Reliance (2)


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Reliance (2)

  2. 2. Dhirubhai H. Ambani Founder Chairman Reliance Group December 28, 1932 - July 6, 2002
  3. 3. RELIANCE COMMERCIAL COPORATION • Started in 1958 by Dhrubhai Hirachand Ambani with his cousin Champaklal Damani. • Fixed capital- Rs.15000. • Business mission of importing polyester yarn and exporting spices to Yemen.. • Partnership with his cousin ends in 1965. • He founded Reliance Industries in 1966.
  5. 5. RELIANCE TEXTILES • In 1966, 1st textile mill was established at Naroda in Ahmedabad. • Started Reliance Textiles under the brand name “VIMAL”. • The brand was the first to use cricketers as brand ambassadors. • The likes of former Australian captain Allan Border and legendary West Indian batsman Vivian Richards endorsed the brand. • In 1975, world bank visited reliance textiles and certified as the “BEST POLYESTER CLOTH”. • He took his company public in 1977.
  6. 6. INITIAL PUBLIC OFFERING • Dhirubhai Ambani is awarded with starting the equity cult in India. • More than 58,000 investors from various parts of India subscribed to Reliance's IPO (Initial public offering) in 1977. • In 1986, the annual general meeting of Reliance Industries had number of firsttime retail investors investing in Reliance. • Ambani's net worth was estimated at about 1 billion by early 1980s.
  7. 7. DIVERSIFICATION • Ambani began the process of backward integration, setting up a plant to manufacture polyester filament yarn. • He subsequently diversified into chemicals, petrochemicals, plastics, power. • The company as a whole was described by the BBC as "a business empire with an estimated annual turnover of $12 billion, and an 85,000-strong workforce". • The final phase of Reliance’s diversification occurred in the 1990s when the company turned aggressively towards petrochemicals and telecommunications.
  8. 8. ZERO TAX COMPANY • Reliance showed profits in such a manner that they didn’t have to pay tax to the government but still went on giving dividends and bonus to its shareholders. • It was only after India introduced MAT regime that reliance was forced to pay.
  9. 9. AMBANI CONTROL OVER STOCK EXCHANGE •In 1982, Reliance Industries came up against a rights issue regarding partly convertible debentures. • The Bear Cartel, a group of stock brokers from Calcutta, started to short sell the shares of Reliance. • A group of stock brokers until recently referred to as "Friends of Reliance" started to buy the short sold shares of Reliance Industries on the Bombay Stock Exchange. •The Bear Cartel was acting on the belief that the Bulls would be short of cash to complete the transactions and would be ready for settlement under the "Badla" trading system operative in the Bombay Stock Exchange. •All the promoters or owners of these companies had a common surname Shah. •An investigation by the Reserve Bank of India in the incident did not find any unethical or illegal acts or transactions committed by Reliance or its promoters.
  10. 10. OBSTACLES • Nusil wadia of Bombay dyeing was the greatest competitor and threat to Dhirubhai’s Reliance Industries. • Tussle with Ramnath Goenka, once was Dhirubhai’s friend. He teamed up with Nusil Wadia and try to harm reliance group. • Indian express, a broadsheet published by Ramnath Goenka carries series of articles stating the unfair means used by the reliance group to make profits.
  11. 11. DEATH OF DHIRUBHAI AMBANI • Dhirubhai Ambani was admitted to the Breach Candy Hospital in Mumbai on June 24, 2002 after he suffered a major stroke. • This was his second stroke, the first one had occurred in February 1986 and had kept his right hand paralyzed. • He was in a state of coma for more than a week. He died on July 6, 2002, at around 11:50 P.M.
  12. 12. Reliance after Dhirubhai Ambani • In November 2004, Mukesh Ambani in an interview, admitted to having differences with his brother Anil over 'ownership issues.' He also said that the differences "are in the private domain." • On June 18, 2005, Kokilaben Ambani announced the settlement through a press release.
  13. 13. RELIANCE GROUP • The Reliance empire was split between the Ambani brothers, Mukesh Ambani getting RIL and IPCL & his younger sibling Anil Ambani heading Reliance Capital, Reliance Energy and Reliance Infocomm. • The entity headed by Mukesh Ambani is referred to as the Reliance Industries Limited whereas Anil's Group has been renamed Reliance Anil Dhirubhai Ambani Group (Reliance ADA Group). • Reliance Institute of Life Sciences, a Dhirubhai Ambani Foundation Initiative, was established to promote higher education in various fields of life sciences and related technologies
  14. 14. RELIANCE SPLITED Reliance Industry Ltd Reliance Anil Dhirubhai Ambani Group Mukesh Ambani Anil Ambani
  15. 15. •Type: Public •Headquarters: Mumbai, Maharashtra, India •Key people: Mukesh Ambani (Chairman & MD) •Revenue US$ 58.55 billion (2012) •Income US$ 4.54 billion (2012) •Assets US$ 63.84 billion (2012) •Equity US$ 34.12 billion (2011) •Employees22,661 (2012)
  16. 16. Reliance Industries Limited • RIL is one of the largest publicly traded companies in India by market capitalization • Second largest company in India by revenue after Indian Oil Corporation. • It is also India's second largest private sector company by revenue and profit. • The company is ranked 99th on Fortune Global 500 list of the world's biggest corporations for the year 2012.
  17. 17. Through sustainable measures, create value for the nation, enhance quality of life across the entire socio-economic spectrum and help spearhead India as a global leader in the domains where we operate.
  18. 18. •Create value for all stakeholders •Grow through innovation •Lead in good governance practices •Use sustainability to drive product development and enhance operational efficiencies •Ensure energy security of the nation •Foster rural prosperity
  19. 19. Our growth and success are based on the ten core values of Care, Citizenship, Fairness, Honesty, Inte grity, Purposefulness, Respect, Responsibi lity, Safety and Trust
  20. 20. PRODUCTS Polyester Petrochemicals Textiles Petroleum Oil & Gas Retail Reliance Industries Limited Telecom
  21. 21. Petroleum Refining and Marketing  Growth through Energy Products: • Demand for petroleum products • Gross refining margins • GAPCO
  22. 22. Petrochemicals  Notable Achievements: • Domestic Leadership in Petrochemicals • World's Largest Producer of Polyester Fibre and Yarn • Fifth largest producer of PP and PX in the world • Eighth largest producer of PTA • India's largest and world's eighth largest producer of MEG • India's largest manufacturer of Synthetic Rubber
  23. 23. Textiles  Growth through Consumer Products: • Fresca anti-microbial and anti-bacterial workwear apparel fabrics • Home furnishing and auto-textiles • Silk-Amino suiting fabrics • Fire-retardant and water-repellent tent fabrics for defence/ police services
  24. 24. Retail  Growth through Value Creation: Reliance Brands announced exclusive licensing arrangement with two leading international brands: Steve Madden, a leading designer, wholesaler and retailer of fashion-forward footwear and accessories for women, men and children. Quiksilver, a leading outdoor sports lifestyle company to launch their core brands 'Quiksilver' and 'Roxy'. Across India, Reliance Retail serves over 2.5 million customers every week. Its loyalty programme, "Reliance One", has the patronage of more than 6.75 million customers.
  25. 25. SUBSIDIARIES & ASSOCIATES Reliance Life Sciences Reliance Industrial Infrastructu re Ltd Infotel Broadband Ltd Relicord Reliance Industries Limited Reliance Solar Reliance Clinical Research Services Reliance Logistics
  27. 27. Milestones Major Milestones 2010 o RIL and BP announced a strategic partnership in the oil and gas business. o RIL acquired a 95% stake in (IBSL), which emerged as a successful bidder in all the 22 circles of the auction for Broadband Wireless Access (BWA) spectrum conducted by the Department of Telecommunication, Government of India
  28. 28. 2009 o With the commissioning of the new refinery in its Special Economic Zone (SEZ), Jamnagar has now become the petroleum hub of the world. With 1.24 Million Barrels Per Day (MBPD) of nominal crude processing capacity, it is the single largest refining complex in the world. o The merger of Reliance Petroleum Limited (RPL) with Reliance Industries Limited (RIL) has enabled seamless integration of operational scale and financial synergies that existed between the two Companies.
  29. 29. Financial Highlights Highlights o Turnover :Rs.3,39,792 Crore ($ 66,790 million) o PBDIT :Rs. 39,811 Crore ($ 7,825 million) o Cash Profit :Rs. 31,994 Crore ($ 6,289 million) o Net Profit :Rs. 20,040 Crore ($ 3,939 million) o Net Profit 10 years CAGR :20% o Total Assets :Rs. 2,95,140 Crore ($ 58,013 million)
  30. 30. Significant contribution to India's economic growth: o 14% of India's total exports o 5.5% of the Government of India's indirect tax revenues o 4% of the total market capitalisation in India o 9.3% Weightage in the BSE Sensex o 7.8% Weightage in the NSE Nifty
  31. 31. Top competitors  Bharat Petroleum Corporation Limited  Indian Oil Corporation Limited  Tata Group
  32. 32. Present Status Of The Industry • 22-Feb-2013 Construction Begins on RSEPL Butyl Rubber Plant • 19-Feb-2013 BP and RIL update Government of India on KG D6 block enhancement plan • 11-Feb-2013 Planned Maintenance Turnaround at Jamnagar Refinery Complex • 29-Jan-2013 Pricing of US$800 million 5.875% Senior Perpetual Notes
  33. 33. Products & Brands
  34. 34. Stock Market Ratings Of Reliance As on 11-MAR-2013 16:00:06 Hours IST -Spot Price: 841.50 (1.15%) Futures : As on 11-MAR-2013 15:30:32 Hours IST 28-MAR-2013 : 847.00 (-0.85%) 25-APR-2013 : 851.90 (-0.96%) 30-MAY-2013 : 857.70 (-0.38%)
  35. 35. Trading History High Price : Low Price : Close Price : Total Traded Quantity : Turnover (in lacs) No Of Contracts : : 860.60 840.05 844.50 2415898 20,584.17 27244
  36. 36. Awards • International Refinery 2005 At 23rd Annual Hart’s Refining And Fuel Conference • 6th Rank In 2011-the Brand Trust Report • Responsible Care Company by American Chemistry Council In 2012
  37. 37. Ranks • No 1 In Average Market Capitalization • No 1 In Total Assets • No 2 In Basis Of Total Income In 2012
  38. 38. Type: Private Key people: Anil Ambani ( Chairman) Headquarters: Dhirubhai Ambani Knowledge Center, Navi Mumbai,Maharastra, India Revenue: US$15.4 billion (2012) Total assets: US$29 billion(2012) Employees: 120,000 (2012)
  39. 39. RELIANCE ANIL DHIRUBHAI AMBANI GROUP •Reliance Anil Dhirubhai Ambani Group (usually referred as Reliance Group and legally Anil Dhirubhai Ambani Ventures Limited) is an Indian multinational conglomerates. •The company, which was formed after Dhirubhai Ambani's business empire was divided up, is headed by his younger son Anil Ambani. •The ADAG Reliance Group has a business presence that extends to over 20,000 towns and 450,000 villages in India, and across the globe. • The shareholder base is over 12 million, among the largest in the world. •The group is present in many sectors including Telecom, Capital, Power, Infrastructure, Entertainment and Health.
  40. 40. PRODUCTS Communi cations BPO Health Care Infrastruc ture Reliance ADA Group Petroche micals Financial Services Entertain ment Natural Resources Power
  41. 41. RELIANCE COMMUNICATION Reliance Reliance Vanco Reliance Reliance Reliance Reliance Reliance Globalcom Infratel World Globalcall Icall Digicom BPO
  42. 42. RELIANCE CAPITAL            Reliance Life Insurance Reliance General Insurance Reliance Venture Reliance Mutual Fund Reliance Money Reliance Securities Reliance Commercial Finance Reliance Venture Capitalist Reliance Asset Reconstruction Reliance PMS ICEX - Stock exchange
  43. 43. RELIANCE POWER               Reliance Natural Resources Limited (RNRL) Reliance Coal Resources Tilaya UMPP - 4000MW Krishanapatnam UMPP - 4000MW - on hold Sasan UMPP - 4000MW Dadri power plant - 8000MW - On hold Chitrangi power project - 4000MW Rosa Power Project - 1200MW Butibori power Project, Nagpur - 600MW Samalkot Power Project - 2400MW Dhirubhai Ambani Solar Park - 40MW Wind Power - 400MW Solar Power - 500MW Hydropower - 2500MW
  44. 44. RELIANCE INFRASTRUCTURE  Mumbai Metro ---- Line1 - 12 km & Line2 - 40 km  Delhi Airport Metro Express ---- Orange Line 23 km  Reliance Airport Developers (RADPL)-5 Airports  Reliance Sealink pvt ltd ---- 2 Sealinks  Reliance Road projects ---- 11 Road Projects 1000 km  Reliance SEZ ---- Navi Mumbai & Kolkata  Reliance Power Transmission Pvt Ltd
  45. 45. RELIANCE BIG ENTERTAINMENT Movies and Television DreamWorks SKG Studios (Co-Partnership) Reliance Pictures Reliance MediaWorks Ltd (formerly Adlabs) Reliance MediaWorld (formerly Lowry Digital) Reliance Synergy Reliance Animation BIGFlix - Movies on rent BIG Cinemas BIG Music & Video Reliance Home Video Reliance ND Studio RMW Studio
  46. 46. Broadcasting • • • • • • BIG FM 92.7 - Radio stations operating in more than 50 cities. Reliance Broadcasting (RBNL) Reliance Digicom Reliance Digital TV BIG TV - DTH service Imagine Showbiz BIG Magic BIG - CBS channels • • • Big CBS Prime Big CBS Spark Big CBS Love
  47. 47. Gaming • Zapak • Codemasters • Jump Games Internet • - social networking site • • The Plot Blog - BIG Cinemas • Others • BIG Street • BIG Maps • BIG Live • BIG Digital • BIG Reach • BIG Events
  48. 48. RELIANCE HEALTH Reliance Health is providing integrated health services through one of the finest hospitals in Asia – The Kokilaben Dhirubhai Ambani Hospital at Andheri, Mumbai. It also plans to venture into diversified fields like Insurance Administration, Health care Delivery and Integrated Health, Health Informatics and Information Management and Consumer Health.
  49. 49. Other • Reliance Technology Ventures • Reliance Cement • Reliance Aviation Tour & Travels • Reliance Property Solutions • Mudra Communication (49% stake, rest 51% sold to Omnicom Group) • Java Green - A cafe chain with more than 100 outlets. • NIS Sparta - A corporate training Institute. • DTDC Courier & Cargo Ltd.
  50. 50. CORPORATE SPONSORSHIP •Reliance is the main sponsor of Cricket Tournaments. Reliance sponserd the cricket world cup Reliance World Cup in 1987 and 1996. •Reliance Mobile is the main sponsor of ICC Cricket World Cup and ICC World Twenty20 Cricket tournaments. • 2011 Cricket World Cup •Reliance sponsored the ICC 2011 Cricket World Cup held in India, Sri Lanka and Bangladesh. Reliance Capital, has tied up with the International Cricket Council and a global non-profit organisation, room to read, to promote literacy and gender equality in education by contributing Rs.25,000 for every six hit during the World Cup. The initiative is named Boundaries For Books. • ICC World Twenty20 •Reliance Mobile also sponsored the ICC Cricket World Cup 2007 held in West Indies and ICC World Twenty20 in 2007, 2008 and 2010.
  51. 51. CORPORATE SOCIAL RESPONSIBILITY • Dhirubhai Ambani Institute of Information and Communication Technology DA-IICT - Gujarat. • Dhirubhai Ambani Institute of Information and Communication Technology DA-IICT - Kolkata. (Under Construction). • Jamnaben Hirachand Ambani School, Raigad • Kokilaben Dhirubhai Ambani Nursing College (KDA-NC) - Mumbai. • BIG Animation Infotainment & Media School (BIG AIMS) - Pune. • Dhirubhai Ambani University (DAU) - Bhopal (Under Construction).
  52. 52. Hospitals  Kokilaben Dhirubhai Ambani Hospital & Medical Research Institute, Mumbai  Kokilaben Ambani Hospital Guwahati Centre, Guwahati  Dhirubhai Ambani Hospital, Lodhivali, Raigad district
  53. 53. QUESTION (?) SESSION TO THE CLASS….. Is Reliance Industry A Leader Or Challenger Or Follower??
  54. 54. What kind of industry is reliance? Is it private or public sector?
  55. 55. By… Pavithra gayatri.D Jaisakthi.M Vijayashanthi Hemavathy.B Swetha