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1. A Reliance Group Company
Refining life, Redefining growth

2. The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest
private sector enterprise, with businesses in the energy and materials value chain. Group's
annual revenues are in excess of $ 34 billion. The flagship company, Reliance Industries
Limited, is a Fortune Global 500 company and is the largest private sector company in
India.
The Company's operations can be classified into four segments namely:
Petroleum Refining and Marketing business
Petrochemicals business
Oil and Gas Exploration & Production business
Others

3. INTRODUCTION TO RELIANCE
PETROLEUM LIMITED
Reliance Petroleum Limited (BSE: 532743)
was set up by Reliance Industries
Limited (RIL), one of India's largest private
sector companies based in Ahmedabad.
Currently, RPL is subsidiary of RIL, and has interests in
the downstream oil business. RPL also benefits from a
strategic alliance with Chevron India Holdings Pvt Limited,
Singapore, a wholly owned subsidiary of Chevron
Corporation, USA (Chevron), which currently holds a 5% equity
stake in the Company.

4. COMPANY PROFILE
Type Public (BSE: 532743)
Industry Petroleum and Gas
Founded 2008
Headquarters Ahmedabad, India
Key people Mukesh Ambani (CEO & MD)
Products Petroleum
Revenue 3,678.00 crore (US$665.72
million)
Parent Reliance Industries

5. Reliance Petroleum Limited (RPL), a Mukesh Ambani led Reliance Group
company was set up to harness an emerging value creation opportunity in the
global refining sector by Reliance Industries, one of the India's largest private
sector company with a significant presence across the entire energy chain and a
global leadership across key product segments.
 Currently, RPL is subsidiary of RIL.
RPL was formed to set up a Greenfield petroleum refinery and polypropylene
plant in the Special Economic Zone (SEZ) at Jamnagar in Gujarat.
This global sized, highly complex refinery is being located adjacent to RIL's
existing refinery and petrochemicals complex, which is amongst the largest and
most efficient in the world, thus offering significant synergies.

6. The commissioning of the RPL refinery catapults Reliance into the league of the largest
refiners globally, both in terms of complex refining capacity and earnings potential. With
the completion of the RPL refinery, Jamnagar has emerged as the ‘Refining Hub of the
World’ with the largest refining complex with an aggregate refining capacity of 1.24
million barrels of oil per day in any single location in the world.

7. The state-of-the-art, globally competitive RPL refinery has been
completed in 36 months from concept to commissioning, which is a new
benchmark for building a grass-root refinery of this scale and complexity.
This refinery has been built with a significant capital cost competitive
advantage.
RPL achieved the milestone by leveraging the project management skills
of the Reliance group together with world-class implementation partners
like Bechtel, UOP and Foster Wheeler amongst others.

8. This record has been achieved in spite of the significant shortfall in engineering and
construction resources that has impacted most other refinery projects globally.

9. 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.
The Group exports products in excess of US$ 20 billion to 108 countries in the world.
Major Group Companies are Reliance Industries Limited (including main subsidiaries
Reliance Petroleum Limited and Reliance Retail Limited) and Reliance Industrial
Infrastructure Limited.

10. On March 2, 2009 the Boards of Directors of Reliance Industries Limited (RIL)
and Reliance Petroleum Limited (RPL) unanimously approved RPL’s merger with
RIL, subject to necessary approvals. The exchange ratio recommended by both
boards is 1 (one) share of RIL for every 16 (sixteen) shares of RPL. RIL will issue
6.92 crore new shares, thereby increasing its equity capital to Rs 1,643 crore.
On April 13, 2009, the shareholders and the creditors of Reliance Petroleum
Limited (RPL) approved the Scheme of Amalgamation of RPL with Reliance
Industries Limited (RIL).

11. VALUE CHAIN ANALYSIS
OIL AND GAS VALUE CHAINS

12. Crude Oil Value Chain
Exploration Production
Bringing oil to the surface
Using technology to using natural and artificial
find new oil resources methods
Refining
Transportation
Converting Moving oil to refineries and
crude oil into finished consumers with tankers,
products trucks
and pipelines
Marketing
Distributing and selling
refined products

13. Natural Gas Value Chain
Exploration Production
Using technology to Bringing gas to the surface
find new oil resources
Transportation Processing
Moving gas with Treating gas to be sent to
pipelines and tankers markets
Marketing
Distributing and selling
natural gas

14. MERGER OF RPL WITH RIL
WHY THE MERGER?
* Creates one-fourth of the world’s total complex refining capacity
* Becomes the world's single-largest refining hub
* Becomes the world's 17th largest refining company
* Becomes the world’s fifth largest polypropylene producer
* Derives synergies from combined operations — crude sourcing, product placement,
supply chain optimisation
* Acquires flexibility in operations planning, higher utilisation of combined cash
flows

15. SWOT ANALYSIS

16. Strengths Weaknesses
Leading market position Increasing long term debt
Operational efficiency in refining Problem with the FCCU
Strong financial performance
Opportunities Threats
Joint venture with NOVA Chemicals Intense domestic competition
Acquisition of polyester assets of Hualon Rising petrochemical supply in the
Corporation Middle East
Increasing demand for transportation fuels Fluctuating crude oil prices
Growing demand for petroleum products Economic slowdown in India

17. SHUT DOWN OF RETAIL OUTLETS
Surging crude prices: High crude prices led to
weakening of product cracks and refining margins
across regions.
Absence of government subsidies: Government
stops providing subsidies to the private crude oil
players. This leads to rise in the prices of oil of private
players.
 Differential between private and public companies
kept widening :It is because of oil bonds for state-
owned oil marketing firms and discounts from
upstream oil companies.
RIL sells petrol and diesel at between Rs 6 and Rs14
more than PSUs :This drove away customers, forcing
the pumps to go dry.

19. COMPETITORS ANALYSIS
COMPETITIVE ANALYSIS
Company Sales Current Change (%) P/E Ratio Market 52-Week
Price Capitalization High/Low
(Rs.Million)
(Rs.Million)
Reliance Industries 9033500.00 807.85 0.10 14.10 2612464.02 902/671
Indian Oil Corp. 4345085.70 261.75 0.56 0.00 635516.56 308/239
Reliance Petroleum 0.00 130.85 0.00 700.98 588825.00 132/128
BPCL 2119729.70 336.40 -0.46 0.00 243245.54 395/230
MRPL 537702.76 65.10 1.88 30.32 114094.18 75/50
HPCL 1795123.60 300.20 0.55 0.00 101655.90 357/239
Essar Oil 479053.30 65.15 4.16 0.00 88973.21 87/45
Chennai Petrol. Corp 408078.60 129.80 0.46 0.00 19328.70 199/117

21. CONCLUSION
Largest private sector company in India.
Refining Life Redefining Growth
Reliance petroleum opened its own retail outlets with a huge investments
of Rs 5000 crore at various places across India. But suddenly it announced
to close down all of its retail outlets
Fortune 500 listed company.
To harness an emerging value creation opportunity in the global refining
sector

22. CHANDRA PRAKASH SINHA
THANK YOU ALL