Project Dissertation on

Reliance Industries – Business Model

GCRG Memorial Trust's Group of Institutions, Lucknow.

Faculty of Management

Mini Project Report

On
“Reliance Industries- Business Model”

SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENTS

OF
MASTER OF BUSINESS ADMINISTRATION

Submitted To: Submitted By:

Mr. Vishal Sir Shivam Mishra
Roll No.

DR. APJ ABDUL KALAM TECHNICAL UNIVERSITY, LUCKNOW,

UTTAR PRADESH.
SESSION 2022-23
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 ACKNOWLEDGEMENT

I would like to take this opportunity to express my deep gratitude to

all those who, directly or indirectly made this project possible.I have

got considerable help and support in making this project report a

reality from many people.

I would like to thank Mr. Vishal sir whose endeavor for

perfection, under fatigable zeal, innovation and dynamism

contributed in a big way in completing this project. This work is the

reflection of his thought, ideas, concept and above all his modest

effort.

At last, I would like to thank my parents, friends and colleagues, who

have been a constant source of help and encouragement.

Roll No. …………………

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 DECLARATION

I hereby certify that the work which is being

presented in the project entitled, “Reliance Industries –

Business Model” in fulfillment of the requirements for the

award degree of MASTER OF BUSINESS

ADMINISTRATION at GCRG, during 2ndthsemester of

MBA and has not been submitted to any other university or

institute for the award of any degree.

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 ABSTRACT

Reliance completed 40 years of its IPO in 2017-18.

They have shown the visionary entrepreneurship, global scale and
all-encompassing value creation. The Reliance have evolved from
being a textiles and polyester company to an integrated player
across energy, material, retails, entertainment and digital services.

Reliance created the world’s largest single location

refinery at Jamnagar. This put India on the global energy map. For
retails business Reliance accelerate the formalization of entire sector
by maximizing supply chain efficiency. Reliance when entered the
digital service through the Jio, they have transformed the Indian
telecom space. Reliance Jio have created the benchmark in terms of
subscriber acquisition, data consumption.

In this report I am analyzing how Reliance have

achieved the exponential growth and how could it be able to sustain
with almost same momentum in the current pandemic situation like
Covid-19.

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 Table of Contents

1. Introduction & Objective ........................................................ 6

2. About Founder and company establishment ........................ 10
3. Mission, Vision and Objective ............................................... 13
4. Business Model ....................................................................... 15
5. Subsidiaries ............................................................................ 23
6. Product and Brands .............................................................. 28
7. Petrochemicals ...................................................................... 38
8. Oil & Gas .............................................................................. 41
9. Reliance Retails .................................................................... 42
10. Jio Infocomm....................................................................... 43
11. Sustainable Growth and Societal Responsibility ............... 50
12. Plan for debt free ................................................................. 52
13. Fundamental Analysis of RIL ............................................. 59
14. Conclusion ............................................................................ 67
15. References............................................................................. 68

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 1. Introduction
The Reliance Group which was founded by Dhirubhai
H. Ambani , is India's one of the largest private sector enterprise,
with businesses in the energy, Petroleum, Digital media and
materials value chain. The flagship company, Reliance Industries
Limited, is a Fortune Global 500 company and is the largest private
sector company in India.

Dhirubhai Ambani founded Reliance as a textile

company and led its evolution as a global leader in the materials and
energy value chain businesses. It was in 1957 when he returned to
India after a stint with A.Besse& Co., Aden he started yarn trading
business from a small 600 sq.ft. office in Masjid Bunder, Mumbai.he
set up his brand new mill in Naroda, Gujarat. In 1996 Reliance went
on to become the biggest textile brand ‘Only Vimal’. In 1977 the
Reliance Textile Industries came with an IPO which was
oversubscribed 7 times.

Reliance enjoys global leadership in its businesses, being the largest

polyester yarn and fibre producer in the world and

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among the top five to ten producers in the world in major
petrochemical products, it is one of the best in its domain.

Starting as a small textile company, Reliance has in its long journey

crossed several milestones to become a Fortune 500 company in less
than few decades.

Reliance Industries Limited operates world–class manufacturing

facilities across the country at Allahabad, Barabanki, Dahej,
Dhenkanal, Hazira, Hoshiarpur, Jamnagar, Kurkumbh, Nagothane,
Nagpur, Naroda, Patalganga, Silvassa and Vadodara.

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 Objective of Study

The project is based on the study of Reliance

Industries. Objective of study are:

 Objective is to know the business model

of the Company

 How the company plan for mitigate the

risk inbusiness

 Future plan of the company

 Investment opportunity for retail investor

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 Research Methodology

 The main motive of the research to analyze the

Reliance Industries model and understand their
mode of business

 Analyze the different financial ratios of company to

make decision if one can go for Reliance shares and
at what price one should take entry

 Secondary data source available in the internet

domain, Company portals and their Annual report
are analyzed

 Research are conducting in shares market prospective

 Data analysis are done in excel to find the

different financial ratio

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 2. About Founder and company
establishment

“Whatever action a great man performs, common men follow. And

whatever standards he sets by exemplary acts, all the world pursues
: Bhagavad Gita 3:21”

D H Ambani, popularly known as Dhirubhai Ambani was an Indian

business tycoon who founded Reliance Industries. Dhirubhai
Ambani, in full Dhirajlal Hirachand Ambani, (born December 28,
1932, Chorwad, Gujarat, British India—died July 6, 2002, Mumbai,
India), Indian industrialist who was the founder of Reliance
Industries, a giant petrochemicals, communications, power, and
textiles conglomerate that was the biggest exporter in India and the
first privately owned Indian company in the Fortune 500.

Ambani was the third of five children born to a village schoolteacher

and his wife, and he grew up in a middle class family. At the age of
17, he migrated to the British colony of Aden to join his brother.
He started his career as a clerk at A.

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Besse & Co., which in the 1950s was the largest transcontinental
trading firm east of Suez. There he learned trading, accounting, and
other business skills. In 1958 Ambani returned to India and settled in
Bombay.

Ambani began a business trading in spices in the late 1950s. He soon

expanded into other commodities, following a strategy of offering
higher-quality products and accepting smaller profits than his
competitors. His business grew quickly. After deciding that the
corporation had gone as far as it could with commodities, Ambani
turned his attention to synthetic textiles and other similar materials.

He made his first foray into backward integration with the opening of
the first Reliance textile mill in 1966. With continuing a policy of
backward integration and diversification, he gradually
shaped Reliance into a
petrochemicals behemoth and later added plastics and power
generation to the company’s businesses.

In 1977 Ambani took Reliance public after nationalized banks refused

to finance him. His agility in navigating a stodgy economy and
crippling government regulations and bureaucracy led to
allegations of political manipulation, corruption, and engineered raids
on competitors, but investor confidence in Reliance remained
unshaken—owing in part to the

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handsome dividends the company offered, as well as the
founder’s vision.

Ambani handed over the day-to-day running of the company tohis

sons, Mukesh Ambani and Anil Ambani, in the mid-1980s but
continued to oversee the company until shortly before his death in
2002.

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3.Mission, Vision and Objective

“Making Life Better.

For Everyone”

“Growth is Life”

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There motto:

“Growth is Life: aptly captures the ever-evolving spirit

of Reliance. All our businesses endeavor to deliver
superior value to our stakeholders and make life
better for everyone”

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 4. Business Model

DRIVING INNOVATION

CONSISTENT GROWTH

DELIVERING VALUE

SUSTAINABLE TRANSFORMATION IN SOCIETY

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FIVE ENABLERS

SAFETY

 Use of drones for safety

DIGITAL TECHNOLOGY

 Omni-channel initiatives in Reliance Retail

 Future Ready 5G, 6G and beyond

CAPITAL PRODUCTIVITY

 Considerable interest savings from successful

refinancing of long-term loans aggregating to US$2 .3
billion

OPERATIONAL EFFICIENCY AND EFFECTIVENESS

 Fuel retail throughput well above industry average

 Uninterrupted and high-speed data access anywhere, 

anytime

ETHICS

 Ethics and Compliance Task Force oversees and

monitors implementation of ethical business practices

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 REFINING & MARKETING

Largest single-site refinery with robust

configuration Strategic locational advantage with

dedicated infrastructure

Among lowest cost producer globally with

flexible product slate consistently maintaining high

operating-rates

RETAIL

Operates on multiple store concept model to

serve different customer needs

Offers best shopping experience to Indian consumers

with consistent choice, quality, value and convenience

Pan-India presence

State-of-the-art retail infrastructure and supply

chain providing solid foundation for growth.

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 PETROCHEMICALS

One of the most integrated petrochemicals producers

globally

Wide product portfolio with leadership position

across product categories

State-of-the-art production facilities with balanced

cracker portfolio Industry leading operating rates

Presence in one of the fastest growth markets

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DIGITAL SERVICE
Only ubiquitous 4G coverage in India with

High speed and qualitycoverage

World’s largest Greenfield 4G LTE wireless

broadband network fully digitized operations from

onboarding through fulfillment Transformative customer

value propositions.

OIL and GAS

High quality portfolio with presence in conventional and

unconventional resources

Operating one of most complex and largest deep-water block

Partnership with BP in India provide significant technical
expertise Material position in US Shale

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 MEDIA
Robust bouquet of channels across various genres –
business, entertainment, infotainment, kids

Category leading digital properties in financial

services, entertainment, news etc.

Significant local language content, tapping regional markets

VALUE CREATION

SHARE-HOLDER
Active portfolio management by investing in the Consumer
and Energy & Materials businesses

Dividend Recommended -> 110%

Market Capitalization - 4,28,909

crore

Improved RONW (adj.) to 16.8% up

170 bps y-o-y (standalone)

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EMPLOYEE:

Continuous learning and structured career progression

opportunities Digitized learning – launch of Digital J3

R-University: Driving employee learning and training

Imparted >76 lakh man hours of training

CUSTOMER:

110 million+ Jio subscribers in 170 days from launch

86% market share in CNBC TV 18 during the annual budget speech

Over 30 million members registered to Customer Loyalty Program

Of Reliance Retail

Launched 'Chemistry for Smiles' and 'Transforming Life into

Quality Life'

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SOCIETAL

Society provides Reliance with a license to operate,

and with this privilege comes a responsibility.

CSR activities in conformity with the Sustainable

Development Goals (SDGs)

Created 50 lakh jobs indirectly & indirectly.

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5. Subsidiaries:

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6.Product and Brands

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 7. Petrochemicals

Reliance Industries Limited (RIL) and BP signed a definitive

agreement relating to the formation of their new Indian fuels
and mobility joint venture. The venture is expected to be
formed during the first half of 2020, subject to regulatory and
other customary approvals. The new venture, a further
development of RIL and BP’s longstanding partnership, will
include an India-wide fuels retail service station network and
aviation fuel marketing business. Building from RIL’s
existing businesses, the partners expect the venture to co-
create a world class fuels partnership to grow rapidly and
help meet India’s fast-growing demands for energy and
mobility.

The venture expects to expand from RIL’s current fuel

retailing network of over 1,400 retail sites and 30 aviation fuel
stations across India to up to 5,500 retail sites and 45 aviation
fuel stations over the next five years to become the most
preferred provider of automoti ve and aviation fuels. The retail
network will operate under the Jio-BP brand, signaling a new
paradigm shift in fuels marketing and mobility solutions. It
brings together Reliance’s extensive access and connection
to consumers through its Jio digital platform and BP’s deep
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experience in fuel retailing around the world. The joint venture
will seek to offer Indian consumers high-quality differentiated
fuels, convenience and services. Castrol lubricants will also
be available across the venture’s network.
The partners intend to set up a new joint venture company,
held
49% by BP and 51% by RIL, that will assume ownership of
RIL’s existing Indian fuel retail network and access its
aviation business in fuel.

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BP in India

With its many investments in India and employing around

7,500 plus people in the natural gas, lubricants and
petrochemicals businesses, BP is one of the largest
international energy companies in India. In addition to its gas
value chain alliance with Reliance Industries Ltd., BP’s
activities include Castrol lubricants; the licensing of competitive
petrochemical technologies; oil and gas trading; clean
energy projects through its investment in Lightsource BP; IT
and procurement back office activities; staffing and training
for BP’s global marine fleet; and the recruitment of skilled
Indian employees for its global businesses.

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 8. Oil and Gas

RIL’s upstream business comprises the complete chain of

activity starting from exploration, appraisal, development and
production of hydrocarbons.

Reliance entered the Exploration and Production (E&P)

business by becoming a 30% partner in an unincorporated
joint venture with Shell and ONGC in the Panna Mukta, Mid
and South Tapti blocks. As of Jan 1st, 2020, our domestic
portfolio comprises of conventional oil and gas blocks in
Krishna Godavari and Mahanadi basins and two Coal Bed
Methane (CBM) blocks, Sohagpur (East) and Sohagpur
(West) in Madhya Pradesh (MP).
Oil and Gas business continued to face headwinds owing to
declining volume and soft price that improved at the later part
of the last year. Domestic production were down16.9% .

Reliance poised one of the largest non-conventional gas

producer in India. Reliance and its partner announced plan to
invest Rs. 40,000 crore to developed the already discovered
deep water gas field in the KG-D6 block. In US Shale Gas
business, the natural gas price were firm during the last year
and offtake from LNG and Maxican exports

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 9. Reliance Retails

Retail comes from the French word retailer which refers to

"cutting off, clip and divide" in terms of tailoring. It first was
recorded as a noun with the meaning of a "sale in small
quantities" in French. It's literal meaning for retail was to "cut
off, shred, paring".

Business of selling products and services to the public as

the ultimate consumer. Retailing involves selling many different
products and services, either from a store location or in
direct selling and in-home presentations, mail order, and so on.

First retailers in India include BATA, Pantaloon, Bombay

Dyeing, Spencer’s, and Nilgiris. The current Retail scenario
is controlled by the likes of shoppers stop, Big Bazaars.

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 10. Jio Infocomm

Reliance Jio (simply JIO) is an Indian mobile network

operator launched commercially on September 5, 2016.
Owned by Reliance Indus-tries, the entry of Jio
revolutionized the telecommunication sector.

it operates a national Long-Term Evolution (LTE) network

with coverage across all 22 telecom circles. Jio does not
offer 2G or 3G service, and instead uses Voiceover LTE
(VoLTE) to provide voice service on its network. The launch
of Reliance Jio has caused a revolution in the telecom
industry. Now, Jio claims to be the world’s largest data
network, based on mobile data consumption.

According to the Telecom Regulatory Authority of India (TRAI),

as of February2019, there are 1.17 billion mobile-phone
subscriptions in India, an increase of roughly 140 million
subscriptions since August 2016—the month before Jio
launched. The growth is especially pronounced in rural
areas, where there are now over 500million wireless
subscriptions, roughly 80 million more than there were
before the company formally began its operations. As more
Indians gain phone subscriptions, more are coming online.

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The logo of Reliance Jio has a hidden symbolism in it. When
you flip the Jio logo around, it is read ’oil’. The Jio logo
seems to represent the past and future of Reliance. Oil is
what had propelled Reliance to
become India’s biggest company in the 20th century. When
flipped over into the 21st, it’s probably going to be Jio.

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Jio High Speed Internet service is the fourth generation (4G)
mobile technology that enables the delivery of high-speed
internet services. It uses voice over LTE to provide voice
service on its network. LTE refers to Long Term Evolution of
telecom technology that enables High Definition voice and high-
speed internet access.

Jio owns spectrum in 850 mHz and 1,800 mHz bands in India’s
22 circles, and also owns pan-India licensed 2,300 MHz
spectrum. The spectrum is valid until 2035.Jio shares the
spectrum with Reliance Communications. The sharing deal is
for 800 MHz band across seven circles other than the 10 circles
for which Jio already owns. In September 2016, Jio signed a
pact with BSNL for intra-circle roaming which would enable
users of the operators to use each other’s 4G and 2G
spectrum in national roaming mode. In February
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2017, Jio announced a partnership with Samsung to work
on LTE - Advanced Pro and 5G.

Reliance Jio Infocomm Limited revolutionized the telecom

sector. The scenario of Indian telecom market before JIO
entered it was there were more than 1 billion mobile users in
India, out of which only 34%were connected to the internet.
Only 12% from these 1 billion used 3G data or above.

The Biggest difference between JIO and others is its Optical

Fibre Network. An optical fibre is a wire that converts your data
signal into light and transfers them at the speed of light.
Reliance Jio has the longest fibre optic network in the country,
ranging over 2,50,000 km and 90,000 eco-friendly 4G
Towers to provide the greatest 4G Coverage in all of India’s
22 telecom circles. Reliance Jio invested Rs150,000 crore
to put this in perspective – this is more than two times the
combined investment of Airtel, Idea, and Vodafone in the 4G
Segment.

Success factor for Jio are :

1. Minimum tariff plan in the market by giving attractive

discounts and free promotional Data.

2. Everyone change to Jio or at least buy a Jio sim to

experience data for free for limited period
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 3. High speed data of fibre optic network to give super
fast internet and make people think that 1GB data is
not really much.

4. Increase subscriber base by having good customer

care and best tariff plans.

5. Recover your investment using the large number of

users accu-mulated

Once the fibre optic network is laid down, the cost of

operating is not very massive. On the contrary, the network
can be at minimal cost; therefore the only focus was to get
more internet users. If 60% of the people in India use 1 GB
internet per month then Jio can recover the initial investment
in 3 years. The company also plans to rake in profits from its
mobile apps which include a variety of services.
SWOT Analysis –

SWOT Analysis is a tested technique for the audit and

analysis of the overall strategic position of a business and its
environment. Its key purpose is to identify the strategies that
will create a specific business model that will best align an
organization’s resources andcapabilities for the achievement
of its objectives in the environment in which it operates.

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Strengths of Reliance Jio –

Strongest Customer Acquisition

strategy Strong backing by parent

company Innovative technology

Strong customer base

Market share -> “First mover advantage in making data cost

more affordable”

Multiple plans and offers under a single name

Weaknesses of Reliance Jio -

Late entry into the market

Activation Issues

High dependency on

data Pricing

Controversies Too many

freebies

Poor data connection

Opportunities of Reliance Jio –

Future driven technology

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Applications

Competitive Pricing Strategies

Expansion to other countries

Threats of Reliance Jio –

Risk of loss of customers

Loyal customer base of existing players Poor Code of ethics
Government policies

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11. Sustainable Growth and Societal Responsibility

Reliance reports apart from solving business problem, they

also create societal value for all Indians. When they started
working in textile business, they tried to provide best fabric
to al Indians. Their petrochemical product have a role in
every modern day life. When they entered the telecom, they
enable every one to buy the mobile phone for every Indian at
an affordable price. Through Reliance Retails, they have
made the best in class global brand to available to every
section of society. With Jio, they have made available high
speed data to every Indian at the most affordable rate.

They want to achieve their motto:-

“Making life better for everyone.”

Reliance integral part of philosophy is its commitment to

empower and enhance the quality of lives of millions of people.
Sustainability at Reliance embraces environmental and social
responsibility while creating value for its stake holders. On the
operating side they are working to maximize the use of
clean energy and minimize the

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carbon foot print in collaboration with the best available
technology holders. Reliance Foundation is involved in the
“rural transformation, health, education, sports for
development, disaster response.”

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 12.Plan for Debt Free

Reliance were debt free until 2012 but since then it has
witnessed 438% increase in gross debt. As Reliance
Industries ended FY’19 with net debt of Rs 1,54,478 crore,
chairman Mukesh Ambani has been trying to assuage
investor concerns over the group’s rising debt levels.

In August 2019, he declared that RIL would be a zero-net-

debt company in 18 months, announcing a number of asset
sale plans, prompting analysts to call it everything from a
‘debt -diet’ plan to Reliance’s ‘great deleveraging’.

How did Reliance Industries get to that position though and

why did it reach the point where it demanded critical
attention?

The company has an accumulated gross debt of more than Rs

2.87 lakh crore, as it expanded rapidly into the consumer-
focused businesses of retail, telecom and e-commerce over
the past few years besides majorly upgrading the core
refining and petrochemicals businesses. The rising debt level
of Reliance demands critical attention as there has also been
a consistent decline in revenue from oil, gas and
petrochemical business.
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Investments in acquisitions is another cause for the huge
debt pile of Rs 2.87 lakh crore at the end of 2018-19. Over
the past 24 months, RIL has acquired stakes in about 20
start-ups and in half-a-dozen small firms. The acquisitions
have become a necessity, especially after Jio was launched.
RIL’s target is to create a bouquet of digital products, which
can counter the likes of Google, Amazon and Netflix. RIL
has Rs 1.33 lakh crore cash in hand and, as noted above, a
net debt of Rs 1.54 lakh crore. RIL’s total liabilities, as
disclosed in its annual report, include debt, higher crude
payables, customer advances, capital expenditure creditors
and spectrum payouts. For 2018-19, RIL’s finance cost had
more than doubled to Rs 16,495 crore from Rs 8,052 crore
in the previous year. In its annual report, the company also
states that the increase was primarily on account of
commencement of its digital services business,
petrochemical projects at Jamnagar and higher loan
balances. months, RIL has acquired stakes in about 20 start-
ups and in half-a-dozen small firms. The acquisitions have
become a necessity, especially after Jio was launched. RIL’s
target is to create a bouquet of digital products, which can
counter the likes of Google, Amazon and Netflix. RIL has Rs
1.33 lakh crore cash in hand and, as noted above, a net debt
of Rs 1.54 lakh crore.
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RIL’s total liabilities, as disclosed in its annual report,
include debt, higher crude payables, customer advances,
capital expenditure creditors and spectrum payouts. For
2018-19, RIL’s finance cost had more than doubled to Rs
16,495 crore from Rs 8,052 crore in the previous year. In its
annual report, the company also states that the increase
was primarily on account of commencement of its digital
services business, petrochemical projects at Jamnagar and
higher loan balances.

In August 2019, global brokerage Credit Suisse red-flagged

RIL’s total financial liabilities, pegging it at $65 billion (Rs
4.6 lakh crore). It downgraded RIL’s stock from ‘neutral’ to
‘underperform’ and slashed its target price from Rs 1,395
apiece to Rs 995 citing high liabilities, lower refining and
petrochemical margins, and slow enterprise rollout and Jio’s
weak average revenue per user in the first quarter of FY20.
RIL shares had taken a hit after Credit Suisse downgraded
the share rating.The brokerage’s downgrading of RIL was
also because the conglomerate has been free cash flow (FCF)
negative for six years. As RIL’s liabilities have dramatically
gone up to $65 billion in FY19 from $19 billion in FY15,
Credit Suisse predicted in its August 2019 report that the
negative FCF trend is likely to continue in FY20-21 too, just

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as it has been for the last six years, given the margin
pressure in refining and petrochemical. By keeping this
negative report and addressing investor concerns, Mukesh
Ambani, chairman of RIL made several optimistic
pronouncements about the future of the company at its
42nd annual general meeting (AGM) in Mumbai on August
12, 2019. Primarily, he focused on the plan to sell a 20%
stake in its oil and petrochemicals business to Saudi Aramco
for an enterprise value of $75 billion or around Rs 5.3 lakh
crore. Saudi Aramco will also supply 500,000 barrels per
day of crude oil on a long-term basis to RIL’s Jamnagar
refinery. The 20% stake sale is likely to fetch RIL $15 billion
or around Rs 1 lakh crore. Within days of Ambani’s speech,
Credit Suisse immediately upgraded its rating on Reliance
Industries to ‘neutral’ while raising the price target from Rs
1,028 to Rs 1,210. It apparently factored in the stronger
balance sheet with debt reduction of $22 billion till FY21,
and low capex intensity guidance and higher Jio valuation.
The shareholders have been told by Mukesh Ambani that
hitting zero net debt will come with higher dividends, bonus
issues and other goodies “at a more accelerated pace than
any time in our history.” However, this may be overly
optimistic, as with deepening economic slowdown investors
may struggle to reinvest the cash returned by Reliance. For
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RIL, the major concern stems from the recent
underperformance of its refining business. Hit by volatile
crude prices and trade wars, RIL’s refining margins have
consistently been declining for the past seven quarters. The
refining margin (Gross Refining Margin or GRM) of RIL has
fallen to $8.2 a barrel in Q4FY19, registering a slip for the
sixth straight quarter. In this situation, RIL’s talks about
selling 25% of its stake to Saudi Aramco fits in. In 2011,
when production had depleted, RIL had sold 30% of its
hydrocarbon assets to British giant BP Plc for $7 billion (Rs
52,000 crore). The new deal would help RIL secure its
supplies while Aramco gets to enter a new market like India,
even as the US cuts down its dependence on Saudi Arabia
for oil. Just after the announcement of this deal, RIL’s stock
rose by nearly 46%. Although Aramco has had plans for over
a year now to set up a refinery in Maharashtra’s Ratnagiri in
a tie-up with Indian PSU refiners, the project is yet to take
off. There are concerns about how and whether Saudi
Aramco will stay committed to the mega Ratnagiri refinery
project, while simultaneously showing interest in Reliance
Industries’ refining and petrochemicals business.

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 Recent Investment made to Reliance:

1. KKR – Private equity firm set to invest 11,367 crore for

2.32% stake. Largest in Asia.

2. General Atlantic – Private equity firm set to invest 6,598

crore in Jio platform for a 1.34% stake.

3. Vista Activity – Private equity firm set to invest 11,000

crore in Jio platform for a 2.32% stake.

4. Silvar Lake – Equity firm to invest about 5,000 crore for

stake of 1.15%.

5. Facebook – The original investment setoff this cascade

was Mark Zuckerberg’s social networking giant
Facebook, the FB set to invest over 43,000 crores for
9.99% stake.

All these investment total a little in excess of 78,562 crore

which goes to jio platform which house JioSaavan, Jio
Cinema , Haaptik and Reliance main telecom venture Jio.

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 13. Fundamental Analysis of Reliance
Industries Limited

Right valuation of company (Entry point for share

market) Entry price – when one should buy the

share from market

Target Price – when the share should reach after the certain
amount of time. Expected price after certain time.

Intrinsic value of the company = EV / EBITDA

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Oil & Exploration:

Revenue have increased, but EBIT a bit decreased.

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Petrochemical:

Revenue is increasing over the time, similarly EBIT

are also increasing

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Petrochemical:

Revenue is increasing over the time, it is doubled from 2017-

18 to 2018-19 similarly EBIT are also increasing but it has
almost tripled.

So the profit is increased 3 times!!

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Digital Service (JIO):

Revenue is increasing over the time, similarly EBIT

are also increasing

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Balance Sheet of Reliance Industries :

Total Revenue or Turnover is increasing over the time from

2016 to 2020

Profit and Loss of Reliance Industries:

Profit are increased YOY

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Balance Sheet of Reliance Industries:

Reserve and surplus increased over the years. Share capital

are also increased.

Long term borrowing are increased, which is big but are

planned to pay from latest deals.

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Page | 66
 14 Conclusion

Over the last four decades, Reliance continue to grow and

evolve, creating value by continued to grow and evolve,
creating value by building competitive global scale business and
delivering increasing share holders value. Over the past 3-4
years, they have made significant investment in new plants
thus creating organic growth platform energy and material
business. Reliance is piloting the use of virtual reality (VR) to
increase safety and reliability through the virtual walk through
plant for interactive training. Reliance is implementing a world
class analytic plate form and a data lake using cutting edge
technology for its Big Data initiative. Reliance become first
Indian company to cross $10 billion in EBITDA in FY 2017-18.
The cash profit were Rs. 56,000 crore. PVC pipe line helping
the farmers for irrigation, Recron Fibre fill – making the
everyone life comfortable, Reliance retails creating the eco
system for daily needs, Reliance foundation partnering for India
development. Reliance is working on the plan to make it debt
free by 2021, so that all the profits are shares among the
shareholders. Reliance have touched Indians almost in every
domains and creating the shareholder value. Reliance Share
price are expected to increased from current value and can
appreciate y 10-15 % in a year time.

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 15.References

1. www.moneycontrol.com

2. www.economicstimes.com

3. www.Google.com

4. www.ril.com

5. https://www.cbinsights.com

6. www.ndtv.com

7. www.thewire.com

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