Reliance Conglomerate

Introduction:

Reliance Commercial
Corporation

Reliance Group Reliance Industries

(Reliance Anil Dhirubhai Ambani (Reliance Industries Limited)
Group)

The company was co-founded by Dhirubhai Ambani and Champaklal

Damani in 1960s as Reliance Commercial Corporation. In 1965, the partnership
ended and Dhirubhai continued the polyester business of the firm. Reliance later
entered into financial services, petroleum refining, power sector. By 2002
Reliance had grown into a U$15 billion conglomerate. In 1966, Reliance Textiles
Industries Pvt Ltd was incorporated in Maharashtra. It established a synthetic
fabrics mill in the same year at Naroda in Gujarat. In 1975, the company
expanded its business into textiles, with "Vimal" becoming its major brand in
later years. The company held its Initial public offering (IPO) in 1977. The issue
was over-subscribed by seven times. In 1979, a textiles company Sidhpur Mills
was amalgamated with the company. In 1980, the company expanded its polyester
yarn business by setting up a Polyester Filament Yarn Plant in Patalganga,
Raigad, Maharashtra with financial and technical collaboration with E. I. du Pont
de Nemours & Co., U.S.

After the death of Dhirubhai Ambani, the group was split into Reliance
Industries Limited, headed by Mukesh Ambani, and Reliance Anil Dhirubhai
Ambani Group (Reliance ADA Group), headed by Anil Ambani. As of 2017, the
company has more than 250,000 employees. In 2012, Reliance Industries was one
of the two Indian companies to be ranked among the top 100 in the Fortune 500
list of the world's largest companies by revenue.

Department of Business Administration and Management (SGBAU) Page 1

 Reliance Conglomerate

Reliance Anil Dhirubhai Ambani Group: Reliance Anil Dhirubhai

Ambani Group (Anil Dhirubhai Ambani Ventures Limited) is an Indian
conglomerate, headquartered in Navi Mumbai, India. The company, which was
formed after Dhirubhai Ambani's business was divided up, is headed by his
younger son Anil Ambani. It has a market capitalization of ₹890 billion (US$12
billion) and net assets worth ₹1,800 billion (US$25 billion). The Reliance Group
operates in over 20,000 towns and 450,000 villages in India, and abroad.

Reliance Group has four listed companies. Reliance Power, Reliance

Communications, Reliance Infrastructure, and Reliance Capital, with a
shareholder base of over 12 million. The group provides telecom, financial
services, construction, entertainment, power, health care, manufacturing, defence,
aviation, and transportation services.

After split Anil Ambani got the responsibility of Reliance Infocomm,

Reliance Energy, Reliance Capital and RNRL. Reliance Group entered the power
sector through Reliance Power, and the entertainment sector by acquiring Adlabs.
In October 2010, Reliance power placed world's largest order worth $8.29 billion
to Shanghai Electric Group to supply power equipment based on Supercritical
steam generator technology. Reliance power was the first Indian company to earn
carbon credits, and the United Nations registered Reliance Power’s Sasan power
project is planned to earn as many as 22.5 million credits in the next 10 years,
under the UN Clean Development Mechanism, a greenhouse gas market which
issues tradable credits to emissions-lowering projects in developing countries.
Reliance Power has coal mines in Indonesia, and has also made major
acquisitions in UK and USA. On 28 October 2017, the group launched
construction of a defense production unit in Mihan-SEZ region. The unit will be

Department of Business Administration and Management (SGBAU) Page 2

 Reliance Conglomerate

part of a joint venture between Reliance Group, led by Anil Ambani, and its JV
partner French major Dassault Aviation. The production at Mihan-SEZ will begin
with components for the Rafale warplanes and Falcon business jet produced by
Dassault. It is expected to fully assemble both the aircraft in the Nagpur unit in
the coming years.

The brand ambassador of Reliance is Anushka Sharma for Reliance

Communication, Abhishek Bachchan and Sonu Nigam for Big 92.7 FM.

SUBSIDIARIES

 Reliance Aerospace: October 27, 2017, Eric Trappier, Chairman

of Dassault Aviation and Anil D. Ambani, Chairman of the
Reliance Group laid the Foundation Stone for the Dassault
Reliance Aerospace Limited manufacturing facility in Mihan,
Nagpur located in India’s western state of Maharashtra.
 Reliance Power It was established to develop, construct and
operate power projects in the Indian and international markets.
 Reliance Energy is an Indian private sector enterprise involved in
power generation, infrastructure, construction and defence.
 Reliance Naval and Engineering Limited is an Indian
shipbuilding and Heavy industry company headquartered in
Mumbai. The shipyard is located in Pipavav, Gujarat, at a distance
of 90 km South of Amreli, 15 km South of Rajula and 140 km
South West of Bhavnagar.
 Reliance Aerotech providing people solutions for aircraft
maintenance, manufacturing and repair, Reliance Aerotech
Services is the aviation industry specialist. For more than a decade,
we’ve been leading aviation staffing, recruitment and aircraft
systems integration and modification programs for aerospace
customers in the government, defense, manufacturing, business
and commercial aviation sectors.

Department of Business Administration and Management (SGBAU) Page 3

 Reliance Conglomerate

Reliance Industries Limited: Reliance Industries Limited (RIL) is an

Indian conglomerate holding company headquartered in Mumbai, Maharashtra,
India. Reliance owns businesses across India engaged in energy, petrochemicals,
textiles, natural resources, retail, and telecommunications. Reliance is one of the
most profitable companies in India, The largest publicly traded company in India
by market capitalization, and the second largest company in India as measured by
revenue after the government-controlled Indian Oil Corporation. On 18 October
2007, Reliance Industries became the first Indian company to breach $100 billion
market capitalization.

The company is ranked 203rd on the Fortune Global 500 list of the
world's biggest corporations as of 2017. It is ranked 8th among the Top 250
Global Energy Companies by Platts as of 2016. Reliance continues to be India’s
largest exporter, accounting for 8% of India's total merchandise exports with a
value of Rs 147,755 crore and access to markets in 108 countries. Reliance is
responsible for almost 5% of the government of India's total revenues from
customs and excise duty. It is also the highest income tax payer in the private
sector in India.

The number of shares of RIL are approx. 3.1 billion. The promoter group,
Ambani family, holds approx. 46.32% of the total shares whereas the remaining
53.68% shares are held by public shareholders, including FII and corporate
bodies. Life Insurance Corporation of India is the largest non-promoter investor in
the company, with 7.98% shareholding.

Department of Business Administration and Management (SGBAU) Page 4

 Reliance Conglomerate

In January 2012, the company announced a buyback programme to buy a

maximum of 120 million shares for ₹104 billion (US$1.4 billion). By the end of
January 2013, the company had bought back 46.2 million shares for ₹33.66
billion (US$470 million).

MAJOR SUBSIDIARIES AND ASSOCIATES

 Reliance Retail is the retail business wing of the Reliance

Industries. In March 2013, it had 1466 stores in India. It is the
largest retailer in India. Many brands like Reliance Fresh, Reliance
Footprint, Reliance Time Out, Reliance Digital, Reliance
Wellness, Reliance Trends, Reliance Autozone, Reliance Super,
Reliance Mart, Reliance iStore, Reliance Home Kitchens, Reliance
Market (Cash n Carry) and Reliance Jewel come under the
Reliance Retail brand. Its annual revenue for the financial year
2012–13 was ₹108 billion (US$1.5 billion) with an EBITDA of
₹780 million (US$11 million).
 Reliance Life Sciences works around medical, plant and industrial
biotechnology opportunities. It specializes in manufacturing,
branding, and marketing Reliance Industries' products in bio-
pharmaceuticals, pharmaceuticals, clinical research services,
regenerative medicine, molecular medicine, novel therapeutics,
biofuels, plant biotechnology, and industrial biotechnology sectors
of the medical business industry.
 Reliance Institute of Life Sciences (RILS), established by
Dhirubhai Ambani Foundation, is an institution offering higher
education in various fields of life sciences and related
technologies.
 Reliance Logistics is a single-window company selling
transportation, distribution, warehousing, logistics, and supply
chain-related products, supported by in-house telematics and
telemetry solutions. Reliance Logistics is an asset based company

Department of Business Administration and Management (SGBAU) Page 5

 Reliance Conglomerate

with its own fleet and infrastructure. It provides logistics services

to Reliance group companies and outsiders.
 Reliance Clinical Research Services (RCRS), a contract research
organisation (CRO) and wholly owned subsidiary of Reliance Life
Sciences, specialises in the clinical research services industry. Its
clients are primarily pharmaceutical, biotechnology and medical
device companies.
 Reliance Solar, the solar energy subsidiary of Reliance, was
established to produce and retail solar energy systems primarily to
remote and rural areas. It offers a range of products based on solar
energy: solar lanterns, home lighting systems, street lighting
systems, water purification systems, refrigeration systems and
solar air conditioners.
 Relicord is a cord blood banking service owned by Reliance Life
Sciences. It was established in 2002. It has been inspected and
accredited by AABB, and also has been accorded a licence by
Food and Drug Administration (FDA), Government of India.
 Reliance Jio Infocomm Limited (RJIL) previously known as
Infotel Broadband, is a broadband service provider which gained
4G licences for operating across India.
 Reliance Industrial Infrastructure Limited (RIIL) is an
associate company of RIL. RIL holds 45.43% of total shares of
RIIL. It was incorporated in September 1988 as Chembur
Patalganga Pipelines Limited, with the main objective being to
build and operate cross-country pipelines for transporting
petroleum products. The company's name was subsequently
changed to CPPL Limited in September 1992, and thereafter to its
present name, Reliance Industrial Infrastructure Limited, in March
1994. RIIL is mainly engaged in the business of setting up and
operating industrial infrastructure. The company is also engaged in
related activities involving leasing and providing services

Department of Business Administration and Management (SGBAU) Page 6

 Reliance Conglomerate

connected with computer software and data processing. The

company set up a 200-millimetre diameter twin pipeline system
that connects the Bharat Petroleum refinery at Mahul, Maharashtra,
to Reliance's petrochemical complex at Patalganga, Maharashtra.
The pipeline carries petroleum products including naphtha and
kerosene. It has commissioned facilities like the supervisory
control and data acquisition system and the cathodic protection
system, a jackwell at River Tapi, and a raw water pipeline system
at Hazira. The infrastructure company constructed a 71,000 kilo-
litre petrochemical product storage and distribution terminal at the
Jawaharlal Nehru Port Trust (JNPT) Area in Maharashtra.[citation
needed]
 LYF, a 4G-enabled VoLTE device brand from Reliance Retail.
 Network 18, a mass media company. It has interests in television,
digital platforms, publication, mobile apps, and films. It also
operates two joint ventures, namely Viacom 18 and History TV18
with Viacom and A+E Networks respectively. It also have
acquired ETV Network and since renamed its channels under the
Colors TV brand.

Comparison between Reliance Group & Reliance Industries

Reliance Group Reliance Industries

(Reliance Anil Dhirubhai Ambani (Reliance Industries Limited)
Group)

Type Private Public

Conglomerate
Industry Conglomerate

Reliance Commercial
Predecessor Reliance Commercial Corporation
Corporation
1977; 41 years ago
Founded 1966; 52 years ago
Dhirubhai Ambani
Founder Dhirubhai Ambani

Department of Business Administration and Management (SGBAU) Page 7

 Reliance Conglomerate

Mumbai, Maharashtra, India

Headquarters Dhirubhai Ambani Knowledge
City, Navi
Mumbai, Maharashtra, India

Key people Mukesh Ambani (Chairman and

Anil Ambani (Chairman)
MD)

 Petroleum
Products Telecom, financial services,
construction, entertainment, Power, Natural gas
 Petrochemicals
health care, aviation, Defences
 Textiles
 Retail
 Telecommunications
 Media
₹430,731 crore(US$60 billion)
Revenue US$15.4 billion (2012)
(2018)
Operating ₹74,184 crore(US$10 billion)
US$2 billion (2012)
income (2018)

Net income ₹36,075 crore(US$5.0 billion)

US$3.5 billion (2012)
(2018)
₹816,348 crore(US$110 billion)
Total assets US$43.6 billion (2016)
(2018)
Number of 187,729 (2017)
120,000 (2012)
employees
 Jio
Subsidiaries Reliance Power
 Reliance Retail
Reliance Communications
 Network 18
Reliance Infrastructure
 Reliance Petroleum
Reliance Capital
 Saavn
Reliance Entertainment
Reliance Health
Reliance MediaWorks
www.ril.com
Website relianceadagroup.com

Department of Business Administration and Management (SGBAU) Page 8