Study of Managing Business at Reliance Industries Limited”

1. 1
A
Project Report on:
“Study of Managing Business at Reliance Industries
Limited”
Submitted in partial fulfillment of the requirement of the degree of master of
business administration.
In
Gujarat technology university
Batch : [2015 -17]
MBA semester - II
Submitted by
Heli Shah 157680592138
Keyur Mehta 157680592144
Kunal Shah 157680592082
Chimanbhai Patel Institute Of Management & Research
Opp. Karnavati Club,
Prahladnagar,
Ahmedabad.

2. 2
STUDENT‘S DECLARATION
We, Heli Shah , Keyur Mehta and Kunal Shah hereby declare that the Project report on
“Study of Managing Business at Reliance Industries Limited” is a result of our own work and
our indebtedness to other work publications, if any, have been duly acknowledged.
Place: Heli Shah (157680592138)
Keyur Mehta (157680592082)
Date:
Kunal Shah (157680592144)

3. 3
Preface
As a part of the MBA Circulam and in order to gain practical Knowledge in the field
ofmanagement, we are required to make a report on “Study of Managing Business at
Reliance Industries Limited”. The Basic Objective behind doing this project report is to get
knowledge of different management activities. In this project report we have included various
concepts, effects and implications regarding management that we have studied. This Project
report helped us to enhance our knowledge regarding the Reliance Industry, how it carry out
different activities and achieve its goals and because of this project we are able to connect our
knowledge with practical word. Through this report we come to know about importance of all
management activities.

4. 4
Index
No. Particular Pg No.
1 Introduction 5
2 Group A:
 Quantitative analysis 7-9
Importance of OR in Reliance
OR practices in the Reliance
 Management information system - 10-12
Information system used in Reliance
-Strategic
-Decision making
-Operational
 Marketing management 13-18
Marketing Strategies
-4 P’s of Tata Motors
-Segmentation and targeting of Reliance
-Positioning
-SWOT Analysis
 Human resource management 17-19
HR practices in Reliance
Training and development
Performance Appraisal
3 Group B:
 Cost & management accounting 21-23
Marginal costing analysis
Marginal cost statement
Interpretation
 Financial management 24-27
Calculations
Operating cycle
Cash cycle
 Production & operation management 28-32
Manufacturing process or types of Reliance
Plant Locations
Inventory management
Facility layout
4 Conclusion 33
5 Bibliography 34

5. 5
Introduction
Reliance Industries Limited (RIL) is an Indian conglomerate holding
company headquartered in Mumbai, Maharashtra, India. Reliance owns businesses across
India engaged in energy, petrochemicals, textiles, natural resources, retail and
telecommunications. Reliance is the second most profitable company in India, the second-
largest publicly traded company in India by market capitalization and the second largest
company in India as measured by revenue after the government-controlled Indian Oil
Corporation. The company is ranked 114th on the Fortune Global 500 list of the world's
biggest corporations, as of 2014. RIL contributes approximately 20% of India's total
exports. It is ranked 14th among the Top 250 Global Energy Companies by PlattS.

6. 6
GROUP A

7. 7
Quantitative analysis
Operations research applies sophisticated statistical analysis and mathematical modeling to so
lve an array of business and organizational problem, as well as improve decision-making.As t
he business environment grows more complex, companies and government agencies rely on a
nalysis to inform decisions that were once based largely on management intuition. Originally
developed by the U.S. Department of Defense during World War I, operations research has h
elped many large companies and government agencies make better decisions, boost performa
nce and reduce risk.
Importance of OR in reliance
 OR could be very effective in handling issues of inventory planning and scheduling, p
roduction planning, transportation, financial and revenue management and risk manag
ement. Basically, OR could be used in any situation where improvements in the produ
ctivity of the business are of paramount importance.
 With OR, organizations are greatly relieved from the burden of supervision of all the r
outine and mundane tasks. The problem areas are identified analytically and quantitati
vely. Tasks such as scheduling and replenishment of inventories benefit immensely fr
om OR.
 OR is used for analyzing problems of decision making in a superior fashion. The orga
nization can decide on factors such as sequencing of jobs, production scheduling and r
eplacements. Also the organization can take a call on whether or not to introduce new
products or open new factories on the basis of a good OR plan.
 Various departments in the organization can be coordinated well with suitable OR. Th
is facilitates smooth functioning for the entire organization
 With OR, any organization follows a systematic approach for the conduct of its busine
ss. OR essentially emphasizes the use of computers in decision making; hence the cha
nces of errors are minimum.
 Simplifying Complexity
 Adding Value
 Better system
 Better control
 Better decision.

8. 8
Operation research practices in reliance
 Reliance had its own Linear Programming (LP) models which were expanded to
Mixed Integer Programming (MIP) and Non-Linear Programming (NLP) models.
Large staffs were hired to develop and support these models and huge benefits were
derived in terms of cost reduction, increased profits, and more efficient use of
resources
 Optimization is still used every day and sometimes every hour. However, the
optimization is now built into vendor products which are used by engineers, planners,
and analysts in many departments. The industry has advanced to the point where we
have put ourselves out of the LP business. It seems as though everybody is using
optimization. Spreadsheet optimization in particular is widespread, including some
unlikely models.
 Focuses on plant scheduling. All plants have to forecast sales for several time periods,
plan for raw material purchase, make intermediate components, and package and
deliver the final product. Along with this comes all the constraints of product
specification, and unit specifications such as volume throughput, downtime between
products, maintenance, and inventory buildups, among others.
 OR use include Linear Optimization, Distribution analysis and Simulation. Linear
Optimization is used for planning problems related to long range analysis of
alternative decisions. Distribution analysis, which uses MIP, allows the optimal
service of customers from the best plant while accounting for travel time, tolls, tariffs,
labor laws, and costs of various transportation modes. Simulation is used for a variety
of problems ranging from location of new facilities to ship movements.
 The obvious areas are design of experiments for new products, components, or
testing. Better, cheaper, and faster experiments are constantly being tested.
Multivariate statistical analysis is used to trouble shoot problems in many business
areas. Of course, Regression analysis is probably the most used tool in areas such as
fitting property curves as well as forecasting future events
 Goal is to choose the right one at the right time to capture the credits worthy of these
areas of OR.
 Operations research was used to enhance productivity and quality of service.
 The problem is modeled by a very large mixed-integer linear program - a typical
formulation could result in about 60,000 variables and 40,000 constraints. The
planning horizon for each problem is one day since the assumption is made that the
same schedule is repeated each day (exceptions such as weekend schedules are
handled separately). The primary objective of the problem is to minimize the sum of
operating costs (including such things as crew cost, fuel cost and landing fees)

9. 9
Linear Programming
LP involves the planning of activities to obtain an optimal result i.e. the result according to
the mathematical model among all feasible solutions. Linear programming techniques solve
product mix and distribution problems of enterprises .linear programming problem used to
allocate scares resources in optimum manner in problem of scheduling product mix etc.A
linear programming problem (LPP) consist of three
Components namely (1) Decision Variables (2) Objective Function (3) and the Constraints
(restrictions)
Queuing Theory
This theory deals with the situation in which queue is formed. There are different types of
queue e.g. customer waiting for services, machine waiting for repairmen and aircraft waiting
for landing etc[2]. The objective of a queuing model is to find out the optimum services rate
and the number of servers so that the average cost of being in queuing system and the cost of
service are minimized.
Transpotation Technique
The physical distribution of product increases the cost. Multi- plant companies with wide
range of warehouse are interested in minimizing the transportation cost. The main objective is
to minimize the level of distribution of supply point to demand point that is made by
organization for every shipment. It is what warehouse should be within exact term of it
demand to make clear supply and reduce down the overall cost of physical distribution.
Simulation Technique
Simulation is a representation of real life problem through model, which will react in the
same manner as reality under a given condition. Simulation is a quantitative technique
developed for studying alternative course of action by building a model of that system and
then conducting a series of repeated trial and error experiments to predict the behavior of the
system over a period of time
CPM/PERT
CPM & PERT are popular techniques for project scheduling, These include development of
supersonic planes, designing a prototype of a machine, cost controlling and constructing of a
building PERT/CPM consist of four main steps:
1. Planning
2. Scheduling
3. Allocation of Resources
4. Controlling

10. 10
Management information system
Information system used in Reliance Industries:
At Operational Level
They use computer-based information systems to help their employees record customer
purchases, keep track of inventory, pay employees, buy new product, and evaluate sales
trends. Store operations would grind to a halt without the support of such information system.
REQUIREMENT OF INFORMATION SYSTEM AT THIS LEVEL:
 Lower level managers take on the task define by the middle manager and they need
the basic transactional information mostly is of big level and it is difficult to carry out
information manually.
Supply Chain Management
 SCM systems enable more efficient management of the supply chain by integrating
the links in a supply chain. This may include suppliers, manufacturers, wholesalers,
retailers and final customers.
Role of SCM:-
 Warehousing
 Order Fulfillment
 Transportation
 Supply chain Design
Strategic
Tactical
Operational
Execution

11. 11
TRANSACTIONAL PROCESSING SYSTEM:
Definition: Well organized group of people procedures, data base and devices, software used
to record complete transaction of business(RALPH& REYNOLDS,2009)
Characteristics of transactional processing systems
 Atomicity
 Consistency
 Isolating
 Durability
At Decision Making Level
Decision about what lines of product need to be added or discounted and what kind of
investments they require are typically made after an analysis provided by computer-based
information systems. This function not only supports the decision making of store managers,
buyers and others, but it also helps them look for ways to gain an advantage over other
suppliers in the competition of customers.
Decision Support System
Basically four type of decision support system as bellow:
 Data driven
 Knowledge driven
 Document driven
 Model driven
Decision Support Systems use the following to support the making of semi-structured
business decisions.
 Analytical models
 Specialized databases
 A decision maker’s own insights and judgments.
 An interactive, computer based modeling processes.
DSS systems are designed to be hoc, quick response systems that are initiated and controlled
by decision makers.
Support unstructured and semi structured decisions.
Model driven DSS
 Earliest DSS were heavily model-driven.

12. 12
Data driven DSS
 Some contemporize DSS are data-driven
Use OLAP and data mining to analyze large pools of data.
At Strategic level
 Need of the information system at this level at the middle level management
defined the goal to b carried out in thoroughly at operational level top level
management give instruction to middle level management to plane and control
which includes review report in the summary format and the analysis of the
information available.
 Store management might take a decision to install kiosks in all stores, with
links to the e-commerce.
 Thus strategic information systems can help provide products and services that
give a business a comparative advantage over its competitors.
Executive Support System
 It Support senior management at Reliance.
 Incorporate data about external events (e.g. new tax laws or competitors)
as well as summarized information from internal MIS and DSS)
 ESS that provides minute-to-minute view of firm’s financial performance
as measured by working capital, accounts receivable, accounts payable,
cash flow, and inventory.
They using sources of an ESS
 External databases
 Technologically reports like patent records etc.
 Technical reports from consultants.
 Market reports
 Confidential information about competitors.
 Speculative information like market conditions
 Government policies
 Financial reports and information

13. 13
Marketing management
 Marketing strategies
1) Product , price , place ,promotion
2) Segmentation, targeting, positioning
3) SWOT
-
 Product in the Marketing mix of Reliance industries
 Reliance Industries contribution to total Indian exports is nearly 14%. The company is
present in numerous sectors like logistics, textiles, retail, natural resources, science
and technology, health care, energy, communications, construction and
petrochemicals. Reliance Industries is also the producers of Polyester Fibre, Mono-
Ethylene Glycol (MEG), Purified Terephthalic Acid (PTA) and Polypropylene (PP).
 Retail sector includes Reliance Fresh, Reliance Digital, Reliance Footprint, Reliance
Trends, Reliance Mart, Reliance Home Kitchens, Reliance Time Out, Reliance
Wellness, Reliance AutoZone, Reliance Super, Reliance iStore, Reliance Market and
Reliance Jewel.
 Reliance Life Sciences includes working around industrial and medicinal
Biotechnological opportunities. It focuses on the branding, manufacturing and
marketing of products that belong to Reliance Industries brand in clinical research and
bio pharmaceuticals.
 Reliance Institute of Life Sciences is an institution that offers the chance for higher
studies in numerous fields of life science and technology.
 Reliance Solar includes producing and selling systems related to solar energyto rural
areas.
 Place in the Marketing mix of Reliance industries
 Reliance Industries has nearly 123 subsidiaries and 10 associate firms. In the retail
sector, it is the largest retailer with nearly 1466 outlets in India. All the outlets are
located at prime locations with trained and efficient staff to garner maximum
consumers.
 A fabric mill was established in the year 1966 at Naroda, Gujarat and this was the
starting point of Reliance Industries. It has manufacturing plants at various convenient
sites like Jamnagar. The petro chemical plant at Hazira was started in 1991.
 The biggest Gas discovery was by Reliance Industriesat the Godavari- Krishna Basin.

14. 14
 Reliance Industries is a very old hand at each stage of circulation whether
manufacturing, or hiring wholesalers or contracting retailers. They have a wide
network already in place for every facet like channel, intermediary or distribution and
their sound mechanism has taken them to such unimaginable heights.
 Price in the Marketing mix of Reliance industries
 The pricing policy of Reliance Industries is different for different sectors. The policy
for sectors such as retail, telecommunications and health care that are in direct contact
with the consumers is mainly penetration pricing. Retail and telecommunication both
suffer huge losses but companies invest in them looking at the future.
 If the fair pricing policy is in place, then automatically the volume will rise and in
turn, it will lead to better revenues. The policy for the sector petrochemicals is
different as it is dependent largely on the current global market, which is very
flexible. The various market conditions along with the costing and promotional
expenses determine the pricing policies of the company.
 Reliance Fresh showrooms, it has dropped the services of intermediaries and bought
the items directly from its source and hence has been able to lower the prices of the
products, due to which the sale is higher and it is able to survive in the tough retail
business.
 Promotions in the Marketing mix of Reliance industries
 Reliance has eagerly utilized the available advertising tools so that the best marketing
strategies could be implemented. Their promotional campaigns are clean, well made,
trendy with an emotional touch and up to the mark to attract the consumers. Reliance
Industries also announces discounts and schemes for its consumers.
 However, promotions is a big expense for most companies and hence Reliance relies
more on spending less on promotions and reducing the prices so that customers are
attracted to the company. In fact, except for the retail sector, hardly any advertising is
seen from Reliance. And even if it uses advertising, it uses more of BTL then ATL.
 It has been a regular sponsor of sports activities and has bought an IPL (cricket team).

15. 15
Reliance Industries Limited SWOT Analysis, USP & Competitors
Reliance Industries Limited (RIL)
Category Oil & Gas
Sector Energy
Tagline/ Slogan Growth is Life
USP Strong Reliance brand name
STP
Segment
Corporates, countries, individuals looking to fulfill
energy needs
Target Group
Enterprises looking for energy for production, people for
petrol diesel for vehicles and domestic uses
Positioning High quality oil products from Reliance
SWOT
Strengths
1.India's one of the biggest players
2.Strong brand name
3.Excellent financial position
4.One of the few Indian companies to be featured in
Forbes
5.Employs over 25,000 people
Weaknesses
1.Long term debt
2.Legal issues
3.Accusations of being favored by the government

16. 16
Opportunities
1.Growing demand for petroleum products
2.Buyout of competition
Threats
1.Government regulations
2.High Competition
3.Environmental laws
4.Economic instability
Competition
Competitors
1.Bharat Petroleum
2.Hindustan Petroleum
3.IOCL
4.ONGC

17. 17
Human Resource Management
What is Recruitment?
Recruitment is the process of finding and sourcing quality profiles for the companies. It inclu
des researching profiles that exactly matches the position. Recruiters find the profiles on job
boards, social sites, references, resume database and through head hunting techniques. Strong
communication in English or other languages including creative talking, convincing skills an
d follow-up are required to recruit the candidates.
Types of Recruitment
Recruitment can be divided into 2 types.
1) Internal Recruitment
2) External Recruitment
Companies have 2 option recruiting candidates’ i.e. internal sources and external sources.
Methods of Internal Recruitment:
1) Selecting top talents within an organization to higher level
2) Promotions
3) Internal Advertisement
4) Temporary employees to contractual period
5) Contract employees to temporary
6) Temporary employees to permanent
7) Retired employees for freelancer position
Sources of External Recruitment:
1) Job portals
2) Social media recruitment
3) Newspaper Ads and Magazines
4) Website
5) Campus recruitment
6) Direct Walk In
7) Recruitment agencies
8) Internal employee referrals
Selection in Reliance-

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The selection procedure in Reliance is completed in following three steps-
 Written test (Aptitude)
 Technical written test
 Technical and HR interview
Lets find out the details of three steps of the recruitment process-
1. Written test (Aptitude)
The first step is the written test in which 75 questions are asked and time limit for those
questions are 35 minutes. The questions will be from several topics like ratio, simple logics,
comparisons, analogy etc. The cut off marks for this round is 60%.
2. Technical written test
The next step is the Technical written test in which 50 questions are asked and time limit are
25 minutes. Technical questions will be from electronics, networking subject. For this round
the cut off marks is 50%.
3. Technical and HR interview
After clearing both written test, the final step is the technical and HR interview. It will take 1
hour and based on National Merit Test. In this round some technical questions will be asked
and in HR round the questions will be asked about the company, projects, hobbies etc.
Candidates are required to produce original mark sheets/ certificates for verification during
interview.

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Training And Development
 Training is the short-term process utilizing a systematic and organized procedure by
which non-managerial personnel learn technical knowledge and skill for a definite
purpose.
 Development is a long-term educational process by utilizing a systematic and
organized procedure by which managerial personnel acquire conceptual and
theoretical knowledge for general functioning of the unit.
 Organizations don’t have choice whether to train its employees or not the only choice
is that of the methods of the training are going to implement. There is continuous
environmental pressure for increasing the efficient and if the organization does not
respond to this pressure, it may in itself losing whatever share of market it has.
Training imparts skill and knowledge to employees in order with which they
contribute to the organization efficiency and be able to cope up with the pressures of
the changing environment.
 In RELIANCE INDUSTRIES LTD. They give training to its employees according to
the job required from them.
 They mostly train their employees as per on job training.
 If on job training is not enough, they also give their employees external training.
Performance Appraisal Methods
 What is performance appraisal?
Performance appraisal is defined as the process of assessing the performance and progress of
an employee or a group of employee on a given job and his/their potential for future
development. Performance appraisals are part of career development and consist of regular
reviews of employee performance within organizations.
 Performance appraisal techniques used by reliance
 360 degree feedback evaluation
 Rating scales
 Critical incidents
 Essay method
 Work standards
 Ranking
 Forced Distribution
 Result Based System
 Behaviorally Anchored Rating Scales

20. 20
GROUP B

21. 21
Cost and Management Accounting
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31-03-2015
RELIANE INDUSTRIES LTD.
2015 2014
(Rs. In Crores) (Rs. In Crores)
Gross sales 412.89 363.62
Less: Excise duty 9.45 0.00
Net Sales 403.44 363.62
Other Income 1.11 0.21
Stock Adjustments -9.93 7.15
Total Income 394.62 370.98
Raw Materials 237.32 214.76
Power and Fuel Cost 26.93 28.69
Employee Cost 19.90 18.95
Other Manufacturing Expenses 0.00 0.00
Miscellaneous Expenses 68.43 67.91
Total Expenses 352.58 330.31
Operating Profit-PBIT
(net sales + stock adj-total exps) 40.93 40.46
Profit before Dep,Int and tax-PBDIT
(including other income) 42.04 40.67
Interest 25.73 25.24
Profit before Depand tax-PBDT 16.31 15.43
Depreciation 13.05 12.81
Profit before tax-PBT 3.26 2.62
Tax 1.32 1.20
Profit After Tax-PAT 1.94 1.42

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Marginal cost analysis
 Variable Costs
Depending on what aspects of oil production and sales a company chooses for its oper
ations, its variable costs will change. For example, a company involved with drilling
might have equipment with short-term rental contracts and workers who are paid by t
he hour. Using these resources depends on how much oil the company attempts to dril
l. Furthermore, producing more oil increases the company's potential liability in the ca
se of a spill or other accident, necessitating more expenditure on emergency managem
ent and legal teams.
 Fixed Costs
Oil companies also have to pay a variety of fixed costs. For example, the costs of
regulatory compliance will not vary much with the level of production. The oil
company may have workers with long-term contracts, such as company officers or
consulting geologists who help them find oil. If the company buys some of its
equipment or land, that will also be a fixed cost, because the cost will be constant no
matter how much oil the land or equipment produces.
Marginal Cost Statement
2015 2014
Sales 81,233 98,063
Less Variable Cost 42,893 56,990
Contribution 38,340 41,073
Less Fixed Cost 24,005 23,012
Profit 14,335 18,061
RATIOS
P/V Ratio 47.20 41.884121
BEP 50860.88 54,942.06
MOS 30371.82 43,120.64
DS 368675.18 413073.01

23. 23
 P/V Ratio = (Contribution * 100) / Sales
 BEP = Fixed Cost / Contribution
 MOS = Actual Sales – BEP
 Desire Sale = FC + Profit/ P/V Ratio (cont)
 Interpretation
2015 2014
Fixed cost as % of Total Cost ---- 35.88% 28.76%
Variable cost as % of Total Cost----- 64.11% 71.24%
 Major Part of expense is variable cost accounting to 64.11% and 71.24% in year 2015
and 2014 respectively while only 35.88% and 28.76% is fixed cost for 2015 and 2014
respectively. That means if variable cost per unit is controlled to some extent then
cost can be controlled.
 The company has invested well in advertisement which accounts to around 0.575
 Expense on raw material consumption constitutes 0.22% of variable cost in year
2015.this mainly depend on market demands as well the capacity of production
 Bep sales are Rs.50860 million which is low compared to current sales (Rs.81233) in
year 2015.
 Bep analysis will help banker in appraisal of actual/ projected performance of the
borrower. it also acts as sensitivity analysis tool to judge the projected performance.

24. 24
Financial Management
Operating cycle:-
The operating cycle is also known as the cash conversion cycle. In the context of a
manufacturer the operating cycle has been described as the amount of time that it takes for a
manufacturer's cash to be converted into products plus the time it takes for those products to
be sold and turned back into cash. In other words, the manufacturer's operating cycle
involves:
 paying for the raw materials needed in its products
 paying for the labor and overhead costs needed to convert the raw materials into products
 holding the finished products in inventory until they are sold
 waiting for the customers' cash payments for the products that have been sold.
Current Assets Cycle:-
Cash and other resources that are expected to turn to cash or to be used up within one year of
the balance sheet date. (If a company's operating cycle is longer than one year, an item is a
current asset if it will turn to cash or be used up within the operating cycle.) Current assets
are presented in the order of liquidity, i.e., cash, temporary investments, accounts receivable,
inventory, supplies, prepaid insurance.
Cash Cycle:-
Flow of cash that begins with payment for raw materials and ends with receipt of cash
on goods sold. Shorter the number of days in this cycle, more the amount of available cash,
and lesser the need to borrow. It’s also called cash conversion cycle or cash flow cycle.
Calculation:-
Inventory Period Formula
Inventory Period = 365 × Average Inventory / Annual Cost of Goods Sold

25. 25
Account receivable period Formula
Account Receivables Period = 365 × Average accounts receivable / Annual Sales
Account payable period formula
Account Payable Period = 365 × Average accounts payable / Annual Cost of Goods Sold
Operating cycle formula
Inventory Period + Account receivable period
Cash Cycle Formula
Operating Cycle – Account Payable Period
Operating Cycle(Days) Cash Cycle(Days)
Years 2015-14 2014-13 2013-12 2015-14 2014-13 2013-12
RI 60.23 61.68 71.49 11.32 13.56 32.89
INTERPRETATION
 RI has been operating mainly in the area of refinery business, so due to increase in
energy demand and economies of scale enjoyed from the Jamnagar refinery and huge
exports they are able to reduce the operating and cash cycle.
 As the RI has most of the downstream products which are paid and consumed so their
cash cycle is also of less period
Inventory Management – EOQ Model

26. 26
 Economic Order Quantity (EOQ or Q System)
An optimizing method used for determining order quantity and reorder points
Part of continuous review system which tracks on-hand inventory each time a withdrawal is
made
EOQ: Total Cost Equation
EOQ formula
costsetuporordering
costholdingannual
orderedbeoquantity t
demandannual
costannualtotal
2
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
















S
H
Q
D
TC
Where
H
Q
S
Q
D
TCEOQ
H
DS
EOQ
2


27. 27
Techniques of inventory management in reliance
 Selective inventory control
 Setting up various stock level
 System of inventory control
 EOQ
 Re-ordering point and safety stock
 Application of computers for inventory
 JIT inventory management
 Inventory ratio
 Aging schedule for inventory
 Inventory audit

28. 28
Production and Operations Management
The company has a fully automatic plant.
The company works under different business segments:
 Exploration and Production
 Petroleum Refining and Marketing
 Petrochemicals
 Textiles
 Retail

29. 29
Operation management activities are:
Reliance industries deal with various types of process for the manufacturing of petroleum
and petrochemical products. They have various distillation units, cracking of
polymerization is also done there. Fluidized bed cracker is used for the production of
coke. Alkylation process and various propylene plants are also there.
They have chosen the factors very wisely for their location.
 These are the main factory location they took care of while setting up the
refinery at Jamnagar

30. 30
Facility Layout
Now to facilitate the layout they have done excellent work with Reliance fresh.They
have took care of the customers need and want and have accordingly designed their
layout.
 Thus this helps the customer to get everything at ease.
 As shown in figure they all the division are sorted out such that it's convenient for the
customer to find things.

31. 31
Inventory Management
Its inventory management system helps you improve and automate inventory control. It is
flexible and can be integrated to work with barcode scanners, smart phones, and tablets. Save
valuable time and money by accurately tracking your stock inventory with the most
configurable and easy-to-use inventory management solution.
 It can be used with Purchase and Sales Module, which takes decision on ordering and
selling inventory. This helps in product planning and product availability in order to
maximize sales opportunities.
 Its inventory management system also helps in effective tracking of stock items. The
module ensures sufficient stocks are maintained to satisfy demand. It is logically
classified into Purchase and Sales along with corresponding Returns. It includes a
Stock Adjustment option that reconciles physical stock with system stock in case of
any discrepancy due to loss or destruction.
The proper procedure of system for controlling over inventory is known
as inventory control generally there are following type of standard in inventory control.
• The maximum
• The minimum
• The ordering point
The standard order

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Safety Management
Reliance also takes care of quality, safety management and regulations
Reliance’s Endeavour to create a culture of safety, health and environment saw a new
light with the implementation of Change Agents for Safety, Health and workplace
Environment (Cashed). This project has garnered enough strength to make safety and
health a priority in the workplace, and improved occupational safety and health
significantly. Reliance’s HSE Management System has established company-wide
safety management objectives and processes for improving operational discipline and
evolving inherent safety measures for plant operation. In addition, the Central HSE
audit programme — a critical component of the HSE governance process — is
designed to ensure that the HSE Management Standards are implemented, and best
practices followed and shared across the Reliance Group.
Thus Reliance has ensured its safety management.

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Conclusion
From the above report, I can conclude that at present peoples and connected
companies are 99% satisfied with Reliance Industries Limited.
Managing Work is one of the pioneer’s and role-playing part of the company.
Reliance Industries manages its working capital very efficiently for its business. Each &
every component of working capital is dealt with expertise and experience of the finance &
accounting department. The procedure is very simple for estimating working capital
requirement. Predetermined norms are applied wherever they are applicable. Mainly working
capital management is the function of finance department but many other departments like
production, purchase &marketing are involved in this procedure indirectly. Thus the effort
from all the departments of various units helps company to manage its working capital in a
systematic manner.
Hence this analysis helped me a lot to know the importance and function of and its
component. Here I was able to relate what I had read in the books and learnt in class rooms. It
is essential for a person to know about the sources, application and needs of Management for
business in real life.

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Bibliography
Books:-
1. Finance Management by Prasanna Chandra
2. Cost and Management Account by M. N. Arora
Websites:-
www.ril.com