Professional Documents
Culture Documents
Type
Public
Traded as
Industry
Conglomerate
Predecessor
Founded
1966
Founder
Dhirubhai Ambani
Headquarters
Area served
Worldwide
Key people
Mukesh Ambani
(Chairman and MD)
Products
Petroleum
Natural gas
Petrochemicals
Textiles
Retail
Telecommunications
Media
Services
Security services
Revenue
Operating income
Profit
Total assets
Number of employees
24,930 (2016)[1]
Website
www.ril.com
1History
o
1.11960 1980
1.21981 2000
1.32001 present
2Shareholding
o
2.1Listing
3Operations
o
4Employees
6Controversies
o
7See also
8References
9External links
History[edit]
1960 1980[edit]
The company was co-founded by Dhirubhai Ambani and his brother Champaklal Damani in
1960s as Reliance Commercial Corporation. In 1965, the partnership ended and Dhirubhai
continued thepolyester business of the firm.[8] In 1966, Reliance Textiles Industries Pvt Ltd was
incorporated in Maharashtra. It established a synthetic fabrics mill in the same year
at Naroda in Gujarat.[9] In 1975, the company expanded its business into textiles, with "Vimal"
becoming its major brand in later years. The company held its Initial public offering (IPO) in 1977.
[10]
The issue was over-subscribed by seven times.[11] In 1979, a textiles company Sidhpur Mills
was amalgamated with the company.[12] In 1980, the company expanded its polyester yarn
business by setting up a Polyester Filament Yarn Plant in Raigad, Maharashtra with financial and
technical collaboration with E. I. du Pont de Nemours & Co., U.S.[9]RELIANCE IS ONE OF THE
BEST COMPANIES OF INDIA
1981 2000[edit]
In 1985, the name of the company was changed from Reliance Textiles Industries
Ltd. to Reliance Industries Ltd.[9] During the years 1985 to 1992, the company expanded its
installed capacity for producing polyester yarn by over 145,000 tonnes per annum.[9]
The Hazira petrochemical plant was commissioned in 199192. [13]
In 1993, Reliance turned to the overseas capital markets for funds through a global
depositary issue of Reliance Petroleum. In 1996, it became the first private sector company in
India to be rated by international credit rating agencies. S&P rated Reliance "BB+, stable outlook,
constrained by the sovereign ceiling". Moody's rated "Baa3, Investment grade, constrained by
the sovereign ceiling".[14]
In 1995/96, the company entered the telecom industry through a joint venture with NYNEX, USA
and promoted Reliance Telecom Private Limited in India. [13]
In 1998/99, RIL introduced packaged LPG in 15 kg cylinders under the brand name Reliance
Gas.[13]
The years 19982000 saw the construction of the integrated petrochemical complex at
Jamnagar in Gujarat,[13] the largest refinery in the world.
2001 present[edit]
In 2001, Reliance Industries Ltd. and Reliance Petroleum Ltd. became India's two largest
companies in terms of all major financial parameters.[15] In 200102, Reliance Petroleum was
merged with Reliance Industries.[10] In 2002, Reliance announced India's biggest gas discovery
(at the Krishna Godavari basin) in nearly three decades and one of the largest gas discoveries in
the world during 2002. The in-place volume of natural gas was in excess of 7 trillion cubic feet,
equivalent to about 1.2 billion barrels of crude oil. This was the first ever discovery by an Indian
private sector company.[10][16] In 200203, RIL purchased a majority stake in Indian Petrochemicals
Corporation Ltd. (IPCL), India's second largest petrochemicals company, from Government of
India.[17] IPCL was later merged with RIL in 2008.[18][19] In the years 2005 and 2006, the company
reorganized its business by demerging its investments in power generation and distribution,
financial services and telecommunication services into four separate entities. [20] In 2006, Reliance
entered the organised retail market in India[21] with the launch of its retail store format under the
brand name of 'Reliance Fresh'.[22][23] By the end of 2008, Reliance retail had close to 600 stores
across 57 cities in India.[10] In November 2009, Reliance Industries issued 1:1 bonus shares to its
shareholders. In 2010, Reliance entered Broadband services market with acquisition of Infotel
Broadband Services Limited, which was the only successful bidder for pan-India fourthgeneration (4G) spectrum auction held by Government of India. [24][25] In the same year, Reliance
and BPannounced a partnership in the oil and gas business. BP took a 30 per cent stake in 23 oil
and gas production sharing contracts that Reliance operates in India, including the KG-D6 block
for $7.2 billion.[26] Reliance also formed a 50:50 joint venture with BP for sourcing and marketing
of gas in India.[27] In 2012, RIL set up a joint venture with Russian Company Sibur for setting up
a Butyl rubberplant in Jamnagar, Gujarat. The plant is scheduled to be operational in
2015[28] Presently, Tejpal Singh Bisht is the President and CEO of New Ventures in the
Chairmans Office at Reliance Industries Limited.[29]
Shareholding[edit]
The number of shareholders in RIL are approx. 3 million.The promoter group, Ambani family,
holds approx. 45.34% of the total shares whereas the remaining 54.66% shares are held by
public shareholders, including FII and corporate bodies.[30][31] Life Insurance Corporation of India is
the largest non-promoter investor in the company with 7.98% shareholding. [7]
Buyback: 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
bought back 46.2 million shares for33.66 billion (US$500 million).[32]
Listing[edit]
The company's equity shares are listed on the National Stock Exchange of India Limited (NSE)
and the BSE Limited. The Global Depository Receipts (GDRs) issued by the Company are listed
onLuxembourg Stock Exchange.[33][34] It has issued approx. 56 million GDRs wherein each GDR is
equivalent to 2 equity shares of the company. Approx. 3.46% of its total shares are listed on
Luxembourg Stock Exchange.[30]
Its debt securities are listed at the Wholesale Debt Market (WDM) Segment of the National Stock
Exchange of India Limited (NSE).[35]
Credit Ratings: It has received domestic credit ratings of AAA from CRISIL (S&P subsidiary) and
Fitch. Moodys and S&P have provided investment grade ratings for international debt of the
Company, as Baa2 positive outlook (local currency issuer rating) and BBB+ outlook respectively.
[36][37][38]
Operations[edit]
The company's petrochemicals, refining, and oil and gas-related operations form the core of its
business; other divisions of the company include cloth, retail business, telecommunications
andspecial economic zone (SEZ) development. In 201213, it earned 76% of its revenue from
Refining, 19% from Petrochemicals, 2% from Oil & Gas and 3% from Other segments. [7]
In July 2012, RIL informed that it was going to invest US$1 billion over the next few years in its
new aerospace division which will design, develop, manufacture, equipment and components,
includingairframe, engine, radars, avionics and accessories for military and civilian
aircraft, helicopters, unmanned airborne vehicles andaerostats.[39]
Employees[edit]
As on 31 March 2013, the company had 23,519 employees of which 1,159 were women and 83
were employees with disabilities. It also had 29,462 temporary employees on the same date. [7] As
per its Sustainability Report for 201112, the attrition rate was 7.5%. But currently, the same
arrition rate has gone up to 23.4% in 2015 as per latest report released within the organisation. [62]
In its 39th Annual General Meeting, its Chairman informed the shareholders of the investment
plans of the company of about1500 billion (US$22 billion) in next three years. This would be
accompanied by increasing the staff strength in Retail division from existing strength of 35,000 to
120,000 in next three years and increasing employees in Telecom division from existing 3,000 to
10,000 in 12 months.[63]
The Brand Trust Report ranked Reliance Industries as the 7th most
trusted brand in India in 2013 and 9th in 2014.[66][67]
RIL was ranked at 25th position across the world, on the basis of
sales, in the ICIS Top 100 Chemicals Companies list in 2012.[69]
RIL was awarded the National Golden Peacock Award 2011 for its
contribution in the field of corporate sustainability.[70]
Controversies[edit]
De-merger of RIL in 200506[edit]
The Ambani family holds around 45% of the shares in RIL.[73] Since its inception the company was
managed by its founder and chairmanDhirubhai Ambani. After suffering a heart attack in 1986, he
handed over the daily operations of the company to his sons Mukesh Ambaniand Anil Ambani.
After the death of Dhirubhai Ambani in 2002, the management of the company was taken up by
both the brothers. In November 2004, Mukesh Ambani, in an interview, admitted to having
differences with his brother Anil over 'ownership issues'.[74] He also said that the differences "are
in the private domain". The share prices of RIL were impacted by some margin when this news
broke out. In 2005, after a bitter public feud between the brothers over the control of the Reliance
empire, mother Kokilaben intervened to broker a deal splitting the RIL group business into the
two parts.[75]In October 2005, the split of Reliance Group was formalized. Mukesh Ambani got
Reliance Industries and IPCL. Younger brother Anil Ambani received telecom, power,
entertainment and financial services business of the group. The Anil Dhirubhai Ambani Group
includes Reliance Communications, Reliance Infrastructure, Reliance Capital, Reliance Natural
Resources and Reliance Power.[76][77]
The division of Reliance group business between the two brothers also resulted in de-merger of
4 businesses from RIL.[78][79] These businesses immediately became part of Anil Dhirubhai Ambani
Group. The existing shareholders in RIL, both the promoter group and non-promoters, received
shares in the de-merged companies.[20]
In May 2014, ONGC moved to Delhi High Court accusing RIL of pilferage of 18 billion cubic
metres of gas from its gas-producing block in the Krishna Godavari basin.[80] Subsequently, the
two companies agreed to form an independent expert panel to probe any pilferage. [81]
See also[edit]
Vivek Lall
Make in Maharashtra
Mukesh Ambani
Dhirubhai Ambani
Companies portal
Energy portal
Telecommunication portal
References[edit]
1.
2.
Jump up^ "Reliance Industries Limited leads India Inc as the highest
profit earner". http://timesofindia.indiatimes.com. Retrieved 31
May2015. External link in |publisher= (help)
3.
4.
5.
6.
7.
8.
9.
26. Jump up^ "BP partners Reliance in $7.2 billion Indian oil hunt".
Reuters India. 22 February 2011. Retrieved 25 August 2013.
27. Jump up^ "Reliance Industries, BP complete $7.2-billion
deal". Economic Times. 31 August 2011. Retrieved 25 August 2013.
28. Jump up^ "Indias butyl rubber import my end once Russian JV
starts in 2015". IANS. news.biharprabha.com. Retrieved 24
April 2014.
29. Jump up^ "Vivek Lall to head US India general aviation working
group". The Hindu. 4 October 2013.
30. ^ Jump up to:a b "Investor Relations : Share Ownership". ril.com.
Retrieved15 August 2013.
31. Jump up^ "Reliance Industries Ltd. Share Holding Pattern".
kotaksecurities.com. Retrieved 25 August 2013.
32. Jump up^ "Reliance Industries buyback: Beyond face value". The
Indian Express. 18 January 2013. Retrieved 24 August 2013.
33. Jump up^ "Investors' Handbook". ril.com. Retrieved 15 August 2013.
34. Jump up^ "Reliance Industries Ltd. Listing". Economic Times.
Retrieved25 August 2013.
35. Jump up^ "Listing Information". RIL.com. Retrieved 26 August 2013.
36. Jump up^ "Credit Ratings". RIL.com. Retrieved 26 August 2013.
37. Jump up^ "S&P raises credit rating on RIL to 'BBB+'". Reuters India.
29 May 2013. Retrieved 26 August 2013.
38. Jump up^ "Rating Action: Moody's assigns definitive Baa2 rating to
Reliance's USD senior unsecured perpetual notes". Moody's. 31
January 2013. Retrieved 26 August 2013.
39. Jump up^ "RIL lines up close to $1 billion plan in aerospace sector,
may hire around 1,500 people". The Times of India. 28 July 2012.
Retrieved26 August 2013.
40. Jump up^ "Financial Presentation of 201213 Q4 Results" (PDF).
RIL.com. 16 April 2013. Retrieved 27 August 2013.
41. Jump up^ "Ambani tops retailer list, too". Business Standard. 17
August 2013. Retrieved 19 August 2013.
42. Jump up^ "Few RIL retail arms still making losses". Business
Standard. 11 May 2013. Retrieved 27 August 2013.
43. Jump up^ "About us, Reliance Life Sciences". RelLife.com.
Retrieved18 August 2013.
44. Jump up^ "Changing its DNA". Business Today. 30 September
2012. Retrieved 26 August 2013.
64. Jump up^ "RIL bags Refiner of the Year Award". Economic Times.
22 March 2013. Retrieved 20 August 2013.
65. Jump up^ "India's top 50 brands". brandirectory.com. Retrieved 19
August2013.
66. Jump up^ "India's Most Trusted Brands 2014".
67. Jump up^ "The Financial Express".
68. Jump up^ "Reliance Industries Ltd gets certified as a 'Responsible
Care' under American Chemistry Council". Economic Times. 4 March
2012. Retrieved 22 August 2013.
69. Jump up^ "Top 100 Chemical Companies 2012". ICIS.com. 10
September 2012. Retrieved 22 August 2013.
70. Jump up^ "Award for Sustainability(GPAS)".
goldenpeacockawards.com. Retrieved 25 August 2013.
71. Jump up^ "RIL named among 25 sustainable value creators
globally: BCG". Economic Times. 14 October 2009. Retrieved 25
August2013.
72. Jump up^ "RIL among world's 100 best-managed cos". Rediff.com.
29 August 2000. Retrieved 25 August 2013.
73. Jump up^ "Mukesh Ambani admits to differences with Anil".
Rediff.com. 18 November 2004. Retrieved 28 August 2013.
74. Jump up^ "Ambani vs Ambani". India Today. 6 December 2004.
Retrieved28 August 2013.
75. Jump up^ "Cover Story: Ambani Settlement". India Today. 4 July
2005. Retrieved 28 August 2013.
76. Jump up^ "Reliance Industries: Milestones of an oil giant".
NDTV.com. Retrieved 28 August 2013.
77. Jump up^ "Corporate Announcement Reliance Industries hands
over control of Four Demerged Companies to ADAG". bseindia.com/.
8 February 2006. Retrieved 28 August 2013.
78. Jump up^ "Reliance demerger: What should you do?". Rediff.com.
17 January 2006. Retrieved 27 August 2013.
79. Jump up^ "RIL pens demerger buyout cost". Business Standard. 17
January 2006. Retrieved 28 August 2013.
80. Jump up^ "Independent panel to probe discrepancies in KrishnaGodavari Basin". hindustantimes.com. Retrieved 30 May 2014.
81. Jump up^ "Independent panel to probe discrepancies in KrishnaGodavari Basin". IANS. news.biharprabha.com. Retrieved 30
May 2014.
External links[edit]
Official website
Management Profiles
Reliance Industries
BSE SENSEX
Economy of Mumbai
CNX Nifty
Companies of India
Navigation menu
Not logged in
Talk
Contributions
Create account
Log in
Read
Edit
View history
Go
Main page
Contents
Featured content
Current events
Random article
Donate to Wikipedia
Wikipedia store
Interaction
Help
About Wikipedia
Community portal
Recent changes
Contact page
Tools
Related changes
Upload file
Special pages
Permanent link
Page information
Wikidata item
Create a book
Download as PDF
Printable version
Article
Talk
In other projects
Wikimedia Commons
Languages
Deutsch
Espaol
Franais
Bahasa Indonesia
Italiano
Suomi
Ting Vit
Edit links
Privacy policy
About Wikipedia
Disclaimers
Contact Wikipedia
Developers
Cookie statement
Mobile view