and Nina Kothari, who resides in Chennai.Prime Minister Atal Bihari Vajpayee, while describing Ambani as “aniconic proof of what an ordinary Indian fired by the spirit of enterpriseand driven by determination can achieve in his own lifetime,” deputedMinister of State in his office, Vijay Goel to represent him at the funeraltoday.The Prime Minister gave Ambani credit for envisioning the creation ofworld-class capacities in core areas of the nations infrastructure in theprivate sector and translating that vision into reality in record time. 6
    • What is Reliance ?  The Reliance Group is India‟s largest business house with total revenues being more than $22.6 billion. This is equal to 3.5% of India‟s GDP. Reliance contributes to 10% of India‟s total indirect tax and 6% of her total exports. Reliance network of exports spread out to more than one hundred countries across the globe.Reliance Industries PublicType BSE: 500325 NSE: RELIANCEIndustry Conglomerate 1966 As RelianceFounded Commercial CorporationFounder(s) Dhirubhai Ambani 7
    • Headquarters Mumbai, Maharashtra, IndiaArea served Worldwide Mukesh AmbaniKey people (Chairman & MD) Oil and Gas Petroleum Petrochemicals PolyesterProducts Textiles Retail Insurance SEZ TelecomRevenue US$ 58.55 billion (2011)Net income US$ 4.54 billion (2011)Total assets US$ 63.84 billion (2011)Total equity US$ 34.12 billion (2011)Employees 23,365 (2010) Reliance Life Sciences Reliance Industrial Infrastructure Limited Reliance LogisticsSubsidiaries Reliance Clinical Research Services Reliance Solar 8
    • Relicord Infotel BroadbandWebsite RIL.comReliance Industries Limited (RIL)  (BSE: 500325, NSE: RELIANCE, LSE: RIGD) is the largest private sector conglomerate company headquartered at Mumbai, India. The company is largest by annual turnover of $58.5 billion and market capitalization of $76.9 billion for the fiscal year ending in March 2011 making it one of the largest Indias private sector companies, being ranked at 264th position in the Fortune Global 500 (2009) and at the 126th position in the Forbes Global 2000 list (2010).  Reliance was founded by the Indian industrialist Dhirubhai Ambani in 1966. Ambani has been a pioneer in introducing financial instruments like fully convertible debentures to the Indian stock markets. Ambani was one of the first entrepreneurs to draw retail investors to the stock markets. Critics allege that the rise of Reliance Industries to the top slot in terms of market capitalization is largely due to Dhirubhais ability to manipulate the levers of a controlled economy to his advantage.  Though the companys petrochemicals, refining, and oil and gas-related operations form the core of its business, however, other segment of the company includes textile, retail business, telecommunications and special economic zone (SEZ) development. After severe differences between the founders two sons, Mukesh Ambani and Anil Ambani, the group was divided between them in 2006. In September 2008, Reliance Industries was the only Indian firm featured in the Forbess list of "worlds 100 most respected companies". In 2010, it stood at 13th position in the Platts Top 250 Global Energy Company Rankings. 9
    • Board Of DirectorsDesignation Member NameChairman & Managing Director Mukesh D AmbaniExecutive Director Nikhil Meswani Hital Meswani PMS PrasadDirector Ramniklal H Ambani Mansingh L Bhakta Yogender P Trivedi Dharam Vir Kapur Mahesh P Modi Ashok Misra Dipak C Jain Ragunath A MashelkarWTD & Executive Director Pawan Kumar KapilProductsReliance Industries Limited has a wide range of products from petroleum products,petrochemicals, to garments (under the brand name of Vimal), Reliance Retail hasentered into the fresh foods market as Reliance Fresh and launched a non-vegchain called Delight Reliance Retail and NOVA Chemicals have signed a letter ofintent to make energy-efficient structures. 10
    • 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. Specifically, these relate to Biopharmaceuticals, Pharmaceuticals, Clinical Research Services, Regenerative Medicine, Molecular Medicine, Novel Therapeutics, Biofuels, Plant Biotechnology and Industrial Biotechnology. 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$1.07 billion).Reliance Industrial Infrastructure LimitedReliance Industrial Infrastructure Limited (RIIL) was incorporated in September1988 as „Chembur Patalganga Pipelines Limited‟, with the main object to build andoperate cross-country pipelines for transporting petroleum products. Thecompanys name was subsequently changed to CPPL Limited in September 1992,and thereafter to its present name „Reliance Industrial Infrastructure Limited‟ inMarch 1994. It has been promoted by Mr. Satyapal Jain and his associates. Thecompany set up a 200-millimetre diameter twin pipeline system that connects theBharat Petroleum refinery at Mahul, Maharashtra to Reliance‟s petrochemicalcomplex at Patalaganga, Maharashtra. 11
    • The pipeline carries petroleum products including Naptha and Kerosene. It hascommissioned facilities like Supervisory Control and Data Acquisition system andthe Cathodic Protection system, a Jackwell at River Tapi and a Raw Water PipelineSystem at Hazira. The infrastructure company constructed a 70,000 kilolitrepetrochemical product storage and distribution terminal at the Jawaharlal NehruPort Trust (JNPT) Area in Maharashtra. RIIL is mainly engaged in the business ofsetting up and operating Industrial Infrastructure. The company is also engaged inrelated activities involving leasing and providing services connected with computersoftware and data processing.Reliance retailReliance Retail is the retail business wing of the Reliance business. Many brandslike Reliance Fresh, Reliance Footprint, Reliance Time Out, Reliance Digital,Reliance Wellness, Reliance Trendz, Reliance Autozone, Reliance Super, RelianceMart, Reliance iStore, Reliance Home Kitchens, and Reliance Jewel come underthe Reliance Retail brandMergers,Joint Ventures & Take-Overs2011BP DEALIn February 2011, Reliance Industries announced the formation of a strategicpartnership with British energy giant, BP Plc, worth US $7.2 billion. Thepartnership will see BP taking a 30 per cent stake in 23 oil and gas productionsharing contracts operated by RIL in India, including the producing KG-D6 block,and formation of a 50:50 joint venture between the two companies for the sourcingand marketing of gas in India. The joint venture will also endeavor to acceleratethe creation of infrastructure for receiving, transporting and marketing of naturalgas in India. It will combine Reliance‟s project management and operationsexpertise with BP‟s world-class deepwater exploration and developmentcapabilities. As a part of this deal, BP will pay Reliance Industries Ltd. anaggregate consideration of US$7.2 billion, plus an additional sum of approximately$1.8billion in future performance-related payments. 12
    • The deal was approved by Government of India in July 2011 and it sanctioneddevelopment of 21 of 23 exploration blocks. Covering approximately 270,000square kilometers of oil and gas acreage, the joint venture will be India‟s largestprivate sector holder of exploration acreage.DE SHAW DEALIn March 2011, Reliance Industries and D. E. Shaw group announced theformation of an exclusive a joint venture to build a leading financial servicesbusiness in India. The joint venture will draw upon core competencies of bothpartners; incorporating Reliance‟s operational knowledge and extensive presenceacross India with D. E. Shaw group‟s investment and technology expertise to offeran array of financial services to the Indian market. According RIL‟s officialstatement, the JV seeks to “build a leading financial services business in India.”Through this venture, Reliance Industries is looking to cater to both corporate andconsumers through a wide array of next-generation financial services products,including energy and carbon trading, private equity, mutual funds, and othersecurity-linked offerings.] The 50:50 JV has been named DE Shaw India FinancialServices Pvt. Ltd. and, at the outset, it will look to invest in institutional and assetmanagement business starting with a private equity fund.2010ATLAS ENERGY DEALIn April 2010, Reliance Industries announced its plans to invest $1.7 billion in ajoint venture with Atlas Energy Inc. to develop shale gas assets in Marcellus regionin the U.S. RIL and Atlas Energy agreed to acquire 42,344 highly prospectiveMarcellus Shale acres in Fayette, Washington, Indiana, Westmoreland, Armstrongand Clarion Counties of Pennsylvania for an average purchase price of $4,532 peracre. As a result of these transactions, the RIL-Atlas joint venture now controlsapproximately 343,000 Marcellus shale acres. This acreage is contained within thearea of mutual interest (AMI) Atlas has established with Reliance. Presently, RILstakes 40% undivided interest in the new acreage (120,000 net to Reliance) whileAtlas has 60% undivided interest in the acreage. Atlas Energy Inc. will serve as thedevelopment operator for the joint venture. 13
    • In addition to funding its own 40% of drilling obligations, Reliance agreed to fund75 percent of Atlas‟ respective portion of drilling and completion costs until the$1.36 billion drilling carry is fully utilized. Atlas and Reliance agreed upon a five-year development plan that calls for the drilling of approximately 300 wells by2014. The investment is likely to be scaled up to $3.5 billion over the decade.PIONEER NATURAL RESOURCES COMPANY DEALIn June 2010, RIL, through its subsidiary, Reliance Eagle Ford Upstream LP,entered into a joint venture with Pioneer Natural Resources Company under whichReliance acquired a 45% interest in Pioneers core Eagle Ford shale acreageposition in two separate transactions. As per the agreement, Pioneer, along withNewpek LLC (Pioneers operating partner in core Eagle Ford shale acreage)simultaneously conveyed 45% of their respective interests in Eagle Ford to RIL.Pioneer and Newpek LLC, however, continue to hold 46% and 9% stakerespectively in gas acreages.The joint venture will have an approximate net working interest of 91% in 289,000gross acres, entailing nearly 263,000 net acres. RIL agreed to an estimated amountof $1.315 billion for its implied share of 118,000 lakh net acres. This upstreamtransaction consideration includes combined upfront cash payments of $263million and deferred payments of $1.052 billion associated with a carryarrangement for 75% of Pioneers and Newpeks capital costs over an anticipatedfour years. While Pioneer will serve as the development operator for the upstreamjoint venture, Reliance is expected to serve as the development operator in certainareas.CARRIZO OIL & GAS INC DEALIn September 2010, RIL, through its subsidiary, Reliance Marcellus II, LLC,entered into a joint venture with U.S based Carrizo Oil & Gas Inc. As per theagreement, Reliance acquired a 60% interest in Marcellus shale acreage in Centraland Northeast Pennsylvania which was previously held in a 50:50 joint venturebetween Carrizo and ACP II Marcellus LLC - an affiliate of Avista CapitalPartners. 14
    • In agreement to the joint venture, Reliance acquired 100% of Avistas interest and20% of Carrizos interests in the JV. Presently, Reliance and Carrizo respectivelyown 60% and 40% interests in the newly formed joint venture between thecompanies. Reliance agreed to a total consideration of $392 million, of which $340million will comprise the initial payment and $52 million in drilling carryobligations.The joint venture will control 104,400 net acres of undeveloped acreage in coreareas of the Marcellus shale in Central and Northeast Pennsylvania. RIL‟s 60%interest will represent approximately 62,600 net acres of this acreage. The JV isexpected to support the drilling of approximately 1,000 wells over the period of 10years, with a net resource potential of about 3.4 TCFe (2.0 TCFe net to Reliance).SIBUR DEALIn December 2010, Reliance Industries and leading Russian petrochemicalscompany SIBUR announced the formation of a joint venture for production ofbutyl rubber in India, with RIL holding a majority stake in the same. As per theagreement, a joint venture facility with an initial capacity of 100,000 tonne of butylrubber will be commissioned by 2013 at RIL‟s integrated refining-cum-petrochemical site in Jamnagar, India. The JV facility will initially produce regularbutyl rubber and is expected to manufacture other types of butyl rubber specialtiesin the future. SIBUR will provide its proprietary technology for butyl rubberpolymerization and finishing, while RIL will supply monomers and provide the JVwith world-class infrastructure and utilities.This JV was inked in an effort to cater to India‟s growing automotive sector andfuel RIL‟s vision of emerging as a significant global player in the synthetic rubberbusiness. Anticipated investment involved in this project is expected to be aroundUSD 450 million.INFOTEL TAKE OVERIn June 2010, Reliance Industries entered into an agreement to acquire a substantialstake in Infotel Broadband Services Pvt. Ltd. - a successful bidder in all the 22circles of the auction for Broadband Wireless Access (BWA) Spectrum conductedby the DoT. Following the acquisition, Reliance agreed to invest about Rs. 4,800crore by way of subscription to fresh equity capital at par to be issued by InfotelBroadband. 15
    • Infotel Broadband has been included as a subsidiary of Reliance Industries Limitedand Unlisted Infotel Broadband Services agreed to pay Rs. 12,848 crore ($2.7billion) for the spectrum to the government.This deal marks RIL‟s entry into India‟s telecom sector. After announcing thisdeal, RIL, in its official stamen said, “RIL‟s initiative will usher in a wirelessbroadband revolution in both, the urban and the rural areas all across the countryby providing end-to-end data solutions for business enterprises, socialorganizations, educational and healthcare institutions and Indian consumers. Thiswill give a fillip to rural upliftment by seamlessly connecting information andmarkets to the rural population on a real-time basis and will help bridge the rural-urban divide in terms of access to knowledge and information.”2008HUALON CORP AGREEMENTIn September 2007, Reliance Industries acquired the assets of Hualon Corporation- a leading polyester to textile manufacturing company and exporter in Malaysiawith a polyester (fibre, yarn and resin) manufacturing capacity of half a milliontons per annum along with downstream textile manufacturing capabilities spreadover two locations in Malaysia, in Nilai and Malacca. This acquisition bestowsRIL with more than 7% global market share in polyester fibre and yarn.This acquisition is the second international acquisition by RIL in the polyestersector after it successfully took over Trevira in Germany in 2004. Following thisdeal, RIL Chairman Mukesh Ambani noted that the integrated assets of Hualonwill help RIL comprehend the entire textile value chain and RIL will “graduate tobecome a solution provider to the global textile industry. This acquisition reiteratesour strong commitment to the growth of polyester.”GAPCO TAKE OVERIn September 2007, Reliance Industries acquired a majority stake and themanagement control of Gulf Africa Petroleum Corporation (GAPCO), a companywith a significant presence in East Africa in the petroleum downstream sector. Theacquisition has been made through a wholly owned subsidiary of RIL, RelianceIndustries Middle East, Dmcc (RIME), a company registered in United ArabEmirates. 16
    • Following the deal, RIL noted that GAPCO was a strategic acquisition whichwould give it access to the rapidly growing economies of east Africa, wheredemand for petroleum products is on the rise. It also said that acquisition ofGAPCO is a strategic step towards achieving RIL‟s global vision in the petroleumdownstream sector by integrating the entire value chain consisting of Refining,Shipping, Trading, Terminalling and Marketing through retail and wholesalesegments. Reliance holds significant expertise in the petroleum downstream sectorin India and by leveraging on this expertise, RIL hopes to significantly contributeto the petroleum downstream sector in East Africa and play key role in theeconomic growth of the region.2007IPCL MERGERIn March 2007, The Board of Directors of Reliance Industries announced themerger of Indian Petrochemicals Corporation Limited (IPCL) - a leadingcommodity polymers firm - with RIL. RIL and IPCL are known industry leaders inthe petrochemicals sector. As part of the divestment program of the Government ofIndia, RIL acquired 26% equity in IPCL in the year 2002 and thereafter increasedits holding to 46% through an open offer. From 2002 to 2007, several initiativeswere introduced to increase capacity utilization, reduce operating costs andimprove financial management of IPCL‟s operations, with the support of RIL,creating significant improvement in IPCL‟s capital structure. The merger assuredshareholders of IPCL an opportunity to de-risk their investment by participating inthe growth opportunities at RIL. It also sought the integration of managementresources with economic interest while providing for free flow of products andintellectual capital between the two companies. The merger came into effect inSeptember 2007.2004NOCIL TAKEOVEIn Januray 2004, Reliance Industries announced its plans to take over thepetrochemical and plastic products divisions of National Organic ChemicalsIndustries Ltd (Nocil), via its associate company Sunbright Cement Agencies. 17
    • Faced with financial and labour trouble, the Arvind Mafatlal group-promoted Nocilshut down on April 16, 2002, after many failed restructuring proposals. Sunbright,a business associate of Reliance, signed a Memorandum of Understanding (MoU)with Nocil, according to which, assets of Nocils petrochemicals division, certainliabilities of the company, and businesses and undertakings of the plastic productsdivision as a going concern basis would be demerged from Nocil and be vested inwholly owned subsidiary Nocil Petrochemicals Ltd (NPL).With this acquisition, Reliance, which already holds 70 per cent of Indiaspetrochemicals business added another 65,000 tpa of ethylene, 35,000 tpa ofpropylene, 17,000 tpa of Benzene and 10,000 tpa of Butadene capacity to itsexisting petrochemicals process.2003RIL - Bongaigaon Refinery & Petrochemicals Ltd DEALIn November 2003, Reliance formed a strategic alliance with Bongaigaon Refinery& Petrochemicals Ltd. (BRPL) to restart PSF manufacturing at BRPL. Under thisalliance, RIL agreed to provide technical and manufacturing support for achievingboth full capacity utilization and quality excellence. In addition, RIL wasresponsible for raw material supply and marketing the entire output while BRPLretained control over operations and maintenance of the plant. A 50:50 profitsharing ratio was agreed upon by both parties.As a part of this deal, RIL was handed the charge of BRPL‟s PSF plant atDhaligaon in Assam, with PSF capacity of 34,200 MT per annum and productioncapacity of 45,000 MT of dimethyl terephthalate (DMT) feedstock for PSFproduction annually. The plant had been shut down because of the uneconomicalsize of the plant and logistical difficulties faced in sourcing raw materials andmarketing of finished petro products in distant markets. The alliance sought togarner additional volumes from the new tie-up and help the group strengthen itsposition.RIL DUPONT DEALIn March 2002, Reliance signed a Memorandum of Understanding (MOU) with itspartner of 20 years DuPont Polyester Technologies (DPT) to license therevolutionary resin technology known as NG-3 from DuPont. Through this deal, 18
    • Reliance looked to expand its existing RelpetTM polyester packaging resin (PET)capacity of 80,000 tonnes per year to 300,000 tonnes per year by building theworld‟s first plant based on the NG-3 process. The deal looked at establishing anew world-scale plant, to be located alongside the existing facility for RelpetTM atHazira, with a capacity of 220,000 tonnes per year. The new plant sought toemploy NG-3, the "newest generation" process from DuPont, uniquely designed toproduce high molecular weight PET resin for the fast-growing bottle market, endusers for which include packaging for brand name carbonated soft drinks andbottled drinking water.The new range of RelpetTM products from the DuPont NG3 technology contractedto deliver customers in both domestic and overseas quarter the twin benefits ofshorter moulding cycle times and lower energy consumption in the production ofbottles.2002RIL - RPL MERGERIn March 2002, the merger of Reliance Petroleum Limited with Reliance IndustriesLimited was announced after consensual agreement between boards of the twocompanies. This merger was noted as the largest ever merger in India. Followingthis merger, Reliance Industries became the largest private sector company in Indiaon all major financial parameters including sales, profits, net worth, assets, andexport. The exchange ratio recommended by both boards was 1 (one) share of RILfor every 16 (sixteen) shares of RPL. RIL agreed to issue 6.92 crore new shares,thereby increasing its equity capital to Rs 1,643 crore. It also led RIL to enclose3.7 million shareholders.As per the merger agreement, RIL‟s holding in RPL stood to be cancelled,although RIL would go on to become one of the top 10 private sector refiningcompanies of the world. Also, through this merger, RIL stood to become theworld‟s largest producer of Ultra Clean Fuels at single location. The merger wouldcatapult RIL among the worlds 50 most profitable companies; top 10 among thenon-state owned refining companies; top 15 of independent upstream companiesand the fifth-largest producer of poly-propylene.The merger was agreed upon to unlock significant operational and financialsynergies that exist between RIL and RPL. 19
    • Environmental recordReliance Industry is the worlds largest polyester producer and as a result one of thelargest producers of polyester waste in the world. In order to deal with this largeamount of waste they had to create a way to recycle the waste. They operate thelargest polyester recycling center that uses the polyester waste as a filling andstuffing. They use this process to develop a strong recycling process which wonthem a reward in the Team Excellence competition.Reliance Industries backed a conference on environmental awareness in New Delhiin 2006. The conference was run by the Asia Pacific Jurist Association inpartnership with the Ministry of Environment & Forests, Govt. of India and theMaharashtra Pollution Control Board. The conference was to help bring about newideas and articles on various aspects of environmental protection in the region.Maharashtra Pollution Control Board invited various industries complied with thepollution control norms to take active part in the conference and to support as asponsor. The conference proved effective as a way to promote environmentalconcern in the area.Awards and recognition International Refiner of the Year in 2005 at the 23rd Annual Harts World Refining and Fuels Conference . According to survey conducted by Brand Finance and The Economic Times in 2010, Reliance is the second most valuable brand in India.Awards for managers Mukesh D. Ambani received the United States of America-India Business Council (USIBC) leadership award for "Global Vision" 2007 in Washington in July 2007. Mukesh D. Ambani was conferred the Asia Society Leadership Award by the Asia Society, Washington, USA, May 2004. 21
    • Mukesh D. Ambani is The Economic Times Business Leader of the Year Mukesh Ambani was ranked as the 74th Most Trusted Individual in India in an early 2010 survey conducted by the Indian edition of Readers DigestStockAccording to the company website "1 out of every 4 investors in India is aReliance shareholder.". Reliance has more than 3 million shareholders, making itone of the worlds most widely held stocks. Reliance Industries Ltd, subsequent toits split in January 2006 has continued to grow. Reliance companies have beenamong the best performing in the Indian stock market.Being the most valued Indian company, RIL also had it‟s share of ups and downs,On May 30, 2011 RIL stock slumped 4% as investors were found fretting overreports that the Central Bureau of Investigation was probing a former upstreamregulator for his alleged favoring of private-sector energy companies.The leakedCAG‟s draft report affected RIL‟s shares, making the stock descent by 10.5percent by 23rd of June, 2011.RIL also lost it‟s status as India‟s most valuable firm on the 17th of August, 2011to Coal India as RIL‟s stock value decreased to 70% of the value in 2011.However,on 29th August, 2011, RIL regained it‟s no 1 position as Indias most valued firmstatus by toppling state run ONGC. 22