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economics of scales of reliance jamnagar refinery


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economics of scales of reliance jamnagar refinery

  3. 3. RELIANCE AT GLANCE The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is Indias largest private sector enterprise, with businesses in the energy and materials value chain. Groups annual revenues are in excess of US$ 58 billion. The flagship company, RIL, is a Fortune Global 500 company and is the largest private sector company in India. Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully integrated along the materials and energy value chain. The Groups activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles, retail, infotel and special economic zones. Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products. Revenue US$ 58.55 billion (2011) Net income US$ 04.54 billion (2011) Total assets US$ 63.84 billion (2011) Total equity US$ 34.12 billion (2011) Employees 22,661 (2011)
  4. 4. CHALLENGES, RISKS AND CONCERNS Technology Challenges. Operational Risks. Inventory Risks. Logistics Risks. Pricing Risks. Extensive International Competence. Tightening Supply-Demand Scenario. Feedstock integration, lower operating costs and high operating rates are critical for profitability in the petrochemicals business. RIL has successfully maintained high operating rates on the back of strong domestic demand and a balanced portfolio of liquid and gas-based crackers.
  5. 5. INTERNAL CONTROLS RIL’s internal control systems are commensurate with the nature of its business and the size and complexity of its operations. These systems are designed to ensure that all the assets of the Company are safeguarded and protected against any loss and that all the transactions are properly authorized, recorded and reported. The Company has an internal audit function, which is empowered to examine the adequacy and compliance with policies, plans and statutory requirements. It is also responsible for assessing and improving the effectiveness of risk management, control and governance process. The internal audit function team comprises of well-qualified, experienced professionals who conduct regular audits across the Company’s operations. The management duly considers and takes appropriate action on the recommendations made by the statutory auditors, internal auditors and the independent Audit Committee of the Board of Directors. RIL has well established policy towards maintaining the highest standards of health, safety and environmental norms while maintaining operational integrity. This policy is strictly adhered by all RIL manufacturing facilities.
  6. 6. Risks Relating to Our Business The Project involves engineering, construction and other commercial risks, including: The availability of financing on acceptable terms; The acquisition of additional land to construct the Project and notification of the project site as an SEZ; Reliance on third parties to construct and complete, among other things, the Project, power and port facilities, pipelines and storage tanks; Engineering design and technological changes; Mobilizing the required resources, including housing and training a large workforce; Failure to obtain necessary governmental and other approvals; Changes in management’s views of the desirability of our current plans; Changes in market conditions; Actions of our competitors; Accidents, natural disasters and weather-related delays;
  7. 7. CONTROLLING GREENHOUSE GASES EMISSIONS  Climate change is a major issues facing mankind today.  For this RIL, has adopted Clean Development Mechanisms.  They have identified several projects during the year of which four are currently in progress of validation with the UN framework conversions on climate changes.  They are trying to lower the greenhouse gases by cleaner technologies.
  8. 8. CLEAN DEVELOPMENT MECHANISM RIL has built in-house capacity to develop CDM projects and obtain the registration and issuance of the same in the form of Certified Emission Reductions (CERs) from the United Nations Framework Convention Climate Change (UNFCCC). In FY-11, RIL undertook validation of two renewable energy CDM projects harnessing solar and biomass energy. These projects have received host country approval from Ministry of Environment and Forest, Government of India. Biomass based process steam generation project is at the final stage of registration at UNFCCC. Also, verification audit of one of the registered projects at Patalganga Manufacturing Division has been conducted in FY-11. UNFCCC has approved the changes proposed by RIL to the small scale methodology for “Recovery and recyling of materials from solid wastes” to include PET recyle. RIL has undertaken replacement of CFC based chiller units with new energy efficient non-CFC chillers.
  9. 9. Role of ICT INReliance Agro-Initiatives Jamnagar 9
  10. 10. Vision To establish a pilot project aimed at fulfilling the Founder Chairman’s vision of bringing Waste lands into productive usage …in the process transforming the arid desert refinery site into an ever green environmental show piece. 10
  11. 11. Objectives 1. Improve visual relief, biomass, aesthetics, & ecology and abet pollution. 2. Transform arid lands of Jamnagar Farms to an evergreen environment 3. Maximize Financial returns by optimal utilization of resources. 4. Catalyze faster agricultural growth and higher wealth generation through agriculture. 11
  12. 12. Plantation Plan Category Area in acres No.of plants Greenbelt 122 172,000 Greenbelt 730 501,800 commercial Med & Arom. 127 1222,800 plants Landscaping 563 1,065,300 Coastal eco- 126 793,000 development Total 1750 37,54,900 12
  13. 13. Crop Mix Crop Area in acres No of plants Mango 375 102,000 Other fruits 150 27,000 Teak & Sawan 287 205,000 Bamboo 50 20,500 13
  14. 14. Mango Production Technology 1. Varieties: Kesar- 90% + Alphonso -5% +Exotics& others 100 var. 5% 2. High Density Planting: 5m X 3m, i.e. 666 plants/ha 6m X 2m, i.e.. 833 plants/ha 3. INM - based on soil and leaf analysis 4. Fertigation 5. Pruning to hedge row 6. Application of Paclobutrazol (Cultar) 7. IPM 8. High productivity of 25MT/ha at steady state 14
  15. 15. Crop :Cultivars Fruit Varieties Chiku Kalipatti, Cricket Ball, Dharwad Selection Pomegranate Ganesh,Arakta,Mridula Ber Umran, Gola Amla NA7, Krishna, Anand-1 & 2. Tamarind PKM-1 Grapes Thompson Seedless,Flame 15
  16. 16. Crop :CultivarsFruit VarietiesGuava L-49, Allahabad SafedaLitchi China, ShahiCashew Vengurla-4, Vengurla-7Sweet Orange Mosambi, KinnowMandarin NagpuriGrape Fruit MarshAvocado Seedlings 16
  17. 17. Timber Crops •Teak (Tectona grandis) and Sawan (Gmelina arborea). •HDP with 2200 to 2778 plants/ha. •Fertigation. •Irrigated with ETP water. •Thinning. •Teak : • 50% in 6th year. • 50% of remaining in 12th year. • Harvesting in 17th to 20th year. 18 cft/tree. Sawan : • 50% in 6th year. 17
  18. 18. Achievements “Perhaps the most organized Corporate initiative witnessed in India in the farm sector” ------Cornell Faculty visit, Jan 2002 18
  19. 19. Various technologies used by ril to reduce ghg & voc’s are:- Combustion Devices Incinerators Flares, Heaters. Recovery/Recapture Devices Condensers Adsorbers etc. Specific techniques for transfer racks/storage emissions
  20. 20. Changes MADE by use of thesetechnologies:-
  21. 21. ENSURING SAFETY OF PEOPLE & ASSETS Change Agents for Safety, Health & Workplace Environment programme. This programme focuses on workplace improvements to promote healthy work places and reduce health and safety risks. SAFFETY OBSERVATION PROCESS” (ReSOP), focuses on the behaviour safety aspect of all personnel. It also focuses on Process Safety Management (PSM) the company has undertaken special initiatives like “PROJECT HEALTH CHECK” to reduce safety risk and prevent injuries in the short term by identifying and addressing the safety issues requiring immediate attention. The Company has state-of-the-art Occupational Health Centres (OHC) at its manufacturing divisions and major offices. RILs medical and occupational health departments are also in the forefront to prevent lifestyle diseases such as heart problems, hypertension, diabetes and communicable diseases such as malaria, tuberculosis and HIV / AIDS through a series of regular health awareness sessions, daily health tips and personal counseling. RILs HSE Management System (HSE-MS) has been further strengthened with new initiatives.
  22. 22. ATTRACTING AND RETAINING TALENTED PROFESSIONALS:- RIL has adopted TALENTS DEVELOPMENT & RETENTION PROGRAMS. They have also included INNOVATIVE CAREER MANAGEMENT & MANAGERIAL DEVELOPMENT PROGRAMS. RIL aspires to be one of the most innovative companies in the world. The Reliance Innovation Leadership Centre designs, develops and deploys programmes in realizing this vision anchored around this agenda. LEAP has been designed to inspire the RIL family through the life, work and experience of global innovation leaders. Sustainable growth of any organisation has one important element- generation, exploitation and management of its IP. RIL’s patent portfolio is on the upswing, both in quality and quantity terms including protection in overseas markets.
  23. 23. UNDERSTANDING OUR STAKEHOLDERS BETTER One of the important measures for the sustain ability in earning the contest of the stakeholder co- operate & grow. To able to achieve, them, it is important to understand them better. For this RIL, has adopted STRUCTURED STAKEHOLDER ENGAGEMENT METHOD, The outcomes of the structured feedback is the refinement in their reporting structure & the inclusion of achievement & opportunity.
  24. 24. HANDLINGS PERCEPTION OF POLYETHENE BAGS The biggest disadvantage is handling perception of polyethene bags which effect the environment adversely as they are non- biodegradable products. For this RIL has adopted SUSTAINABILE ENVIRONMENTS FOR DEGRADATION. For example:- PCL,PLA,PBAT or AAC. Hydrolysis by hydrolytic scission of the ester bonds in the chain backs one for which suitable environment can be compostable, biodegradable & marine degradable.
  25. 25. RESEARCH DEVELOPMENT The Company focuses its attention to fundamental R&D for sustainability of its business, advanced technical services, enhancing internal capability to develop basic engineering packages, and in building capabilities. In refining, the focus areas include maximising light olefins yields from the fluidised catalytic cracker (FCC), improving propylene recovery in FCC; advanced characterisation of crude and evaluation of chemicals for desalting; increasing efficiency and reliability of refinery processes and enhancing process capabilities in coking technology to help widen the crude operating window. In the petrochemicals area, the focus is on providing technology support to ensure efficient asset utilisation, development of specialty grades/materials, development of catalysts /additives for cost reduction, value addition to by-product streams, and leveraging opportunities at the chemicals/oil interface. RIL is involved in some cutting-edge technologies like fuel cells, carbon fibres, bio- fuels, and gasification of several types of feedstocks. RIL is the sole industry partnerin the New Millennium Indian Technology Leadership Initiative (NMITLI) project on indigenous Fuel Cell.
  26. 26. References:- DEVELOPMENT OF NATIONAL EMISSION STANDARDS FOR PETROCHEMICAL PLANTS.pdf Profitability improvement in the oil refinery.pdf Annual report for the yaer 2010-2011.pdf Final report ICMZ.pdf PDD_waste%20gas_RIL_JN_Version3.pdf Relptroleum.pdf Reliance.pdf