OBJECTIVE OF STUDYING THE ORGANISATION:

The core objective of studying Reliance Industries Ltd, as an intern was to get an exposure to
the real world marketing operations and other processes that follow in the corporate world.
The following were the various objectives:
•To get an understanding of the working of a conglomerate company
•To get an exposure to the procurement operations

BRIEF HISTORY:
Reliance Industries Limited (RIL) (BSE:500325, NSE: RELIANCE, LSE: RIGD) is an Indian
conglomerate company headquartered in Mumbai, Maharashtra, India. The company operates
through three business segments: petrochemicals, refining, and oil and gas, other segment of
the company includes textile, retail business, special economic zone (SEZ) development and
telecom/broadband business. RIL is the largest publicly traded company in India by market
capitalization and is the second largest company in India by revenue behind Indian Oil. It is also
India's largest private sector company by revenue and profit. The company is ranked 134th on
Fortune Global 500 list in 2011.In October 1997 the Delhi High Court heard a Centre for Public
Interest Litigation (CPIL) petition over the award of contracts to Enron and Reliance Industries
to develop the Panna-Mukta oilfield, and issued notices to the involved companies and
government organizations. Prashant Bhushan acted as advocate for CPIL. The petition claimed
an inquiry was justified on the basis of testimony that Reliance had bribed the minister of
petroleum, Satish Sharma, to get the award. According to a report in Outlook India, at least Rs 4
crore was delivered to the minister in suitcases full of cash. In September 2008 Reliance
Industries was the only Indian firm featured in the Forbes's list of "world's 100 most respected
companies". In October 2009 a team from the Central Bureau of Investigation was looking into
allegations that V. K. Sibal, the oil regulator, had received favors from RIL for approving a major
increase in the costs for the KG-D6 gas fields. In June 2011 the Comptroller and Auditor General
(CAG) issued a draft report on production sharing contracts in the Krishna Godavari (KG) basin.
It concluded that the Petroleum Ministry had acted incorrectly in letting Reliance claim the
whole area. The CAG said "The undue benefit grant to the contractor (RIL) is huge, but cannot
be quantified". In 2010 RIL stood at 13th position in the Platts Top 250Global Energy Company
Rankings. 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. Group's
annual revenues are in excess of US$ 58 billion. The flagship company, Reliance Industries
Limited, is a Fortune Global500 company and is the largest private sector company in India.
Backward vertical integration has been the cornerstone of the evolution and growth of
Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward
vertical integration - in polyester, fiber intermediates, plastics, petrochemicals, petroleum
refining and oil and gas exploration and production - to be fully integrated along the materials
and energy value chain. The Group's activities span exploration and production of oil and gas,
petroleum refining and marketing, petrochemicals (polyester, fiber intermediates, plastics and
chemicals), textiles, retail, infotel and special economic zones. Reliance enjoys global leadership
in its businesses, being the largest polyester yarn and fiber producer in the world and among
the top five to ten producers in the world in major petrochemical products. Major Group
Companies are Reliance Industries Limited, including its subsidiaries and Reliance Industrial
Infrastructure Limited. Dhirubhai Ambani founded Reliance as a textile company and led its
evolution as a global leader in the materials and energy value chain businesses. Reliance
Industry is the world's largest polyester producer and as a result one of the largest producers of
polyester waste in the world. In order to deal with this large amount of waste, they had to
create a way to recycle the waste. They operate the largest polyester recycling center that uses
the polyester waste as a filling and stuffing. They developed an innovative recycling process
resulting in an award in 'Team Excellence'. Reliance owns world's largest refinery in Jamnagar
which is a "zero discharge" refinery. Effluent treatment plants based on the best available
technology processes the waste released and convert waste in to usable product. Reliance has
also planted more than 5 million trees around this refinery in order to reduce the carbon foot
print. He is credited to have brought about the equity cult in India in the late seventies and is
regarded as an icon for enterprise in India. He epitomized the spirit 'dare to dream and learn to
excel'. The Reliance Group is a living testimony to his indomitable will, single-minded dedication
and an unrelenting commitment to his goals.

Reliance has more than 3 million shareholders, making it one of the world's most widely held
stocks. Reliance Industries Ltd has continued to grow since its split in January 2006.On 30 May
2011, Reliance Industry's stock slumped 4% as due to reports that the Central Bureau
of Investigation was probing a former upstream regulator for the company's alleged favoring
of private-sector energy companies. The leaked CAG’s draft report affected RIL’s shares, making
the stock descend by 10.5% by 23 June 2011.

INTRODUCTION:
COMPANY PROFILE:
"Growth has no limit at Reliance. I keep revising my vision.

Only when you can dream it, you can do it."

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. Dhirubhai Ambani
founded Reliance as a textile company and led its evolution as a global leader in the materials
and energy value chain businesses. He is credited to have brought about the equity cult in India
in the late seventies and is regarded as an icon for enterprise in India. He epitomized the spirit
'dare to dream and learn to excel’. The US$ 125 billion Reliance Group is a living testimony to
his indomitable will, single-minded dedication and an unrelenting commitment to his goals.
Group's annual revenues are in excess of US$ 34 billion. The flagship company, Reliance
Industries Limited, is a Fortune Global 500 company and is the largest private sector company
in India. All of Reliance Group production and services ventures have one common feature –
global scale operations employing state-of-the-art technology in all fields. The company is truly
emerging as a well-diversified conglomerate with global competence in technology,
management and financial capabilities to meet the needs of a rapidly growing Indian market.
Backward vertical integration has been the cornerstone of the evolution and growth of
Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward
vertical integration - in polyester, fiber intermediates, plastics, petrochemicals, petroleum
refining and oil and gas exploration and production - to be fully integrated along the materials
and energy value chain. The Group's activities span exploration and production of oil and
gas, petroleum refining and marketing, petrochemicals (polyester, fiber intermediates, plastics
and chemicals), textiles and retail. Reliance enjoys global leadership in its businesses, being the
largest polyester yarn and fiber producer in the world and among the top five to ten producers
in the world in major petrochemical products. The Group exports products in excess of US$ 20
billion to 108 countries in the world. Major Group Companies are Reliance Industries Limited
(including main subsidiaries Reliance Petroleum Limited and Reliance Retail Limited) and
Reliance Industrial Infrastructure Limited.
The company operates world-class manufacturing facilities across the country at Allahabad ,
Barabanki, Dahej, Hazira Hoshiarpur ,Jamnagar, Nagothane, Nagpur, Naroda, Patalganga ,
Silvassa and Vadodara. Reliance Industries' activities span hydrocarbon exploration and
production petroleum refining and marketing petrochemicals retail and telecommunications.
The petrochemicals segment includes production and marketing operations of petrochemical
products. The refining segment includes production and marketing operations of the petroleum
products. The oil and gas segment includes exploration development and production of crude
oil and natural gas. The other segment of the company includes textile retail business and
special economic zone (SEZ) development. In May 8 1973 RIL was incorporated and conformed
their name as RIL in the year 1985. Over the years the company has transformed their business
from manufacturing of textiles products into a petrochemical major. The company has set up a
texturizing / twisting facilities in 1979 RIL has also set up plants for Polyester Staple Fiber (PSF)
in 1986 and for Linear Alkyl Benzene (LAB) & Purified Terephthalic Acid (PTA) in 1988. RIL has
setup a petrochemical facility to produce HDPE and PVC at Hazira Gujarat in technical
collaboration with DuPont and BF Goodich respectively. The Hazira petrochemical plant was
commissioned in 1991-92. In the year 1995-96 the company entered the telecom industry
through a joint venture with NYNEX USA and promoted Reliance Telecom Private Limited in
India. Reliance became the first corporate in Asia to issue bonds in the U.S at the year of 1996-
97. The company commissioned an 80000 tons bottle grade PET chip plant at Hazira
manufacturing complex. Reliance's PET chips has been accepted internationally due to their
high quality during the year 1997-98 and in the same year Reliance Industries Planned to invest
around Rs. 5000 crores (USD 1250 million) in building two world-scale plants at the site of the
Jamnagar refinery in Gujarat. In 1998-99 RIL introduced packaged LPG in 15 kg cylinders under
the brand name Reliance Gas. In 1999-2000 RIL commissioned the world's largest 1.4 million
tons per annum Para xylene (PX) plant at its new integrated petrochemicals complex at
Jamnagar which was planned at 1997-98. With the commissioning of the last crystallization
train of the Para-xylene (PX) complex at Jamnagar in June 2017 RIL became the 2nd largest
producer of PX globally. In 2000 Reliance commissioned the world's largest grassroots refinery
in Jamnagar in a record 36 months. The Jamnagar refinery processes a wide variety of crude oils
and produces a range of petroleum products for exports as well as supply in the Indian market.
Reliance Petroleum Limited (RPL) was amalgamated with Reliance Industries Ltd in the year
2002-03. In 2004-05 RIL acquired the polyester major Trevira GmbH headquartered in Frankfurt
Germany which has the capacity of 130000 tons per annum of polyester staple fibers polyester
filament yarns and polyester chips. In the year 2006 the company set up a new export-oriented
refinery through its subsidiary Reliance Petroleum Limited (RPL). In 2006 RIL entered the
organized retail segment through Reliance Retail with its first Reliance Fresh store in
Hyderabad. In 2017 Reliance Retail crossed $5 billion revenue mark. Reliance Retail has
adopted a multi-prong strategy and operates neighbourhood stores supermarkets
hypermarkets wholesale cash & carry stores specialty stores and online stores and has
democratized access to all types of products and services across all segments for all Indian
consumers. Reliance Retail operates over 3300 stores pan India with nearly 13 million square
feet of retail space. In the year 2007 Indian Petrochemicals Corporation Limited (IPCL) merged
with the company. Also Reliance Retail entered the organized retail market in India with the
launch of its convenience store format under the brand name of `Reliance Fresh'. During the
year the company commissioned their largest expansion project. The company expanded its
polypropylene (PP) capacity by 280 KTA at Jamnagar that increased the combined capacity to
1710 KTA. During the year 2007-08 the company signed an agreement to certain polyester
(capacity) assets of Hualon Malaysia. It took over the majority control of Gulf Africa Petroleum
Corporation (GAPCO) and started shipping products to the East African markets. Also the
company signed MoU with GAIL (India) Ltd to explore opportunities of setting up petrochemical
plants in feedstock rich countries outside India. In April 2008 the company signed gas sales and
purchase agreement (GSPA) with the customers in power sector for supply of natural gas to be
produced from the KG-D6 block. During the year Reliance Commercial Associates Ltd, Reliance
Neutraceuticals Pvt Ltd, Reliance Pharmaceuticals (India) Pvt Ltd, Reliance Petroinvestments Ltd
,Gull Africa Petroleum Corporation (Mauritius), Gapco Tanzania Ltd ,Gapoil Tanzania Ltd, Gapco
Kenya Ltd, Gapco Uganda Ltd, Gapco Rwanda, SARL, Gapoil Zanzibar Ltd ,Transenergy Kenya
Ltd, Recron (Malaysia), SDH BHD, Peninsula Land, Kenya Ltd, Reliance International Exploration
and Production INC, Wavely Investments Ltd, Reliance Digital Retail Ltd, Reliance Lifestyle
Holdings Ltd, Reliance Universal Ventures Ltd, Reliance Home Store Ltd, Reliance Autozone Ltd,
Reliance Trade Services Centre Ltd, Reliance Integrated Agri Solutions Ltd, Reliance Agri
Products Distribution Ltd, Reliance Food Processing Solutions Ltd, Reliance Supply Chain
Solutions Ltd, Reliance Digital Media Ltd, Strategic Manpower Solutions Ltd, Reliance Gems and
Jewels Ltd, Reliance Leisures Ltd, Reliance Loyalty & Analytics Ltd, Reliance Retail Securities and
Broking Company Ltd, Delight Proteins Ltd, Reliance F&B Services Ltd, Reliance Hypermart Ltd,
Reliance Financial Distribution and Advisory Services Ltd, Reliance Retail Travel & Forex Services
Ltd, Reliance Trends Ltd, Reliance Wellness Ltd, Reliance Brands Ltd, Reliance Footprint Ltd,
Abcus Retail Pvt. Ltd, Bigdeal Retail Pvt. Ltd, Advantage Retail Pvt. Ltd, and RIL (Australia) PTY
Ltd became subsidiaries of the company. During the year 2008-09, Reliance People Serve Ltd,
Reliance Infrastructure Management Services Ltd, Reliance Global Business BV Reliance Gas
Corporation Ltd, Reliance Global energy Services Ltd, Reliance One Enterprises Ltd, Reliance
Personal Electronics Ltd, Reliance Global Energy Services (Singapore) Pvt. Ltd, Reliance
Polymers (India) Pvt. Ltd, Reliance Polyolefins Pvt. Ltd, Reliance Aromatics and Petrochemicals
Pvt. Ltd, Reliance Energy and Project Development Pvt. Ltd, Reliance Chemicals Pvt. Ltd,
Reliance Universal Enterprises Pvt. Ltd, International Oil Trading Ltd, Reliance Nutritional Food
Processors Pvt. Ltd, Reliance Review Cinema Pvt. Ltd, Reliance Replay Gaming Pvt. Ltd, RIL USA
Inc. Reliance Commercial Land Infrastructure Pvt. Ltd, Reliance Corporate IT Park Ltd, Reliance
Eminent Trading & Commercial Pvt. Ltd, Reliance Progressive Traders Pvt. Ltd, Reliance Prolific
Traders Pvt. Ltd, Reliance Universal Traders Pvt. Ltd, Reliance Prolific Commercial Pvt. Ltd,
Reliance Comtrade Pvt. Ltd, Reliance Ambit Trade Pvt. Ltd, Reliance Petro Marketing Pvt. Ltd,
LPG Infrastructure (India) Pvt. Ltd and Reliance Info solution Pvt. Ltd became subsidiaries of the
company. Also Abcus Retail Pvt. Ltd ceased to be a subsidiary of the company. During the year
Reliance Petroleum Ltd (RPL) merged with the company with effect from April 1 2008. From
April 2 2009 the company commenced production of hydrocarbons in its KGD6 block in the
Krishna Godavari basin with the production of sweet crude of 420 API. In November 2009 the
company discovered first oil exploration in the on land exploratory block CB-ONN-2003/1 (CB
10 A&B) awarded under the NELP-V round of exploration bidding. In December 2009 the
company discovered gas in the exploration block KG-DWN-2003/1 (KG-V-D3) of NELP-V. The
Deepwater block KG-DWN-2003/1 is located in the Krishna basin about 45 kilometers off the
coast in the Bay of Bengal. In April 2010 the company commissioned a 1 MW solar Photo
Voltaic power plant at Thyagaraj stadium in New Delhi. The power plant is expected to generate
around 1.4 million units of electricity a year. It would cater to the power requirements of the
stadium and the surplus would be fed to the grid at 11 KV. In addition, the company's subsidiary
Reliance Marcellus LLC executed definitive agreements to enter into a joint venture with United
States based Atlas Energy Inc. of Pittsburgh Pennsylvania under which Reliance will acquire a
40% interest in Atlas' core Marcellus Shale acreage position. In June 2010 the company entered
into an agreement to acquire substantial stake in Infotel Broadband Services (P) Ltd which
emerged as successful bidder in all the 22 circles of the auction for Broadband Wireless Access
(BWA) Spectrum conducted by the DOT. The company sees the broadband opportunity as a
new frontier of knowledge economy in which it can take a leadership position and provide India
with an opportunity to be in forefront among the countries providing world-class 4G network
and services. In August 2010 the company through their subsidiary Reliance Industries
Investment and Holding Pvt Ltd acquired the equity shares of EIH Ltd representing 14.12% from
Oberoi Hotels Pvt Ltd and certain other promoters at a total cost of Rs 1021 crore.In December
2010 the company entered into a joint venture agreement with Russian petrochemical
company SIBUR for the production of butyl rubber in India. The joint venture facility will have
an initial capacity of 100000 tons of butyl rubber at the company's integrated refining cum
petrochemical site in Jamnagar and is expected to be commissioned by 2013.In January 2011
the company's wholly owned subsidiary Reliance Ventures Ltd entered into an agreement with
Infrastructure Leasing and Financial Services Ltd whereby IL&FS will become a strategic partner
and co-promoter of a project which intends to develop a model economic township and other
infrastructure facilities at Jhajjar in Haryana. In February 2011 the company entered into a
strategic partnership with BP which comprises BP taking a 30% stake in 23 oil and gas
production sharing contracts that the company operates in India for a consideration of USD
7.20 billion and the formation of a 50:50 joint venture between the two companies for the
sourcing and marketing of gas in India. The joint venture will also endeavor to accelerate the
creation of infrastructure for receiving transporting and marketing of natural gas in India. On 15
June 2017 RIL and BP announced that they are moving forward to develop the `R-Series' deep
water gas fields in Block KGD6 off the east coast of India as first of three that are expected to be
developed in an integrated manner producing from about 3 trillion cubic feet of discovered gas
resources. In March 2011 the company and D E Shaw Group agreed to establish a joint venture
to build a leading financial services business in India. This joint venture will incorporate the D E
Shaw Group's investment and technology expertise with the company's operational knowledge
and extensive presence across India to offer a comprehensive array of financial services to the
Indian marketplace. In June 10 2011 the company and their associate Reliance Industrial
Infrastructure Ltd entered into an agreement with Bharti Enterprises for acquiring Bharti's
shareholding of 74% in Bharti Axa Life Insurance Co Ltd and Bharti Axa General Insurance Co
Ltd. On completion of the proposed transaction the company and Reliance Industrial
Infrastructure Ltd would effectively own 57% and 17% respectively in both insurance
companies and would become Axa's joint ventures partners in India. In September 2011
Reliance Security Solutions Ltd a subsidiary of the company Siemens Ltd signed an MoU to
jointly develop Homeland Security Solutions for Highways in India. In November 2011 the
company and BP incorporated India Gas Solutions Pvt. Ltd a 50:50 joint venture company which
will focus on global sourcing and marketing of natural gas in India. The joint venture company
will also develop infrastructure to accelerate transportation and marketing of natural gas within
the country. India Gas Solutions Pvt. Ltd will be funded with equal equity from BP and RIL. In
November 2011 AXA SA Bharti Reliance Industries Limited (RIL) and its associate Reliance
Industrial Infrastructure Limited (RIIL) announced that they have mutually agreed to terminate
their negotiations on the proposed acquisition by RIL and RIIL of Bharti's shareholding of 74% in
Bharti AXA Life Insurance Co. Ltd and Bharti AXA General Insurance Co. Ltd. In February 2012
the company and SIBUR have agreed to form a joint venture named Reliance Sibur Elastomers
Pvt. Ltd to produce 100000 tons of butyl rubber per year in Jamnagar India. The joint venture
will be the first manufacturer of butyl rubber in India and the fourth largest supplier of butyl
rubber in the world. On 29 May 2014 RIL announced its entry into the digital space by way of
acquisition of control in Network 18 Media & Investments Limited (NW18) including its
subsidiary TV18 Broadcast. On 9 December 2014 RIL announced the formation of a joint
venture with Shandong Ruyi Science and Technology Group Co. Ltd China (`Ruyi') (through its
wholly owned subsidiary) for RIL's textiles business which operates under the Vimal brand. RIL's
wholly owned subsidiary Reliance Jio Infocomm announced the commencement of telecom
services with `Jio Welcome Offer' in September 2016. In a short period of 170 days Jio crossed a
milestone of 100 million customers on its all IP wireless broadband network. On 17 November
2016 RIL and GE announced the signing of a global partnership agreement in the Industrial IOT
(IIOT) space to provide Industrial IOT solutions to customers in oil & gas fertilizer power
healthcare telecom and other industries. In September 2017 RIL won the bid to acquire the
assets of Kemrock Industries & Exports Limited of Vadodara (Gujarat) as a part of its efforts to
enter the composites business. RIL participated in an on-line e-bidding process held by
Allahabad Bank being leader of the consortium of 11 banks to sell/dispose off the assets of
Kemrock Industries & Exports Limited.
Vision:
"Growth has no limit at Reliance. I keep revising my vision. Only when you can dream it, you
can do it."
Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global leader
in the materials and energy value chain businesses. He is credited to have brought about the
equity cult in India in the late seventies and is regarded as an icon for enterprise in India. He
epitomized the spirit 'dare to dream and learn to excel’. The US$ 20 billion Reliance Group is a
living testimony to his indomitable will, single-minded dedication and an unrelenting
commitment of his goals.
Mission:
” Growth through Commitments”
We care about: -
•Quality
•Research & Development
•Health, Safety & Environment
•Human Resource Development
•Energy Conservation
Corporate Citizenship:
Reliance believes that any business conduct can be ethical only when it rests on the nine core
values of Honesty, Integrity, Respect, Fairness, Purposefulness, Trust, Responsibility, Citizenship
and Caring. The essence of these commitments is that each employee conducts the company's
business with integrity, in compliance with applicable laws, and in a manner that excludes
considerations of personal advantage. We do not lose sight of these values under any
circumstances, regardless of the goals we have to achieve. To us, the means are as important as
the ends.
For Reliance…Growth is care for good health:
Reliance's occupational health centers carry out pre-employment and periodic medical
checkups as well as other routine preventive services. Specialized tests like biological
monitoring, health risk assessment studies and audits for exposure to various materials are also
performed. Health education and awareness form an integral part of the health care program
meat Reliance
Growth Is Care for Safety:
We believe that the safety of each employee is the responsibility of the individual as well as of
the whole community of employees
Growth is care for the environment:
Reliance believes that a clean environment in and around the workplace fosters health and
prosperity for the individual, the group and the larger community to which they belong.
Environmental protection is an integral part of the planning, design, construction, operation
and maintenance of all our projects.
Growth is conservation:
At Reliance, energy conservation efforts seek to reduce the unit cost of fuels and to improve
efficiencies in energy intensive processes.
Growth is betting on our people:
Reliance builds with care a workplace that proactively fosters professional as well as personal
growth. There is freedom to explore and learn; and there are opportunities that inspire
initiative and intrinsic motivation. We believe that people must dream to achieve, that these
dreams will drive the company’s excellence in all its businesses. Reliance thinks, behaves, lives
and thrives with a global mindset, encouraging every employee to reach his / her full potential
by availing opportunities that arise across the group.
NATURE OF THE ORGANISATION:
Reliance Industries Ltd., is a conglomerate company. It is involved in various businesses and
caters to a number of industries at once. The Chairman & Managing Director of the company is
Shri.Mukesh D Ambani. The major businesses of Reliance Industries ltd are
•Exploration and Production – crude oil and natural gas
•Refining
•Petrochemicals – Polymers and Polyester and Fiber Intermediates
•Textiles
•Retail
•Special Economic Zones.

RELIANCE AND THE INDIAN PETROCHEMICAL MARKET:

Reliance's philosophy of 'Growth is Life' has truly manifested itself in value creation
opportunities for its myriad stakeholders, which include its valued customers. The focus on
Growth has helped us grow as one of the world's largest producers of polymers. The2009-10
polymer production (Polypropylene, Polyethylene and Polyvinyl Chloride) is 4,091 kilotons. This
growth has been achieved with state-of-the-art world scale projects and setting
global benchmarks in product quality, standards and services. Reliance’s sites at Hazira,
Vadodara, Gandhar in Gujarat and Nagothane in Maharashtra are integrated with crackers. The
Jamnagar site is integrated with the world class refinery, ensuring feedstock security at all the
sites. At Reliance the constant endeavor is to provide products and services that meet global
standards. Based on the extensive interaction with the industry, they offer a wide range of
grades for diverse applications across packaging, agriculture, automotive, housing, healthcare,
water and gas transportation and consumer durables. Superior technologies, strong focus on
R&D, latest IT-enabled services to support supply chain management and the end-to-end
solutions offered across the value chain reinforce their commitment to customer satisfaction.
There’s more to Reliance Polymers than just delivering great products. There's an underlying
relationship of mutual trust and cooperation with associates and customers. There's a stringent
pro-active quality control procedure. There's a firm commitment on following Safety, Health
&Environment measures. There's a responsibility towards creating & ensuring a safe and clean
environment. The ISO-9001-2000/ISO-14001 accreditation has not only ensured providing
superior quality products and services but also fetched several national/international awards
beside global approvals from multinational companies. The Reliance Hazira QA / QC
Laboratories are accredited by National Accreditation Board for Testing & calibration
Laboratories (NABL), Dept. of Science & Technology, Govt. of India for testing in accordance
with ISO / IEC 17025 Standard. This lends credence to the international levels of competence
and quality our products offer to customers worldwide.
Total Customer Satisfaction, is what we strive for at Reliance. And with Rishta - the 360*
customer-focused approach, Reliance ensures sustainable quality through automated systems,
emphasis on complaint resolution, quality circles and adoption of programs such as "Six Sigma”.
At Reliance Polymers there is a commitment to provide Innovative products and services that
bring total satisfaction and considerable value to customers. At Reliance, their philosophy is to
'be where the customer is'. Their customers are ensured of easy reach of both their products
and services round the clock. This is facilitated through over 150marketing outlets in India
alone, supported by a national network of Regional and Sales offices and several overseas
offices across the globe. The teams of skilled technical and development personnel are
available to provide assistance at every stage. In order to provide both commercial as well as
technical support to their customers, the SAP R3 and Business Information Warehouse Systems
are implemented across all Reliance Polymer plants and office locations to ensure seamless
integration of financial, material, sales and distribution transactions. The latest IT-enabled
services support the management of the polymer supply chain. Thus, Reliance Polymers is
within your instant reach 24x7, 365 days a year. Currently Reliance Polymer grades are not only
well accepted in Indian market but also exported to more than 60 countries world-wide. Their
Exports Business office in Mumbai, India, oversees these operations supported by overseas
stock points and offices in the UK, Turkey, UAE, Indonesia, Vietnam and China. Market
development team continuously works with OEM, end-users, processors and machinery
manufacturers to promote new applications of Repol Polypropylene which not only improve
quality at optimum cost but also open up opportunity to produce light-weight products for
resource optimization of Mother Nature. Their technical and development team organize
seminars, conferences, Road shows in Rural and urban India to bring awareness of the benefits
of plastics and Repol. Polymer team works hand in hand with new investors in the field of
polymers by offering suitable projects. They are also closely working with various Nodal
agencies for product approval and accreditation.

Automotive and Appliance:

Repol PP grades offer excellent balance of impact and flexural properties to maximize the
benefit of light weight, high stiffness yet break resistant components for automotive and
appliance industries.
Packaging:
Repol Polypropylene is an excellent choice for a variety of packaging applications in the field of
Bulk, Rigid and Flexible applications. Contact our development team to identify the right Repol
grade for the new applications in packaging you want to develop for Bulk Packaging, Rigid
Packaging &Flexible Packaging.
Geotextile:
Repol PP is suitable for manufacturing both woven and non-woven Geotextiles. RepolPP
Geotextiles are used in infrastructure applications such as filter fabric for erosion control
of River embankment, Geotubes for sea erosion control, Subgrade reinforcement and as
pavement strengthening in Roads.
Nonwoven:
Polypropylene Nonwovens has a range of applications from Agriculture to packaging. Agro
textile applications with Repol benefit the farmers by way of Crop Cover, Fruit Cover, Leno bags
for protection against harsh climate, insects as well as healthy and hygienic packaging. It finds
extensive use in Medical applications like surgical masks gowns and many more.
Building & Construction:
Repol is a good fit for plumbing Pipe. Our team also support developing Chemical Pipes for
Paper, Sugar and plastics processing industry.

BUSINESS VOLUME
Turnover: Rs. 2,58,651 crores ($ 58.0 billion) PBDIT: Rs. 41,178 crores ($ 9.2 billion) Cash Profit:
Rs. 34,530 crores ($ 7.7 billion) Net Profit: Rs. 20,286 crores ($ 4.5 billion) Net Profit 10 year
CAGR: 23%Turnover: Rs. 2,58,651 crores ($ 58.0 billion) PBDIT: Rs. 41,178 crores ($ 9.2 billion)
Cash Profit: Rs. 34,530 crores ($ 7.7 billion) Net Profit: Rs. 20,286 crores ($ 4.5 billion) Net Profit
10 year CAGR: 23%Total Assets: Rs. 2,84,719 crores ($ 63.8 billion) Significant contribution to
India's economic growth:
•13.4 % of India's total exports
•6.9 % of the Government of India's indirect tax revenues
•4.8 % of the total market capitalization in India
•Weightage of 11.9% in the BSE Sensex
•Weightage of 10.1% in the S&P CNX Nifty Index Growing Importance across the globe :
•Largest refining capacity at any single location
•Largest producer of Polyester Fiber and Yarn
•5th largest producer of Paraxylene (PX)
•5th largest producer of Polypropylene (PP)
•8th largest producer of Purified Terephthalic Acid (PTA) and Mono Ethylene Glycol (MEG)

Reliance Industries is one of India's biggest industrial groupings and the largest private sector
company. Reliance built its first polymer cracker in 1992 because although natural gas is cleaner
and cheaper, India has a very limited supply. Reliance, which is pursuing an aggressive
investment strategy in Jamnagar, is also one of the prime contenders to take over part of the
state-owned Indian Petrochemicals Corporation Ltd (IPCL) when it is privatized. Reliance could
exploit major synergies with the state-owned giant. The Indian government might also be
concerned at the near monopoly that would be granted on polypropylene and polyethylene.
Therefore, any disinvestment to Reliance would have to look long and hard at the competition
implications.

As a result of the new plant at Jamnagar, the Indian market has surplus capacity. It is expected
to continue exporting similar quantities for several months. The recent commissioning of a
210,000t/yr. polypropylene facility, brought on stream at Haldia by Haldia Petrochemicals, will
further oversupply the Indian market and force more exports. The overcapacity of the Asian
market has led to project cancellations in Indonesia, South Korea and Thailand. However,
according to Reliance, the compound annual growth rate of the Indian polypropylene market is
about 20%. This would, if continued, soak up some of the extra capacity of Reliance and other
companies. Nevertheless, the company must hope for an upturn in Far Eastern markets in order
to revive demand. The immediate future of the market points to significant overcapacity.

Production:
With an annual crude processing capacity of 580,000 barrels (92,000 m3) per stream day
(BPSD), RPL will be the sixth largest refinery in the world. It will have complexity of 14.0, using
the Nelson Complexity Index, ranking it amongst the highest in the sector. The polypropylene
plant will have a capacity to produce 0.9 million metric tons per annum.
EXPANSION:
In October 2005 plans were put in action to build a new refinery at the Jamnagar site adjacent
to the existing refinery, which is costing $6bn. Part of the finance, $500m, has been guaranteed
by the US Export-Import bank (Ex-Im Bank). The Ex-Im Bank guarantee is necessary to aid the
refinery developer /owner Reliance Petroleum Ltd(RPL) to acquire the required US equipment,
technology and services to build the new facility. The new refinery will be the world's sixth
largest and most complex. The two refineries will now comprise the largest refining complex in
the world. Bechtel Corporation in Houston, Texas has provided design, procurement, project
management and other services. Other US suppliers include: Black & Veatch International Co.,
Kansas City, Mo, for Sulphur recovery and gas treatment units; DowGlobal Technologies, Inc.,
Midland, Mich, for licensing and services for the polypropylene plant process; Foster Wheeler
Corp., Clinton, NJ, for fired heaters for the refinery's coker; and UOP LLC, Des Plaines, Ill, for the
catalytic converter reactor section and PSA (pressure swing absorption) packages. Citibank NA,
NY, is the guaranteed lender on the transaction. In October 2008 the project was declared 97%
complete with a projected on-stream date of December 2008. The second refinery will have a
capacity of 580,000 barrels per day, along with a 600MW power plant and enhanced port
facilities.

Environmental Record:
In 2005 Reliance Industries was found to be one of the top five consumers of toluene in the
world. These five companies account for 30% of the total consumption. Toluene produces a
toxic chemical that is released into the air when it is burned. Under the 1990Clean Air Act
Amendments, the U.S.EPA is required to regulate emissions of listed toxic air pollutants.
Cleaner replacements for toluene may be used. Reliance Industry is the world’s largest
polyester producer and as a result, the biggest producer of polyester waste. In order to deal
with this large amount of waste they had to create a way to recycle the waste. They operate
the largest polyester recycling center that uses the polyester waste as a filling and stuffing. They
use this process to develop strong recycling process which won them a reward in the Team
Excellence competition. Reliance Industries backed a conference on environmental awareness
in New Delhi in2006. The conference was run by the Asia Pacific Jurist Association in
partnership with the Ministry of Environment & Forests, Govt. of India and the Maharashtra
Pollution Control Board. The conference was to help bring about new ideas and articles on various
aspects of environmental protection in the region. Maharashtra Pollution Control Board invited various
industries complied with the pollution control norms to take active part in the conference and to
support as sponsor. The conference proved effective as a way to promote environmental concerning the
area. The Company is committed to ensuring the highest standards of environment management and
strict compliance with regulatory requirements at all times. The Company has taken utmost care at
various stages of project implementation viz. planning, design, construction towards compliance with
applicable laws. The refinery project is being set up as a zero effluent refinery, which is the best in class.
Product line:

Petrochemicals

Polymers

•Polypropylene (PP) – Repol

•Polyethylene (HDPE, LLDPE, LDPE) – Relene

•Ethylene Vinyl Acetate Copolymer (EVA) – Relene EVA

•Polyvinyl Chloride (PVC) – Reon

•Poly-Olefin (HDPE & PP) Pipes – Relpipe

•Poly Butadiene Rubber (PBR) – Cisamer

•Linear Alkyl Benzene (LAB) – Relab

Polyester:

•Staple fibre filament yarn, texturised yarn, twisted/dyed yarn – Recron

•Polyethylene Terephthalate (PET) – Relpet

INDUSTRY OVERVIEW – POLYMER MARKET IN 2012

Indian Petrochemical industry is one of the fastest growing sectors in the world. Low operating
capacities in Indian petrochemical concerns bring with it the opportunity for future facility utilization.
Polymer market is dependent on growth in related sectors. Low per capita consumption of polymer
offers opportunities for domestic manufacturers to meet the rising domestic demand for polymers.
Indian Petrochemical industry is considered to be growing at a 1% CAGR. India is considered as one of
the fastest growing manufacturers of polymers. This has led to increased costs of imports creating
opportunities for domestic players to generate high revenues.

Drivers of this growth:

•Demand from packaging industry

•Growth in associated manufacturing sectors

•Increase in usage of polymer products in agriculture

Challenges:

•Depreciation of rupee

•Rise in crude oil prices

•Environmental degradation

•Low per capita consumption of polymers

Trends:

•Usage of polymers in the medical sector

•Shift towards gas based production units

•Improvised marketing offers for polymer buyers

•Growing investments: Indian polymer industry is extremely capable of exporting polymers as many
petrochemical majors still operate at low capacities. Per capita consumption of polymer in India is at 2
kg compared to3kg in US and China with 4 kg. Major forms of polymers are polyethylene
polypropylene, polystyrene and polyvinyl chloride. Polymer finds its usage in a variety of sectors like
packaging, agriculture and plastics. Increase of crude oil prices have affected the polymer industry in
India negatively.

PETROCHEMICALS SECTOR ANALYSIS:

Petrochemicals, as the name suggests, are chemicals obtained from the cracking of petroleum
feedstock. Petrochemicals are used in many manufacturing fields. The industry is built on small number
of basic commodity chemicals, also known as building blocks such as ethylene, propylene, butadiene,
benzene, toluene and xylene. Ethylene, propylene and butadiene are commonly referred to as olefins,
while benzene, toluene and xylene are known as aromatics. Together, they form the basis of all
petrochemical products. The broad product segments of the industry include basic petrochemicals,
polymers, polyesters, fiber intermediaries and chemicals. Petrochemicals production process consists of
primarily two stages. In the first stage naphtha, produced by refining crude oil or natural gas is used as a
feedstock and is cracked. Cracking (breaking of long chain of hydrocarbon molecule) produces olefins
and aromatics. In stage two, these building blocks are polymerized (made to undergo chemical
processes) to produce downstream petrochemical products (polymers, polyesters, fiber intermediaries
and other industrial chemicals. The industry is oligopolistic in nature with four main players dominating
the sector noticeably Reliance Industries Ltd (RIL), Indian petrochemicals Corporation Ltd (IPCL), Gas
Authority of India Ltd (GAIL) and Halida Petrochemicals Ltd (HPL). RIL, along with IPCL, accounts for
70%of the petrochemical capacity in the country. However, the downstream petrochemical sector,
especially polyester, is highly fragmented with more than 40 companies. This fragmented structure
adversely affects the health of the industry. Petrochemical industry is a cyclical industry. Globally, the
petrochemical industry is characterized by sluggish demand and volatile feedstock prices. India's current
per capita consumption of polyester is 1.4 kg, whereas China's and global per capita consumption is five
times and three times higher respectively. Similarly, the 5 kg per capita consumption of polymers in
India is one-fifths for the entire world. India accounts for 3.1% of the total world polymer consumption
of 200 mtpa.

1. Supply:

Supply currently outstrips demand. In India, as refineries are expanding capacity leading to increase in
production of naphtha, we believe it's going to increase further.

2. Demand:

Demand of the petrochemicals generate from the downstream industries, which in turn are dependent
on the state and growth of the economy. Indian economy is poised to grow 9.2% for the next few years.
Thus, the demands for the petrochemical products are bound to be on the higher end.

3. Barriers to entry:

The petrochemical industry is capital-intensive by nature. The minimum economic size of an integrated
plant is around 1 million tons per annum, which in turn calls for huge investments.

4. Bargaining power of suppliers:

Moderate to low, despite the surplus naphtha production in the country, bargaining power of suppliers
seems to be moderate. This is due to the fact that the suppliers are concentrated. However, going
forward, integration is a ‘mantra' for the oil refining companies.

5. Bargaining power of customers:

Moderate to low, the downstream user industry is fragmented, which reduces their collective bargaining
power. Import duties on the products have declined significantly over the past and with additional
capacities coming up in the Middle East the bargaining power of the customers might improve to an
extent.

6. Competition:

Competition within the domestic market is limited, as there are only a handful of players with world-
class capacities. However, with reduction in duties, there is threat of imports from Middle East and the
Asia Pacific region, which is going to increase the competition. Also, the refineries are getting integrated,
which will reduce the industry concentration in terms of market share and in turn fuel competition.

Current scenario and prospects:

•Government has put in place a national policy on petrochemicals and has initiated steps to create
mega integrated complexes called petroleum, chemicals and petrochemicals investment regions
(PCPIRs). These PCPIRs will be set up in a 2,000 sq km area with an estimated investment of $280 bn. As
100% FDI is permissible in chemical industry, this should provide a boost to the sector. It is expected
that domestic petrochemical sector will double its production capacity in next four five years.
•Currently, R&D expenses of the industry are about Rs 2.2 bn (1% of the overall industry’s turnover).
With an approximate cost of Rs 4.4-6.6 bn, Government has provided for a policy of generating R&D
centers for modernization of the petrochemical industry. With this format, the government is aiming at
a low-priced high-return involvement in the petrochemical segment, via public-private-partnership
(PPP), to market the development of new applications of polymers and plastics, by establishing such
centers of excellence(CoEs).

•Operating rates are expected to bottom out in 2010. Demand in Asia, especially in India and China is
expected to remain high leading to high cotton prices and stable margins from polyester products. This,
along with project delays by Middle East could lead to the next super cycle in coming years.

MAJOR COMPETITORS IN THE MARKET:

Chemplast Sanmar Limited is a chemical company based in Chennai, Tamil Nadu. It is part of Sanmar
Group which has businesses in Chemicals, Shipping, Engineering and Metals. It has a turnover of over
Rs.45 billion and a presence in some 25 businesses, with manufacturing units spread over numerous
locations in India. Chemplast Sanmar's manufacturing facilities are located at Mettur, Panruti,
Cuddalore and Ponneri in Tamil Nadu, Shinoli in Maharashtra, and Karaikal in the Union Territory
of Pondicherry. It is a major manufacturer of PVC resins, chlorochemicals and piping systems. The
Cuddalore PVC project commissioned in September 2009 is the largest such project to come up in Tamil
Nadu. It's aggregate capacity of 235,000 tons makes it one of the largest PVC players in India. Chemplast
Sanmar Limited won two awards, at the 7th National Award for Excellence in Water Management
organized by the CII in Hyderabad in December 2010. The flagship company of The Sanmar Group won
the “Innovative Case Study” and “Excellent Water Efficient Unit” awards for the successful case study of
zero liquid discharge at Mettur. Chemplast Sanmar, a pioneer in Zero Liquid Discharge has implemented
this process successfully in all its manufacturing plants. Chemplast has not discharged a single drop of
treated effluent since September 2009 in Mettur while in Cuddalore and Karaikkal there has been no
discharge since inception.

MARKET SHARE OF RELIANCE AND VARIOUS COMPETITORS:

The breakup of the market shares of Reliance Industries Ltd compared to various competitors in the
Karnataka region in the polypropylene and polyethylene division are as follows:

a) Polypropylene:

•Reliance Industries Ltd – 81%

•Haldia Petrochemicals Ltd - 4%

•Indian Oil Corporation - 5 %

•Imports – 10%

b) Polyethylene:

•Reliance Industries Ltd – 34%

•Haldia Petrochemicals Ltd – 9%

•GAIL India Ltd – 20%

•Indian Oil Corporation – 17%

•Imports - 20%.