corporate policies & strategic management presented by harshad more

8/7/2019 Corporate Policies & Strategic Management Presented by Harshad More

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Reliance GroupReliance Group

Reliance Industries Limited

Presented by

Harshad More

Corporate Policies & Strategic Management..


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..

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest

private sector enterprise, with businesses in the energy and materials value chain.

Reliance Commercial Corporation (RCC) was formed in December 1958, which dealt in

exporting spices.In 1966, a spinning mill was set up for import of polyester & export of nylon and it was

named Reliance Textile Industries.

Keeping its core in petrochemicals, Reliance soon diversified its activities to

telecommunications, information technology, energy, power, retail, textiles, infrastructure

services, capital markets and logistics.Group's annual revenues are in excess of US$ 30 billion.

The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and

is the largest private sector company in India.

Listed on the National Stock Exchange and the Bombay Stock Exchange,

Dhirubhai H. Ambani

Founder Chairman Reliance Group

December 28, 1932 - July 6, 2002

Introduction


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To create and nurture a world-class, high performance environment aimed at delighting our

customers

To attain global best practices and become a world-class, Starting in 1991, he

directed Reliance Industries in its efforts to raise ...

Vision:-

We will leverage our strengths to execute complex global-scale projects to facilitate leading-

edge information and communication products & services affordable to all individual consumers

and businesses in India.

To focused on fulfilling the needs of its various stakeholders through excellence in systems,

processes, technology, and people and toward fulfillment of the corporate vision

The company's vision is "to grow on a sustainable basis and be the largest and most innovative,

profitable, and admired polyester producer in the world."

MISSION:-


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Short-term plan

Identify and develop measurable goals for sustainability performance indicators

Give a structured approach to our social initiatives

Create a pan-RIL system for managing organisational knowledge assets with the objective

of empowering every employee with connective organisation knowledge for delivering

superior performance

Create a sustainability portal for e-enabling data and information collection

Form a sustainability council as an apex body to give impetus to our sustainability strategies

services, capital markets and logistics.


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Long term Plan

Embed life cycle and systems thinking in all business processes

Reduce environmental footprint by deploying appropriate systems and technologies

Move towards a low carbon business enterprise

Strengthen the talent pool to cater to our diverse and integrated nature of business

Create a triple bottom-line accounting system


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Subsidiaries IndustriesSubsidiaries Industries

Reliance Petroleum

Reliance Retail (R R L)

Reliance Global Management Services (P) Ltd

Reliance Biopharmaceuticals

Ranger Farms Ltd

Reliance Engineering Associates (P) Ltd

Reliance Oil & Gas Find

Petrochemicals Business

Reliance communication


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A coherent technological innovation strategy

Leverages the firms existing competitive position

To take advantage of environmental opportunities and

Provides direction for future development of the firm.

Strategic business unit of Reliance Communication

Wireless business

Globalcom business

Enterprise Broadband business

Infratel business

Reliance communication has widespread passive and transmission network for

their roll-out requirements as well as their future requirements, which spans 2G,

3G, andWiMAX.

Expected is the 3G andWiMax technology rollout and expansion of ISP

operators .

Corporate strategic


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The Value Chain

INBOUND OPERATIONS OUTBOUND MARKETING

SERVICE & SALESLOGISTICS

FIRM INFRASTRUCTURE

LOGISTICS

HUMAN RESOURCE MANAGEMENT

More than 50000

towers,190000 Kms Optic

Fiber Network

Experienced Managers for

Human Resource Development

CDMA , Visual

communication, Broadband

Portal, 3G WiMax

Strong Logistic

And Supply

Chain

Integrated Org

performing good in

understanding customer

and services

Distribution Channel Of

Finished Products And

Services

Tech support by web &

phone. Online records for

each customer.

TECHNOLOGY DEVELOPMENT


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Backward IntegrationBackward Integration

Backward integration has been the cornerstone of the evolution and growth of Reliance.

Starting with textiles in the late seventies

Acquisition by a business of one or more of its suppliers. Or backward meansintegrate with suppliers

For example, Reliance started manufacturing petrochemical intermediaries like paraxylene,

n-paraffin and mono ethylene glycol (MEG), and ethylene, the basic raw material for all

petrochemical bi-products and intermediaries. And finally it entered into production and

extraction of oil

Forward integrationAcquisition by a business of one or more other business that are between the acquiring firm

and its customers. Or forward integration means company merge with its distributors and

customers

For example, a manufacturer purchases a distributor. Reliance Communication purchases adistributor


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Reliance Global Management Services (P) LimitedReliance Global Management Services (P) Limited

Vertical integration

Form of business organization in which all stages of production of a good, from the

acquisition of raw materials to the retailing of the final product, are controlled by one

company.

For example - the Reliance oil industry, in which a single firm commonly owns the oilwells, refines the oil, and sells gasoline at roadside stations.

Horizontal integration

When a company expands its business into different products that are similar to current

lines.

For example the Reliance producing handset with gsm & cdma cards


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BCG Matrix :


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Positioning Of The Companys In The BCG Matrix:

Jamnagar Refinery:

Reliance Global Management Services:

The rating on Reliance Industries Ltd. reflects the company's global

scale of integrated operations with a strong competitive position in its

core petrochemical and oil refining business and intermediate financial

risk profile.

In The Scenario Of Reliance Global Management

Services Has Achieved A Considerable Position In

TheWorld Market.Besides All These Factors A High Investment And

Growth Rate Is Being procure


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Reliance Engineering Associates (P) Ltd:

Reliance Retail:

Reliance engineering associates (p) ltd has not

been in form of providing lot ofamount as per

current base; hence it needs lot of amount to

stand the business.

Reliance Retail is the retail business wing of the Reliance

business having high growth rate and high market share.

They are not for long term investment but theygenerated cash for the organization


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Reliance Petroleum:In the current reliance market condition, this is somethingequalizing to high growth rate and low or optimuminvestment.


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Reliance Oils & Gas:

Biopharmaceuticals:

Ranger Farms Ltd:

Krishna-Godavari was the largest discovery ofnatural gas in

world in financial year 2002-2003.

Gas production is expected to transform Indias energylandscape having low growth rate and is expected to double

market share the current level of indigenous gas production

providing world-class therapies and recombinant

biopharmaceuticals for the treatment ofboth acute and chronic

diseases in European market. This requires focused efforts at

keeping large amount ofcash to grow their market share.

Ranger Farm deals in food , fruits and vegetables andconsumer products hasn't acheived a dominant marketposition, that's what don't generate much cash.

low growth and high investment is primarily observed.


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Petrochemicals: Revenue for the petrochemicals segment for the yeardecreased marginally from Rs 53,000 crore to Rs. 52,767crore (US$ 10.4 billion).

According to recession period their low market share in a

highly low growth market.


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Reliance - Indias Largest Exporter, Reliance is by far the largest exporter in India with

exports ofUS$ 2.4 billion

RIL exports its petroleum and petrochemicals products to over100 countries. Exports still

account for only 18% of Reliances turnover

New export offices opened in 18 countries

Reliances Financial Strength

Reliances total assets have grown from US$ 1.9 billion to

US$ 13.42 billion over the last 10 years

This has been achieved with the debt:equity ratio being brought

down down from 0.84 to 0.6 in the same period, indicatingfinancial conservatism of a high

degreeReliance has consistently maintained its AAA credit ratings,

indicating the companys financial strength and flexibility

Reliances cash flows at current levels for less than 2 years are

adequate to extinguish its entire net debt

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corporate policies & strategic management presented by harshad more

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