LOVELY PROFESSIONAL UNIVERSITY

MITTAL SCHOOL OF BUSINESS

ACADEMIC TASK - 3

Course Code: MGN581

Course Title: Management and Organizational Behavior Dynamics

Class: MBA Term: One (Trimester) Section: Q1958

Batch: 2019 -2021

Date of Allotment: 9th Aug 2019

Date of Submission: 30th Aug 2019

Submitted to : Amit Kumar Sharma

Submitted by : Shashank Rana

Regno : 11915092

Roll no : 52
News : Reliance again becomes India's most valued firm
Source : Economic Times
//economictimes.indiatimes.com/articleshow/70740982.cms?utm_source=contentofinterest&utm_medium=text&utm_
campaign=cppst

For my assignment I selected this as a preliminary topic of interest.

Every news aspect related to Reliance Industry was followed for the time and information with
respect to how reliance again became India’s most valued firm was gathered and analyzed
properly.
I will also be covering the history of the organization, products or services it offers and what
management and organizational behavior aspects it has been adopting and using which lead to
the success of reliance industries to being India’s most valuable firm.
Introduction
Reliance Industries Limited (RIL) is an Indian multinational conglomerate company headquartered
in Mumbai, Maharashtra, India. Reliance owns businesses across India engaged in energy,
petrochemicals, textiles, natural resources, retail, and telecommunications. Reliance is one of the
most profitable companies in India, the largest publicly traded company in India by market
capitalization, and the largest company in India as measured by revenue after recently surpassing
the government-controlled Indian Oil Corporation .On 18 October 2007, Reliance Industries became
the first Indian company to breach $100 billion market capitalization.
The company is ranked 148th on the Fortune Global 500 list of the world's biggest corporations as of
2018. It is ranked 8th among the Top 250 Global Energy Companies by Platts as of 2016. Reliance
continues to be India’s largest exporter, accounting for 8% of India's total merchandise exports with
a value of Rs 147,755 crore and access to markets in 108 countries. Reliance is responsible for
almost 5% of the government of India's total revenues from customs and excise duty. It is also the
highest income tax payer in the private sector in India.

Vision

"Growth has no limit at Reliance. I keep revising my vision.

Only when you can dream it, you can do it."
 Dhirubhai H. Ambani
Founder Chairman Reliance Group
December 28, 1932 - July 6, 2002

Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global leader in
the materials and energy value chain businesses. He is credited to have brought about the equity
cult in India in the late seventies and is regarded as an icon for enterprise in India. He epitomized the
spirit 'dare to dream and learn to excel'.
The US$ 20 billion Reliance Group is a living testimony to his indomitable will, single-minded
dedication and an unrelenting commitment to his goals.

Mission
”Growth through Commitments”

We care about :

• Quality
• Research & Development
• Health, Safety & Environment
• Human Resource Development
• Energy Conservation
• Corporate Citizenship

Reliance believes that any business conduct can be ethical only when it rests on the nine core
values of Honesty, Integrity, Respect, Fairness, Purposefulness, Trust, Responsibility, Citizenship
and Caring.
The essence of these commitments is that each employee conducts the company's business with
integrity, in compliance with applicable laws, and in a manner that excludes considerations of
personal advantage.
We do not lose sight of these values under any circumstances, regardless of the goals we have to
achieve. To us, the means are as important as the ends.
Shareholding
The number of shares of RIL are approx. 3.1 billion. The promoter group, Ambani family, holds
approx. 46.32% of the total shares whereas the remaining 53.68% shares are held by public
shareholders, including FII and corporate bodies. LIC is the largest non-promoter investor in the
company, with 7.98% shareholding.
In January 2012, the company announced a buyback programme to buy a maximum of 120 million
shares for ₹104 billion (US$1.5 billion). By the end of January 2013, the company had bought back
46.2 million shares for ₹33.66 billion (US$490 million).

Product mix and services

Reliance Industries

Refining And
Marketing

Petrochemicals

Retail

Telecommunications

Petroleum Refining & Marketing

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. 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).
Petrochemicals
It is our constant endeavour to develop products that provide world-class experiences to our
customers across a range of applications – packaging, agriculture, automotive, housing, and healthcare
among others. Comprehensive solutions such as project identification, new product design, product and
market development, raw material selection and testing – beside a host of 'industry specific' solutions –
have helped us grow into the world's largest integrated producer of polyester fibre and yarn.

Types Of Petrochemicals

•Polymers

•Polyesters

•Elastomers

•Chemicals

•Textiles

Retail
Reliance Retail has grown to cater to millions of customers, and thousands of farmers and vendors.
Reliance Retail serves over 2.5 million customers every week, and its loyalty programme, Reliance One,
has the patronage of more than 6.75 million customers. Reliance Retail has achieved the distinction of
being the largest retailer in the country with core format sectors attaining market leadership in their
respective categories.

Telecommunications
Home to the world’s second largest population of 1.2 billion, India is a young nation with 63% of its
population under the age of 35 years. It has a fast growing digital audience with 800 million mobile
connections and over 200 million internet users. Reliance thoroughly believes in India’s potential to lead
the world with its capabilities in innovation. Towards that end, Reliance envisages creation of a digital
revolution in India with JIO.

APART FROM THESE RELIANCE IS ALSO PROVIDING ITS SERVICES TOWARDS SOCIAL WELFARE , EDUCATION AND
HEALTH.
 RELIANCE IS ALSO VERY SOON GOING TO LAUNCH ITS ALL NEW PRODUCTS LIKE JIO FIBRE, JIO SETUP BOX.
START FOUR MORE ENGINES TO GENERATE REVENUES - INTERNET OF THINGS ALL OVER INDIA, HOME
BROADBAND, ENTERPRISE BROADBAND, BROADBAND FOR SMALL AND MEDIUM BUSINESSES.

News that supports reasons behind the achievement of Reliance

becoming India’s most valuable firm :
1. 12 AUG 2019 - Saudi Aramco and Reliance Industries Sign a Non-Binding Letter of Intent to
Acquire a 20% Stake in the Oil to Chemicals (O2C) Division of Reliance Industries Limited Valued
at an Enterprise Value of US$ 75 Billion.

Short analysis –
• Help the company pay its debt.
• Bolster RIL’s formidable crude sourcing capabilities.
• Long term strategic advantage.
• This stake sale will help RIL accelerate its move towards increasing the share of the
consumer businesses in the overall profit pie.

2. 12 AUG 2019 Jio and Microsoft announce alliance to accelerate digital transformation in India
 Short analysis –

• Will bring enterprise users access to Microsoft’s cloud-based software and hardware
infrastructure via the JioFiber network.
• Boon for India’s start-up space that faces serious threat from global competition or fails due to
lack of innovation.
• Huge profits to the company.
• Diversification of their business.

3. 6 AUG 2019 Reliance and BP to create major world-class fuels partnership for India’s fast
growing market.

Short analysis –
• Venture will incorporate and build on RIL’s current fuel retailing network across India
• Venture is also expected to benefit from access to competitive fuels supplies from RIL’s
Jamnagar refining complex in Gujarat on the west coast of India, the world’s largest refinery
complex.

4. 8 JUL 2019 Kıvanç Tekstil joins hands with Reliance to create a Sustainable Future It will
manufacture and market RIL’s R|Elan GreenGold in Turkey.

Short analysis –

• Arrangement will enable RIL and Kivanc to offer the best quality eco-friendly textile solutions
• Meet the ever-growing demand of environment-friendly apparels.
• Initiative towards saving environment
• Diversification of business
• Creating ties with a market leader

So, by all these news we can very well analyze that reliance industries is working extensively
towards the development of the organization as well as the society, making its way to being
the most valuable company of India.
Also, these aren’t just the only factors responsible for its growth and success.
 Improving management and organizational behavior dynamics also play a key role in its
success.

Some of the news supporting this are-

❖ Reliance Industries ushers in cultural change with HR moves.

 ❖ Change in corporate culture

These small yet significant changes proven to be a key factor in the success of the organization.

Application of management and organizational behavior dynamics theories have been used very smartly
and in a perfect way to get the maximum outcome. Like –

• Flexible working hours to employees

• Extended maternity benefits
• Offering five day week
• Building stadiums
• Different cusines at cafeterias
• Employee’s families are welcomed during the weekends.
Going through various data given in the annual report of the Reliance Industries Limited, a lot of points
were found which directly pointed towards the effective management and organizational behavior
dynamics which reliance has adopted resulting in its success. Some of them are given here itself but I
will also be attaching the various links and resources at the end of the report.

✓ Set up of learning modules - an exhaustive library of over 6000 courses - on a single digital
platform, accessible to all employees. Align Lynda.com content to various learning programs,
business objectives, and departmental goals to promote continuous learning and achieve
business outcomes. Provide on-demand access to content on best practices, professional
experts, and the most updated learning content from across the world. Reliance partnered with
LinkedIn Learning to launch Lynda.com organization wide, to ensure enablement of bite-size
learning content for employees at all levels. The intent was to offer learning opportunities to all
RIL employees, to update their knowledge base, upgrade their current skills, and acquire new
ones on the job.

✓ RIL Intramural facilities for employees- Drinking water ,Sanitation facilities , Uniforms and
protective clothing ,Subsidized food at canteens ,Prompt medical aid ,Rest shelters ,Vocational
training etc.

✓ Motivation to employees and workmen, Productivity incentive scheme, Long term service
award, Salary increment and bonuses.

✓ Also Reliance Industries Limited is applying some principles like -

So, these intercepts from the annual report tell us how Reliance Industries is doing so much in terms of
organizational and management dynamics.
 Conclusions and Recommendations…
From the case study I would like to conclude that Reliance Industries Limited as a whole is doing a lot of
efforts in way of enhancing its organizational and management behavior dynamics .

Constant efforts in this line has resulted in making the organization as the most valued firm in the
country.

If there are to be suggestions for the company than they can be –

• Contributing more towards their role of corporate social responsibility.

• More promotional and advertising activities
• Occasional discounts
• Decreasing their debts by more deals
• Try to be far away from controversies like KG D6 gas controversy
Sources of information used..
• Economic times
• Hindu
• Wikipedia
• Website of Reliance
• Annual report of Reliance

Various other websites were also used for bit of the information.