CASE STUDY ON RELIANCE

GROUP OF COMPANIES
 INTRODUCTI
ON
• THE RELIANCE GROUP OF COMPANIES IS A CONGLOMERATE OF MULTIPLE ENTERPRISES
SPANNING DIVERSE INDUSTRIES SUCH AS PETROCHEMICALS, RETAIL, TELECOMMUNICATIONS,
AND OTHERS. DHIRUBHAI AMBANI CREATED IT IN THE LATE 1960S, AND IT HAS EVOLVED TO
BECOME ONE OF INDIA'S LARGEST AND MOST PROFITABLE ENTERPRISES .
HISTORY OF RELIANCE GROUPS
• The Reliance Group, also known as Reliance Industries
Limited (RIL), is a conglomerate based in India that was
founded by Dhirubhai Ambani in 1966.
• The company initially began as a small textile
manufacturer in the state of Gujarat , but over time it
diversified into other industries such as petrochemicals,
telecommunications, and retail.
• In the 1970s and 1980s, Dhirubhai Ambani expanded the
company’s operations by setting up new factories and
acquiring other businesses.
• He also began to venture into the field of petrochemicals,
establishing Reliance Industries as one of the largest
manufacturers of polyester yarn and fibers in the world .
• In the 1990s , Reliance Industries entered the oil and gas
exploration and production business , and by the end of
the decade it had become one of the largest private sector
companies in India.
• In 2002, Dhirubhai Ambani passed away and the company
was divided between his two sons Mukesh Ambani and
Anil Ambani , leading to the creation of two separate
Reliance Group.
• Mukesh Ambani retained control of Reliance Industries,
while Anil Ambani took control of Reliance
Communications, Reliance Energy and Reliance Capital.
• Today, Reliance Industries is one of the largest companies in
India and is involved in the exploration and production of
oil and gas, as well as the refining and marketing of
petroleum products.
• The company also has significant interests in the
telecommunications and retails sectors.
• Reliance Industries is also known for its ambitious
investments in new technologies like Jio Platforms , which
aimed to bring digital services to the mass market through
mobile internet.
• The Reliance Group has been involved in several high-
profile controversies and legal battles, including disputes
with the Indian government over the pricing of natural gas
and allegations of insider trading.
• Reliance Industries is the first Indian Company to cross Rs.
9 lakh crore market capitalization.
• Reliance Retail is the largest retailer in India by revenue.
• Reliance Jio, subsidiary of Reliance Industries, is the largest
mobile network operator in India in terms of subscriber
base and revenue market share.
• Reliance Industries is the largest publicly traded company
in India by market capitalization.
• Reliance Industries is the second largest company in India
by revenue after the Indian Oil Corporation.
• Reliance Industries is the third- largest company in India
by profit after Tata Consultancy Services and Housing
Development Finance Corporation.
• Reliance Industries is the first Indian Company to feature
in Fortune Global 500 list of the world’s biggest
corporations as measured by revenue.
• Reliance Industries is the first privately owned Indian
company to be listed in Forbes Global 2000.
• Reliance Industries is the only Indian company to be listed
in the top 100 of Forbes Global 2000 list of the world’s
biggest public companies.
 SWOT ANALYSIS OF RELIANCE
INDUSTRIES
 SWOT ANALYSIS

Strengths Weakness
• Dependence on India: A significant portion of the
• Strong brand image : Reliance Industries has a strong brand
image , which has it to attract and retain customers and company’s revenue is derived from the Indian
employees. market, which makes it vulnerable to any economic
• Diversified business portfolio : The company has a diverse or political changes in the country.
range of businesses, including petrochemicals, oil & gas, • Competition: The company faces intense
retail, and digital services. competition in several of its businesses, particularly
• Strong financial position: The company has a strong financial in the retail and digital services sectors
position, with significant reserves and a solid balance sheet ,
which provides a strong foundation for future growth.
• High debt levels : The company has high levels of
debt, which may limit its ability to invest in new
• Leading marketing position: The company holds a leading
marketing position in several of its businesses, including
business opportunities or to take advantage of market
petrochemicals , retail, and digital services. changes.
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 SWOT ANALYSIS

Opportunities Threats

• Growing markets : The company has the opportunity • Economic uncertainty : The global economy is
to expand into growing markets, such as the retail subject to periodic periods of uncertainty, which may
and digital services sectors in India, as well as impact the company’s business.
international markets. • Regulatory changes : The company is subject to
• New technologies : The company can leverage new government regulations in various countries, and
technologies, such as 5G and AI , to enhance its changes in these regulations may impact its business.
businesses and improve its competitiveness. • Competition : The company faces intense
• Strategic partnerships : The company can form competition in several of its businesses, and it must
strategic partnerships with other companies to jointly continuously innovate and adapt to maintain its
pursue business opportunities and enhance its market competitiveness.
position. 20XX 9

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SWOT ANALYSIS OF RELIANCE
GROUP
 SWOT ANALYSIS

Strengths Weakness
• Diversified business portfolio : Reliance Group
• Dependence on India: A significant
has a diverse range of businesses, including
telecommunications, infrastructure, financial portion of the company’s revenue is
services, and media, among others. derived from the Indian market, which
• Strong financial position: Reliance Group has a makes it vulnerable to any economic or
strong financial position, with significant political changes in the country.
financial resources, and a solid balance sheet.
• High debt : The group has a high level
• Market Leadership: The group has established a
of debt , which could limit its ability to
strong market position in several of its key
invest in new business opportunities.
businesses and is widely

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 SWOT ANALYSIS

Opportunities Threats

• Growing Indian Economy : India is one of • Competition: Reliance Group faces

the fastest-growing economies in the world, intense competition from other players in
which presents significant opportunities for several of its businesses, including
growth and expansion for Reliance Group. telecommunications and media.
• Emerging technologies : Reliance Group is • Regulatory changes : The group’s
well – positioned to benefit from the businesses are subject to various
growth of emerging technologies such as regulations, and changes in these
5G, data analytics, and the Internet of regulations could have a significant
Things. impact on its operations. 20XX 12

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FACTORS CONTRIBUTING TO THE GROWTH OF
RELIANCE INDUSTRIES LTD.
• Strong Leadership: Mukesh Ambani has been a visionary leader who has been driving the growth of Reliance
Industries Ltd. His strategic thinking and ability to spot opportunities has been key to the company’s success.
• Diversified portfolio: The company has a diversified portfolio of businesses, including telecom, petrochemicals,
retail and media. This has helped the company to mitigate risks and maintain stability during difficult economic
times.
• Innovation: Reliance Industries Ltd. Is known for its innovative approach to business. The company has a strong
research and development team that focuses on developing new technologies and products to stay ahead of the
competition.
• Strong brand image: Reliance Industries Ltd has built a strong brand image over the years, which has helped the
company to establish a strong market presence and attract customers.
• Robust financial position: The company has a robust financial position, which has enabled it to make investments
in new projects and acquisitions. This has helped the company to grow its business and increase its market share.
FACTORS CONTRIBUTING TO THE FALL OF
RELIANCE GROUP
• Debt Burden: The Reliance Group has faced financial challenges in the past, including a high debt burden
which has limited its ability to make new investments and grow the business .
• Poor financial management : The group has faced criticism for its financial management practices, including
high levels of debt, which has affected its financial stability and limited its ability to invest in new projects.
• Lack of focus on customer satisfaction : Unlike Reliance industries Ltd., the Reliance Group has been
criticized for its lack of focus on customer satisfaction, which has impacted its market share and reputation.
• Legal and regulatory challenges: The Reliance Group has faced legal and regulatory challenges, including
allegations of fraud and mismanagement, which has damaged its reputation and reduced its market share.
• Lack of innovation: Unlike Reliance Industries Limited, the Reliance Group has been criticized for its lack of
innovation and its inability to develop new products and technologies to stay ahead of the competition.
 KEY PERFORMANCE INDICATORS OF RELIANCE INDUSTRIES
LIMITED AND THE RELIANCE GROUP
•Revenue: The revenue of Reliance Industries Limited has been growing steadily over the years, driven by its diverse portfolio of
businesses and its focus on customer satisfaction. In comparison, the revenue of the Reliance Group has been more volatile, impacted
by its limited portfolio of businesses and its financial challenges.
•Profit: The profit of Reliance Industries Limited has been growing consistently, driven by its strong financial position, efficient supply
chain management, and innovative approach to business. In comparison, the profit of the Reliance Group has been more volatile,
impacted by its high debt burden and financial management challenges.
•Market share: Reliance Industries Limited has a strong market share in its sector, driven by its strong brand image and customer-centric
approach. In comparison, the market share of the Reliance Group has been declining, impacted by its limited portfolio of businesses,
financial challenges, and lack of focus on customer satisfaction.
•Stock price performance: The stock price of Reliance Industries Limited has been performing well, driven by its strong financial
performance, market share, and growth prospects. In comparison, the stock price of the Reliance Group has been more volatile,
impacted by its financial challenges and legal and regulatory issues.
•Customer satisfaction: Reliance Industries Limited has a strong track record of customer satisfaction, driven by its focus on customer-
centricity and its innovative approach to business. In comparison, the customer satisfaction of the Reliance Group has been more
mixed, impacted by its lack of focus on customer satisfaction and its legal and regulatory challenges .
 COMPARISON OF THE TWO COMPANIES' STRATEGIES AND
BUSINESS MODELS.
•Business model: Reliance Industries Limited follows a diversified business model, with a focus on customer satisfaction and
innovation. In comparison, the Reliance Group follows a more focused business model, with a limited portfolio of businesses.
•Strategic focus: Reliance Industries Limited has a strong focus on customer satisfaction, innovation, and growth, while the
Reliance Group has been more focused on reducing its debt burden and improving its financial stability.
•Investment in technology: Reliance Industries Limited has made significant investments in technology and innovation,
including in areas such as digital and e-commerce. In comparison, the Reliance Group has made limited investments in
technology and innovation.
•Market expansion: Reliance Industries Limited has a strong focus on expanding its market share and diversifying its portfolio
of businesses, while the Reliance Group has been more focused on maintaining its existing market share and improving its
financial stability.
•Customer-centric approach: Reliance Industries Limited has a strong focus on customer-centricity, including through its
innovative approach to business and its focus on customer satisfaction. In comparison, the Reliance Group has been criticized
for its lack of focus on customer satisfaction.
•Financial management: Reliance Industries Limited has a strong track record of financial management, with a focus on
efficient supply chain management and innovative approach to business. In comparison, the Reliance Group has faced
criticism for its financial management practices, including high levels of debt and poor financial stability.
 ANALYSIS OF THE IMPACT OF THE SPLIT ON THE TWO
COMPANIES
• Shareholders: The split of the Reliance Group had a significant impact on shareholders, with the separation of the companies leading to
the creation of two publicly traded entities. Shareholders in both companies have seen different outcomes, with Reliance Industries
Limited experiencing strong growth and increased shareholder value, while the Reliance Group has faced financial challenges and
declining shareholder value.
• Stakeholders: The split of the Reliance Group had a significant impact on stakeholders, including customers, employees, and suppliers.
The separation of the companies has led to changes in the way the businesses operate, including changes in leadership, strategic focus,
and business models.
• Customer impact: The split of the Reliance Group has had different impacts on customers, with Reliance Industries Limited focusing on
customer satisfaction and innovation, while the Reliance Group has faced challenges with customer satisfaction and regulatory issues.
• Employee impact: The split of the Reliance Group has had different impacts on employees, with Reliance Industries Limited offering
strong career development opportunities and a focus on employee engagement, while the Reliance Group has faced challenges with
employee morale and retention.
• Supplier impact: The split of the Reliance Group has had different impacts on suppliers, with Reliance Industries Limited focusing on
efficient supply chain management and innovation, while the Reliance Group has faced challenges with supplier relations and financial
stability.
• Regulatory impact: The split of the Reliance Group has had different impacts on regulatory compliance, with Reliance Industries
Limited focusing on compliance and corporate governance, while the Reliance Group has faced regulatory challenges and legal issues.
 OVERVIEW OF THE CURRENT STATE OF RELIANCE
INDUSTRIES LIMITED AND THE RELIANCE GROUP AND
FUTURE PROSPECTS FOR GROWTH.
• Reliance Industries Limited: Currently, Reliance Industries Limited is considered one of the
largest and most successful companies in India, with a strong presence in sectors such as
petrochemicals, refining, oil and gas, and telecommunications. The company has a solid
financial position, with strong revenue and profit growth, and a clear strategy for future growth.

• Reliance Group: The current state of the Reliance Group is more challenging, with the
company facing financial difficulties and a weaker market position. Despite these challenges,
the company continues to pursue growth opportunities, including in areas such as
infrastructure, real estate, and telecommunications.
• Future prospects: Both Reliance Industries Limited and the Reliance Group
have promising prospects for future growth, although the opportunities and
challenges they face are different. Reliance Industries Limited is well-
positioned to continue its strong growth trajectory, while the Reliance Group
will likely face challenges in stabilizing its financial position and regaining its
market position.

• Key trends: Key trends in the industries in which both companies operate will
likely play a role in shaping their future prospects, including trends in
technological innovation, regulation, and consumer behavior.

• Conclusion: Overall, the current state and future prospects of the Reliance
Industries Limited and the Reliance Group will continue to evolve in response
to a range of internal and external factors, and careful analysis and strategic
planning will be key to ensuring their long-term success.
 BEFORE AND AFTER
SPLIT, OVERVIEW OF
THE RELIANCE GROUP
BEFORE THE SPLIT IN
2005
• Overview: before the split in 2005, the reliance group was a
conglomerate of companies owned by the Ambani family, with a
wide range of businesses including petrochemicals, textiles, and
financial services.
• History: the company was founded by Dhirubhai Ambani in 1966
and grew to become one of the largest and most diversified
businesses in India, with operations in multiple industries.
• Key business areas: the reliance group before the split was involved
in several key business areas, including petrochemicals, textiles,
financial services, and telecommunications. The company had a
• Market position: prior to the split, the reliance group was known for its
innovative business strategies and strong market position, with a large
and loyal customer base, and a well-established brand.
• Financial performance: the company was financially strong prior to the
split, with strong revenue and profit growth and a solid balance sheet.
• Key challenges: despite its strengths, the reliance group faced several
challenges prior to the split, including intense competition in some of
its key business areas, and the need to maintain its market position in a
rapidly changing business environment.
 BEFORE AND AFTER
SPLIT, ANALYSIS OF
THE REASONS FOR THE
SPLIT IN 2005
• Background: In 2005, the Reliance Group underwent a split, with the
company being divided between the two Ambani brothers, Mukesh
and Anil.
• Reasons for the split: The reasons for the split included differences in
business strategy, disagreements over control and ownership of the
company, and disputes over the use of certain assets and intellectual
property.
• Impact on the company: The split had a significant impact on the
Reliance Group, with each of the two companies pursuing separate
business strategies and operating in different industries
• Consequences for shareholders: The split had consequences for
shareholders, with some experiencing gains or losses in the value of
their investments as a result of the changes.
• Legal disputes: The split was accompanied by several legal disputes,
including disputes over the ownership of certain assets and
intellectual property.
• Outcome: Despite the challenges, both companies have continued to
grow and succeed in their respective business areas, and the split has
allowed each company to focus on its own priorities and
opportunities
 BEFORE AND AFTER SPLIT,
COMPARISON OF THE
FINANCIAL PERFORMANCE OF
THE RELIANCE GROUP BEFORE
AND AFTER THE SPLIT
• Revenue trends: before the split, the reliance group was a highly diversified
conglomerate with a wide range of businesses. After the split, the focus of each
company changed, with reliance industries limited becoming a dominant player in the
petrochemicals, refining, and oil and gas industries, while the reliance group
diversified into areas such as telecommunications and power.
• Profit trends: before the split, the reliance group was highly profitable, but the split
resulted in a decrease in overall profit for the group. However, each company has
since achieved significant growth and profitability in their respective business areas.
• Market share: before the split, the reliance group held a significant market share in
several industries. After the split, the market share of each company has fluctuated,
with some industries showing growth and others experiencing decline.
• Conclusion: the financial performance of the reliance group has been impacted by the
split, but both companies have continued to achieve success and growth in their
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 CONCLUSION AND
RECOMMENDATIONS ON
THE SUCCESS OF THE
SPLIT
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• CONCLUSION: THE SPLIT HAS BEEN SUCCESSFUL FOR BOTH RELIANCE
INDUSTRIES LIMITED AND THE RELIANCE GROUP. EACH COMPANY HAS BEEN
ABLE TO FOCUS ON THEIR RESPECTIVE BUSINESS AREAS, LEADING TO
INCREASED GROWTH AND PROFITABILITY.

• RECOMMENDATIONS: TO ENSURE CONTINUED SUCCESS AND GROWTH, IT IS

RECOMMENDED THAT EACH COMPANY CONTINUES TO FOCUS ON THEIR CORE
BUSINESSES AND STRIVE TO MAINTAIN THEIR COMPETITIVE ADVANTAGES.
ADDITIONALLY, BOTH COMPANIES SHOULD CONTINUOUSLY ASSESS AND ADAPT
TO THE CHANGING MARKET CONDITIONS IN ORDER TO STAY AHEAD OF THE
COMPETITION.

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 THANK YOU

AKRITI SHARMA

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