AN OVERVIEW OF RELIANCE INDUSTRIES LIMITED
AN OVERVIEW OF RELIANCE INDUSTRIES LIMITED
Puja Bhardwaj | The CEO Magazine
India’s largest private sector company, Reliance Industries has evolved from being a textiles and polyester company to an integrated player across energy petrochemicals, textiles, natural resources, retails and telecommunications and operates world-class manufacturing facilities across the country. Reliance’s products and services portfolio touches almost all needs of people on a daily basis, across economic and social spectrums.
Reliance Industries Limited is headquartered in Mumbai and is growing under the leadership of Mukesh Ambani, the son of late Dhirubhai Ambani and elder brother of Anil Ambani after the division of the family business among the two brothers.
Reliance Group is a conglomerate holding company in India that has a wide portfolio of business and is the highest taxpayer in the Indian Private Sector. It accounts for over 5% of the Indian Government’s revenues and almost 8% of the total merchandise exports from India. RIL was the first Indian company to breach $100 billion market capitalization in 2007 and 2019 it has become the first Indian firm to cross Rs 9 lakh crore market valuation marks. The company has ranked 106th on the Fortune Global 500 list of the world’s biggest corporations as of 2019.
Today, Reliance Group is touching the sky of success under the excellent guidance of Mukesh D. Ambani. He has been the part of Reliance Board since 1977. He has begun the backward integration journey of Reliance – from textiles to polyester fibers and further into petrochemicals and petroleum refining and going upstream into oil and gas exploration and production. Mukesh Ambani has introduced numerous top -class manufacturing facilities backed by modern technologies; these have raised Reliance’s petrochemicals manufacturing capacities. Mukesh is armed with a graduation degree in Chemical Engineering from the Institute of Chemical Technology and an MBA from Stanford University in the US.
The only woman in the top set, Mukesh Ambani’s wife Nita Ambani is on the Board of Reliance Industries Limited. Presently, she is the Founder & Chairperson of Dhirubhai Ambani International School and providing leadership to 14 schools that educate 16,000 students every year. She is the leading lady of Mumbai Indians cricket franchise. Besides, Nita plays a larger role in RIL than is widely perceived. She was in the focus in 2010, while buying East India Hotels. Nita has also been actively involved in the retail operations of the group. In academics, Nita Ambani is a Commerce Graduate from Mumbai University and a Diploma Holder in Early Childhood Education.
In board of directors, the company has Hital R. Meswani, Nikhil R. Meswani, P.M.S. Prasad, P.K. Kapil, R.A. Mashelkar, Adil Zainulbhai, Dipak C. Jain, Yogendra P. Trivedi, Raminder S. Gujral, Shumeet Banerji, Arundhati Bhattacharya, and K. V. Chowdary.
The foundation of Reliance Group was taken by Shri Dhirubhai Ambani in 1966 as a small textile manufacturer unit. It was incorporated in 1973 and conformed its name as Reliance Industries in 1985. Over the years, the company has amazingly transformed the business from the manufacturing of textile products into a petrochemical filed.
In the year 1979, it has set up texturizing facilities and Polyester Staple Fiber in 1986, Linear Alkyl Benzene and Purified Terephthalic Acid in 1988 and Hazira Petrochemical plant in 1991-92.
In 1993, Reliance turned to overseas capital markets for funds through a global depositary issue of Reliance Petroleum in 1996.
During 1995-96, the company took the initiative to create its market in the telecom industry and started with a joint venture with NYNEX, USA. This deal makes Reliance as the first corporate in Asia to issue bonds in the US at the year of 1996-97.
In the next years, the company took another big step and introduced packaged LPG in 15 kg cylinders under the brand name Reliance Gas. In 1998–2000, the construction of the largest refinery of the world, the integrated petrochemical complex at Jamnagar started in Gujarat.
In the year 2001, the company saw its golden moment when Reliance Industries Ltd and Reliance Petroleum Ltd. became India’s two largest companies with different financial parameters. Later in the same year, Reliance Petroleum was merged with Reliance Industries.
Following years, RIL earned another milestone after announcing the biggest gas discovery of the country at the Krishna Godavari basin. It was first ever discovery by an Indian private sector company and one of the largest gas discoveries in the world during 2002.
Within a year, Reliance bought a majority stake in India’s second-largest petrochemical company, Indian Petrochemicals Corporation Ltd. In 2008, PCL was merged with RIL.
In the year 2005, the company demerged its investments in power generation and distribution, financial services and telecommunication services into four separate entities. Next year, it introduced ‘Reliance Fresh’(retail store format) entered the organized retail market in India.
In 2010, Reliance acquired Infotel Broadband Services Limited to enter the broadband services market. In the same year, it did a partnership with BP in the oil and gas business. In 2017, RIL set up the Butyl rubber plant in Jamnagar, Gujarat by doing a joint venture with Sibur, a Russian Company.
SUBSIDIARIES OF RELIANCE GROUP
Today, RIL has over 30 lakh shareholders; the Ambani family holds nearly 52% of the total shares. Also, the company has over 24,000 employees and had revenue of Rs. 2,960 billion in 2015-16. It has 158 subsidiary companies and 10 associate companies in different fields.
The largest retail store network of India, Reliance Retails holds several cutting edge brands like Reliance Fresh, Reliance Wellness, Reliance Time Out, Reliance iStore, Reliance Market, Reliance Trends, Reliance Jewel, and many more. In the year 2013, it has over 1466 stores.
RELIANCE LIFE SCIENCES
It deals in medical, plant and industrial biotechnology opportunities. The specialty areas of this segment include making, marketing and branding the products of RIL in pharmaceuticals, clinical researches, molecular medicine, biofuels, industrial biotechnology, and few others.
A great imitative by Reliance Industries, Relicord is working to bring advancement in the biotechnological industry. It is licensed by the Food and Drug Administration, Government of India. Relicord is the first to have a registered cord blood bank and repository in the entire region of Southeast Asia.
RELIANCE INSTITUTE OF LIFE SCIENCE
A famous educational institution, Reliance Institute of Life Science offers higher learning in different domains of life sciences and related technologies. It was established by the Dhirubhai Ambani Foundation and now has become a pioneer in offering graduate, post-graduate, doctoral, research and many other education programs.
RELIANCE JIO INFOCOMM LIMITED
Reliance Jio Infocomm Limited is an important part of Reliance Group; it is a broadband service provider. This is the sixth-largest mobile network operator in the whole world with over 306 million subscribers. Earlier the company was known as Infotel Broadband.
Reliance Logistics is an important win of Reliance Group; it is involved in the selling of products related to distribution, warehousing, supply chain, logistics, and transportation. It is an asset-based company with its infrastructure and fleet. It offers supply for logistics to the RIL and also other third party companies.
RELIANCE CLINICAL RESEARCH SERVICES
Reliance Clinical Research is a contract research organization and specialized in the clinical research services industry. This is a wholly-owned subsidiary of Reliance Life Sciences.
Reliance Solar deals in solar energy; it produces and sells solar energy systems to remote and rural areas. It presents a wide variety of products like solar lanterns, home lighting solutions, street light systems, water purifying system and many other products based on solar energy.
RELIANCE INDUSTRIAL INFRASTRUCTURE LIMITED
Reliance Industrial Infrastructure holds about 45.43 percent shares of Reliance Group. It is mainly involved in establishing and operating industrial infrastructure. RII also works for leashing and providing services in data processing and computer software.
LYF is an Indian mobile handset company; it manufactures 4G-enabled VoLTE smartphones. This is the subsidiary of Reliance Retails and runs with the parent company’s flagship venture, Jip. As per the data of Counterpoint Research, LYF has become the fifth-largest smartphone player and the second largest LTE phone supplier in the country.
A renowned mass media company, Network 18 is also the subsidiary of Reliance Group. It has diversified activities in different segments like digital platforms, films, mobiles and also television. It has acquired the ETV network and also has some joint ventures namely History TV18, Viacom 18.
RELIANCE EROS PRODUCTIONS LLP
Reliance Group has touched all segments of business, and the film industry is not an exception. Reliance Eros Productions is involved in producing file content in India. This is a jointed venture with Eros International.
Growth is Energy – Growth is Value – Growth is Happiness – Growth is Life.
Reliance Group is focused on positively touching the lives of people. Further, the company believes in inclusive growth as a universal concept and conducts its business following the same.
The mission of the Reliance Group is to continue to flourish as a responsible organization and enrich the lives of those around it. It will also work to undertake social initiatives in education, social security, healthcare, skill enhancement, and community infrastructure.