cpp report

A

CPP ReportTITLED

‘Bharat sanchar nigam ltd’.

For fulfilling the requirement of the award of degree of BBA

Subject: CPP (IMS-206)

Under the supervision of

Dr. J.K Chandel

Assistant professor

Submitted to: - Submitted by:-

The Director ANKIT TUTEJA

MBA 5 Year

3rd Sem.

Roll No. 63

Registration No.

Institute of Management Studies

Kurukshetra University Kurukshetra

Sept.2014

1

DECLARATION

I, ANKIT TUTEJA hereby declare that I have completed the report entitled assigned to me

by the Institute, to be submitted in the partial fulfillment of the MBA 5 Year Degree from

Kurukshetra University. Further, I declared that this is original work done by me and the

information provided in the study is authentic to the best of my knowledge and belief.

Signature

ANKIT TUTEJA

2

ACKNOWLEDGEMENT

In this project, I have made an honest and dedicated attempt to make the Project Report so

easy to understand for a person who is willing to get knowledge about the BHARAT

SANCHAR NIGAM LIMITED

I am deeply indebted to my esteemed teacher & our chairman Prof. M.K Jain, K.U.K.,

because he gave me opportunity of making project report. I am also thankful to my lecturer as

well as my supervisor (Guide) Mr. J.K CHANDEL for their kind support & suggestion for

making project report.

Signature

ANKIT TUTEJA

MBA 3rd SEM

Roll no. 63

3

CONTENTS

CHAPTER

NO.

NAME OF THE CHAPTER PAGE NO.

1. Telecommunication Sector In India 5-11

1.1 Introduction

1.2 Players of The Sector

2. Reliance Industries Limited 12-37

2.1 Introduction

2.2 Vision & Mission

2.3 History

2.4 Subsidiaries

2.5 Achievements

2.6 Organisational Structure

2.7 Product & Services

3. Analysis & Interpretation 38-42

3.1 Marketing Analysis

3.2 Financial Analysis

4. SWOT Analysis 43

5. Conclusion 44-45

6. Learning From The Report 46

Reference 47

Annexure 48-52

4

CHAPTER – 1

TELECOMMUNICATION SECTOR IN INDIA

1.1 INTRODUCTION

India is the world’s second-largest telecommunications market. The telecom infrastructure in

India is expected to increase at a compound annual growth rate (CAGR) of 20 per cent during

the period 2008–2015 to reach 571,000 towers in 2015.

The mobile phone industry in India is likely to contribute US$ 400 billion to the country’s

gross domestic product (GDP) and has the potential to generate about 4.1 million additional

jobs by 2020, as per Ms Anne Bouverot, Director General, Groupe Speciale Mobile

Association (GSMA). The mobile ecosystem generated approximately 5.3 per cent of the

GDP for India, and directly supported 730,000 jobs in 2012, according to the report titled

‘Mobile Economy India 2013’ released by GSMA in association with the Boston Consulting

Group (BCG).

“India is a place for investment and innovation for Vodafone. India is one of the two biggest

markets for us along with Germany. The company is investing nearly US$ 3 billion over the

next two years in India in expanding its network infrastructure and distribution channel in the

country,” according to Mr Vittorio Colao, CEO, Vodafone Plc.

Key Statistics

The telecommunications industry attracted foreign direct investments (FDI) worth US$

12,889 million in the period April 2000–September 2013, according to data published by

Department of Industrial Policy and Promotion (DIPP).

The country’s GSM operators added 1.66 million rural subscribers in October, taking their

overall user base to 274.32 million, according to data released by the Cellular Operators’

Association of India (COAI). The telecom companies are looking at rural India to add users

and revenues.

Market Dynamics

5

India could emerge as a low-cost hub for testing security-sensitive IT products used in

telephone and other critical infrastructure networks, with the country being recently given the

'authorising member nation' status in the Common Criteria Recognition Arrangement

(CCRA). Laboratories in India could offer testing services at much lower costs compared to

other CCRA labs in Western markets, highlighted Mr Rajan Mathews, Director General,

COAI – the industry body representing GSM operators.

India has over 50 per cent mobile-only internet users, possibly the world’s highest compared

to 20–25 per cent across developed countries, according to Avendus Capital. More so, gaining

impetus from the increasing penetration of smartphones and a whole host of mobile-only

content, the Indian mobile advertising market is estimated to reach Rs 2,800 crore (US$

457.52 million) by 2016 from the current Rs 180 crore (US$ 29.41 million).

Increasing demand for smart phones and availability of high speed networks, such as 3G and

4G services, has resulted in the rapid growth of the Indian market, besides offering immense

opportunities to players involved in the business. The RNCOS’ research study, ‘Indian

Mobile Gaming Market Forecast to 2017’ estimated the market to reach Rs 18.5 billion (US$

302.28 million) in 2017 and grow at a CAGR of nearly 24 per cent during the period 2013–

2017.

Key Developments & Investments

Vodafone India, the local arm of UK's Vodafone Group Plc, plans to spend around Rs

7,000 crore (US$ 1.14 billion) in the country, in addition to its annual capex of Rs

5,000 crore (US$ 817 million) over the next few years, to expand its data network and

coverage, said Mr Marten Pieters, CEO, Managing Director, Vodafone India.

ZTE Corp is targeting US$ 800 million revenue from India next year. The company

expects a significant portion of the revenue growth to come from its handset business.

In addition, ZTE has bagged a deal to manage Airtel’s 4G network in Kolkata and

Punjab.

The Chennai-based mobile phone retailers, UniverCell will double its retail footprint

to 1,000 outlets by the end of March 2015 from the present 500.

Viom Networks is looking to add between 1,500 and 2,000 mobile towers by this

fiscal end. The company is expected to invest approximately Rs 150 crore (US$ 24.51

million).6

Micromax will start assembling phones at its Rudrapur plant by the first quarter of

2014. The facility employs over 400 people.

The telecom tower provider industry has been granted the 'infrastructure' status, a move that

will make tower providers eligible for viability gap funding, higher limit on external

commercial borrowings (ECBs), lower import duties and exemptions on excise duty on

telecom infrastructure equipment.

Government Initiatives

An empowered group of ministers (EGoM) has cleared the mergers and acquisitions (M&A)

guidelines for the telecommunication sector, in order to encourage consolidation in the sector.

The Telecom Commission has ratified the Rs 5,000 crore (US$ 817 million) government

proposal to give away 2.5 crore mobile handsets at subsidised prices.

The Government of India's decision to allow 100 per cent foreign direct investment (FDI) in

telecommunication sector will enable foreign telecommunication companies to buy out their

Indian partners. At present, India permits up to 74 per cent FDI in the sector – 49 per cent

through the automatic route and the rest after Foreign Investment Promotion Board (FIPB)

approval.

The Government intends to make India a teleport hub, enabling it to become an

up-linking/down-linking centre. The initiative is expected to facilitate foreign investments,

better technology and sustainable employment opportunities in the country. The Government

has recently given its nod to 74 per cent of FDI in DTH, IPTV, and mobile TV.

According to the new guidelines issued by the DoT, foreign entities can participate in the 2G

auctions directly and obtain a licence. The initiative is expected to make the upcoming

auctions more attractive to certain foreign players such as Telenor, which wanted to bid

directly without an Indian partner in the auctions. There will be a lock-in period of three

years.

7

Road Ahead

The DoT will encourage telecom service providers to share their infrastructure, according to

Mr M F Farooqui, Telcom Secretary, Government of India. The telecom industry and the

Government need to work together to attract investments and exploit advances in technology.

With the success in voice-connectivity being carried forward to data and emerging

technologies including cloud computing, the government is targeting broadband connectivity

from 15 million currently to over 600 million in 2020.

On the back of the ongoing investments into infrastructure, the country is projected to witness

high penetration of internet, broadband, and mobile subscribers in the near future. Various

policy initiatives by the Indian government have led to a complete transformation of the

industry in the last decade. It has achieved a phenomenal growth during the last few years and

is poised to grow further.

Exchange Rate Used: INR 1 = US$ 0.01634 as on December 6, 2013

8

1.2 PLAYERS IN THE TELECOMMUNICATION SECTOR

1 | Airtel

Corporate office – New Delhi | Establishment – 1986 |

Business – Telecommunications & satellite TV | Website – www.airtel.in |

Bharti Airtel Limited is India’s largest telecom company headquartered in New Delhi.

Founded by Sunil Mittal in 1986 the company is fourth largest mobile operator in the world.

Products offered Y Company includes mobile commerce, 2G, 3G and 4G wireless services,

fixed line services, IPTV, high speed DSL broadband, DTH and enterprise services.

2 | Reliance

Corporate office – Navi Mumbai, Maharashtra | Establishment – 2004 |

Business – Mobile, Satellite TV and telecommunication | Website – www.rcom.co.in |

Reliance Communications a flagship company of Reliance Group was established in 2004 and

is the second largest telecom operator in India. Headquartered in Navi Mumbai, the company

has more than 150 million subscribers. The company’s product offerings include wireless,

broadband, national and international long distance services.

3 | Tata docomo


Business – Telecommunication sector | Website – www.tatadocomo.com |

A Tata Group company providing cellular service on the GSM, CDMA and platform . It is

among the top telecom companies in India and the first Indian telecom company to launch 3G

services in India.

4 | Vodafone

Corporate office – London, United Kingdom | Establishment – 1991 |

Business – Telecommunications | Website – www.vodafone.in |

Vodafone is a leading global telecommunications company with operations in over 30

countries. Headquartered in London, the company ranks amongst the top 4 telecom

9

companies globally in terms of subscribers and revenues. Company owns 45% of Verizon

Wireless, the largest mobile telecom company in the US measured by subscribers.

5 | Idea

Corporate office – Mumbai, Maharashtra | Establishment – 1995 |

Business – Telecommunications | Website – www.ideacellular.com |

An Aditya Birla Group Company with over 121 million customers. Idea is India among of the

top 5 telecom companies which is offering 2G and 3G services with traffic of about 1.5 billion

minutes a day.

6 | MTNL


Business – Telecommunications | Website – www.mtnl.net.in |

Mahanagar Telephone Nigam Limited is an Indian state-owned telecommunications company

headquartered in New Delhi. MTNL provides services in New Delhi and Mumbai in India and

Mauritius in Africa. It was incorporated in the year 1986.

7 | Aircel

Corporate office – Chennai, Tamilnadu | Establishment – 1999 |

Business – Telecommunications | Website – www.aircel.com |

Aircel group provides messaging, wireless voice and data services in India. It is a joint

venture between Sindya Securities & Investments Private Limited and Maxis

Communications Berhad of Malaysia.

8 | MTS


Business – Telecommunications | Website – www.mtsindia.in |

Mobile TeleSystems (MTS) is a subsidiary of Sistema a Russian conglomerate. MTS provides

wireless voice, messaging, broadband Internet and data services in India. The company has

more than 16 million customers.

9 | Uninor

Corporate office – Gurgaon, India | Establishment – 2009 |

10

Business – Telecommunications | Website – www.uninor.in |

Uninor is an Indian mobile service provider based in Gurgaon. It is a Telenor Group company

offering mobile data and voice services based on the GSM platform. The company has over

three crore subscribers in Goa, Gujarat, Andhra Pradesh, Uttarkhand, Bihar, Uttar Pradesh,

Jharkhand and Maharashtra.

10 | BSNL


Business – Telecommunications | Website – www.bsnl.co.in |

Bharat Sanchar Nigam Limited is a state-owned telecommunications service provider

established on 15 September 2000. It is the fourth largest mobile telephony provider and

largest provider of fixed telephony in India.

11

CHAPTER – 2

RELIANCE INDUSTRIES LIMITED

2.1 INTRODUCTION

The Reliance Group, founded by Dhirubhai H. Ambani , is India's largest private

sector enterprise, with businesses in the energy and materials value chain. Group's annual

revenues are in excess of $ 30 billion. 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 500 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 seven times.

Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre

producer in the world and among the top five to ten producers in the world in major

petrochemical products.

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

milestones to become a Fortune 500 company in less than 3 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.

Allahabad Manufacturing Division located in Allahabad, Uttar Pradesh, is spread over 105

acres. It is equipped with polymerization and continuous polymerization facilities.

Barabanki Manufacturing Division located near Lucknow, Uttar Pradesh, is spread over

106 acres. It manufactures Black Fibre.

Dahej Manufacturing Division located near Bharuch, Gujarat, is spread over 1,778 acres. It

comprises of an ethane / propane recovery unit, a gas cracker, a caustic chlorine plant and 4

downstream plants, which manufacture polymers and fibre intermediates.

Dhenkanal Manufacturing Division located in Baulpur, Orissa, is spread over 227 acres. It

manufactures polyester staple fibre.

Hoshiarpur Manufacturing Division located in Hoshiarpur, Punjab, is spread over 69 acres.

It manufactures a wide range of PSF, PFF, POY and polyester chips.

12

Hazira Manufacturing Division located near Surat, Gujarat, is spread over 700 acres. It

comprises of a Naptha cracker feeding downstream fibre intermediates, plastics and polyester

plants.

Jamnagar Manufacturing Division located in Jamnagar, Gujarat, is spread over 7,400 acres.

It comprises of a petroleum refinery and associated petrochemical plants. The refinery is

equipped to refine various types of crude oil (sour crude, sweet crude or a mixture of both)

and manufactures various grades of fuel from motor gasoline to Aviation Turbine Fuel (ATF).

The petrochemicals plants produce plastics and fibre intermediates.

Kurkumbh Manufacturing Division located near Pune, Maharashtra, is spread over 34

acres. It manufactures fibre intermediates.

Nagothane Manufacturing Division located in Raigad, Maharashtra, is spread over 1,860

acres. It comprises of an ethane and propane gas cracker and five downstream plants for the

manufacture of polymers, fibre intermediates and chemicals.

Nagpur Manufacturing Division located in Nagpur, Maharashtra, is spread over 368 acres.

It manufactures polyester filament yarn, dope-dyed specialty products of different ranges,

fully drawn yarn and polyester chips.

Naroda Manufacturing Division located near Ahmedabad, Gujarat, is RIL’s first

manufacturing facility and is spread over 150 acres. This synthetic textiles and fabrics

manufacturing facility manufactures and markets woven and knitted fabrics for home textiles,

synthetic and worsted suiting and shirting, ready to wear garments and automotive fabrics.

Patalganga Manufacturing Division located near Mumbai, Maharashtra, is spread over 200

acres. It comprises of polyester, fibre intermediates and linear alklyl benzene manufacturing

plants.

Silvassa Manufacturing Division located in the Union Territory of Dadra and Nagar Haveli,

is spread over 127 acres. It manufactures a wide range of specialty products such as Recron

Stretch, Linen Like, Melange, Thick-n-thin and Bi-shrinkage yarns.

Vadodara Manufacturing Division located in Vadodara, Gujarat, is spread over 1,263 acres.

It comprises of a Naptha cracker and 15 downstream plants for the manufacture of polymers,

fibres, fibre intermediates and chemicals.

13

2.2 VISION, MISSION & VALUES

Our VisionThrough sustainable measures, create value for the nation, enhance quality of life across the

entire socio-economicspectrum and help spearhead India as global leader inthe domains

where we operate

OUR MISSION

Create value for all stakeholders

Grow through innovation

Lead in good governance practices

Use sustainability to drive product development and

Enhance operational efficiencies

Ensure energy security of the nation

Foster rural prosperity

OUR VALUES

Our growth and success are based on the ten core values of Care, Citizenship, Fairness,

Honesty,

Integrity, Purposefulness, Respect, Responsibility, Safety and Trust

14

2.3 HISTORY

Starting as a small textile company, Reliance has in its journney crossed several milestones to

become a Fortune 500 company in less than 3 decades.

Reliance continues to cross newer & bigger milestones in its quest for what is known

as "Growth is Life".

1973

- On 8th May the company was incorporated in Karnataka state as a public limited company

under the name Mynylon Ltd. to manufacture synthetic blended yarns and fabrics, polyester

filament yarn, polyester glass shells and colour TV picture tubes.

1975

- On 28th June this company was converted into a public limited company.

- On 11th February 1966 a company by name of Reliance Textiles Industries Pvt Ltd was

incorporated in Maharashtra. It established a synthetic fabrics mill in the same year at Naroda

in Gujarat.

- On 1st July, Reliance Textile Industries Ltd, was amalgamated with Mynylon Ltd.

1977

- With effect from 11th March 1st the name of Mynylon Ltd was changed to Reliance Textiles

Industries Ltd. The company manufactures synthetic blended yarns and fabrics polyester

filament yarn polyester staple fibre chemicals and allied products colour TV glass shells and

colour TV picture tubes. The Company's yarns are marketed under various brand names such

as Texalit, Textron, Texlene, Poly dyed and polytwist. The company's fabrics are marketed

under the brand name "VIMAL".

- On November Dhirajlal H Ambani and Natvarlal H Ambani along with some other existing

shareholders offered for sale at par to the public. 28, 20,000 equity shares of the Company in

order to get the shares of the company listed on the stock Exchange at Mumbai.

1979

- During the year Sidhpur Mills Co. Ltd which has an installed capacity of 38,368 spindles

and 490 looms was amalgamated with the company. In terms of the scheme of amalgamation,

the company was to issue and allot for every one equity share of Rs. 100 each of Sidhpur, 2

15

equity shares of Rs.10 each and one bond of Rs.80 of the company.

- The Company allotted a total of 1,12,000 No. of equity shares of Rs 10 each and 35,000 -

11% bonds of Rs 80 each to the shareholders of Sidhpur Mills.

1980

- Company was set up Polyestr Filament Yarn Plant at Patalganga in Raigad district of

Maharashtra with the financial and technical collaboration with E.I Du Pont De Nemours &

Co; USA.

- The Company received a letter to intent from the manufacture of 10,000 tonnes per annum

of polyester filament yarn. Financial and technical collaboration was finalized with E.I. Du

Pont De Nemours & Co., U.S.A.

1982

- 5, 50,000 - 13.5% Pref. shares issued as Rights to equity share holders. 19, 20,000 equity

shares issued to debentureholders (Series III) as per the terms of that issue. 815 No. of equity

shares allotted out of the Rights issue of 1981.

1983

- 111, 56,741 Bonus Equity shares issued in propn. 3:5. 64, 00,000 No. of Equity shares of Rs

10 each issued in part conversion of debs. (IV series) on 30.9.1983. Of these, 24, 00,000

shares issued as additional entitlement to debentureholders (IV series) on account of bonus

issue.

1984

- 101,24,675 No. of Equity shares allotted conversion of non-convertible portion of

debentures of Series I, II, III and IV of the total value of Rs 7231.92 lakhs in prop. 1:4. Equity

shares of Rs 10 each for every Rs 100 of debentures (100, 28,359 shares in 1984 and 96,316

shares in 1985). 53, 33,333 No. of equity shares issued (prem. Rs 40 per share) on part

conversion of `E' Series debentures as on 30.4.1985. Rate of dividend on 13.5% pref. shares

increased to 15% effective from 16.5.1984.

1985

- The Company installed an additional capacity of 15,125 tonnes per annum of polyester yarn.

- With effect from 1st October the running business of the Sidhapur unit was taken over by

Devti Fabrics Ltd, is a subsidiary of the company.

- The name of the company was again changed from Reliance Textiles Industries Ltd to

Reliance Industries Ltd with effect from 27th June.

16

- On 30th September Devti Fibres Ltd became a subsidiary of the company. Trishna

Investments and Leasing Ltd., Reliance Industrial Investments & Holdings Ltd., Reliance

Petroproducts Ltd. also subsidiaries of the Company.

1986

- On March a plant for the manufacture of Polyster Staple Fibre was commissioned in

technical collaboration with F.I DU Pont De Nemours and Co. USA.

- During the same year company set up a project for the manufacture of linear alkyl benzene

in technical collaboration with UOP Processes International Inc. USA.

1987

- Three letters of intent were converted into industrial licenses. Subsequent to 30th June, all

these industrial licenses were transferred to Reliance Petrochemicals, Ltd., a company

incorporated as a subsidiary of the company.

1988

- Linear Alkyl Benzene Project was commission on the second quarter of the year. LAB is

sold under the brand name "Relab".

1989

- During the year approval was received under the board branding scheme for the manufacture

of 15,000 tonnes per annum of PFY under the description PSF/PFY within the licensed

capacity PSF.

1990

- During the year pursuant to the policy announced by Govt. regarding minimum economic

scale, the company embarked upon expansion of PTA capacity from 1, 00,000 tonnes to

2,00,000 tonnes per annum. The project is being undertaken in technical collaboration with

John Brown Engineers & Constructors Ltd. UK.

-The technical collaborator for PFY and PSF was DuPont, US, and for PTA, UOP Processors,

US, and ICI, UK.

1991

- A technical collaboration agreement for 10 years was entered into with Stone And Webster

Engineering Corporation USA for production of 4 lakh TPA of ethylene, 1.95 lakh TPA of

propylene and 1.20 lakh TPA of mixed C4 stream. - During the period company

commissioned its 1, 00,000 TPA Ethylene Oxide and Mono Ethylene Glycol plant at Hazira.

17

- In Series - `J' Debentures 76,00,000 - 14% secured redeemable non-convertivle debentures

of Rs 150 aggregating to Rs 114 crores attached with a detachable warrant, to the equity

shareholders on rights basis in the proportion of one debenture for every 20 equity shares

held. Additional 11, 40,000 debentures were allotted to retain over subscription. The

debentures of Rs 150 would be redeemed on the expiry of 10 years from the date of allotment.

- With effect from 1st March Reliance Petrochemicals Ltd. was merged with the Co. As per

the scheme of amalgamation, 1 equity shares of RIL was issued against 10 equity shares held

in Reliance Petro Chemicals Ltd.

- The PFY unit introduced a wide range of value added products including textured, twisted,

high twisted dyed yarn. Approvals were received from the Government towards acquisition of

2 Suez-Max crude oil tankers.

1993

- The PFY division introduced two new products viz., Micro and multi-filament yarn. Several

new and customized product ranges was introduced such as ultra-stabilized raffia grade, high

flow injection moulding grade and high ESCR blow moulding grade.

- On May 27 the company offered 92, 00,000 GDS representing 184, 00,000 shares.

- The Company was awarded the medium sized discovered oil and gas fields for exploration

and production.

- 364,60,000 No. of Equity shares allotted on part conversion of `H' Series debenture

100,05,586 No. of equity shares allotted again warrants issued. 3, 16,667 shares allotted to

SCICI on conversion of loans 103, 16,027 shares allotted underlying. 127, 66,000 GDS issued

on 15.2.94 of which 81, 66,571 shares yet to be allotted.

1994

- Company issued 60, 00,000 - 18% non convertible secured redeemable debentures of Rs.100

each on private placement basis with financial institutions.

- A new product Octene LLDPE was introduced.

1995

- On January the company issued 82, 50,000 14% secured redeemable non convertible

debentures of Rs.100 each on a private placement basis with financial institutions,

banks/bodies corporate.

- On 23rd January, the Company allotted 600, 00,000 - 14% Secured redeemable non-

Convertible debentures with detachable Warrants of Rs. 12.50 each.

18

- During the year company commissioned a new Triethylene Glycol manufacturing factory

with a capacity of 10,000 TPA to add value to Diethylene Glycol (DEG), a byproduct from its

Monoethylene Glucol plant. TEG is an import substitute used in oil exploration, lubricants

and speciality application.

- During the year company has an unincorporated joint venture with Enron & ONGC to

develop Pann, Mukta and Tapti fields.

- During June, the Company allotted 995,75,915 No. of equity shares of Rs 10 each to the

erstwhile shareholders of Reliance Polypropylene Ltd. (RPPL) and Reliance Polyethylene

Ltd. (RPEL) in the ratio of 30 equity shares of Rs 10 each for every 100 equity shares of Rs

10 each held in RPPL and 25 equity shares of Rs. 10 each of the Company for every 100

equity shares of Rs 10 each held in RPPL.

- Reliance Telecom has struck a deal with US-based telecommunications giant Motorola to set

up the cellular network in the secured circles. A letter of intent had been signed by both the

companies in October.

- During the year Co. completed debottelenecking of the PVC plant and increased the capacity

to 270,000 tpa. As a part of its vertical integration stategy the Co. undertook to set up a new 1,

20,000 TPA MEG project at Hazira.

- During the year company commissioned the largest multified carbon plant to produce 7,

50,000 TPA of ethylene, 365,000 TPA of propylene and over 10, 00,000 TPA of anomatics

and other products. - During the year company constructed a cost effective infrastructure

commissioning of 1 single point mooring system, 3 jetties. It has 1 ocean going tanker, 4

ocean going vessels for liquefied gases and 5 tugs. The expansion is resigned to handle

Ethylene, Propylene, EDC, VCM, LPG, Butenes, MEG, PXBZ & Naphtha.

- During the same year company undertook to implement 3 independent power projects in

separate entities with a total power generating capacity of 1331 MW at Patalganga, Bawana,

Jamnagar.

- 15% Pref. shares redeemed. 7,908 shares out of these meant for amalgamation issued. 14%

Pref. CR redeemed.

1997

- Enron Oil Gas, the joint venture partner and operator presented a proposal to Tapti

Consortium participants seeking approval of a new development plant for Tapti gas fields by

which the volumes could reach 17 million standard cubic meters during 2000 if the plan was

19

approved.

- During the year Co. commissioned an 80,000 tonnes bottle grade PET Chip plant at Hazira

manufacturing complex. The chips were marketed under the brand name "Relpet".

- The company commissioned a new 3, 50,000 TPA PTA manufacturing facility based on ICI,

UK technology.

- The Company proposed to set up two more plants one PP plant with capacity of 4, 00,000

TPA and these paraxylene plants with an aggregate capacity of 1.4 million TPA.

- Company has set up a refinery at village Motikhvdi, Gujarat under the name Reliance

Petroleum Ltd. Reliance along with its subsidiary Reliance Industrial Investments & Holdings

Ltd. hold 39% of the paid up equity capital of Reliance Petroleum on a fully deluted basis.

- Reliance undertook to make significant investments in Reliance Petroleum Ltd., for setting

up of the grass root refinery at Jamnagar, Gujarat.

- 46, 60, 90,452 bonus equity shares allotted 7289149 No. of equity shares allotted at

conversion of debentures and reissue of forfeited shares.

- Reliance Industries Ltd. (RIL) has successfully commissioned its third 30,000 tonnes per

annum (TPA) polyester filament yarn (PFY) plant at Hazira in Gujarat. The capacity at the

Hazira plant is being further extended to 120,000 TPA of PFY by setting up another 30,000

TPA plant shortly.

- Bharti Telenet and Reliance were awarded letters of intent for Madhya Pradesh and Gujarat

circles respectively.

1998

- For the first time Reliance Industries is entering the health-care sector with an initial

investment of Rs.100 crore. It has become joint trustees of Sir Hurkisondas Nurrotumdas

Hospital at Charni Road in Mumbai.

- Reliance Industries, India's largest private sector company, has undertaken a major initiative

on corporate governance, under which it has accorded a vital role to its non-executive

directors.

- Reliance Industries Ltd (RIL) founder and chairman Dhirubhai Ambani was awarded the

prestigious the Dean's medal by the Wharton school (University of Pennsylvania) at a

glittering ceremony in Mumbai on 15th June.

- The Chennai High Court has declined to interfere with the award of the Rs 15,000-crore

private power project at Jayamkondam in Tamil Nadu to Reliance Industries Ltd (RIL) by the

20

State Industrial Development Corporation (TIDCO).

- 65, 00,000 Red. Pref. shares of Rs. 100 each issued.

1999

- The Company undertook the commissioning of its Jamnagar petrochemicals complex.

- Reliance Industries Ltd is currently setting up an Rs 5,550 crores petrochemical complex at

Jamnagar.

- Once again Reliance Industries Limited (RIL) is in the international limelight. RIL been

named as one of the World's 100 best-managed companies for the year 1999 by Industry

Week (IW), a leading US magazine.

- During 1999-2000, the company completed its integrated Jamnagar complex, in a record

period of less than 3 years.

2000

- Reliance has been ranked the second largest producer of POY and PSF in the world, and the

largest polyester manufacturer in India, with a market share of 51 %.

- Reliance is setting up a new venture for e-commerce related services and has roped in

National Stock Exchange's head of market operations, derivatives, IPO and membership

Ashishkumar Chauhan for piloting the new project.

- Reliance Industries Ltd to sign PSCs for exploration blocks in West Coast.

- Reliance Industries Ltd. to buy back shares up to Rs.1,100 crore at Rs.303.

- The US-based Eastman Chemical Company signed MoU with Reliance Industries, to

develop the market for Spectar copolymer and Eastar PETG copolyester in India.

- Reliance and Malaysia's Petronas have signed an agreement with National Iranian Oil Co. to

set up a 7.5 million-tonne per year liquefied natural gas plant in Iran, industry.

- The Company has informed that, Reliance Power Ventures Ltd., a wholly owned subsidiary

of the company, propose to acquire an aggregate of 2,75,45,133 fully paid equity shares of

BSES of face value of Rs. 10/- each at a price of Rs. 234/- per fully paid-up equity share.

- Reliance Power Ventures, a wholly-owned subsidiary of Reliance Industries.

- Reliance Industries' internet service brand "Only Smart" was launched in Calcutta.

- The Karnataka Government and Reliance Industries have set in motion a joint venture in e-

governance to start 7,500 info kiosks all over the State.

- The Company has acquired 100 acres at Patalganga to set up the proposed 447 mw power

21

project.

- Reliance Industries Ltd. and Jet Airways have signed an agreement in principle to work

together on planned airport privatisation projects.

- Issue of equity linked warrants under Employees Stock Option Plan.

- Reliance Industries Ltd to set up a world-class Indian Institute of Information Technology.

- Reliance has formed a joint venture with Andhra Pradesh Technological Services to set up

7,500 Internet kiosks across Andhra Pradesh to provide electronic governance to rural areas.

- Reliance Industries as entered into a collaboration agreement with Nova Chemicals of

Switzerland for the manufacture of high density polyethylene and develop new grades of

polymers like film, pipe, blow moulded containers etc.

- Reliance has been awarded the entertainment centre property in Mumbai's upscale Bandra-

Kurla commercial complex.

- Reliance holds a 30% interest in an unincorporated joint venture with Enron and ONGC, to

develop the proven Panna, Mukta and Tapti (PMT) oil and gas fields. Enron has a 30% share

and ONGC the balance 40% share.

2001

- During FY 2000-01, Reliance was, in a 90:10 consortium with Niko Resources of Canada,

awarded 12 new exploration blocks by the government through a process of competitive

international bidding.

- Reliance Industries and RPG have envisaged interest in setting up a convergence network in

Industrial Township of greater Noida.

- In April 2001, RIL successfully completed the first phase of a comprehensive restructuring

plan for its textiles business located at Naroda, near Ahmedabad in the state of Gujarat, which

presently contributes 1% of RIL's total revenues.

- Fitch Ratings India Ltd. has assigned `Ind AAA' rating to the Rs 5,000-crore non-convertible

debentures of the Company.

- Reliance Industries has acquired an equity stake in five of Tullow Oil's blocks in Gujarat and

Andhra Pradesh.

- Reliance Industries has signed a memorandum of associatin with National Iranian oil and BP

to undertake a $10 million easibility study to develop an LNG project in southern Iran.

- Reliance Industries has entered into an alliance with Bangalore-based Indus League for the

22

manufacture of its sole branded garment, Reance.

- The Company has extended the share buyback programme for one more year as it has not

bought back any shares during the current buyback period.

- Reliance Industries has raised its stake in Larsen & Tourbo from 0.38 percent to 2.87

percent.

- It has increased its stake in equity share capital of BSES, an electirc utility company,

through open offer to 27%. Further it has announced the largest share buyback of Rs 1,100

crore at a maximum price of Rs 303 per share.

- Reliance Industries will invest Rs 1,500 crore ($300 million) in oil and gas exploration and

production sector over the next three years.

- : Reliance Industries Ltd (RIL) has been granted the Golden Super Star Trading House status

by the Directorate-General of Foreign Trade (DGFT) in recognition of RIL's outstanding

achievement in export. RIL is the first manufacturer-exporter to be given this status

- RIL has obtained ISO 9002 certification from BVQI for its Patalganga and Hazira

complexes. RIL is the first private sector company in India to be rated by the international

credit rating agencies.

- Reliance is the world's third largest producer of paraxylene (PX),and the world's fourth

largest producer of PTA. Within the country, Reliance is the largest manufacturer of PX, PTA

and MEG, with a market share of over 80%.

2002

- In Jan. 2002, Reliance Petro investments have become a subsidiary of the company, while

Reliance Life Insurance Company and Reliance General Insurance Company have ceased to

be subsidiaries of the company.

- In March 2002, the Board approved the proposal for amalgamation of Reliance Petroleum

Limited (RPL) with the Company. The proposed Scheme of Amalgamation provides that the

amalgamation will take effect from the Appointed Date i.e. April 1, 2001. All assets,

liabilities and obligations of RPL will vest in the company w.e.f from the said appointed date.

One equity share of the company will be allotted for every eleven equity shares of RPL held.

- Shareholders of Reliance Petroleum Ltd on April 15 approved the merger of RPL with

Reliance Industries Ltd at a meeting held in Jamnagar and convened under the orders of the

Gujarat High Court.

- Reliance Industries acquires 26% state & management control in Indian Petrochemicals

23

Corporation Ltd. (IPCL) by paying Rs 1490.84 crore to Government of India.

2003

- Discovers gas it its offshore exploration in Gujarat

- Finds more gas in Block D6 in the deep waters of Krishna Godavari Basin

- Shuts down the aromatics plant at Jamnagar, Gujarat

- Company’s Hazira manufacturing unit gets IMC-Bajaj quality award 2002

- Discovers fourth gas in KG-basin

- Unveils two improved lines of acrylic fibres

- Anil Ambani appointed as BSES MD

- Reduces stake in BSES from 55% to 49.5% and BSES ceases to be subsidiary of the

company due to the disinvestment

- Revises reserves of gas in Krishna Godavari Basin to 10.45 trillion cubic feet

- Signs pact with Council of Scientific and Industrial Research (CSIR) to create breakthrough

technology in key areas from laboratory to commercial scale wherein the company will be

offered the first right to the IPR (intellectual property right) for commercial development

- Ties up with DuPont Polyester Technologies (DPT) for the research and development

(R&D) of the advanced polyester process and product technologies in India

-RIL bags fourth slot among `Top 10' in Asiamoney's corporate governance poll on Asian

companies in the energy sector. And joined the club of a select few Asian companies and is

the only Indian private sector enterprise to find a place in the `Top 5' in the energy sector

category

-Mukesh Ambani, chairman and managing director (CMD), donates $2 million to health

programmes of the International Federation of Red Cross (IFRC) and Red Crescent Societies

-Reliance exhorts NTPC Kayamkulam plant transplantation to Kakinada

-Reliance occupies top slot in oil exports

2004

-Munich Re throws away Reinsurance JV program with RIL

-Reliance Industries Associate signs MOU with National Organic Chemicals Industries

Limited (NOCIL) fo taking over its petrochemicals & plastic products division

-IPCL picks up gas from Petronet LNG

-Reliance Industries Ltd has informed that FLAG Telecom on January 12, 2004 announced

24

that the Company (FLAG Telecom) has amalgamated with Reliance Gateway

-Reliance Jamnagar refinery voted best among 50 refineries worldwide

-Gujarat gives away Gujarat Garima Awards to Tata, Ambani

-Reliance Industries Limited (RIL) has increased the capacity of its Jamnagar refinery to 33

million tonnes from 30 million tonnes.

-Reliance join hands with Temasek for $200 mn Power Fund

-Reliance picks up Nasscom IT Excellence Award

-RIL gets `Petrochemicals Company of the Year' award for 2004

2005

-RIL partners with Vivada for sale of diesel to fishing trawlers and boats

-Reliance Industries Ltd was awarded the `International Refiner of the Year' 2005 at the

World Refining and Fuels Conference's awards ceremony held in San Francisco on March 10,

2005.

-Reliance Industries wins annual '2005 ASTD Best Award' from American Society for

Training & Development

-Reliance Industries wins two National Energy Conservation awards

-Reliance Industries bags 'National Award for R&D Efforts in Industry - 2005'

-RIL inks MoU with HSIDC for establish multi-product SEZ

-Reliance Infocomm has joined hands with Vyjayanti Movies, the producers of 'Jai

Chiranjeeva' featuring Tollywood megastar Chiranjeevi, Sameera Reddy and Bhumika

Chawla.

2006

-RIL inks marketing pact with Gulf Oil

-Reliance Industries has unveiled the much-talked about Reliance Fresh brand, the first format

of the company's Rs 25,000-crore retail initiative, here on October 29.

2007

-Reliance inks JV with Yemen oil firm for refinery

--Gail India Ltd and Reliance Industries Ltd (RIL) signing a Memorandum of Understanding

(MoU) for cooperation in gas sector on March 15, 2007.

- Reliance Industries Ltd has appointed Dr. R A Mashelkar has been appointed as an

Additional Director on the Company's Board.

-Reliance Industries Ltd has formed a $110 million joint-venture with Mammut Group of

Dubai.

25

-Reliance signs agreement to acquire assets in Malaysia Consolidating global polyester vision.

-RIL buys Malaysian based polyester firm.

2008

- Reliance Industries makes Another Gas Discovery in Shallow Water Block in the Krishna

Basin.

- RIL wins a Deep Water block in NELP VII

- Reliance Industries Strikes Eighth Gas Discovery in Block NEC - 25 in the Mahanadi Basin

- Reliance signed an agreement to acquire certain polyester (capacity) assets of Hualon,

Malaysia.

- Reliance also signed MoU with GAIL (India) Limited to explore opportunities of setting up

petrochemical plants in feedstock rich countries outside India

2009

- Reliance Industries has discovered natural gas reserves in a well drilled on its NEC-25 block

in Mahanadi basin, off the Orissa coast.

- Reliance Industries has raised around Rs 3,188 crore through sale of 1.50 crore equity shares

of the company.

- RIL joins the league of global deepwater oil and gas operators - RIL commenced production

of hydrocarbons in its KGD6 block in the Krishna Godavari basin with the production of

sweet crude of 420 API.

- RPL merger with RIL: Value creation through scale and synergies - The merger of Reliance

Petroleum Limited (RPL) with Reliance Industries Limited (RIL) has enabled seamless

integration of operational scale and financial synergies that existed between the two

Companies.

-Reliance Industries has given the Bonus in the Ratio of 1:1

2010

- Haryana Special Economic Zone (SEZ), Reliance Industries (RIL) has roped in a partner, in

a bid to re-energize its dormant.

- RIL has bought around 3 mn barrels of spot crude from Brazilian company Petrobras. The

delivery is expected in the next two months. The purchase was fuelled by lower freight rates

and weaker US crude prices as compared to Europe. Reliance has bought a VLCC of

Roncador Heavy and Albacora crudes to be loaded this month, and a Suezmax of October-

loading Marlin.

26

- During the year, RIL and BP announced a strategic partnership in the oil and gas business.

This partnership comprises BP taking 30 per cent stake in 23 oil and gas production sharing

contracts that Reliance operates in India, including the KG-D6 block, and the formation of a

joint venture (50:50) for sourcing and marketing gas in India.

2011

- Reliance Industries (RIL) entered a deal with NTPC and GAIL, ensuring supply of more gas

to Andhra Pradesh power projects by the end of April, 2011

- Reliance signed MoU with Gujarat on petroleum education

- Reliance-BP deal strengthened productivity at D-6 block

- RIL - Reliance Industries and D. E. Shaw Group announced Joint Venture.

- Reliance Industries Ltd. awarded Application Level A+ by GRI for Sustainability Report

"New Businesses. New Technologies. New Partnerships. (2011)

2012

- Mukesh Ambani-led Reliance Industries Ltd (RIL) and the state-run oil giant Petroleos de

Venezuela, SA (PDVSA) has inked 15 year supply agreements with the company.

- Reliance Brands partnered with US based Iconix Brand Group

- Reliance Mutual Fund launched a new close ended income scheme named “Reliance Fixed

Horizon Fund - XXII - Series 33” with maturity time of 550 days

- RIL - Jamnagar SEZ Refinery wins coveted British Safety Council's Globe of Honors

- RIL - SIBUR and Reliance form a Joint Venture to produce butyl rubber in India

- RIL in deal with Texas-based Fluor Corp

2.4 Subsidiaries: Reliance Petroleum Limited

Reliance Netherlands B.V.

Reliance Retail Limited

Reliance Jamnagar Infrastructure Limited

Reliance Haryana SEZ Limited

Reliance Industrial Investment and Holdings Limited

Reliance Ventures Limited

Reliance Strategic Investments Limited

Reliance Exploration and Production DMCC

27

Reliance Industries (Middle East) DMCC

Reliance Global Management Services Limited

Reliance Commercial Associates Limited

RIL (Australia) Pty Ltd

Recron (Malaysia) Sdn Bhd

Gulf African Petroleum Corporation (Mauritius)

GAPCO Tanzania Limited

GAPOil Tanzania Limited

GAPCO Kenya Limited

Transenergy Kenya Limited

GAPCO Uganda Limited

GAPCO Rwanda Sarl

GAPOil (Zanzibar) Limited

Reliance Fresh Limited

Retail Concepts and Services (India) Limited

Reliance Retail Insurance Broking Limited

Reliance Dairy Foods Limited

Reliance Retail Finance Limited

RESQ Limited

Reliance digital Retail Limited

Reliance Financial Distribution and Advisory Services Limited

Reliance Hyper mart Limited

Reliance Retail Travel & Fore Services Limited

Reliance Brands Limited

Reliance Wellness Limited

Reliance Footprint Limited

Reliance Integrated Agri Solutions Limited

Reliance Trends Limited

Reliance Lifestyle Holdings Limited

Reliance Universal Ventures Limited

Reliance AutoZone Limited

28

Strategic Manpower Solutions Limited

Reliance Gems and Jewels Limited

Delight Proteins Limited

Reliance F&B Services Limited

Reliance Agri Products Distribution Limited

Reliance Leisure’s Limited

Reliance Retail Securities and Broking Company Limited

Reliance Home Store Limited

Reliance Trade Services Centre Limited

Reliance Food Processing Solutions Limited

Reliance Supply Chain Solutions Limited

Reliance Loyalty and Analylitics Limited

Reliance Digital Media Limited

Reliance-GrandOptical Private Limited

Reliance Vantage Retail Limited

Reliance People Serve Limited

Reliance Infrastructure Management Services Limited

Reliance International Exploration and Production, Inc

Reliance Petro investments Limited

Reliance Universal Commercial Limited

Reliance Global Commercial Limited

Wave Land Developers Limited

Reliance Cyprus Limited

Reliance Global Business B.V.

Reliance Global Energy Services Limited

Reliance Gas Corporation Limited

Reliance Global Energy Services (Singapore) Pet Ltd

Reliance Polymers (India) Limited

Reliance Polyolefin’s Private Limited

Reliance Aromatics & Petrochemicals Private Limited

Reliance Energy and Project Development Private Limited

29

Reliance Chemicals Private Limited

Reliance Universal Enterprises Private Limited

Reliance One Enterprises Limited

Reliance Personal Electronics Limited

International Oil Trading Limited

Reliance Review Cinema Private Limited

Reliance Replay Gaming Private Limited

Reliance Nutritional Food Processors Private Limited

Reliance Commercial Land & Infrastructure Private Limited

Reliance Eminent Trading & Commercial Private Limited

Reliance Progressive Traders Private Limited

Reliance Prolific Traders Private Limited

Reliance Universal Traders Private Limited

Reliance Prolific Commercial Private Limited

Reliance Comrade Private Limited

Reliance Ambit Trade Private Limited

Reliance Corporate IT Park Limited

Reliance Petro Marketing Private Limited

LPG Infrastructure (India) Private Limited

Reliance Info solution Private Limited

RIL USA Inc.

2.5 Achievements/ recognition:

Corporate Ranking and Ratings:

RIL continues to be featured, for the sixth consecutive year, in the Fortune Global 500

list of the World's Largest Corporations, ranking for 2010 is as follows: Ranked 175

based on Revenues Ranked 100 based on Profits

RIL is ranked 68th in 2010, in the Financial Times' FT Global 500 list of the world's

largest companies (up from previous year's 75th rank).

RIL has been ranked at 20th position, on the basis of sales, in the ICIS Top 100

30

Chemicals Companies list. RIL is the only Indian company in the world's Top 20

chemical companies in the global ranking. RIL has also been named as the 8th biggest

gainer in the list in terms of operating profits.

RIL is the only Indian company to get a perfect score from CLSA Asia-Pacific

Markets (CLSA) in a list of Asia's best companies in terms of CSR and termed the

Company as the region's 'Corporate Good Guy'. In its 'Ethical Asia' 2010 report,

CLSA has named RIL among its top picks for providing very good data and going

well beyond required disclosure.

RIL is rated as the 33rd 'Most Innovative Company in the World' in a survey

conducted by the US financial publication- Business Week in collaboration with the

Boston Consulting Group (BCG). Further, in 2010, BCG has ranked RIL second

amongst the world's 10 biggest, 'Sustainable Value Creators', companies for creating

the most shareholder value for the period 2000 to 2009.

Project Management:

E&P Division received the Petrotech-2010 Special Technical Award in the 'Project

Management' category for completion of their Krishna Godavari Gas project ahead of

schedule.

Health, Safety and Environment

Allahabad Manufacturing Division received a rating of 90% for its environmental

initiatives from British Safety Council in 2010.

Barabanki Manufacturing Division received '5 Star Rating on BSC Environment' from

British Safety Council in 2010.

Dahej Manufacturing Division received 'Genentech Environment Excellence Award

2010 - Gold' for its excellence in environment practices from Genentech Foundation in

2010.

Dahej Manufacturing Division received the 'National Award for the Prevention of

Pollution in Petrochemicals Sector' for its excellence in environment practices from

the Ministry of Environment & Forests, Government of India, in 2010.

Dahej Manufacturing Division received 'Our Cup of Joy India's Best Practices on

Water Confederation of Indian Industry (CII) October 2010' Award for the Best

practice of water conservation of 'Utilizing Cooling Tower Blow Down water for

Irrigation Purpose'.

Hazira Manufacturing Division received the DuPont Safety Award for outstanding 31

initiatives towards workplace safety enhancements and accident prevention in 2010,

thus making RIL the first Indian / Asian company to win this award.

Hazira Manufacturing Division received the British Safety Council's (BSC), Five Star

Environment Award for its 'beyond compliance' initiatives, best environmental

practices, innovations and resource conservation efforts in 2010.

Hazira Manufacturing Division won the UK Energy Institute's Safety Award for 'Road

Safety TRUST Programme' in 2010, making RIL the first Indian / Asian company to

win this award.

Hazira Manufacturing Division won the FGI Award for Excellence in Environmental

Pollution Abatement and Preservation in 2010.

Hazira Manufacturing Division won CII's Best Environmental Practice Award under

'Most Innovative Project' and 'Innovative Project' category in January 2011.

Hoshiarpur Manufacturing Division, for four consecutive years in a row won the 'State

Safety Award' from Punjab Industrial Safety Council & Chief Inspector of Factories,

Punjab in 2011.

Jamnagar Manufacturing Division Domestic Tariff Area (DTA) Refinery received the

'Golden Peacock Award for Occupational Health & Safety' for pace setting

performance in OH and Safety in 2010.

Jamnagar Manufacturing Division DTA Refinery received 'Safety Innovation Award'

from Safety & Quality Forum of Institute of Engineers (India).

Jamnagar Manufacturing Division DTA Refinery won the 'Genentech Platinum Award

(2010)' Safety Category, in Petroleum Refinery Sector for its outstanding

Achievement in Safety Management.

Jamnagar Manufacturing Division has been granted by The National Accreditation

Board for Laboratories (NABL), Ministry of Science & Technology; Government of

India, 'NABL accreditation' based on ISO 15189: 2007 for the DAOH & FWC

Medical Laboratory.

Jamnagar Manufacturing Division Special Economic Zone (SEZ) Refinery received '5

Star Award for Health & Safety' from British Safety Council for sustained

performance in Health & Safety in 2010.

Jamnagar Manufacturing Division SEZ Refinery has won the prestigious 'Genentech

Environment Excellence Award 2010' in Gold Category in Petroleum Refinery Sector

32

for its best practices in Environment Management.

Jamnagar Manufacturing Division SEZ Refinery has been selected as the winner of

the '10th Annual Genentech Safety Award 2011', in Platinum Category in the

Petroleum Refinery Sector.

Nagothane Manufacturing Division received the 'Vane Shree Award' from the State

Government of Maharashtra in 2010.

Nagpur Manufacturing Division received the 'Sword of Honour' from the British

Safety Council in 2010.

Vadodara Manufacturing Division received the CII Environmental Best Practice

Award in 2011.

Energy and Water Conservation / Efficiency:

Hazira Manufacturing Division won the 'Excellent Energy Efficient Unit Award for

FY 2009-10' from CII in 2010.

Dahej Manufacturing Division bagged the 'Excellent Energy Efficient Unit Award

2010' for its energy conservation efforts from CII in 2010.

Dahej Manufacturing Division received the 'National Energy Conservation Award

2010' for its energy conservation initiatives from the Ministry of Power, Government

of India.

Jamnagar Manufacturing Division received the 'National Award for Excellence in

Energy Management' for its energy conservation techniques from CII in 2010.

Jamnagar Manufacturing Division received the 'I.C.C. Award for Excellence in

Energy Management' for its energy performance from the Indian Chemical Council in

2010.

Technology, Patents, R&D and Innovation:

Nagpur Manufacturing Division received the 'Innovation Quest 2010 Trophy'

instituted by the Indian Institution of Industrial Engineering.

E&P's KG-D6 won the 'Innovation for India Awards 2010' instituted by the Marico

Innovation Foundation for their combined synthesis of advanced technologies,

extreme engineering, innovative execution, yielding unprecedented results and impact

on India's energy security.

Hazira Manufacturing Division won the 'Innovative Project' from the CII in 2010.

Hazira Manufacturing Division won the FGI Federation of Gujarat Industries Award

33

for technology development in 2010.

Hazira Manufacturing Division won the Indian Chemical Council Award for chemical

plant design and engineering in 2010.

Reliance Technology Group (RTG) received 'Certificate of Merit' from the Federation

of Gujarat Industries and 'ICC award for excellence in chemical plant design and

engineering' in 2010.

Retail:

Reliance Footprint received the Retailer of the Year Award in the Non Apparel and

Footwear category at Asia Retail Congress 2010.

Reliance TimeOut received the Retailer of the Year Award in the Leisure Category at

Asia Retail Congress 2010.

Vision Express was bestowed the 'Award 2010' for its contribution by the Netherlands

India Chamber of Commerce and Trade in 2010.

Reliance Trends received the 'Retail Marketing Campaign of the Year Award' at the

Asia Retail Congress 2010.

Reliance Trends received the 'Impactful Retail Design and Visual Merchandising of

the Year Award' at the Asia Retail Congress 2010

Sustainability:

Jamnagar Manufacturing Division won the 'Golden Peacock Global Award for

Sustainability for the year 2010'.

34

2.6 ORGANISATIONAL STRUCTURE

S.No Name Designation

1 Mukesh D Ambani Chairman

3 Mukesh D Ambani Managing Director

2 K Sethuraman Company Secretary

6 P M S Prasad Executive Director

7 Nikhil R Meswani Executive Director

4 Hital R Meswani Executive Director

5 Pawan Kumar Kapil Executive Director

8 Mansingh L Bhakta Non Executive Independent Director

9 Yogendra P Trivedi Non Executive Independent Director

10 Dharam Vir Kapur Non Executive Independent Director

11 Mahesh P Modi Non Executive Independent Director

12 Ashok Misra Non Executive Independent Director

13 Dipak C Jain Non Executive Independent Director

14 Raghunath A Mashelkar Non Executive Independent Director

35

15Ramniklal H Ambani

Non Independent & Non Executive

Director

2.7 PRODUCTS AND SERVICES

Crude oil and natural gas

LPG

Propylene

Naphtha

Gasoline

Jet/Aviation Turbine Fuel

Superior Kerosene Oil

High Speed Diesel

Sulphur

Petroleum Coke

Polypropylene

High Density Polyethylene

Low Density Polyethylene

Linear Low Density Polyethylene

36

Polyvinyl Chloride

Poly –Olefin

Suitings ,Shirtings,Readymade Garments

Furnishing fabrics

Day curtains

Automotive upholstery

Suitings

Ready-to-stitch

Take away fabric

Fleet management services

Highway hospitality services

Vehicle care services

Linear Alkyl Benzene

Paraxylene

Purified Terephthalic Acid

Mono Ethylene Glycol

Staple Fibre

Filament Yarn

Texturised yarn

Twisted yarn

Moisture management yarn

Quality certified sleep products

Polyethylene terephthalate

37

CHAPTER – 3

ANALYSIS & INTERPRETATION

3.1 MARKETING ANALYSIS

3.1a Brand Ambassador

Reliance Industries Limited has appointed two cricketers of Gujarat, all rounder Yusuf Pathan

from Vadora and Ravindra Jadeja from Jamnagar, as brand ambassadors of their company at a

ceremony organized at Ahmed Nagar on Tuesday.

The RIL Gujarat group president (corporate affairs), Parimal Nathwani, was also present at

the ceremony and he welcomed both cricketers in their group. The wicket- keeper-batsman,

Parthiv Patel has already joined RIL group. Parthiv Patel joined the group five years ago on

June 25, 2004.

Mr. Nathwani said that both cricketers have inked a long term contract with their group and

they would help them to identify potential cricketers as they have been looking towards

forming their own cricket team.

38

He added that Pathan and Jadeja were colleagues at the Rajasthan Royals, franchisee of Indian

Premier League, and now they have become colleagues at the Reliance as executives of

Sports and Culture.

Reliance groups also own Mumbai Indians team in the cash rich Indian Premier League.

»

3.2 FINANCIAL ANALYSIS

INCOME

Table. No. 3.2a

Mar'13 Mar'12 Mar'11 Mar'10 Mar'09

Sales Turnover 11267.00 12135.00 13308.71 13554.60 15086.66

Excise Duty .00 .00 .00 .00 .00

NET SALES 11267.00 12135.00 13308.71 13554.60 15086.66

Other Income 0 0 0 0 0

TOTAL INCOME 12820.00 12888.00 14015.89 14352.58 15761.78

39

As in Table 3.2a the total income of reliance communication ltd. In 2013 are 12820.00 it is

less as compared to Income in 2012 which was 12888.00. it happens due to the decrease in

the sales Turnover which was more in 2013 i.e 11267.00 as compared to in 2012 i.e 12135.00

for detail information see Annexure1

EXPENDITURE

Table. No. 3.2b


Material Consumed .00 40.00 64.92 50.39 29.95

Personal Expenses 290.00 476.00 608.07 672.39 754.56

Administrative Expenses 979.00 1314.00 1852.65 1980.67 2323.44

TOTAL EXPENDITURE 8539.00 8701.00 11598.24 11361.17 9856.73

As in fig no. 3.2b we came to knw about the total expenditure of the company in 2013 we

have analysis that expenditure was 8539.00 is less as compared to the expenditure in 2012 i.e

8701.00 It happens due to the less in number of personal expenses, administrative expenses,

manufacturing Expenses done by the company in 2013 as compared to in 2012. For detail

nformation see Annexure1

PROFIT AFTER TAX

Table. No. 3.2c


Profit and Loss for the Year 624.00 156.00 -1209.31 -1178.26 1329.66

Non Recurring Items .00 .00 349.80 1657.19 3473.01

40

Other Non Cash Adjustments .00 .00 101.52 .00 .00

Other Adjustments .00 .00 .00 .00 .00

REPORTED PAT 624.00 156.00 -757.99 478.93 4802.67

As in table. No. 3.2c we concluded about the profit after tax of the company it was more as

compared With the last year’s profit in 2013 it was 624.00 which more as compared with the

profit in 2012 i.e 156.00….it happens due to the no payment of tax.for detail information see

Annexure1

TOTAL ASSETS

Table No. 3.2d

Particulars Mar’13 Mar’12 Mar’11 Mar’10 Mar’09

Net Block 36058.00 37384.00 28840.90 30612.48 31407.77

Total Current Assets 18130.00 15668.00 19153.82 20005.94 25543.01

Total Current

Liabilities 12467.00 12937.00 10407.29 9223.37 9365.46

NET CURRENT

ASSETS 5663.00 2731.00 8746.53 10782.57 16177.55

TOTAL ASSETS 63469.00 73068.00 79597.22 74977.17 82593.93

41

As in table no. 3.2d we concluded that the company has less assets in 2013 i.e 63469.00 as

compared with the assets in 2012 i.e 73068.00 . it happens due to the increase in the

liabilities.for detail information see Annexure2

TOTAL LIABILITIES

Table No.3.2e

Particulars Mar'13 Mar'12 Mar'11 Mar'10 Mar'09

Share Capital 1032.00 1032.00 1032.00 1032.01 1032.01

Reserves & Surplus 32110.00 44165.00 47112.48 49466.88 50658.31

Net Worth 33142.00 45197.00 48144.48 50498.89 51690.32

Secured Loan 30327.00 26265.00 15226.02 3000.00 3000.00

Unsecured Loan .00 1606.00 16226.72 21478.28 27903.61

TOTAL

LIABILITIES 63469.00 73068.00 79597.22 74977.17 82593.93

As in table no. 3.2e we concluded that the liabilities of the company is less in 2013 i.e

63469.00 as compared to the liabilities in 2012 i.e 73068.00 it happens due to the decrease in

the reserve & surplus. For detail information see Annexure2

3.2.1 SHAREHOLDING PATTERN

Holder's Name No of Shares % Share Holding

Promoters 1399308557 67.8%

Foreign Institutions 220609690 10.69%

General Public 198533137 9.62%

42

FinanciaL Institutions 182309026 8.83%

Other Companies 27243963 1.32%

NBanksMutualFunds 17585676 0.85%

ForeignNRI 11358626 0.55%

CentralGovt 1227103 0.06%

CHAPTER - 4

SWOT ANALYSIS

SWOT

Strength 1.India's one of the biggest players

2.Strong brand name

3.Excellent financial position

4.One of the few Indian companies to be featured in Forbes

5.Employs over 25,000 people

Weakness 1.Long term debt

2.Legal issues

3.KG D6 gas controversy

4.Accusations of being favored by the government

43

Opportunity 1.Growing demand for petroleum products

2.Buyout of competition

Threats 1.Government regulations

2.High Competition

3.Environmental laws

4.Economic instability

Chapter – 5

Conclusion

India is the world’s second-largest telecommunications market. The telecom

infrastructure in India is expected to increase at a compound annual growth rate (CAGR) of

20 per cent during the period 2008–2015 to reach 571,000 towers in 2015. The

telecommunications industry attracted foreign direct investments (FDI) worth US$ 12,889

million in the period April 2000–September 2013, according to data published by Department

of Industrial Policy and Promotion (DIPP).

India has over 50 per cent mobile-only internet users, possibly the world’s highest

compared to 20–25 per cent across developed countries, according to Avendus Capital The

DoT will encourage telecom service providers to share their infrastructure, according to Mr M

F Farooqui, Telcom Secretary, Government of India

44

Reliance Industries Limited has appointed two cricketers of Gujarat, all rounder

Yusuf Pathan from Vadora and Ravindra Jadeja from Jamnagar, as brand ambassadors of

their company at a ceremony organized at Ahmed Nagar on Tuesday.

The Reliance Group, founded by Dhirubhai H. Ambani , is India's largest private

sector enterprise, with businesses in the energy and materials value chain. Group's annual

revenues are in excess of $ 30 billion.

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

company and is the largest private sector company in India The Reliance Group was founded

by Dhirubhai Ambani. After his death the group was divided into two segments because of

the conflict between his two sons. One of the two segments is Reliance Industries Limited

whose MD is Mukesh Ambani.

RIL deals in the products like manufacture of the petroleum products, polyester

products, polyester intermediates, plastics, polymer intermediates, chemicals and synthetic

textile and fabrics.

The company also deals in oil and gas exploration and production. Reliance is the

largest producer of Polyster fibre and yarn. After studying the balance sheet of RIL the net

profit of RIL is Rs 21003 crores. “Reliance Industries Limited is the largest private sector

enterprise in INDIA.”

The total income of reliance communication ltd. In 2013 are 12820.00 it is less as

compared to Income in 2012 which was 12888.00.

The total expenditure of the company in 2013 we have analysis that expenditure

was 8539.00 is less as compared to the expenditure in 2012 i.e 8701.00

The company has fewer assets in 2013 i.e 63469.00 as compared with the assets in

2012 i.e 73068.00.

45

CHAPTER-6

LEARNING FROM REPORT

With the help of this report I know some new things about the Telecommunication industries

in India which I never know, if my project is not related with this.

Firstly I know about the telecommunication sector of India which is passed in 1959 and which

helped the Reliance Communication industries in India vastly. And the thing is that

exploration and production in India is done by companies like RCL or Reliance

Communication ltd. Who are actually the communication ltd India that are owned by the

government under the rules and regulations and about the players who play under the

Communication ltd and the changes in Reliance Industries in India for late 1990’s to beyond.

Secondly, I know about the Reliance Industries limited which is established in 1973 and

making the communication facilities for India.

Thirdly, I know about the major plans and project done by the RIL and about the mega plant

established by RIL and the joined venture by the company.46

Fourthly, I am concerned about the financial position of the company and learned about the

competitiors of RIL.

And the lot of things is might be first time done by me or learned by myself.

REFERENCES

www.google.com

www.ril.co.in

www.reliancecommunication.com

www.ibef.com

www.economictimes.com

www.moneycontrol.com

47

ANNEXURE

1. PROFIT & LOSS ACCOUNT


12Months 12Months 12Months 12Months 12Months

INCOME:

Sales Turnover 11267.00 12135.00 13308.71 13554.60 15086.66

Excise Duty .00 .00 .00 .00 .00

NET SALES 11267.00 12135.00 13308.71 13554.60 15086.66

Other Income 0 0 0 0 0

48

TOTAL INCOME 12820.00 12888.00 14015.89 14352.58 15761.78

EXPENDITURE:

Manufacturing Expenses 7270.00 6871.00 8300.39 7994.76 5975.57

Material Consumed .00 40.00 64.92 50.39 29.95

Personal Expenses 290.00 476.00 608.07 672.39 754.56

Selling Expenses .00 .00 772.21 662.96 773.21

Administrative Expenses 979.00 1314.00 1852.65 1980.67 2323.44

Expenses Capitalised .00 .00 .00 .00 .00

Provisions Made .00 .00 .00 .00 .00

TOTAL EXPENDITURE 8539.00 8701.00 11598.24 11361.17 9856.73

Operating Profit 2728.00 3434.00 1710.47 2193.43 5229.93

EBITDA 4281.00 4187.00 2417.65 2991.41 5905.05

Depreciation 1681.00 1741.00 1594.27 1511.24 1933.51

Other Write-offs .00 .00 .00 .00 .00

EBIT 2600.00 2446.00 823.38 1480.17 3971.54

Interest 1976.00 1265.00 853.69 1253.84 1153.24

EBT 624.00 1181.00 -30.31 226.33 2818.30

Taxes .00 1025.00 1179.00 1404.59 1488.64



49



REPORTED PAT 624.00 156.00 -757.99 478.93 4802.67

KEY ITEMS

Preference Dividend .00 .00 .00 .00 .00

Equity Dividend .00 52.00 103.20 175.44 165.12

Equity Dividend (%) .00 5.03 10.00 16.99 15.99

Shares in Issue (Lakhs) 20640.27 20640.27 20640.27 20640.27 20640.27

EPS - Annualised (Rs) 3.02 .76 -3.67 2.32 23.27





REPORTED PAT 624.00 156.00 -757.99 478.93 4802.67

2. BALANCE SHEET

Particulars Mar'13 Mar'12 Mar'11 Mar'10 Mar'09

Liabilities 12 12 12 12 12

50

Months Months Months Months Months

Share Capital 1032.00 1032.00 1032.00 1032.01 1032.01

Reserves & Surplus 32110.00 44165.00 47112.48 49466.88 50658.31

Net Worth 33142.00 45197.00 48144.48 50498.89 51690.32

Secured Loan 30327.00 26265.00 15226.02 3000.00 3000.00

Unsecured Loan .00 1606.00 16226.72 21478.28 27903.61

TOTAL LIABILITIES 63469.00 73068.00 79597.22 74977.17 82593.93

Assets

Gross Block 36058.00 52455.00 40904.17 39838.17 37941.15

(-) Acc. Depreciation .00 15071.00 12063.27 9225.69 6533.38

Net Block 36058.00 37384.00 28840.90 30612.48 31407.77

Capital Work in Progress 735.00 765.00 9907.66 1683.52 3643.86

Investments 21013.00 31889.00 32102.13 31898.60 31364.75

Inventories 304.00 329.00 306.11 298.34 253.14

Sundry Debtors 2066.00 1932.00 1969.25 1738.63 1482.22

Cash and Bank 228.00 178.00 3813.21 82.18 535.15

Loans and Advances 15532.00 13229.00 13065.25 17886.79 23272.50

Total Current Assets 18130.00 15668.00 19153.82 20005.94 25543.01

Current Liabilities 5233.00 6026.00 7551.94 5836.53 5774.74

Provisions 7234.00 6911.00 2855.35 3386.84 3590.72

51

Total Current Liabilities 12467.00 12937.00 10407.29 9223.37 9365.46

NET CURRENT ASSETS 5663.00 2731.00 8746.53 10782.57 16177.55

Misc. Expenses .00 299.00 .00 .00 .00

TOTAL

ASSETS(A+B+C+D+E) 63469.00 73068.00 79597.22 74977.17 82593.93

52

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