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1'.EUANCE


1'.ellance Stcry is al-nost the story of Ohlrubhai Ambani (Mr. Dhlrajlal Hlrac~a1d
Am~eni), who surted hls humble II'"' cl the bwes: 'C!n<S In Aden, wh ch was a free
corr, '/.. man, whom chlldho3d povpty h~d depri~ed of adequate clothes to wear,
~as today become the biggest clothier of the neticn." R"'liauc" I> now one or the
fastest growtno companies in India.

""' soun "" ht! returned from Aden wren 11 became independent, Dhlrubhal has
stuted the RPllMICP. Corporat on, 2long v.lth s:ona of his friendo; Rcll~nce hes storted
Its business exp~rtln9 s~lces. Chlrubhal I es eter statcd tradlrg In nylon yan, which
has paved the way for him to foresee the gP.>1t <mpe for man made textiles:, which
were 'ubjected to the meet re~trlctlve controls of Government. He ould vi:.udll't! a
great potential aenand for synthetic fabrics In :he ealy sixties To start wlth.. hA
hired r>OwPrlooms, scld or suppllec tham yarn, bought back the grcv f;:ibrics, ard got
them processec. The>'=' rdbrlcs were excorted, against v.htc~ he impo1:ed raw
matena's an:! tile latest machinery and P<Jt1lpmen:. In course of till'e Vimal fabrics
could g~ln br~rd loyalty even In the Internal market. LI rough heavy acvernsrne
backed by high ncennves to dealers. Aooressive advertlslrg policy has al!;n t:~n
respons'ble Ii this respect, With q.1allty procc-..slrg end on eye or design, Ohirubl'a
has been al:le lo uo well. Th:iugh there were aistcrncns tn the public policy or>
synthetic yarn, For " vi<ionary like D'll'\Jbhai there W<>re many tal o-madc
oppcrtu-utles to toke odoitege of the tncenetsteocles d loap1oles.

Aft~r a merger with Mynyton Ltd, Reliance Textiles Industries went public In :S77;
a 1d Dliircb1al has gained prominence. Keliance has movec trcrn success to success
further hPyoid anybody's expsctatlo-r. Even though a pr ce ,;<Imming policy wos
adopted by the compony the oroduct ,,., recelved wen n t'le market, in tact 'Vlmal'
ha; been zccep:ed es e brand name fer qua1 ty >1nc luxury. The high unit value
export scheme pe-rnletec y::irn Imports Oainst the export or 1ylon febrtcs. Glv .. 1 Use
distorted 'rice of yarn, fabrics could onlY be exported at a less whim was more than
rrade up by Iha Import of yarns alloNcd by government In compensotlon. It Is
huwever, alleged that tte high urtt value scnerre was cevlsec to favo.rr R~li3nCP..
B JI It I< pointed out that this schame was In force for ever clg~t yzars one mony
companies pas liclpolw in n, t1ough they coulo not do wel . Reliance nas 1eld rasnion
shows ii Russia aid In Pol"'d; and made exte1sive ~romotlcn programmes in
Zernbie, Ugonco end Sacdi Arabia. Thelr lJou>l export strategy paid ~rr well. Reliance
became tne 1aroe>t exporter of synthetic rlrP':< "1"1>lleials. Ambanl mal itams g:>od
rctatlons not :>nly ot tie pctentlels top, but ebo in the liu1~e1utroty a( Gove nment.

Diirubhai"S personal relations wi:h Mr. TA Pol, (C1oirman of Syndlcote Senk, later
Che1irrran of _.I.e. and India's flnznce Minster) and the Syn:licate Bank has hebed
hlrr a great dea .Aftar the merger of Pal's Mynlor Ltd, the rclat e-i with them has
further strenqtnened. Syuul,d.e Bank Is the main bank of Reliance even now. one of
the members ot the Pal family I< AD rector on Relianco's Board also. They hava close
buSiness ccnnecncns ond the eornpenvs prlntlny 11..,eu~ ere net from a press
belonging to the Pai 'amil f In Maripal even now. Amb~nl'< rlo<P reltions w,th Mr.
Pran~b Mukcrjce, ;:i ~o,ycrft.l C9blnet t'lnfster li t'rs. Iidlre Gandhi's Cdbli1el1 dllU
'1r. K K Ohawa1 (Mrs. Gandhi powerlu Secretary) are well knowr. Perha~s such high
e1ol cornectloi! woutc' h3vo been lnstru"Tlentll for vertous ueenees, which Relio1ce
could ge:, e;pec13Hy the polyester part1a11 1 oriented yarn (POY) licen<;e of 10,000 tea
oLt cf thG 43 ap~llcations including Tata!:, Blrl<l~, Sang~~, Corwores, Topers and

Mafallalo. further licence ror expznd1ng POY capacity to 15,0CO taa, and lirPnses for
l.Jl.B, TPA, M::G and pnlyP<t4'r staple fibre manura:tJre were llloo gronted to Reliance.

It Is not merely hew one gets the fi0>nse that matters, It Is ~ow t~c uccnse is used
that reflects the po Icy an~ potentiellty of the lop 111dlld!JeMent. The trEmendous
store o" t<d=h p qualities which Dl'llrub'lal owns, and hi<: total lnvo'vament In his
work inf'u~ "QU<llv strong :omml:ment from his s:aff. M1ny or hb l~ng time
a:iJoci1ltes, though do not possess much tormal ecucat on, held top pnsitlnn< in the
organization. which ensures gn>;iti>r co'l'lmitmeit. However Reliance s not ct ell
tu'fering fro'l'I l.:ick of pofcssioral ma11dyers. Anll Amb3nl (Dhn.1bn21; son) himself
i> d Wharton B~s111ess SChOOI 9radu3te. Hl~h targe'< are set only for himself but a so
br his men; and Iha targets arc ;;ilwoys echlevcd.

Amtani's objectlvf' "rP always reall;tic though high, and hi' ;iollcles and ~l1olto\jies
are forw:lrd looking. l\chievin~ a toryel ts the overrlaJng concern; cos: ccnsideratlons
are seconcarv, MU<esn, Dhlrubhal's P.lriPst son who hol~ an MB/\ from Stonford,
nbserves; 'what Is il"lportant i~ not the extra experditur e or a tew lakhs er rupees
durini, project Implementation, bU: the loss of many crores In turrovcr and :irofots, if
time is lost' Ncn-performers are saldom sacked; but one :hi ng is ccrt!lin, they would
not get ony inportcnt ~ssignrmm. later. Best performers are do;e to Ambanl, ant1
lhey are entrusted wit'1 stratecic and Important [obs. Those wro do not 'isc to tie
occasion to achieve the objectives ere bound to be sree-traoceo, and kept at a
distan:~ rrom the boss. On tile contrary best p~rfnrmers are irw:>lved n policy
makinJ arn strctegy 'Ol'Mulabon; they 5hore the rcspors b lllie or th<: tori
rnan,,gerne.1t Not en f 1eonsibilltles, but also rewards and Incentive~. on both cash
and k1n:t, are given to the ['Arformers. Reliance shares are very often used as
incentives to not only rel lance employees, but also to even outsiders anti
g"emmen: employees. Ambanrs una<:<uming app-oach w ns him friends, which
ot>vlousl1 helos in h:; business.

R~I ance's financial policies arc cons dera,ly responsib c fo1 Ls success, wnlle many
or u.., textile units barrow tunas rrom flnanc al Institutions 11nrl short-term ea~ltal
rrarket. Amhanl d rectl1 approaches the p~bllc, the shareholders, "H" h"s made the
shore holders the hub or hi yro.Y:tl. He nes oamec :remendous conflmnce of the
share halders and lnvi;sting public. The compaiy'o flnorciers Include 6 ldkhs
sharEholdcr:; 01d 12 lokhs inves:o1>. /VJ Jnvest'llent of Rs.lUUO mace In 1977 ,
risen to :>~.UOO in 1985, I.e. 57 llriPs growth within a period of 8 years. This Is the
eason \Nhy th~ market v1llu~ of R$.10 Reliance lrdrt' has risen co envwnere erourd
~s.200. Its s'iara rs al'Na~s Quote~ high n.,1t1bhal constantly monitors the share
rrlrP and if anf maooau,erin~ i,; noticed, the 'lnvlsiJle hanc.l' inmedlately sets ere
ccrrectlve dLlloi rolling.

In order to teach a severe ond costly lesson to those who sold short (Seid <h,.re5
w1trout ownino any), at R<. 130 en 1810 March 1982, t1cy were forced to mop up
shares ot ~- 101 to Rs.200 'or 1 dll over trere, wnt e mstructons were issued to the
company's stock sis, retailers and other hfluential shareho'dcrs not to set t~cir
share> oi that day. Amtanl hes capita"'""' Reliance's ruture strea-n ot interest to
ddirn higher dep'eclatlcn an:l remain n the 7Prn tax tracket. Ho conver:ed the ovt
stand'no< (after con1Qrsion ri3ht~ wore exercised) en tte ruur series or hlS
deber tures ""'ounllng to Rs.73.50 crores Into equit1 o' R<.103 crores anc at the
sa'ne tirrc toasted hi~ rPvenues and &Jrp us bv R!:. 63.2 crores. I le has popJid!l;t<j
coivcrt!ble debentures. He al>0 inVoduced cash cert1'1cate scieme urriPr which the
CO'l'IPOLn:led montily Interest ac:-n1ln~ to the lnvos:or Is not treated es Interest.
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R.olher ot tic time of maturity of tha certificatP, the Investors can claim the return>
as long-term caprcal gains which "'.l1bet a lcwe- tux rote. rt halps the company's

flnar-c-al position since the rPtum is payable only at the time or nalurily, and the
pay out I~ ch .. rgcd only In the ye.ir of repaymont. H;i has in-reduced a nunber or
s.rch rovPI ideas to strengthen the nnancia posmor.

In add ltlon to the earnings from tne >lDCk nerket, the com~ony colleru huge sums
fro'l"I hi!: !:tcckisti: and ratalle~. There ere over <.~ wnotesaters c:mJ 1300 retnil
outlets, as wel es 23 showroems aid monv -nailer outl~ts for Vlmal fab-ics.
Aspilng deale< MP- willing to Invest m Reliance and :.uu>erlte to its equity. Thie Is a
""' y potentlet source of ~he company's 'lnance.

With or annual urnover of Rs.6C4 crores and a daily cash tow or Rs.2 crores U1o;
company enjovs a tremendou:. ~lout with bankers. Quick deos.on-makinq ability of
the top manaoenwnt, backed by astonlsMnq speed or project irnplementetreos, Is the
basl: strer y.h of the cornpenv. Withir a period of 19 mcnth<: R1llan:e ccuro erect
;,nd commission Its POY plant at 'atalganga, which surprlse<i even tic l\merican
coneboretcrs wno have paid tributa to RelianrE's 'amazino organizational erergy '
Mukesh Ambani IS praised (~r this speed. rie ho; definite ideas v.hlci Ar~
lncorpor;td in Reliance~ rnrpafate ph losophy. ACCO"dlng to hun everyone et
Reliance 1.,~ d sense of cwnershlp. Mukc~h tays, we test our thoroughly. But
once w ~lart trustlrg them, we entrust chem With the lol<il 1esporsib lity. There arc
no ever seers obovc a respenslb e person and no under study eo reJlace him. 'Ne
make hln feel ind1spensable.N

According to Anll, "ours Is a top dowr and bottom up management style ThP. top and
the bottom do not work In isolation but lntermlrgle ~ml work to set sco s and
acnleve the rcsJlts. Though the tcp management p<Jlicy makino ls assisted by ot ier
top execouves. t:ip aeas ons are now ruede by Dhirubh!ll on~ hi~ two sers Mukesh
ord Anil. Prcvlou;ly tt.ls position wa 1-Pld by Dh ruthai, his two eret-rers Ramnlkbhal
and Natubhal; and Raslkbhal Meswani and R C.l'lltcl. Mukesh is now in charg<' nf
'atalg;;nga operations (POV nanufacture and POY sales), and Anll IS In ~011l1ol of
Ahmeaab<d wnere te>Ctur1sins of yarn end weaving, knitting, processing and sale
:>f fabric take plac~.

The gr:>wth tne Rel aice Industries could achieve n U1e past Is urprecendentcd In
Indian lnoustr)'. (o detziilcd !:tatement Is given in thl\ exhib.t]. Grosss fixed assets
gre.v at a compound rate or 61 pt:r cent every year. while net fbcec assets have
revealed a growth of 61 percent, as 39alnst SQJ! per cen: annual growth ot owner's
equity and 31.3 per cent ;ntl 49.4 per cent ennuat growtn ol sales and net pmflt
respcenvely, Thg compary's net fll<P<f a~o;et tas grown trom Rs.47.96 crores i11 1979;
re Rs. 520.08 crores 111 1984, Rs.9,232.? erorcs Ir 1996 to and to R- I 1,!73.4
cro''" in 1997; Sae !)rPw from Rs. 155.lZ to bC4.:Z7 creres, 6580 "ores end to
Rs.7,736.11.1ore and prcfit from 8.21 crores, to 61.10 crere, 1,305 3 to Rs. l,322.7
crorP<: during the sane period as ageirs: the owners i::4ulty growth from 1\3. 2.3.6'1
creees to It!. 246.39 crorcs,

from 1982, the nteres: o~ de:.entures rd tem loans 1'1hlC1 Re ranee used ru1
pJrchase ot nxec assets has been <.oJitcli:ed ror the onti c contracted period of
these 103'\t. The total amount so rnpitalize:l up to December 1964 was R:..190.72
crores However, wien the :Jo;IJe11tures were cenve-tcc to eqJity (wh c'l was doM In
198"-)1 Rs. 54 creres of thP r;ipltalized ln:ercst was no longer required to be paid.
The profll er ul less ecceunt 5~ows o higher depredal oi charge ~nd a lower figure for

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Interest. This accouning pr11rti~P h;s consistently meant that A.el ance's botton lhc
In the prcflt ond loss acmunt hes been higher by Rs.82 lakh:> ht l982, Rs.1.76 crores
10 1983, and Rs. 5.58 cores In 1984. A'aln In the a:countlnJ policy has been
chang2d from 1982; the method o' providing deprcclatlon, ord the chorge was made
ouly on a pro-rata basis for assets installed ~urnQ that year. If a full year'i;
depreciation had bPn prnvided, the charge would have bee1 higher by ~.16.J:l
e-eees, reducing prcflts by neatly l1c1I(.

Tho Directors' report hes revealed D very high pofl:. Reliance :>hdr~s have been
rno:;t pcpular n the share market, and the eqJity price has consistent y remained
huoyant During th2 late &eventies aid t~c ca-ly eighties the ccmpeny mode fo.n
incrcoslnsly popular convertlble debenture iss.ies, and mopped up a total of Rs. 92
crores The company has also l!f!P.n <1.-rf'Ssful In persuading thr:o Controller of Capital
Issues to allow the conversion to ~ulty of even the non-converubte portion or these
debentures amountng to Rs. 73.~ crores at the handsome ~rP-ninm of Ri:. 61 par
R. 10 equity share. By ~hie enc stroke, e very lerge omount of loans coul<l be
cleared. ll ,.a lhe company's gearing extreme y manageable levels of 1 :1, ready for
fl.rther large f''<f)An<ion of the manufactu,ing base; and very cub:>tamially lncrcosed
the com~"ny's reserve F\Jnds by odding Rs. f2 ovres to the share prerrtum account.
on the ether hand, the share cap tat went up by 01ly A r~IMiv~ly small amcunt of A.G.
10 crores, According to the l!i81 001;,icc sheet, the book velue of Rs. 10 eqully
>hdre stands arou~d Rs.42, as against the market price of Rs. 217. The company's
PE ratio is 16 on~ ~f thP highest among all Indian companies.

lo sum up, Reliance Textile Jndu~tril>< Pvt Ud, ca-ne Into axistonca In l967, wh1 c
t~c llorodo unit went on stream. later I l 1975 thts company was rne'gej with

Mynylcn Ltd, which belonged to the Pal fami v, rP.~111tlno f11rther In co1vert1ng it Into
Reliance Textile !nd~trics Limited. Its first public Issue was irr 1977. Later In
1979 they took ever the stck un t Sldhpur Miiis Company ..t:I. Of AhmPdab;1d. -he
OQV(partlally-o;ented i:olyaster yam) project of Pat3lgang' went on stream In 1932.
'1. A 111>01 I hos not wa ted; ne has 1n1tr.11ed connnuo.is programmes for
110derni2athn "nc1 expanslon of all manufact;ring installations at Noro:la,
Ahmedobod end Patalga111io tJurir13 lte period er upt'.l 1985.

The company hos recortec on all round lmp1u111:0111~11L in us working resu ts dUrll'lQ
lY!l!:>.
Sales and profl:& have rcvcolcd a significant growth in 1985. Sale dll<l profits have
revealed a s19n1tcant growth In 1985 corieared to 1984. EQul:y dividend h~s hPPO
erhanced from 40 percent to 50 percent, and tl-c hlsher dividend Is peyeble on the
erhenced capitol or ~s.51.6 crores as against l\S-46.2 crores ct the en:! o 1984. !let
sales havP. risen by 17.7 PQr<e'lt frcm Rs. 60L.27 creras In 1;184 to re. 711.35 cro-es
ln 1085. With the gro$s profit rising uy 2E.9 percent from Rs. 85.72 crores tc KS.
lCB.80 crores durino this perin1 (ft:Pr decapltalis2tion o' intc;rest in Ure with the
provlslo~ of the F nondo1 Bill of 19GG), the ratio of yrus:; l)ruOl to sales has
improved from 14.2 percent to 15.3 perrPnt Aftpr providing Rs.37.46 crores h
:985, as against Hs 30.20 crorcs In 1?84, for deprecletlon, tie net profil l1a~ bee,
Rs.71.34crcres1n 19tl5 as against Rs. 55.52 crores in 1gs.i.

The cornpetv's contrtauncn co tne exc'iequer by way :>! ndlrect taxes has been
Rs.38) crores In 1<;R'i ,.. !)illnst ~- 235 crora' In the previcus year, rcvcollng o r se
of 52 percent. Divide!'d contubuuo 1 Ii~~ been Rs.25.75 crores and Ks.l~.22 crores
respect velv. I his can be considered a rPrnrd nf 'ro'it distribution by an Indian
com~ary in tho prlvote sector, Aft~r August 196 tne ~-urnp;ny became eligible 'or


4
borus l<:<11P.. n11ring 1985 the company has added to its fixed assets s. 347 crores
tak 119 the gross block to R3. 735 crorcs. T~o company proposed to Invest Rs. 400
crores In 1986. W th a revourabte debt equity ratio, It could re se lnte1net f\.n;ls and
borrowings to finance Its of 900 c-eees investmant programm<'.

Their nPw rrojPCI<: Include, tre Purified Terephttalic Acid (I PA) Project Vilth an
lnstollcd copocity of 75,000 tcncs per anium and tte linear alkyl benzene (lAB)
project .vlth an Installed capacity of ~O, ouo tcnnes per amurn being ::.~t ul' ol
Patalgarga (Maharashtra) are expected to be complPtP<! by December 1985.
Normally, these projects take about 2836 111011Ul> for mplementotlor. The compony
however, rl;onnPr! to 1mplemeit the project In 13 20 months, which itself might be a
1 e<.o1d The monoethylene 5lycol (MCG) proj~ct with on ln:;t.,llcd cap3city ol 40,000
tonnes per a-mum, the high densl:y polyetllylene CHDPE) with an 1nstal ed Cdpocity
of 50,000 tonne~ and ~he PVC project w th an lnsta led capacity of 100.000 tonne
per annum were completed wltllln a record pe-tod. Al the 1~86 onnuol gcneref
rreetirg Ohlrubhal ra; announced that thP tn'Tlpany was going to make fresh
lnvestment to the ture of over Rs.4000 crcres. rte moderniution programme in the
tP.l<tliP dlvlslcn at Naro:la nas teen ccmrseted In 1986, anc the expans1or or PFY at
Potolgongo fro-n 10,00~ to 25,0CO bnnes per month from the date ol ls:sue of letter
of in:ent on February 1, l 91>!>, w'l1:h IS anctner world ecord or Imp .:~1t<nU11y ::.JLlo a
project and excelling Its own record of pLttlrg up Iha earller PFY pln. The large
polyester staple fibre pl<111l with d licto1:.e captcity of 45,000 tonnes hos been set up
Ir t<:>~rnical cotlahnr>ttlon with Ou Point, USA, whlct producesthe wiaest spectrum of
polyester sto;ile fibre.

T'ie growth strategies of the company de;erve <pedal appren11tifln. F~p;m~lon of the
POY plant, to~e:ne w th the new lnstal euons for pulyt:.te1 staple fibre, PTA, one
monoethyl olyrol are al backward lnt~ratlon from textiles. The siQnitlcant point,
;,Jwt:ver, Is that Ambani hes beater oll his ccmpetitors in one vit:ll aepcct, l.e., the
size of all his proposed projects, which cculd all have substantial economies or scale
Tic POY ot Potolgt>n~o, for ln~tancc, with a capacity of 25,000 tpa, shculd be
compared wttt Ori<ay~ plar-s to aoutlle caoac t:y to 12,oco toa, and J.K. Sy11L11etic's
prcpescd expansion In 18,000 tpa.

Similarly the staple fibre un t, which ~e'lance has set tip h 1 'lR6 wou d be four trnes
the sue cf IC!':; lonl 111 eu nbay. Reliance wculd not :>nl( be much l~rgcr and more
P'flrlPnt rhan any of the private an:! pu!>I c sector .rnlts manufactu-tnc svntreac
textile related products, would also remain for ahead In areas where tlie
manJfact1rirg processes are beirg ontlnJously overtaken by fastmcl'llng
tcchnologiail change..

The ccmcony tu-tier divcrcifled Into petrochemicals. In addlt on to th!? takino ovr nf
the Jnion Carbide ceriptex, pans are In acnon ror setting up a ~idnl llnc.:01 alkyl
benzene plant at Hazira By :he end of 80s another Jl~ 10)0 rrores was planre:l to
be tnvestec In naphtha crad<iny 011d naphtha based petrochemicals, mokirg l\ellancc
the largest private sector Investor In rtn:chemlcalc:. To sum JP t can be re-nari<ed
U1cl Rdlo11Ce Is e gian: multilocotlonol, mu tiproducl conglomerate In India. T~e
followinJ PYMhlt givP.s a brief plc:ure of the compary.








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EXHIBIT
Reliance Textile Industries Ltd: A Profile

IRs. In crnrn,;l
19:10 1981 1982 1S83 1984
Shore Ccoltol 12.36 16.9i 24.311 41.95 51.93
Reserves a surolus 19.43 40.12 67.14 87.93 194.4:
Total Lean Funds 47.59 99.53 283.45 275.45 32'..7'1
'let t-1xed Assets 56.69 104.29 313.34 321.46 425.4<4
Sales (Incl. Exdsal 207.68 301.66 4nl\. ~:l 5Ci282 604.27
Otner Jnccme 2.55 3.63 2.~1 4.G6
7.11
:Xe s.l on Yarn 5.17
s.,11 12.52 122.1!3 1!>7 .~3
lnterest 11.13 16.79 10.93 21.52 22.62
'.:>ecredation E.88 10.97 14.17 31.38 '14.17
Pre Tox Pr:.nts 11.21 19.70 29.16 38.52 61.10

TRxP.~ -
.

Dividend 25% 35% 30% 30%
4001~

A.n onalrsis of nenenee case has unvcUcd various aspects of pol cy making in tl-e
lrd an context, especially In an orga:~zat!on that acllit~ve<.! fd11lc>!i< .. \jrur1tl1 ar.d
success, To~ management is basically responsible in rnllry mRking, ard hence it Is
relevant to examine Lile co ce-ete organk<tion of the company. Rel once tcp
management or92nl:zatlcn orioln>\lly t:ono:isted of Dhirubhal, ~Is two orotners, a
relative enc a close assoc etc, wh ch hos given woy for a top management group,
whlrh r~n~i~ o' its preslden: Dhlubhai a1d hi> two sons. lh~ top maragement IS
ess sted by a group of executives who were DhlrubhaJ'c long tirre fnends.

A group of re~ t makers are also taken Into confidence for tte top m<1MCPm('nt
policy ma1<1ng. 1 ne cop manageir.ent hea:Jed by D1iru!Jlt"i h 1to"!)Orslb e for the
determination of broad company ~t.c es. Plannlno ;it Reli3nce was viewed primarily
as a way or helping the compmy dclti.,v.: Its objectives. These objectves are
identified as continuity l>f artlvlty, corporal& growth combined with tile abtllry to
provtde NJrk~ with steady employment, end e continued c~p;>Clty to operate a!: a
highly pmflt rrakiig dynamically gr:>wl1g multuocattor-a , mJltlproduct giant
conglo"TICrote, Involved in the A to Z o' textile rranufactura. Tha object vu Include
extensive dive'"Siticato'l mto core sectors or the economy. While loriy rd119e and
rrcdium range planning could be coordinatec and adm n "'Pl'M by the central
pianmnq department Wlthl1 the control of Dhlru!Jh<1i1 ~d(I or the operoting divisions
rra1ntalra~ Its own ~lanning oraanintion. Ohjectives also induce steacv and
revolutionary growth, clldlt1111\1 t1101ket leadership In men-rnede textile, estobll$h on
lndustri~I empire, n:.t only In textile tut also in other core sectors, gain the hlQhest
pront maryin posslble, etx:.

Their ooli:r of quick decision m<i<ing ;ind project lmplementa;ion, producing and
positioning of the products 'TI::>St w.:ntCCI by tile consumers. and mu.lvolln9 lhc
dcelcrs <ind r~ta tcre to sell more of Vimal, bad<c by an effective corporate rii:.nnino
p-ocess go a lorg way rcr tnern Lo acl1iev .lie objective. Determinotlon of demand
and mGasuro.....ant of perfcemance a~ wPll as s:rategy formulation and



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impl~mcrt;>tlo~ ere closely assodated with busln~~ ?Oli~ . As the business
orcanuat on IS expected t' Interact with the envlr onmeit, tile strategist Is bound to
evaluate the anl/lronmFn in .vhich the stategy is to work. Hence scanning the
environment pr:<.e;les the policy naking, ond ;tratcgy formulatl:>n is followed i<
followed by scanning the envircnment.






























































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