A Project on MUKESH DHIRUBHAI AMBANI RELIANCE GROUP S Y BMS
2 ND Group ( 2009 )
3 RD Sem M . D . A . Reliance Group
NAME OF MEMBERS & ROLL NO :
Shriniwas Pandey 31 Suvidny Patil 35 Sachin Singh 17 Ravindra Yadav 18 Motilal Maurya 20 Bing Benjamin 21 YasinSheikh 22
Sub:
Strategic Management. Submitted To : Prof . Geeta Gangwani.
Reliance Industries Limited Type Founded Headquarters Key people Industry Products
Public (NSE: RELIANCE) 1966 As Reliance Commercial Corporation Navi Mumbai , India Mukesh Ambani, Chairman & Managing Director Oil Conglomerates Petroleum and Petroleum Products Retail Stores Polymers Polyesters Chemicals Textile
Revenue
Rs . 150 , 771 Crore $29 . 7 billion ( FY09 ) ▲ 8 . 3 % from FY08
Operating income
Rs . 23 , 395 Crore US$ 4 . 6 billion ( FY09 )
Net income
Rs . 15 , 607 Crore US$ 3 . 1 billion ( FY09 ) ▲ 2 . 3 % from FY08
Total assets
US$ 43 . 61 billion ( 2007 )
Total equity
US$ 21 . 31 billion ( 2007 )
Employees
~ 48 , 000 ( 2008 )
About Us … 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 US$ 30 billion . The flagship company , Reliance Industries Limited , is a Fortune Global 500 company and is the largest private sector company in India .
Dhi Founde rubhai H. A m r Chai rman Rbani elianc Gr Decemb e er 28, oup 1932 July 6 2002 ,
Subsidiaries
Ltd
Major Subsidiaries & Associates Refinery Reliance Petroleum Reliance Retail ( R R L ) Reliance Global Management Services ( P ) Reliance Biopharmaceuticals Ranger Farms Ltd Reliance Engineering Associates ( P ) Ltd Reliance Oil & Gas Find Petrochemicals Business
Refinery Jamnagar Refinery The Jamnagar Refinery is a private sector crude oil refinery owned by Reliance Industries Limited in Jamnagar, India. The refinery was commissioned on 14 July 1999 with an installed capacity of 661 , 000 barrels per day ( 105 , 100 m³ / d ). It is the largest greenfield refinery in the world . 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 .
Reliance Petroleum
Reliance Petroleum Limited was set up by Reliance Industries Limited ( RIL ), one of India's largest private sector companies . Currently , RPL is subsidiary of RIL . RPL also benefits from a strategic alliance with Chevron India Holdings Pte Limited , Singapore, a wholly owned subsidiary of Chevron Corporation USA ( Chevron ), which currently holds a 5 % equity stake in the Company . Refining activities of Reliance Industries Limited are carried out at the Jamnagar refinery complex with refining capacity of 27 million tonnes per annum ( 540 , 000 barrels per day ). The refinery is able to process a wide variety of crudes- from very light to very heavy ( from 18 to 45 degree API) and from sweet to very heavy ( with sulphur content from 0 to 4 . 5 %). With an annual crude processing capacity of 580 , 000 barrels ( 92 , 000 m 3 ) per stream day ( BPSD ), RPL will be the sixth largest refinery in the world . The polypropylene plant will have a capacity to produce 0 . 9 million metric tonnes per annum .
Reliance Retail
( RRL )
Reliance Retail is the retail business wing of the Reliance business . Many brands like Reliance Fresh , Reliance Footprint , Reliance Time Out , Reliance Digital , Reliance Wellness , Reliance Trendz , Reliance Autozone , Reliance Super , Reliance Mart , Reliance i Store , Reliance Home Kitchens , and Reliance Jewel come under the Reliance Retail brand . Reliance Retail continues to consolidate its presence and operations with more than 900 stores in over80 cities where it is operational today . E - Office Planet Private Limited , Reliance ’ s joint venture with Office Depot has expanded its footprint across India for better serving its customers .
Reliance Global Management Services ( P ) Reliance Global Services Pvt Ltd is one of the fast growing Limited
IT solutions and services provider with offices in USA , Hyderabad India , delivering best - in - class services to help clients reduce costs , enhance organizational flexibility , and improve business and IT performance . We have proven capabilities across various industry verticals . Our wide spectrum of solutions and services encompass ERP specialized in SAP Custom application development , Application maintenance and support , Management - consulting services through Contract staffing enabled with in - house competency development . Reliance Global management team comprises of ace professionals , each with years of managerial experience , rich industry knowledge and multidimensional skills . They form a formidable think tank with their industry knowledge , understanding of client requirements , processes and key client backgrounds
Reliance Biopharmaceuticals Reliance Life Sciences ( Rabale , India ), a Reliance Industries subsidiary , says it is building a protein manufacturing facility at the Dhirubhai Ambani Life Sciences Center at Rabale , near Mumbai . The company will invest more than Rs9 billion ( $200 million ) to build the complex , which will be Reliance's first such facility . It will use mammalian cell and microbial fermentation technology to produce proteins . Completion is due at year - end , and FDA validation is expected to follow eight months later . The protein plant will have initial capacity for 10 , 000 liters of mammalian cell culture and 1 , 000 liters of microbial cell culture .
Ranger Farms Limited Ranger Farm : Reliance Fresh to become a separate entity Reliance Industries is likely to turn their consumer retail project Reliance Fresh into a separate entity . It could be added to the Ranger Farm brand name . This particular division of the company deals in food , fruits and vegetables and consumer products . Economic Times quoted a market source : “ Thing are changing every minute in Reliance Retail . Though Ranger Farm has been created , we can ’ t say for sure if the same would happen with the other verticals . But the logical thing would be to hive them off as well .”
Reliance Engineering Associates ( P ) Limited .
Reliance Engineering Associates Private Limited ( REAL ) is a Reliance Group Company dedicated to Engineering procurement and construction of various projects in both reliance group companies and other industries . Our services include part design for molding , mold design , prototype and production tooling , pre - production prototyping , and full - scale manufacturing of precision thermosplastic and thermoset plastic parts . These parts are used in a wide range of demanding and critical end - use applications . Building on this core expertise , Reliance Engineering provides contract manufacturing services for original equipment manufacturers . This service includes procurement to rigid specifications and build - to - printassembly of low to moderate volume products .
Reliance's Oil & Gas Find
In 2002 , Reliance found natural gas in the Krishna Godavari basin off the coast of Andhra Pradesh near Vishakapatnam. It was the largest discovery of natural gas in world in financial year 2002 - 2003 . On 01 April 2009 , Reliance Industries ( RIL ) commenced natural gas production from its D - 6 block in the Krishna - Godavari ( KG ) basin . The gas reserve is 7 trillion cubic feet in size . Equivalent to 1 . 2 billion barrels ( 165 million tonnes ) of crude oil, but only 5 trillion cubic feet are extractable . On 2008 Oct 8 , Anil Ambani 's Reliance Natural Resources took Reliance Industries to the Bombay High Court to uphold a memorandum of understanding that said RIL will supply the natural gas at $2 . 34 per million british thermal units to Anil Ambani .
etrochemicals Business Polymer ( PP , PE and PVC ) production volumes decreased by 9 % to 3 , 076 KT . Production was lower primarily on account of planned shutdown of Polypropylene ( PP ) plant at Jamnagar in October 2008 to improve product swing capability and yield . RIL produced 1 , 755 KT of ethylene and 696 KT of propylene , a decrease of 7 % each over the previous year primarily due to lower Propane cracking . Polyester ( PFY , PSF and PET ) production volume decreased by 2 % to 1 , 534 KT . RIL has maintained its focus on specialty products which account for 55 % of PSF and 38 % of PFY production . RIL ’ s fibre intermediates ( PX , PTA and MEG ) production decreased by 3 % to 4 , 583 KT during the year . Revenue for the petrochemicals segment for the year decreased marginally from Rs 53 , 000 crore toRs . 52 , 767 crore ( US$ 10 . 4 billion ).
BCG Matrix :
Placing products in the BCG matrix results in 4 categories in a portfolio of a company : Stars (= high growth , high market share )
- use large amounts of cash and are leaders in the business so they should also generate large amounts of cash . - Frequently roughly in balance on net cash flow . However if needed any attempt should be made to hold share , because the rewards will be a cash cow if market share is kept . Cash Cows (= low growth , high market share ) - Profits and cash generation should be high , and because of the low growth , investments needed should be low . Keep profits high - Foundation of a company
BCG Matrix : Dogs (= low growth , low market share ) - avoid and minimize the number of dogs in a company . - beware of expensive ‘ turn around plans ’. - deliver cash , otherwise liquidate Question Marks (= high growth , low market share ) -have the worst cash characteristics of all , because high demands and low returns due to low market share -If nothing is done to change the market share , question marks will simply absorb great amounts of cash and later , as the growth stops , a dog . -Either invests heavily or sell off or invest nothing and generate whatever cash it can . Increase market share or deliver cash
Positioning Of The Company ’ s In The BCG Matrix : (STAR) Jamnagar Refinery :
Reliance Global
Management Services :
Positioning Of The Company ’ s In The BCG Matrix : (STAR)
Reliance Engineering Associates ( P ) Ltd :
Reliance Retail :
Positioning Of The Company ’ s In The BCG Matrix : (QUESTION Reliance MARK) Petroleum :
Positioning Of The Company ’ s In The BCG Matrix : (CASH COWS) Reliance Oils & Gas :
Biopharmaceutical s:
Ranger Farms Ltd :
Positioning Of The Company ’ s In The BCG Matrix : (DOGS) Petrochemicals :
•R ELIANCE G LOBAL
M ANAGEMENT S ERVICES :
Justification : ( STAR ): JAMNAGAR REFINERY: The rating on Reliance Industries Ltd . reflects the company's global scale of integrated operations with a strong competitive position in its core petrochemical and oil refining business and intermediate financial risk profile .
RELIANCE GLOBAL
MANAGEMENT SERVICES :
In The Scenario Of Reliance Global Management Services Has Achieved A Considerable Position In The World Market . Besides All These Factors A High Investment And Growth Rate Is Being Procured .
Justification : RELIANCE ENGINEERING ASSOCIATES ( P ) LTD : Reliance engineering associates ( p ) ltd has not been in form of providing lot of amount as per current base; hence it needs lot of amount to stand the business.
R ELIANCE R ETAIL : Reliance Retail is the retail business wing of the Reliance business having high growth rate and high market share . They are not for long term investment but they generated cash for the organization
Justification : ( QUESTION MARK ) RELIANCE PETROLEUM LTD : In the current reliance market condition , this is something equalizing to high growth rate and low or optimum investment .
( CASHCOWS ) R ANGER F ARMS LTD : Ranger Farm deals in food , fruits and vegetables and consumer products hasn't acheived a dominant market position , that's what don't generate much cash . We need much cash because things are changing every minute in Reliance Retail of the market conditions to stand the firm rigidly . low growth and high investment is primarily observed .
Justification : ( QUESTION MARK ) RELIANCE BIOPHARMACEUTICALS : Reliance Biopharmaceuticals is providing world-class therapies and recombinant biopharmaceuticals for the treatment of both acute and chronic diseases in European market. This requires focused efforts at keeping large amount of cash to grow their market share.
RELIANCE OILS & GAS : Krishna - Godavari ( KG ) D - 6 block is amongst the five largest deepwater gas projects globally . It was the largest discovery of natural gas in world in financial year 2002 - 2003 . Gas production is expected to transform India ’ s energy landscape having low growth rate and is expected to double market share the current level of indigenous gas production .
Justification : ( DOGS ) PETROCHEMICALS : Revenue for the petrochemicals segment for the year decreased marginally from Rs 53 , 000 crore to Rs . 52 , 767 crore ( US$ 10 . 4 billion ). According to recession period their low market share in a highly low growth market .
S.W.O.T. Analysis : STRENGTHS ADVANCED TECHNOLOGY STRONG R & D BASE CAPACITY UTILISATION
OPPOURTUNITIES GROWING MARKET POLITICAL STABILITY STRONG CIRRENCY
WEAKNESS NO INNOVATIVE PRODUCTS LACK OF PATENT PROTECTION OPERATIONAL INEFFICIENCY
THREATS SUBSTITUTE PRODUCTS TRADE BARRIERS HIGH COST OF FUNDS
AUTOBIOGRAPHY OF Born April 19, 1957 (1957-04-19) (age 52) Colony of Aden, Aden Protectorate (now MUKESH D. AMBANI Yemen) Residence Nationality Ethnicity Occupation Net worth
Bombay, India Indian Gujarati Chairman, Managing Director of Reliance Industries ▼ US$19.5 billion (2009)
Religious beliefs(s) Spouse Children
Hindu Nita Ambani Isha, Anant and Akash
MUKESH AMBANI Mukesh Ambani ( born on April 19 , 1957 in Aden , Yemen) is a Indian engineer and businessman. He is the chairman, managing director and the largest shareholder of Reliance Industries, India 's largest private sector enterprise and a Fortune 500 company . His personal stake in Reliance Industries is 48 % . His wealth is valued at Rs . 196000 crores ( INR ) ( according to Forbes ), making him the wealthiest Indian in the world , the wealthiest man in Asia and the world's 7th wealthiest person . Mukesh and his younger brother Anil are sons of the late founder of Reliance Industries , Dhirubhai Ambani . Mukesh also owns the Indian Premier League team Mumbai Indians .
Education Mukesh holds a Bachelor of Chemical Engineering degree from the University of Mumbai , Department of Chemical Technology ( UDCT , now ICT ). He began the MBA program at Stanford Business School .
CAREER Mukesh Ambani joined Reliance in 1981 and initiated Reliance's backward integration from textiles into polyester fibres and further into petrochemicals . He directed and led the creation of the world's largest grassroots petroleum refinery at Jamnagar, Gujarat, India, with a present capacity of 660 , 000 barrels per day ( 105 , 000 m³ / d ) ( 33 milliontonnes per year ) integrated with petrochemicals , power generation , port and related infrastructure , at an investment of Rs 100000 crore ( nearly $26 billion USD ). He is about to inaugurate his second refinery in Motikhavdi , Jamnagar soon .
Achievements Ambani ( Right ) With Ratan Naval Tata And U . S . Secretary Of State Hillary Rodham Clinton
Chosen the businessman of the year 2007 by a public poll in India conducted by NDTV Conferred the United States - India Business Council ( USIBC ) leadership award for " Global Vision " 2007 in Washington . Ranked 42nd among the World's Most Respected Business Leaders and second among the four Indian CEOs featured in a survey conducted by Pricewaterhouse Coopers and published in Financial Times, London , November 2004 . Conferred the World Communication Award for the Most Influential Person in Telecommunications in 2004 by Total Telecom, October , 2004 .
Personal Life Mukesh likes to visit Kruger National Park in South Africa. The latest item in his portfolio is cricket . He owns the Mumbai Indians team . His bid of $111 . 9 million dollars pipped Vijay Mallya 's chances of owning the team . Vijay Mallya 's bid was of 111 . 6 million dollars . He is married to Nita Ambani .
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