PPM PROJECT

CASE STUDY ON RELIANCE INDUSTRIES LIMITED

Submitted to : Submitted by :

Dr. Arun Agaria sir (2019 BCS)

1. Nalam Anunay( 034 )

2. Dasari Jayanth ( 016 )
3. Chaithanya Reddy ( 014 )
4. Nithin Kumar Reddy ( 033 )
5. Sai Kiran ( 037 )
6. Bommisetty Mahesh ( 013 )
RELIANCE AT GLANCE:
Realising India’s aspirations:
RIL is India’s largest and most
profitable private sector company. RIL
continued to be a significant global
player in the integrated energy value
chain while establishing leadership
positions in the retail and digital
services business in India. RIL is now
focussed on building platforms across
its industry-leading businesses that will herald the Fourth Industrial Revolution
and will create opportunities for the nation to realise its true potential.
RELIANCE IN DAILY LIFE:
Business verticals
REFINING AND MARKETING
• Consolidated Turnover:₹3,93,988 cr (FY 2018-19)
• Consolidated Profit After Tax:₹19,868 cr( FY 2018-19)

PETROCHEMICALS
• Consolidated Turnover:₹1,72,065 cr cr (FY 2018-19)
• Consolidated Profit After Tax: ₹32,173 cr( FY 2018-19)

OIL AND GAS (E&P)

• Consolidated Turnover:₹5,005cr (FY 2018-19)
• Consolidated Profit After Tax:₹1379cr( FY 2018-19)

RETAIL
• Consolidated Turnover:₹1,30,566cr (FY 2018-19)
• Consolidated Profit After Tax:₹5,546cr( FY 2018-19)

DIGITAL SERVICES
• Consolidated Turnover:₹46,506 cr (FY 2018-19)
• Consolidated Profit After Tax:₹8,784 cr ( FY 2018-19)

MEDIA AND ENTERTAINMENT

• Consolidated Turnover:₹5,116 cr (FY 2018-19)
• Consolidated Profit After Tax:₹52cr( FY 2018-19)
1. REFINING ANDMARKETING:
The Jamnagar manufacturing division is the world's largest refining hub. The
entire refining complex was built in a record time at globally competitive
capital costs – in fact, at costs much lower than comparable refineries around
the world. Its scale, design, flexibility, level of automation and degree of
integration heralded the way refineries of the future would be built. The speedy
growth of the complex lies at the heart of India's transformation. It has
transformed India from being a net importer of petroleum products to a net
exporter, thereby ensuring the nation's energy
security.
With crude processing capacity of 1.24
million Barrels Per Stream Day (BPSD), the
Jamnagar refinery is a trendsetter and has won
several awards, including the prestigious
'International Refiner Of The Year' award. It
also enjoys the distinction of housing some of
the world's largest units, such as the Fluidised
Catalytic Cracker (FCC), Coker, Alkylation,
Paraxylene, Polypropylene, Refinery offgas
(ROG) cracker and Petcoke gasification plants.
Fuels from Jamnagar refinery are exported to several countries across the
world. This complex refinery is future ready and can produce gasoline and
diesel of any grade. Reliance also has another refinery – the sixth largest in the
world – in the Special Economic Zone at Jamnagar. This refinery has a
capacity for processing 580,000 BPD of crude.
Key Components of the R&M Business Model
Reliance's technical, operational and logistic strengths act as the fulcrum to
leverage its refineries' asset utilisation and optimisation, the key components of
the R&M business model. These strengths, coupled with our highly integrated
plants and automated processes, augment our R&M business's operating
efficiencies. Moreover, our refineries are strategically located on the west coast
of India, offering the benefits of low transportation costs for feedstock and
proximity to high-growth markets.
The goal of R&M business is to deliver industry leading returns and be
a source of medium-term growth, while focusing on health, safety and
environment.
AssetAdvantage
 High production capacity ensures
industry leading capital per barrel
 Dedicated marine facility, giving
access to the world's largest crude
and product vessels.
 Scale of operations and energy
efficiency ensure the lowest
operating costs, globally.
AssetOptimisation
 Reliance's integrated Supply and Trading team works real-time with the
refinery operations to optimise asset utilization
 Ability to process all grades of crude oil and meet the increasingly
differentiated and more demanding product specifications.
Products:
Our refinery at Jamnagar processes a wide variety of crude oils and produces
a range of petroleum products for exports as well as supply in the Indian
market.

PRODUCTS APPLICATIONS

Liquefied Petroleum Gas (LPG) Domestic and industrial fuel

Propylene Feedstock for polypropylene
Naphtha Feedstock for petrochemicals
Gasoline Transport fuel
Jet /Aviation Turbine Fuel Aviation fuel
Superior Kerosene Oil Domestic fuel
High-Speed Diesel Transport fuel
Sulphur Feedstock for fertilizers and pharmaceuticals
Petroleum Coke Fuel for power plants and cement plants

PERFORMANCE:
2.PETROCHEMICALS:
Reliance Petroleum Limited is a company owned by Reliance Industries
limited (RIL), one of India's largest private sector companies. It is based
in Ahemhedabad and has interests in the downstream oil business. RPL also
benefits from a strategic alliance with Chevron India Holdings Private Limited
(Singapore), a wholly owned subsidiary of Chevron Corporation USA
(Chevron), which currently holds a 5% equity stake in the Company.
Reliance Petroleum and RIL own / have long term chartered two oil
rigs - DD KG-1 and DD KG-2 (DD standing for Dhirubhai Deepwater). They
are both drilling ships registered in Marshall Islands and owned by Deepwater
Pacific Inc., a subsidiary of Transocean.
With an annual crude processing capacity of 1,240,000 barrels (197,000 m3)
per stream day, RPL is the largest refinery in the world. It will have a
complexity of 14.0, using the Nelson Complexity Index, ranking it one of the
highest in the sector. The polypropylene plant will have a capacity to produce
0.9 million metric tonnes per annum.
The refinery project is being implemented at a capital cost of Rs 270,000
million being funded through a mix of equity and debt. This represents a capital
cost of less than US$10,000 per barrel per day and compares very favourably
with the average capital cost of new refineries announced in recent
years. The International Energy Agency(IEA) estimates the average capital cost
of new refinery in the OECD nations to be in the region of US$15,000 to
20,000 per barrel per day. The low capital cost of RPL becomes even more
attractive when adjusted for high complexity of the refinery.
PERFORMANCE:

2. Oil and Gas Exploration & Production:

The Company’s oil and gas assets include KG D6, Panna- Mukta, Tapti and
two CBM blocks. RIL also has two joint ventures in North American shale
plays – Pioneer Natural Resources and Chevron.

Vision:Towards energy security for the nation

Mission:Our mission is to maximise

stakeholders' value by finding, producing
and marketing hydrocarbons and to provide
sustainable growth while catering to the
needs of customers, partners, employees and
the local communities in which we do
business. We will conduct our business in a manner that protects the
environment as well as the health and safety of our employees, contractors and
the local communities in which we do business.
Product flow chart:
4.RETAIL:
Reliance Retail became the first retailer in India to cross the `1,00,000 crore
turnover milestone and is now ranked 94th in Deloitte’s Global Powers of
Retailing 2019 list. Reliance Retail also crossed the 10,000 store count
milestone. It has cemented its position as India’s largest retailer by revenue and
profitability, delivering superior value to its customers, suppliers and other
stakeholders.

Reliance Retail’s revenue growth in FY 2018-19 was primarily driven by

aggressive store addition and spurt in same-store sales. Growing at a rate
ofnearly 10 stores per day in the last two years, Reliance Retail witnessed one
of the fastest store expansions in the world. It added a total of 2,829 stores to its
tally during FY 2018-19. As on March 31, 2019, Reliance Retail operated
10,415 retail stores in over 6,600+ towns and cities, covering 22 million sq. ft.
of area.

VISION:To be the most admired and successful organised retail company in

India that enhances the quality of life of every Indian.

MISSION:Provide millions of customers with unlimited choice, outstanding

value proposition, superior quality and unmatched experience across the full
spectrum of products
andservice

 Serve the entire spectrum of Indian society i.e., from households, kiranas
and traders, to small and medium enterprises and large corporations
 Reach the length and breadth of the country through our physical and
digital distribution platforms
 Generate direct and indirect employment opportunities with skill
transformation and talent development on an unprecedented scale
PERFORMANCE:

5. DIGITAL SERVICES:
Jio added an average 10 million subscribers a month and crossed the 300
million subscriber milestone this year to become the world’s fastest growing
digital services company. Jio has not only revolutionised India’s
telecommunication industry but also digitised its hinterlands through its
extensive network penetration. Recently, Jio was recognised for its
meaningful impact by being ranked #1 globally on Fortune’s 'Change the
World' list. The ranking evaluates companies that use the profit motive to
help the planet and make an important social impact.
 The phenomenal level of customer engagement on Jio’s platform is
evident from the fact that over 3 exabytes per month of data is carried on its
wireless network. Every Jio subscriber consumes on an average 10.9 GB data,
823 minutes of voice calls and 17 hours of video per month. In CY 2018, Jio
carried close to 71% of the total 4G traffic of India.
It has also entered into a series of content partnerships with Disney and Star
India, among others, to provide best-in-class content to its subscribers.
 Wireline network connectivity in India continues to remain underserved.
Jio is working towards serving the need for better connectivity with its
GigaFiber services. This would include home broadband, entertainment and
smart home IoT solutions. Jio, with its FTTH services, has set a target to
connect 50 million homes across the country. To accelerate Jio’s commitment
to connect 50 million homes with Jio’s solutions, RIL has made strategic
investments in Hathway Cable and Datacom Limited and DEN Networks
Limited.

VISION: To connect everyone and everything, everywhere – always at the

highest quality and the most affordable price. Jio’s vision is to transform India
with the power of digital revolution
MISSION:
 Connectivity for every Indian
 Superior customer experience
 Affordable data
 Best-in-class fixed-line solutions platforms

PERFORMANCE:
6.MEDIA AND ENTERTAINMENT:
Network18 is a media and entertainment powerhouse with its foothold in
television, filmed entertainment, digital business, magazines, mobile content
and allied businesses.

VISION AND MISSION:

Network18 aims to be a channel-agnostic provider of top-drawer content,
across genres, regions and languages. We aim to be India’s top media house
with unparalleled reach, and touch the lives of Indians across geographies and
genres

PERFORMANCE:
Reliance Share Price:

PRESENT(01/04/2020) CONSOLIDATED
VALUATION:
KEY PERFORMANCE INDICATORS:
Market Capitalisation : ₹8,63,996 crore(FY:2018-19)

Consolidated Turnover: ₹6,22,809 crore(FY:2018-19)

Consolidated Profit After Tax:₹39,588cr(FY:2018-19)

VALUE ADDED (CONSOLIDATED):

Value added is defined as the value created by the activities of a business and
its employees
Balance Sheet Consolidated Figures in Rs. Crores :
Profit & Loss Consolidated Figures in Rs. Crores:
Cash Flows Consolidated Figures in Rs. Crores
Financial Ratios(consolidated):
CAPITAL STRUCTURE:
DIVIDEND SUMMARY:
For the year ending March 2019 Reliance Industries has declared an equity
dividend of 65.00% amounting to Rs 6.5 per share. At the current share price of
Rs 1219.95 this results in a dividend yield of 0.53%.
The company has a good dividend track report and has consistently declared
dividends for the last 5 years.
BONUS SUMMARY:
The last bonus that Reliance Industries had announced was in 2017 in the
ratio of 1:1. The share has been quoting ex-bonus from September 07, 2017.

LATEST BOARD MEETINGS:

Peer comparison Sector: Refineries // Industry: Refineries
GOVERNANCE AND SAFETY:
Reliance’s governance standards are built on the foundation of systems that
support transparency and ethical business conduct. In an effort to strengthen
risk management and internal controls, Reliance instituted the Reliance
Management System (RMS), designed to operationalise a harmonious work
culture by codifying and embedding standardised processes into the DNA of
every function. RMS has been further strengthened by leveraging the power of
digitised platforms.

SUSTAINABILITY:
Reliance group was committed to making continuous improvements across
the triple bottom line and enabling positive change in the society. Our ability to
manage, utilise and transform the six capitals – Natural Capital, Human
Capital, Manufactured Capital, Intellectual Capital, Financial and Social and
Relationship Capital – is the key to creating value for our stakeholders. In our
continued pursuit of excellence, noteworthy capital investments were
undertaken, which led to reduction of carbon emissions and enhancement of
resource efficiency. We are committed to becoming a leader in the emerging
circular economy and becoming one of the largest recyclers of plastics in
India.
AWARDS AND ACCOLADES:
RELIANCE FOUNDATION:
Reliance Foundation was
instituted with a vision to build a
stronger and inclusive India. CSR
activities of RIL are carried out
under the umbrella of Reliance
Foundation. Led by Smt. Nita M.
Ambani, Reliance Foundation has a comprehensive approach towards the
nation's development. With the aim of building better lives and improving the
livelihood of the people for a stronger and inclusive India, the Foundation
addresses some of India's most pressing development challenges.

REACHEDTO:
Mukesh Ambani donates additional Rs 500
cr to PM's emergency fund:

Billionaire Mukesh Ambani on 02/04/2020 gave an

additional Rs 500 crore to the Prime Minister Narendra Modi's PM-
CARES Fund on top of the multi-crore initiative of the country's first
COVID-19 hospital as he leads the Indian industry in pledging resources
to fight the crisis.

Ambani's Reliance
Industries said that besides
donating Rs 500 crore to the
the PM-CARES Fund, it will
also provide Rs 5 crore each to
the governments of
Maharashtra and Gujarat to
support their fight against the
coronavirus pandemic

These are in addition to the 100-bedded

dedicated coronavirus hospital in Mumbai,
manufacturing 1 lakh protective face masks per
day, 50 lakh free meals to the needy through non-
governmental organisations (NGOs) and fuel to
emergency vehicles carrying Covid-19 patients.
Scams:
Five main allegations concerning Reliance, and which have plunged the Indian
capital markets into a period of uncertainty unsurpassed since the days of the
securities scam were:

 Reliance issued fake shares.

 It switched shares sent for transfer by buyers to make illegal profits.
 It has indulged in insider trading in shares.
 It established a nexus with the Unit Trust of India to raise huge sums of
money to the detriment of UTI subscribers.
 It attempted to monopolise the private telecom services market through
front companies.

Insider trading
Stock market fraud regulator Securities and Exchange Board of India (Sebi)
issued a show-cause notice to Reliance Industries Ltd. following a probe into
alleged insider trading in Reliance Petroleum Ltd (RPL) shares in November
2007. probed transactions by entities that participated in and led to some three
months of speculative rally after which the RPL stock surged to an all-time
intraday high of Rs295 on 1 November 2007. In a separate and independent
investigation related to the same issue, the income-tax (I-T) department looked
at possible tax evasion by a dozen entities that Mukesh Ambani-owned RIL
acknowledged to be its “agents”.
In Jan 2011, Sebi barred Anil Ambani and four other officials of Reliance
Group—until recently known as the Reliance-Anil Dhirubhai Ambani Group
(R-Adag)—companies from investing in listed shares until December 2011.
Two group firms, Reliance Infrastructure Ltd (R-Infra) and Reliance Natural
Resources Ltd (RNRL) were barred from making such investment until
December 2012. According to Sebi's investigations, R-Infra and RNRL were
prima facie responsible for misrepresenting the nature of investments in yield
management certificates/deposits, and the profits and losses in their annual
reports for the fiscal years 2007, 2008 and 2009. It also found misuse of FII
regulations. The then minister of state for finance NamoNarain Meena, on 1
December 2009, in a written response to a query raised in the Upper House of
Parliament, said that three firms of R-Adag—R-Infra, RNRL and RCom—had
violated overseas debt norms. These end-use violations were observed by the
Reserve Bank of India (RBI) regarding two ECB transactions—of $360 million
and $150 million—by R-Infra.

NICL
The Central Bureau of Investigation (CBI) filed a chargesheet in a Mumbai
court against Reliance Industries Limited (RIL) and four retired employees
of National Insurance Company Limited (NICL), including a former CMD,
under provisions of the Prevention of Corruption Act for criminal conspiracy
and other charges. Acting on a reference from CVC in March, 2005, the CBI
started probing the conspiracy that led to the filing of the chargesheet on
December 9, 2011. The 2005 complaint had alleged irregularities in issuance of
insurance policies — for coverage of default payments — by NICL to RIL.
Chargesheet also mentioned criminal offences with dishonest intention and
causing wrongful loss totaling Rs 147.41 crore to NICL and wrongful gain to
the private telecom provider.
Two retired senior officials of National Insurance Company Limited and 11
others were awarded varying jail terms by a Delhi court in Jan 2014.
RIL plane grounded
A business jet owned by Reliance Industries (RIL) was grounded by The
Directorate General of Civil Aviation (DGCA) on 22 March 2014 during a
surprise inspection, for carrying expired safety equipment on board; its pilot
was also suspended for flying without a licence.
ONGC controversy
In May 2014, ONGC moved to Delhi High Court accusing RIL of
pilferage of 18 billion cubic metres from its gas-producing block in the Krishna
Godavari basin.Subsequently, the two companies agreed to form an
independent expert panel to probe any pilferage.

Krishna Godavari (KG) Basin gas

The Reliance Industries Limited (RIL) was supposed to relinquish 25% of the
total area outside the discoveries in 2004 and 2005, as per the Production
Sharing Contract (PSC). However, the entire block was declared as a discovery
area and RIL was allowed to retain it. In
2011, the Comptroller and Auditor
General of India (CAG) criticized the Oil
Ministry for this decision. The CAG also
faulted RIL for limiting the competition in
contracts, stating that RIL awarded a $1.1
billion contract to Aker on a single-bid
basis.

Petition against Reliance Jio

A PIL filed in the Supreme Court by an
NGO Centre for Public Interest Litigation, through Prashant Bhushan,
challenged the grant of pan-India licence to RJIL by the Government of India.
The PIL alleged that RJIL was allowed to provide voice telephony along with
its 4G data service, by paying an additional fees of just INR16580 million
(US$280 million) arbitrary and unreasonable, and contributed to a loss of
INR228420 million (US$3.8 billion) to the exchequer.
FUTURE PLANS:
 Planed to build Alibaba-like $24-bn e-commerce giant for India
 Invest Rs 70,000 crore for setting up crude-to-chemical projects at
Jamnagar
 Aims to become zero net debt company in next 18 months(from aug 12
2019)
 Bulid mega city at navi Mumbai in 4000 acres following the lines of
Singapore in 10 years(expected investment amount goes to $75 bilion)
 jio fibre
 Reliance Jio First Day First Show

GROWTH IS LIFE….