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Making Life Better.

For Everyone.

INTEGRATED ANNUAL REPORT


2017-18
Making Life Better.
For Everyone.

In 2017-18, Reliance completed 40 years of its IPO. 7UXHWRRXUYLVLRQZHDUHZRUNLQJRQLGHDVDQGLQLWLDWLYHV


It was a celebration of visionary entrepreneurship, WKDWZLOOVLPSOLI\OLYHV&ROOHFWLYHO\5HOLDQFH
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global scale and all-encompassing value creation. DQGVHUYLFHVSRUWIROLRWRXFKHVDOPRVWDOO,QGLDQVRQD
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tomorrow and imagine a future that would see a RƪHULQJVDQGHQVXULQJWKDWZHSURYLGHHDVHRIOLYLQJ
billion lives transformed. DQGZRUNLQJWKURXJKZKDWZHGR

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“For
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For thoose who o dare to
o
dreamm, therre iss a wholle
worldd to
o win
n.”
Shri Dhiru
Dhirubhai H. Ambani
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+,*+/,*+76Ǣ
CONSOLIDATED CONSOLIDATED PROFIT CONSOLIDATED CONTRIBUTION
TURNOVER AFTER TAX TO NATIONAL EXCHEQUER

`4,30,731 crore `36,075 crore `86,942 crore


30.5% y-o-y growth 20.6% y-o-y growth \R\JURZWK

INSIDE THIS REPORT


CORPORATE OVERVIEW MANAGEMENT REVIEW Consolidated
2 Reliance at a Glance 41 Management’s Discussion and Analysis 345 Independent Auditors’ Report on
4 Key Performance Indicators 164 Report on Corporate Social Responsibility Consolidated Financial Statements
  /HWWHUWR6KDUHKROGHUV 350 Consolidated Balance Sheet
10 Board of Directors GOVERNANCE 351 Consolidated Statement
  0DNLQJ/LIH%HWWHU)RU(YHU\RQH RI3URƬWDQG/RVV
180 Business Responsibility Report
14 Business Model: Integrated Reporting + 352 Consolidated Statement of Changes in
194 Independent Reasonable Assurance on
16 Strategic Framework Equity
Sustainability Disclosures
  *OREDOO\WKH/DUJHVW&DSH[DWD6LQJOH 354 Consolidated Cash Flow Statement
196 Corporate Governance Report
  5HƬQLQJDQG3HWURFKHPLFDO6LWH 356 Notes to the Consolidated Financial
226 Board's Report
19 People and Innovation Statements
20 JioGenNext 421 Salient Features of Financial
FINANCIAL STATEMENTS
21 Sports and Reliance Statements of Subsidiary/Associates/
22 Reliance Foundation Standalone Joint Ventures
24 Awards and Recognitions 275 Independent Auditors’ Report on
25 Company Information Financial Statements SHAREHOLDER INFORMATION
26 Product Flow Chart 280 Balance Sheet
426 Notice of Annual General Meeting
28 Major Products and Brands  6WDWHPHQWRI3URƬWDQG/RVV
Attendance Slip and Proxy Form
40 Financial Highlights 282 Statement of Changes in Equity
Members’ Feedback Form 2017-18
284 Cash Flow Statement
286 Notes to the Financial Statements

0DNLQJ/LIH%HWWHU
/HWWHUWRVKDUHKROGHUV 6 12 Reliance Foundation 22
For Everyone.

ABOUT THIS REPORT


The Reliance Integrated Annual Report has OTHER REPORTS AND INFORMATION

been prepared in alignment with the <IR> • Corporate sustainability related information
www.ril.com/Sustainability/
Framework laid down by the International
CorporateSustainability.aspx
Integrated Reporting Council. In preparing
• Quarterly results and Analyst Presentations
the Report, GRI standard, NVG, United www.ril.com/InvestorRelations/
Nations Sustainable Development Goals FinancialReporting.aspx
and 10 other frameworks were referenced • Financial statements of subsidiary companies
DQGUHVSHFWHG7KHUHSRUWRXWOLQHV5,/
V Scan the QR Code on your smart device to www.ril.com/InvestorRelations/
commitment to stakeholder value creation view the Integrated Annual Report online at Downloads.aspx
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outcomes achieved for its stakeholders.
Corporate Overview 1-40 Management Review Governance Financial Statements Notice

2 Reliance Industries Limited • Making Life Better. For Everyone.

Reliance at a Glance
RIL is India’s largest and most profitable private sector company.
5,/
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achievements of the Company have catapulted it to the super league of global enterprises.

BUSINESS VERTICALS Revenue EBIT (` in crore)

REFINING AND MARKETING PETROCHEMICALS 2,/$1'*$6Ǡ( 3ǡ

`3,06,095 `25,869 `1,25,299 `21,179 `5,204 (`1,536)


Processes a wide variety of crude oil to 2QHRIWKHPRVWLQWHJUDWHG India operations include conventional
produce a range of petroleum products, petrochemicals facilities globally, on-land, shallow-water and deep-water
including transportation fuels, for with a wide product portfolio acreages, as well as unconventional
domestic as well as export markets coal-bed methane block; international
presence in US shale gas business

GRM Fuel outlets


US$11.6/bbl 1,313 30.8 MMT India's largest
Petrochemicals production surface footprint hydrocarbon project
48 56 66

RETAIL DIGITAL SERVICES MEDIA AND ENTERTAINMENT

`69,198 `2,064 `23,916 `3,174 `1,839 (`25)


India’s largest retailer with presence Jio has built an all-IP data strong future- Network18 has its presence in television,
across all consumption baskets; a SURRIQHWZRUNZLWKWKHODWHVW*/7( ƬOPHGHQWHUWDLQPHQWGLJLWDOEXVLQHVV
leading player in food, consumer technology; only network conceived as a magazines, mobile content and allied
electronics and fashion retailing Mobile Video Network, supporting Voice businesses
RYHU/7( 9R/7( WHFKQRORJ\

1st Indian retailer to cross


186.6 million India’s 3 largest
rd
broadcaster,
US$10 billion India’s largest wireless reaching 90% of TV viewers
in revenue 74 data subscriber base 86 96
Integrated Annual Report 2017–18 Reliance at a Glance 3

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value for the nation and enhancing quality of life across the socio-economic spectrum. Reliance endorses inclusive
development for all stakeholders and society at large.

SUSTAINABILITY AT THE CORE


ENVIRONMENT PEOPLE CSR

2 crore+ saplings planted till date 1,87,729 Reliance employees `771 crore CSR expenditure
Zero fresh water consumption by 50 lakh+ indirect jobs created 73 billion litre rain water harvesting
design at Jamnagar supersite capacity created since inception

VALUE DRIVERS FOR RIL


SCALE AND TECHNOLOGY ,1129$7,21$1'5 ' RELIANCE MANAGEMENT
6<67(0Ǡ506ǡ

:RUOG
VODUJHVWUHƬQHU\DWDVLQJOHORFDWLRQ `1,824 crore R&D expenditure Strategic framework
Among the top 10 producers for key Processes and requirements
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petrochemicals Governance and risk assurance
World's only Exabyte mobile network (ƪHFWLYHXVHRIGDWDDQGWHFKQRORJ\

9$/8($''(',1)<Ǣ (` in crore)


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39,639 36,635 Stakeholders

Contribution to National Exchequer


7,958 5,575
Reinvested in the Group to maintain
4,740 4,434 and develop operations
FY 2017-18 FY 2016-17
3,553** 3,255 Providers of Debt
`1,13,632 `1,01,957
crore crore
(PSOR\HH%HQHƬWV
745 659 Providers of Equity Capital
Contribution to Society
56,997 51,399

* Standalone
** Dividend recommended for FY 2017-18 is `4,281 crore, including `728 crore as dividend distribution tax
Corporate Overview 1-40 Management Review Governance Financial Statements Notice

4 Reliance Industries Limited • Making Life Better. For Everyone.

Key Performance Indicators


PROFIT AND LOSS METRICS (Consolidated) BALANCE SHEET METRICS (Consolidated)

TURNOVER (` in crore) 30.5% y-o-y NETWORTH (` in crore) 12.1% y-o-y

`4,30,731 `2,89,798 1HWZRUWK&$*5RI

)< 4,30,731 )< 


FY 2016-17 3,30,180 FY 2016-17 2,58,511
FY 2015-16 2,93,298 FY 2015-16 2,31,556
FY 2014-15 3,88,494 FY 2014-15 2,18,482
FY 2013-14 4,46,339 FY 2013-14 1,98,670

PROFIT AFTER TAX (` in crore) 20.6% y-o-y DEBT EQUITY RATIO

`36,075 1HW3URILW&$*5RI
0.75
)< 36,075 )< 0.75
FY 2016-17 29,901 FY 2016-17 0.75
FY 2015-16 25,171 FY 2015-16 0.78
FY 2014-15 23,566 FY 2014-15 0.74
FY 2013-14 22,493 FY 2013-14 0.70

EARNINGS PER SHARE (`) 20.3% y-o-y BOOK VALUE PER SHAREǠ`) 11.3% y-o-y

`60.9 `495.6
)< 60.9 )< 495.6
FY 2016-17 101.3 FY 2016-17 891.2
FY 2015-16 85.4 FY 2015-16 785.5
FY 2014-15 80.1 FY 2014-15 742.3
FY 2013-14 76.5 FY 2013-14 675.9

SHAREHOLDERS METRICS
MARKET CAPITALISATION (` in crore) 30.4% y-o-y DIVIDEND PER SHARE Ǡ`ǡ

`5,59,223 Market Capitalisation


&$*5RI `6.0
)< 5,59,223 )< 6.0
FY 2016-17 4,28,909 FY 2016-17 11.0
FY 2015-16 3,38,703 FY 2015-16 10.5
FY 2014-15 2,66,847 FY 2014-15 10.0
FY 2013-14 3,00,405 FY 2013-14 9.5

#Pursuant to issue of bonus shares during the year in the ratio of 1:1
&$*5VLQFH,32
Integrated Annual Report 2017–18 Key Performance Indicators 5

SOCIAL METRICS (Standalone) SOCIAL METRICS (Consolidated)

HSE EXPENDITURE (` in crore) 4.1% y-o-y CONTRIBUTION TO NATIONAL EXCHEQUER (` in crore) \R\

`382.6 `86,942
)<  )< 
FY 2016-17 367.4 FY 2016-17 71,951
FY 2015-16 337.3 FY 2015-16 50,817
FY 2014-15 289.8 FY 2014-15 40,827
FY 2013-14 285.0 FY 2013-14 39,632

5 '(;3(1',785( (` in crore) 26.0% y-o-y

`1,824 Reliance Foundation transformed lives of


20 million people since inception. The amount
)<  spent on CSR activities during FY 2017-18
FY 2016-17 1,448 was `771 crore, an increase of 14.4% from the
FY 2015-16 1,259 previous year expenditure of `674 crore.
FY 2014-15 1,220
FY 2013-14 1,218

CONSUMER BUSINESS METRICS


Retail Metrics 'LJLWDO6HUYLFHV0HWULFV )<
NUMBER OF STORES NUMBER OF JIO SUBSCRIBERS (in million)

7,573 186.6
)< 7,573 Q4 
FY 2016-17 3,616 Q3 160.1
FY 2015-16 3,245 Q2 138.6
FY 2014-15 2,621
FY 2013-14 1,691
WIRELESS DATA CONSUMPTION (in crore GB per quarter)

RETAIL AREA (million sq. ft.) 506


Q4 506
17.7 Q3 431
Q2 378
)< 17.7
FY 2016-17 13.5
FY 2015-16 12.8 VOICE ON NETWORK (crore minutes per day)
FY 2014-15 12.5
FY 2013-14 11.7 414
Q4 414
Consumer businesses now contribute 13.1% Q3 338
of consolidated segment EBITDA Q2 267
Corporate Overview 1-40 Management Review Governance Financial Statements Notice

6 Reliance Industries Limited • Making Life Better. For Everyone.

Letter to Shareho
Shareholders
Dear Fellow Shareowners,
2XUPRWWRq*URZWKLV/LIHrDSWO\FDSWXUHVWKHHYHUHYROYLQJVSLULWRI
Reliance. All our businesses endeavors to deliver superior value to our
stakeholders and make life better for everyone.

Mukesh D. Ambani
Chairman and Managing Director

I am happy to tell you that we have again delivered rebounded, and services indicators too showed positive
RXWVWDQGLQJSHUIRUPDQFHVRQERWKƬQDQFLDODQGRSHUDWLRQDO trends. Thanks to a series of policy initiatives, India moved
parameters across all our business segments. FY 2017-18 into the world’s Top 100 countries in terms of ease of doing
turned out to be a watershed year in the history of Reliance. business. The country also retained its position as a favoured
2XUQHZDJHFRQVXPHUEXVLQHVVHVDFKLHYHGOHDGHUVKLS destination for foreign capital, with gross foreign direct
positions nationally – their growth rates outpacing the best LQYHVWPHQWLQƮRZVRIEQLQ
in the world. Jio, now the world’s largest and fastest growing
Reliance improved on its last year’s record performance
mobile data network, stunned the world and made us proud
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Reliance Retail is the only Indian retailer to rank among
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& Marketing, Petrochemicals, Retail and Digital Services –
materials businesses successfully completed one of the
achieving record earnings performance.
world’s largest, most complex, and most innovative projects,
achieving a level of integration that is unprecedented The year saw our consumer businesses attain a threshold,
globally. wherefrom they will start contributing meaningfully to
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Yes, we have made a spectacular start to our Golden Decade.
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In a world full of volatility, uncertainty, complexity and
EBITDA in FY 2017-18. This was achieved notwithstanding a
ambiguity, these achievements are indeed commendable.
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I thank and congratulate everyone at Reliance for this feat. 2XUDLPLVWRKDYHWKHFRQVXPHUEXVLQHVVHVFRQWULEXWHRQ
par with the energy and materials business over the next
The global economy is now growing at its fastest pace since
decade, when we celebrate our Golden Jubilee.
2010, with the upturn becoming increasingly synchronised
across countries. The world economy is expected to 7KHUHƬQLQJDQGSHWURFKHPLFDOEXVLQHVVHVSRVWHGUHFRUG
strengthen further in 2018 and 2019, with economic OHYHORISURƬWDELOLW\RZLQJWRH[SDQGHGFDSDFLWLHVKLJK
growth projected to rise to about 4%, from 3.7% in 2017. operating rates, and improved cost competitiveness. The
Stronger investment, the rebound in global trade and higher UHƬQLQJEXVLQHVVLPSURYHGXSRQWKHSUHFHGLQJ\HDUpV
employment are helping make the recovery increasingly VWURQJ*URVV5HƬQLQJ0DUJLQV *50V 7KHSHWURFKHPLFDOV
broad-based. This long-awaited lift, supported by policy VHJPHQWSRVWHGDVLJQLƬFDQWMXPSLQSURƬWVGXHWRKLJKHU
stimulus, is being accompanied by solid employment volumes from expanded capacities and better margins.
gains, a moderate upturn in investment and a pick-up in
trade growth. The continued rise in global trade was led by 5HƬQLQJ 0DUNHWLQJ
pickup in import demand in developed markets. Growing Globally, oil demand grew at the rate of 1.6 mb/d in CY 2017,
protectionism impacting trading relations and geo-political with Asia alone accounting for close to two-thirds of the total
tensions in parts of Asia are a key area of concern. JURZWK2LOGHPDQGLQ,QGLDJUHZLQ)<VLPLODU
to the 5.4% growth of FY 2016-17. The transportation sector
India’s economy maintained its strong growth in FY 2017-
drove the overall demand in India, with gasoline demand
18 – the Gross Domestic Product growth was 6.7%, with
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a strong 7.7% increase in the last quarter of the year. With
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household penetration.
and gradually stabilising by the second half of the year, the
economy witnessed upsurge in investments, consumption, With economic activity picking up across the world, the
as well as government spending. Industrial activity global oil demand outlook for 2018 continues to remain
Integrated Annual Report 2017–18 Letter to Shareholders 7

strong. IEA has forecast that in 2018, the world will consume through the year. The segment’s EBIT increased sharply
an additional 1.4 mb/d of crude oil. The growing global E\WRLWVKLJKHVWHYHUŢFURUH ELOOLRQ 
GHPDQGDQGUHGXFLQJLQYHQWRULHVDXJXUZHOOIRUWKHUHƬQLQJ Production increased 23.7% to 30.8 MMT. The EBIT margins
industry over the next 12-18 months. increased sharply to a record level of 16.9% from 14.0%
of last year, owing to favourable product deltas across the
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integrated polyester chain, PP and PVC.
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KLJKRIEEOFOLPELQJIURPODVW\HDUpVEEO MEG units were successfully stabilised in the last quarter
of FY 2017-18. With the improved availability of products,
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market – one of the fastest growing polymer markets in the
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world.
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In the polyester value chain, demand outpaced capacity
We have maintained the highest safety standards and
additions in FY 2017-18 and enabled integrated players like
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Reliance post healthy operating rates and improved margins
minimise operating and maintenance costs. We have ensured
despite the rising costs. China’s ban on imports of recycled
adoption of latest developments in technology to improve
polyester supported the demand growth of virgin polyester.
asset reliability and avoid unplanned outages, thereby
enabling high on-stream factor. 2XU3HWURFKHPLFDOVEXVLQHVVKDVSURJUHVVHGIXUWKHURQ
the expression of ‘Chemistry for Smiles’. We have created
Reliance has constructed the world’s largest petcoke
R|Elan™, a portfolio of specialty fabrics, a perfect blend of
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projects that has integrated as many as 83 process units with
on recycled PET bottles.
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operate in extreme conditions, with temperatures ranging Making life better for everyone.
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vacuum to 120 standard atmosphere. This project will bring
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to declining volumes and soft prices that improved towards
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currently undergoing trial operations to ensure steady LQGHYHORSPHQWDFWLYLW\2XUGRPHVWLFSURGXFWLRQZDVGRZQ
and reliable syngas supply to the Jamnagar complex. The 16.9% at 78.9 Bcfe, whereas the US Shale volume fell 19.7%
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re-commission its network of retail fuel stations. It now has
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1,313 operational outlets. Improving quality of the customer
the largest non-conventional gas producers in India with the
base, a swift transition to dynamic pricing, and continuing
ramp up of CBM production that crossed 1 MMSCMD. To
focus on quality have allowed Petro Retail to bolster its
sustain production, the second phase of development has
performance.
also commenced.
Making life better for everyone.
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FY 2017-18 saw stabilisation of the ethane import project and ZDWHUJDVƬHOGVLQWKH.*'%ORFN'HYHORSPHQWZRUNIRU
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integration to an unprecedented level globally. The deepwater and High Pressure, High Temperature areas – a
commissioning of the Jamnagar projects, one of the world’s ƬUVWLQ,QGLD
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and lower cost than comparable projects worldwide, further
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However, the business conditions remained challenging and
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capacities as various projects commenced operations expenditure.
Corporate Overview 1-40 Management Review Governance Financial Statements Notice

8 Reliance Industries Limited • Making Life Better. For Everyone.

Digital Services Reliance Retail


Jio’s next generation all-IP data network with the latest 5HOLDQFH5HWDLOKDVEHFRPHWKHƬUVWUHWDLOHULQ,QGLDWRFURVV
*/7(WHFKQRORJ\FUHDWHGKLVWRU\WUDQVIRUPLQJQRW WKHELOOLRQUHYHQXHPLOHVWRQHDQGHQWHUWKHZRUOGpV7RS
just the Indian telecom industry but the whole country. 200 Retail chains. We have the best reach, the best formats,
Within months of Jio’s launch, India shot up to World No.1 and the best customer acceptance in India. Reliance Retail is
in mobile data consumption. Jio has become the world’s ,QGLDpVODUJHVWUHWDLOHUE\UHYHQXHDQGSURƬWDELOLW\GHOLYHULQJ
largest and fastest growing mobile data network, boasting superior value to its customers, suppliers and other
an unprecedented level of consumer engagement. More stakeholders.
subscribers were added to Jio’s network in the last year than
Making life better for everyone.
all other operators combined. Equally important, Jio turned
SURƬWDEOHLQWKHYHU\ƬUVW\HDURIRSHUDWLRQV-LRHDUQHGDQHW 2YHUWKHSDVWƬYH\HDUVWKHEXVLQHVVKDVJURZQDWDPDVVLYH
SURƬWRIŢFURUHRQWXUQRYHURIŢFURUHLQLWVƬUVW 45% annually – doubling every two years. Reliance Retail
year of commercial operations. ranks among the world’s Top 5 fastest-growing retailers.
Jio continued with its strong subscriber growth, with /DVW\HDUDORQH5HOLDQFH5HWDLORSHUDWLRQDOLVHG-LR
186.6 million customers at the end of March 2018, and the Points across 3,700 cities to enhance its distribution reach
lowest churn in the industry at 0.25% per month. Each Jio for consumer durables and connectivity solutions – an
subscriber on an average consumes 9.7 GB data, 716 minutes unprecedented feat in India.
of voice calls, and 13.8 hours of video per month.
Reliance Retail, which operates in four key consumption
-LRpVHQGWRHQGDOO,3QHWZRUNLVWKHPRVWGLƪHUHQWLDWHG baskets, viz. Grocery, Consumer Electronics & Connectivity,
network with functionalities such as SDN and NFV, and has )DVKLRQ /LIHVW\OHDQG)XHO5HWDLOLVH[SDQGLQJLQHYHU\
been consistently rated as the fastest network in India by market, every format and every vertical. Today, we are
TRAI’s MySpeed application over the last 15 months. Jio’s present in more than 4,400 cities, covering 17.7 million sq. ft
average download speed of 17.9 Mbps is more than twice the of retail space.
network speed available on any other network. Jio has also
EHHQFRQVLVWHQWO\UDWHGWRKDYHWKHZLGHVW/7(FRYHUDJH Strong Cash Flows and Balance Sheet
in the country. During FY 2017-18, it continued expanding 5HOLDQFHEHFDPH,QGLDpVƬUVWFRPSDQ\WRFURVVELOOLRQ
the 4G network coverage, and further deepening in existing in EBITDA in FY 2017-18. As the Company executed India’s
areas to achieve a 99% population coverage. largest-ever capital expenditure programme over the past
ƬYH\HDUVWKHFDVKSURƬWIRUWKH\HDUZDVXSRYHUWR
Jio is constantly striving to enrich the digital experience of
ŢFURUHVHWWLQJVWDJHIRUWKHQH[WJURZWKSKDVHRI
its customers through innovative applications developed in-
company’s earnings cycle.
house, or in collaboration with the unique ecosystem of small
and large partners. The Company’s debt-equity ratio remained at a conservative
OHYHO:HKDYHUHWDLQHGRXUGRPHVWLFFUHGLWUDWLQJVRIo&5,6,/
Making life better for everyone.
$$$pIURP&5,6,/DQGo,1'$$$pIURP,QGLD5DWLQJ)RURXU
-LRRƪHUVLWVVXEVFULEHUVXQLTXHFRQWHQWVXFKDV3\RQJ\DQJ international debt, we have an investment grade ‘Baa2’
2O\PSLF:LQWHU*DPHV-LR&ULFNHW3OD\$ORQJHWF rating from Moody’s, and ‘BBB+’ from S&P. We maintained
The MyJio app is the most popular self-care app with over the ratings even as Reliance went through a large investment
150 million downloads and substantial additional features. F\FOHRYHUWKHSDVWƬYH\HDUV
-LRKDVIRUJHGSDUWQHUVKLSVZLWKWKHOLNHVRI%DODML7HOHƬOPV
Reliance is globally acknowledged for its unique and
Eros International and Saavn to bring unique content with an
innovative approach in fund-raising. It maintains strong
intuitive user interface to every Indian.
relationships with a large number of international banks,
The Company continues to make progress on delivering ƬQDQFLDOLQVWLWXWLRQVDQGH[SRUWFUHGLWDJHQFLHV7KLVDORQJ
HQWHUSULVHVROXWLRQV)77+DQG,27ZLWKEHWDWULDOVLQLWLDWHG ZLWKRXUHƯFLHQWFDVKƮRZPDQDJHPHQWDQGƬVFDOGLVFLSOLQH
LQDIHZORFDWLRQV7KHVHVHUYLFHVDUHEHLQJRƪHUHGXVLQJWKH have helped us raise funds at competitive rates and optimise
existing integrated network and platforms. borrowing costs.
During the year, Jio was awarded the 1st rank in India
*RYHUQDQFH 6DIHW\
and 17th globally in the Fast Company’s World’s 50 Most
5,/GLƪHUHQWLDWHVLWVHOIDVDQHPSOR\HURIFKRLFH$Q
,QQRYDWLYH&RPSDQLHVOLVWIRU-LRDOVRZRQWKHq%HVW
integrated wellness programme for employees has been
0RELOH2SHUDWRU6HUYLFHIRU&RQVXPHUVrDZDUGDWWKH
implemented in the Company through medical services and
UHFHQW0RELOH:RUOG&RQJUHVV,WZDVDZDUGHGq7KH
related initiatives. We are committed to providing a healthy
'LVUXSWRUVrWLWOHLQWKH&1%&79pV,QGLD%XVLQHVV/HDGHU
and safe work environment to employees, contractors, and
$ZDUGV-LR79ZRQWKHq%HVW0RELOH9LGHR&RQWHQWr
all visitors.
award at the Global Mobile Awards 2018.
Integrated Annual Report 2017–18 Letter to Shareholders 9

We started the Change Agents for Safety Health and Investment in Emerging Technologies
Environment (CASHe) programme more than a decade Reliance believes that new technologies and data power will
ago. Ever since, the CASHe programme has evolved into a help unleash the potential of India’s human capital.
movement encompassing the entire enterprise comprising
Making life better for everyone.
thousands of improvement projects.
5,/LVSLORWLQJWKHXVHRI9LUWXDO5HDOLW\ 95 WRLQFUHDVH
2XUDPELWLRQLVq5HOLDQFHVKDOOVWULYHWREHDOHDGHULQWKH
safety and reliability through a virtual walkthrough plant
ƬHOGRIPDQDJHPHQWRI+HDOWK6DIHW\DQG(QYLURQPHQWr
environment for interactive training, testing and process
The Jamnagar expansion project has achieved better
simulation for all crucial personnel.
than international benchmarks in quality, safety, cost
DQGVFKHGXOH)XUWKHUQHZUHFRUGVIRUƮDZOHVVVWDUWXSV 5,/LVLPSOHPHQWLQJDZRUOGFODVVDQDO\WLFVSODWIRUPDQGD
DQGFRPPLVVLRQLQJKDYHEHHQHVWDEOLVKHG5,/LVJOREDOO\ data lake using the best-in-breed technologies for its Big
FHUWLƬHGDVDo+HDOWK\:RUNSODFHpIRUWKHSHULRG Data initiatives. Multiple advanced-stage pilots are being
by the Global Centre for Healthy Workplaces, Tucson, USA. undertaken to establish extensive use of machine learning
DQGDUWLƬFLDOLQWHOOLJHQFHZLWKDYLHZRIORQJWHUPDGRSWLRQ
Making life better for everyone.
and institutionalisation.
Sustainable Growth and Societal Responsibility
The Reliance DNA ensures businesses solve problems and Conclusion
also create societal value for all Indians. In the 40 years of our 2YHUWKHODVWIRXUGHFDGHV5HOLDQFHKDVFRQWLQXHGWRJURZ
journey since listing, we have strived to conduct businesses and evolve, creating value by building competitive global-
in a manner that is sustainable and inclusive. When we scale businesses and delivering increasing shareholder value.
started with textiles, we provided the best-in-quality fabrics 2YHUWKHSDVW\HDUVZHPDGHVLJQLƬFDQWLQYHVWPHQWVLQ
WRHYHU\,QGLDQ2XUSHWURFKHPLFDOSURGXFWVKDYHDUROHWR new plants, thus creating organic growth platforms for our
play in almost every aspect of modern life. When we entered HQHUJ\DQGPDWHULDOVEXVLQHVVHV2XUQHZDJHEXVLQHVVHV
WKHUHƬQLQJEXVLQHVVZHSURYLGHGKLJKVSHFIXHOVIRU,QGLDQ have shown strong resilience and sustainable growth
and global markets. When we entered telecom, we strived potential for 1.3 billion Indians, as well as for Reliance, and will
to provide mobile phones in the hand of every Indian at an surely script a glorious chapter in our Golden Decade.
DƪRUGDEOHUDWH7KURXJK5HOLDQFH5HWDLOZHKDYHPDGHWKH
I would like to thank all my colleagues for their dedication,
best-in-class global brands available to every section of our
innovation and hard work. By creating new benchmarks in
society. And now, with Jio, with the backdrop of inclusivity,
the businesses we operate in, our team is delivering on our
we have made available high-speed data to every Indian at
mission to generate sustainable value for our stakeholders
WKHPRVWDƪRUGDEOHUDWHVZLWK]HURFDOOFKDUJHIRUHYHU
DQG,QGLD7KHVHHƪRUWVDOVRKHOSXVWRGHOLYHULQFOXVLYH
Making life better for everyone. growth and make life better for everyone.
2XURSHUDWLRQDOIUDPHZRUNKDVEHHQWRLQWHJUDWHWKHVL[ I would like to place on record my sincere appreciation to the
capitals – Natural, Human, Manufactured, Intellectual, Board of Directors for their guidance. I would like to express
Financial, and Social & Relationship – throughout the my gratitude to all our stakeholders for their continuing faith
organisation and create value for our stakeholders. in Reliance.
An integral part of Reliance’s philosophy is its commitment
to empower and enhance the quality of lives of millions of With best wishes,
people. Sustainability at Reliance embraces environmental Sincerely,
and social responsibility while creating value for its
VWDNHKROGHUV2QWKHRSHUDWLRQVVLGHZHDUHZRUNLQJWR
maximise use of clean energy and minimise the carbon
footprint in collaboration with the best available technology
licensors. Reliance Foundation is deeply involved in the
Mukesh D. Ambani
areas of rural transformation, health, education, sports for
Chairman and Managing Director
development, disaster response, urban renewal, and arts,
May 21, 2018
culture and heritage. The initiatives of Reliance Foundation
have positively impacted 20 million lives across the nation
and we work incessantly to include all stakeholders in our
growth story.
Making life better for everyone.
Corporate Overview 1-40 Management Review Governance Financial Statements Notice

10 Reliance Industries Limited • Making Life Better. For Everyone.

Board of Directors

Shri Mukesh D. Ambani Smt. Nita M. Ambani


Shri Mansingh L. Bhakta
Chairman and Non-Executive,
/HDG,QGHSHQGHQW'LUHFWRU
Managing Director Non-Independent Director

Chairman: Finance Committee

Shri Yogendra P. Trivedi Prof. Dipak C. Jain Prof. Ashok Misra Dr. Raghunath A. Mashelkar
Independent Director Independent Director Independent Director Independent Director

Chairman: Audit Committee,


Member: Stakeholders’ Member: Audit Committee,
Stakeholders’ Relationship
Relationship Committee Human Resources, Nomination
Committee, Corporate Social
and Health, Safety and and Remuneration Committee,
Responsibility and Governance
Environment Committee Corporate Social Responsibility
Committee
and Governance Committee and
Member: Human Resources,
Health, Safety and Environment
Nomination and Remuneration
Committee
Committee
Integrated Annual Report 2017–18 Board of Directors 11

Shri Adil Zainulbhai Shri Raminder Singh Gujral Shri Shumeet Banerji
Independent Director Independent Director Independent Director

Member: Corporate
Chairman: Human Member: Audit
Social Responsibility
Resources, Nomination and Committee and Human
and Governance
Remuneration Committee Resources, Nomination
Committee and Human
and Risk Management and Remuneration
Resources,Nomination and
Committee Committee
Remuneration Committee
Member: Audit Committee

Shri Nikhil R. Meswani Shri Hital R. Meswani Shri P. M. S. Prasad Shri Pawan Kumar Kapil
Executive Director Executive Director Executive Director Executive Director

Chairman: Health, Safety and Member: Health, Safety and Member: Health, Safety and
Member: Stakeholders’
Environment Committee Environment Committee and Environment Committee
Relationship Committee,
Member: Stakeholders’ Risk Management Committee
Corporate Social
Relationship Committee,
Responsibility and
Finance Committee and Risk
Governance Committee and
Management Committee
Finance Committee

5HDGWKHGHWDLOHGSURƬOHVRIRXU%RDUGRI'LUHFWRUVDW
www.ril.com/OurCompany/Leadership/BoardOfDirectors.aspx
Corporate Overview 1-40 Management Review Governance Financial Statements Notice

12 Reliance Industries Limited • Making Life Better. For Everyone.

Making Life Better.


DIGITAL SERVICES
0DNLQJDGLƪHUHQFHIRUIDUPHUV
PVC pipes for irrigation – Better durability
 million
JIO SUBSCRIBERS
Mulch Films – Enhancing productivity for cotton cultivation
CBM water for irrigation – Recycling of water to be used for irrigation

86

Adding value through consumer products


0(',$ (17(57$,10(17 5_(ODQt1H[WJHQHUDWLRQƬEUH
Recron Fibre Fill – Mattresses, pillows and blankets
700 million
VIEWERSHIP REACH
Relpol – Container for food and beverages
5HOƮH[t(ODVWRPHUVIRUDXWRPRELOHV
2)1(7:25.6
679
CHANNELS

96

Unmatched price-value proposition


Reliance Jio – Ecosystem of devices, applications and networks
Reliance Fresh – Neighbourhood grocery store
RETAIL
Reliance Smart – Supermarket - One stop solution for all daily needs

350 million
FOOTFALLS ACROSS
Reliance Footprint – Wide range of footwear, handbags and accessories
5HOLDQFH7UHQGVt'LYHUVLƬHGSRUWIROLRRIDSSDUHODQGDFFHVVRULHV
RETAIL STORES Reliance Digital – Consumer Electronics and Home Appliances
DURING
THE YEAR

132
Integrated Annual Report 2017–18 Board of Directors 13

For Everyone.
Connecting people and businesses 5(),1,1* 0$5.(7,1*
Reliance Gas, Reliance Aviation – Transportation fuels
Voice and Video connectivity via Jio digital services platform 1.5%
OF GLOBAL
Recron® 3S – Materials for road infrastructure
TRANSPORTATION
News18, Colors, JioTV, Jio Cinema, JioMusic – News and FUEL
Entertainment
Trans-connect – Fleet management solutions
132

'HOLJKWLQJIDPLOLHV
Project Eve / Trends Woman – Fashion for new age women
Aavaran – Technology enabled safety pendant
PETROCHEMICALS
Nickelodeon, Hamleys – Fun and learning for kids
40+ international brands – Bringing the best of international
fashion to India
2 billion
3267Ǣ&21680(53(7
BOTTLES RECYCLED
ANNUALLY

56

3DUWQHULQJIRU,QGLDpVGHYHORSPHQW
Education and Sports for All
World-class medical facilities and schools
Topper Learning, Embibe for digital learning RELIANCE
FOUNDATION
Employment generation across sectors
Sustainable, environment friendly growth
20 million
LIVES TRANSFORMED
SINCE INCEPTION

164
Corporate Overview 1-40 Management Review Governance Financial Statements Notice

14 Reliance Industries Limited • Making Life Better. For Everyone.

Business Model: Integrated Reporting +


RIL Growth For All

Inputs Process

NATURAL CAPITAL
48 56 66
So
ourccing
g respoonssibly
y an
nd usin
ng na
atu
ural
UH
HVRX
XUFHHV HƯFFLHQQWO\
\
y 2 crore + of saplings planted

5HƬQLQJDQG0DUNHWLQJ Petrochemicals Oil and Gas Exploration


and Production
HUMAN CAPITAL

Devvelo
opiingg pe
eoplle an nd th
heirr kno owleedge e wiith
neccessarr y skillling
g and
d re--skiilling
g prrogrramm mess External Strategy
y 1,87,729 employees on payroll
Environment Pg 16-17 & 107
y 57 lakh+ man-hours of training imparted
Pg 42-43
y Employees from 15+ nationalities

INTELLECTUAL CAPITAL
Business Model
6WUUHQJWKH
HQLQJDQG IXWXUUHSURRƬƬQJWKHH&RPSD DQ\ZLWKK
the
e team’ss busine
ess expeerience and ressearch in
nsightss
y `1,824 crore spent on R&D
Inputs
y 1,20,000 sq ft. area for R&D headquarters Business Deliverables Outcomes
y 900+ scientists and engineers 'LƪHUHQWLDWRUV

MANUFACTURED CAPITAL

Wo orld
d-cclasss manuffacturiing fa
aciilitie
es and
d sup
pply Digital
chaain inffrastruucturre to meet cusstom mer annd Platforms Performance
bussinesss deema andss
Pg 159 Pg 46-103
y :RUOG
VODUJHVWUHƬQHU\DQGSHWURFKHPLFDOVLWHDW
a single location
y 17.7 million sq ft. coverage area (retail)
Enterprise Risk
FINANCIAL CAPITAL
Management
Pg 152-158
Genera
ating retturns fo
or stakehholderss throug
gh
HƪHFWLY
YHPRELOLVDWLRQQ DQGXWLLOLVDWLRQ
QRI
ƬQDQFLD
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XUFHV
y Capital expenditure `79,253 crore 74 86 96

SOCIAL AND RELATIONSHIP CAPITAL


Retail Digital Media and
Building
g an
nd nu
urturiing relatio
onsships wiith Entertainment
Services
consumerss, sup
pplierrs an
nd commmun nitiess in
which th
he Commpanyy ope erates
y `14,070 crore spent on indigenous suppliers
y `771 crore spent on CSR initiatives
Integrated Annual Report 2017–18 Business Model: Integrated Reporting + 15

Vision
Through sustainable measures, Reliance creates value for the nation, enhances quality of life across the entire
socio-economic spectrum and helps spearhead India as a global leader in all the domains where it operates.

United Nations Reference to Other


Outputs Outcomes SDGs Frameworks *RDOV 7DUJHWV

IPIECA, UNGC, y Clean Energy


y 7.3 crore m3 rainwater y Mitigating global warming WBCSD, GHG, y Management
harvesting capacity y Promoting use of eco-friendly fuels TCFD, NCC of
y 69,364 (000' m3) water recycled y Resource stewardship Protocol, UNGP Environmental
y 3,004.0 (000’ GJ) energy saved DQG302
V Impact
y 6,200+ Ha of greenbelt initiatives y Waste
supported by Management
NITI Aayog y Water
Management
IPIECA, UNGC, y 2SSRUWXQLW\
y Almost 21,000 ideas under Mission y Healthier and safer working & Diversity
NVG, UNGP
Kurukshetra environment y Health
DQG302
V
y /DUJHIXWXUHUHDG\VNLOOHGZRUNIRUFH y Enhanced employee engagement y Safety
initiatives
y Bringing inclusiveness in education
supported by
y Enhanced workforce demographics
NITI Aayog

WBCSD y Asset
y SDWHQWVƬOHG y Driving innovation culture Utilisation
y 68 patents granted y Concerted collaborations
y Breakthrough R&D

302
VLQLWLDWLYHV y Supply Chain
y 30.8 MMT petrochemical production y World-class infrastructure facilities
supported by Management
y 86EEOJURVVUHƬQLQJPDUJLQ y Energy security y Product
NITI Aayog
y 7,573 retail stores operated y Top quartile performance Stewardship
y 1,313 fuel outlets operated y Product stewardship
y 350 million footfall in retail stores y Strong supplier relationships

TCFD
y Revenue of `4,30,731 crore y (QKDQFHG52&(
y PBDIT of `74,184 crore y 6XVWDLQDEOHFDVKƮRZV
y PAT of `36,075 crore
y `5,59,223 crore market capitalisation
y &$*5RIVLQFH,32

IPIECA, UNGC, y Customer


y `86,942 crore contribution to y Building sustainable livelihoods NVG, WBCSD, Satisfaction
national exchequer y Enhanced quality of life of people 81*3652, y Community
y 29 start-ups supported y (ƪHFWLYHVWDNHKROGHUHQJDJHPHQW DQG302
V Development
y 2XWUHDFKRIPLOOLRQSHRSOH y Better customer satisfaction initiatives
y 13,500+ villages and 100+ urban y Digital inclusion supported by
areas impacted
NITI Aayog

Value Creation
5,/
VEXVLQHVVPRGHODQGRXWFRPHVDUHDOLJQHGZLWKWKHLQWHJUDWHGUHSRUWLQJIUDPHZRUNRIWKH
International Integrated Reporting Council (IIRC), the United Nations Sustainability Development View linkages 150
Goals (SDGs) and 12 other established and emerging frameworks.
Corporate Overview 1-40 Management Review Governance Financial Statements Notice

16 Reliance Industries Limited • Making Life Better. For Everyone.

Strategic Framework
STRATEGY
y Consistent Growth
y Delivering Value
y Driving Innovation
y Sustainable Transformation In Society

y /DUJHVWVLQJOHVLWHUHƬQHU\ZLWKUREXVWFRQƬJXUDWLRQ
REFINING AND MARKETING
y
&RQVLVWHQWO\PDLQWDLQLQJKLJKUHƬQHU\XWLOLVDWLRQDQG
GHOLYHULQJVXSHULRUUHƬQLQJPDUJLQV
y
$PRQJORZHVWFRVWSURGXFHUJOREDOO\ZLWKƮH[LEOH
product slate
Engaging with local communities to provide
y
employment and improve living standards

PETROCHEMICALS yPresence in one of the fastest growing markets


y
2QHRIWKHPRVWLQWHJUDWHGSHWURFKHPLFDOVSURGXFHUV
JOREDOO\ZLWKLQGXVWU\OHDGLQJSURƬWDELOLW\
State-of-the-art production facilities with balanced
y
cracker portfolio
Wide product portfolio with leadership position across
y
product categories

yDeveloping deep water resources in KG-D6 block


2,/$1'*$6Ǡ( 3ǡ
Partnership with industry leading players in domestic
y
blocks and US shale
y
2SHUDWLQJRQHRIPRVWFRPSOH[DQGODUJHVWGHHSZDWHU
block KG-D6
Ramping up unconventional CBM production
y

SHAREHOLDER VALUE EMPLOYEE VALUE SOCIETAL VALUE

`5,59,223 crore 15+ nationalities 50 lakh+


Market Capitalisation Represented in the employee base Indirect employment generation

31.4% 57 lakh+ `86,942 crore


Market Capitalisation CAGR, Man hours of training imparted Consolidated contribution to
VLQFH,32 national exchequer
Integrated Annual Report 2017–18 Strategic Framework 17

FIV
VE ENABLERS
S
y Safety y Ethics
y Digital technology
y Capital productivity
y 2SHUDWLRQDOHƯFLHQF\DQGHƪHFWLYHQHVV

India's largest retail infrastructure and supply chain


y
RETAIL
providing solid foundation for growth
Deploying omni-channel model to enhance the
y
customer experience and reach
Tie-ups with international brands to bring the best-in-
y
class products to Indian market
E xpanding the reach to tier 2 and tier 3 cities to touch
y
lives of Indians everyday

World’s largest and fastest growing mobile


y DIGITAL SERVICES
data network
Transformative customer value propositions
y
Fully digitised operations from onboarding
y
WKURXJKIXOƬOOPHQW
y
2QO\XELTXLWRXV*FRYHUDJHLQ,QGLDZLWKKLJKVSHHG
and quality coverage

Network18 aims to create unparalleled reach to enable


y MEDIA AND ENTERTAINMENT
tapping the unexplored segment of population
y No. 1 news network by reach
Building strategic alliances with local and global bests in
y
the media industry
Robust bouquet of channels across various genres -
y
business, entertainment, infotainment and kids

CUSTOMER VALUE

186.6 million 1 in every 2 Indians


Is a consumer of media content; Network18’s
Jio subscribers
TV channels touch lives of 70 crore Indians

Transforming India's telecom


landscape with a compelling customer
7,573
Retail stores across 4,400+ cities
value proposition
Read more about Strategic
Framework on page 106-107
Corporate Overview 1-40 Management Review Governance Financial Statements Notice

18 Reliance Industries Limited • Making Life Better. For Everyone.

Globally the Largest Capex


at a Single Refining and Petrochemical Site
5,/pV-DPQDJDU3KDVH - H[SDQVLRQLVQHDULQJFRPSOHWLRQDWDUHFRUGVHWWLQJSDFH,WLVRQHRIWKHZRUOGpVPRVW
FRPSOH[DQGKLJKO\LQWHJUDWHGSURMHFWV-KDVUHGHƬQHGUHƬQLQJDQGSHWURFKHPLFDOVLQWHJUDWLRQZLWKIXOOERWWRPRI
the barrel conversion. It has established a new benchmark for the industry.

PUTTING J3 AND ITS SCALE IN PERSPECTIVE


Concrete used Steel used Pipes laid
equivalent to equivalent to equivalent to

Burj Khaliffas (Lƪ


ƪHO7
7RZHUV the
e le
engtth off Ind
dia
a
3.5 million m3 4,60,000 MT 6,300 km

14 million 1,200 million ~1,50,000


eng
gin
neerrin
ng man
n hourrs con
nsttru
uctio
on man hourrs pea
ak manpo
ower mobiliise
ed

PX4 Ǡ3$5$;</(1(ǡ PETCOKE GASIFICATION ROGC


Ǡ5(),1(5<2))Ǣ*$6&5$&.(5ǡ
/DUJHVW3DUD[\OHQHSURMHFWJOREDOO\ Most complex project with multiple
-DPQDJDULVWKH3;FDSLWDORIWKHZRUOG process units (83 units) spread :RUOGpVODUJHVWRƪJDVFUDFNHU 
with capability to produce nearly 12,500 over DTA and SEZ; integrated with downstream PE and MEG units
tonnes per day (TPD) of Paraxylene downstream units for use of Syngas
Integrated Annual Report 2017–18 Globally the Largest Capex | People and Innovation 19

People and Innovation


RELIANCE DNA
Faster
execution Game
First to changing
deliver on a initiatives
global scale Focus on in new areas
,QGLD Organic customer
IRFXVVHG growth value

Total number of Reliance employees Exponentially high indirect employment

1,87,729 50 lakh+
EMPLOYEE ENGAGEMENT
Spirit of celebrating together Listening to our employees
2YHUODNKHPSOR\HHVDQG The biennial R-Voice
their family members were part employee engagement survey
of Reliance Family Day, India's has resulted in an improved
biggest corporate celebration score of 84% in 2016

Reliance Family Day Celebration

LEARNING AND DEVELOPMENT AND DIVERSITY AND INCLUSION


AUGMENTING CAPABILITIES ACROSS GENERATION, GENDER
Future ready workforce
/HDUQHW Lynda.com:
Collaborative and device- through social structure
AND JURISDICTION
agnostic platform
Collaboration with People from over
57 lakh+ World-class Universities Over 40%
millennials 15 nationalities
manhour training provided

Recognised as one of the 25 companies in the &HUWLƬHGDVo+HDOWK\:RUNSODFHpIRU


‘LinkedIn Top Companies 2018: Where India by the Global Centre for Healthy Workplaces
Wants to Work Now’ list

INNOVATION PROGRAMMES

43 LEAP lectures since About 30 workshops Almost 21,000 Use of design thinking Programme to build
inception across locations employee ideas and innovation tools innovation capabilities
Corporate Overview 1-40 Management Review Governance Financial Statements Notice

20 Reliance Industries Limited • Making Life Better. For Everyone.

JioGenNext
About the programme Impact
JioGenNext is a bridge for start-ups to explore JioGenNext is enabling India’s start-up
various engagements with Jio / Reliance HFRV\VWHPWRƮRXULVKGXULQJWKH)RXUWK
Key metrics
,QGXVWULHV/LPLWHG 5,/ EXVLQHVVXQLWVYLDSLORWV Industrial Revolution.
commercial partnerships, joint Go-To-Market
Some key trends that will enable the
(GTM), strategic investments or a combination 6 Cohorts till date
Fourth Industrial Revolution include
thereof.
JioGenNext provides a unique model of
75+ Mentors
$UWLƬFLDO,QWHOOLJHQFH $, URERWLFVDQG
services, digital presence, big data,
‘Customer-as-a-Mentor’, which enables start- Engagements smart cities, wearable Internet, IoT and
XSVWRODXQFKWKHLUEXVLQHVVHVLQWKH-LR5,/
30+ ZLWK5,/ the sharing economy, among others.
ecosystem at scale and grow rapidly along with The start-ups selected are expected to
-LR5,/2YHUWKHSDVW\HDUVLWKDVSHUIHFWHG 6,000+ transform these domains.
this model by closely engaging with all the Start-up Applications
UHOHYDQWVWDNHKROGHUVLQWKH5,/-LRHFRV\VWHP
 Start-ups selected Read more 141

Testimonials

Mayank Chauhan Sahil Sachdeva Ayushi Mishra


Co-Founder, Co-Founder, Co-Founder,
/RJLF/DGGHU Jiny DronaMaps

JioGenNext has been a great learning JioGenNext helped us in two very The market we belong to is still nascent and
experience. We have got direct important ways. First, they brought in evolving; therefore, operational strategy
opportunity to pitch our solution to RIL the best mentors to conduct sessions, is key to survival. JioGenNext has been a
leadership and this helped us sharpen our who equipped us with invaluable practical JUHDWKHOSLQWHUPVRIUHƬQLQJRXURSHUDWLQJ
pitch to other large enterprise customers. knowledge on how to create and grow a model and giving us mentorship. In that
JioGenNext also helped us develop Proofs company. Second, JioGenNext introduced sense, our experience was exceptional.
of Concept (PoCs) with RIL immediately. us to various leaders in Jio, who met us
The mentoring that we got from the LQGLYLGXDOO\DQGKHOSHGXVƬQGDXVH
JioGenNext team was invaluable and all case in Jio for our product, and it was a
the coaching that we got until now has tremendous success. We created a quick
helped us to get new insights for our PoC, which successfully got converted into
product improvement. a commercial contract. This wouldn’t have
been possible without JioGenNext.

The sectorial break-up of Majority of the 80 start-ups


the 80 start-ups engaged
34 Enterprise Solutions are mapped against the
35 Digital Presence
so far is as follows: 16 5HWDLODQG/RJLVWLFV deep shifts of the Fourth Big Data
Sectors Industrial Revolution, a
term coined by the World
Internet of Things
30 Digital Consumer Economic Forum. 9 $UWLƬFLDO,QWHOOLJHQFH
Services
Integrated Annual Report 2017–18 JioGenNext | Sports and Reliance 21

Sports and Reliance


5HOLDQFHKDVEHHQDQDUGHQWSURPRWHURIVSRUWVDQGFRQWLQXHVWRQXUWXUHWDOHQWLQWKLVVSDFH2YHUWKH\HDUV5HOLDQFHKDV
promoted and brought to success several initiatives across the sporting landscape.

,1',$1683(5/($*8(Ǡ,6/ǡ

Promoted by IMG-Reliance and Star India, Indian Super


/HDJXH ,6/ LV,QGLD
VSUHPLHUIRRWEDOOFKDPSLRQVKLSWKDWKDV
received worldwide recognition.

PLOOLRQSHRSOHZDWFKHG,6/RQ79DQGPLOOLRQ
VSHFWDWRUVDWWHQGHGPDWFKHVDFURVVGLƪHUHQWVWDGLD

,3/7($0Ǣ080%$,,1',$16

Reliance owns and operates the ‘Mumbai Indians’ (MI)


IUDQFKLVHRIWKH,QGLDQ3UHPLHU/HDJXH ,3/ RUJDQLVHGE\WKH
Board of Control for Cricket in India (BCCI).
0,LVDPRQJWKHPRVWVXFFHVVIXOIUDQFKLVHHVLQWKH,3/
winning the championship in 2013, 2015 and 2017.

TENNIS
IMG Reliance owns and operates India’s premium sporting event and South Asia’s only
ATP World Tour 250 Event since 1996. The longest running ATP World Tour Event in
South Asia celebrated its 20 th anniversary in 2015 and moved to its new home in Pune
to continue its legacy by hosting the 23rdHGLWLRQo7DWD2SHQ0DKDUDVKWUDp

SPORTS FACILITIES AT
RELIANCE
To foster team spirit and build healthy
camaraderie among its employees,
Reliance has sports and recreation
facilities at all its sites and its corporate
RƯFH7KHVWDWHRIWKHDUWVSRUWV
facilities include cricket stadiums, tennis
and basketball courts and football turfs
Full-size Cricket stadium located at Reliance Corporate Park, Navi Mumbai
along with other indoor sport spaces.

(QVXULQJGULQNLQJZDWHUVXSSO\GXULQJ$VVDPƮRRGV
Corporate Overview 1-40 Management Review Governance Financial Statements Notice

22 Reliance Industries Limited • Making Life Better. For Everyone.

Reliance Foundation
5HOLDQFH)RXQGDWLRQZDVLQVWLWXWHGZLWKDYLVLRQWREXLOGDQLQFOXVLYH,QGLD0RVW&65DFWLYLWLHVRI5,/DUH
FDUULHGRXWXQGHUWKHXPEUHOODRI5HOLDQFH)RXQGDWLRQ/HGE\6PW1LWD0$PEDQL5HOLDQFH)RXQGDWLRQ
has a comprehensive approach towards the nation's development. The Foundation addresses some of
India’s most pressing development challenges, with the aim of building better lives and improving the
livelihood of the people for a stronger and inclusive India.

FOCUSSING ON CREATING CHANGE IN THE FOLLOWING AREAS:

RURAL TRANSFORMATION

y 1.2 million+ livelihoods enhanced


y 7,000 Ha of land brought under sustainable
agricultural practices
y Water harvesting and conservation
y More than 13,000 villages across 12 states
DUHQRZFRYHUHGWKURXJK5)/LYHOLKRRG
Information Services

Village community meeting 4.8 milliion*


ru
uraal liv
veliiho
ood
ds enhanced
d

HEALTH

y 0.44 million health consultations provided


y 1,207 visually impaired individuals
supported with eye care services

4 milllion*
*
he
ealth
h con
nsultatio
ons giiven

Health outreach programme

EDUCATION

y  VWXGHQWVEHQHƬWWHGWKURXJK
14 Reliance Foundation schools
y 713 talented students were awarded
scholarships

13,,64
44*
sccholaarshiips provided
Education for the next generation
Integrated Annual Report 2017–18 Reliance Foundation 23

DISASTER RESPONSE

y  LQGLYLGXDOVSURYLGHGUHOLHILQWKHƮRRG
DƪHFWHGDUHDVRI$VVDP
y 4 villages adopted for rehabilitation beyond
WKHUHOLHIHƪRUWVLQWKHƮRRGDƪHFWHGDUHDV
of Gujarat
y  ƬVKHUPHQVDYHGE\WKHHDUO\ZDUQLQJ
DGYLVRULHVGXULQJ2FNKLF\FORQHLQ6RXWKHUQ,QGLD
y2YHU/DNKLQGLYLGXDOVVXSSRUWHG
WKURXJKGLVDVWHUUHOLHIHƪRUWVLQ*XMDUDW

1,8
87,00
00+
+ Providing immediate relief and rehabilitation during disasters

in
ndividu
uals sup
pporr ted

SPORTS FOR DEVELOPMENT

y 10,000 + schools are now part of RF Jr. NBA


Programme
y 48 talented young football players were awarded
scholarships under the RF Young Champs
programme
y 4.7 million youth impacted by the RF Youth Sports
programme

9 milllion
n*
youth insspired to adopt a he
ealthy lifestyle
e Young Champs programme promoting sports

ARTS, CULTURE AND HERITAGE

y Supported 8 Prahar, an event dedicated to


Indian classical music
y Supported Abbaji, the annual concert
organised by Ustad Zakir Hussain in the
memory of Ustad Allah Rakha Khan

Promoting Indian art globally

* since inception Read more about RIL's CSR


initiatives on page 164
Corporate Overview 1-40 Management Review Governance Financial Statements Notice

24 Reliance Industries Limited • Making Life Better. For Everyone.

Awards and Recognitions


LEADERSHIP RETAIL
Shri Mukesh D. Ambani won the Reliance Digital was awarded
(7%XVLQHVV/HDGHUDZDUGIRU ‘Consumer Durables Retailer
Corporate Excellence in 2017 of the Year’ at Star Retailer
Awards
Shri Mukesh D. Ambani ranked
among Fortune magazine's 50
*UHDWHVW/HDGHUVRI DIGITAL SERVICE
Reliance Jio ranked 17th in the
Shri Mukesh D. Ambani is the
American business magazine
only Indian business leader to
Fast Company’s 50 Most
be ranked among the World’s
Innovative Companies list
75 Most Powerful People by
in 2018
Forbes magazine
Smt. Nita M. Ambani, Founder Won ‘Global Game-Changer
and Chairperson of Reliance Award’ in the seventh edition
Foundation, felicitated by of the Marico Innovation
Metropolitan Museum of Art Foundation Awards 2018

MEDIA
Reliance Foundation was CNBC-TV18 was awarded the
awarded ‘Rashtriya Khel ENBA Best Business channel
Protsahan Puruskar’ by the award and the show India
Honourable President of India Business Hour won the Best
Business Program award

ENERGY AND WATER CAPITAL HEALTH, SAFETY TECHNOLOGY,


CONSERVATION RESOURCES AND ENVIRONMENT 3$7(1765 '$1'
EFFICIENCY INNOVATION
*OREDOO\FHUWLƬHGDVD
First petrochemical complex Received The Asset ‘Healthy Workplace’ by Received the Drivers of Change
in India to achieve CII Corporate Award – Platinum Global Centre for Healthy award at the FT ArcelorMittal
o*UHHQ&R*ROGpFHUWLƬFDWLRQ Award, 2017 Workplaces, Tucson, USA Boldness in Business Awards

SUSTAINABILITY CORPORATE SOCIAL


Won the best Sustainable
RESPONSIBILITY
Corporate of the year 2018 at
Since its inception, the
the Sustainability 4.0 awards
Reliance Foundation
by Frost and Sullivan and TERI
has achieved several
prestigious awards for
WBCSD's Reporting Matters
positively impacting the
UHFRJQLVHG5,/
V6XVWDLQDELOLW\
lives of millions
Report as a leading example in
the aspect of "Reliability"

Received Commendation for Won the 'Golden


6LJQLƬFDQW$FKLHYHPHQWLQ Peacock 2017 Award'
Corporate Excellence from for CSR
CII in Sustainability
Integrated Annual Report 2017–18 Awards and Recognition | Company Information 25

Company Information
Board of Directors Committees
Chairman and Managing Director Audit Committee Human Resources,
Mukesh D. Ambani Yogendra P. Trivedi (Chairman) Nomination and Remuneration
Dr. Raghunath A. Mashelkar Committee
Independent Directors Executive Directors Adil Zainulbhai Adil Zainulbhai (Chairman)
Mansingh L. Bhakta Nikhil R. Meswani Raminder Singh Gujral Yogendra P. Trivedi
Yogendra P. Trivedi Hital R. Meswani Dr. Raghunath A. Mashelkar
Prof. Ashok Misra P. M. S. Prasad Raminder Singh Gujral
Prof. Dipak C. Jain Pawan Kumar Kapil Dr. Shumeet Banerji
Dr. Raghunath A. Mashelkar
Adil Zainulbhai Stakeholders’ Relationship Corporate Social Responsibility
Raminder Singh Gujral Committee and Governance Committee
Dr. Shumeet Banerji Yogendra P. Trivedi (Chairman) Yogendra P. Trivedi (Chairman)
Non Independent Director Nikhil R. Meswani Nikhil R. Meswani
Hital R. Meswani Dr. Raghunath A. Mashelkar
Nita M. Ambani Prof. Ashok Misra Dr. Shumeet Banerji
&KLHI)LQDQFLDO2ƯFHU Group Company Secretary Risk Management Health, Safety and
Alok Agarwal and Chief Compliance Committee Environment Committee
2ƯFHU
Adil Zainulbhai (Chairman) Hital R. Meswani (Chairman)
-RLQW&KLHI)LQDQFLDO2ƯFHU K. Sethuraman Hital R. Meswani P. M. S. Prasad
Srikanth Venkatachari
P. M. S. Prasad Pawan Kumar Kapil
Auditors Solicitors & Advocates Alok Agarwal Prof. Ashok Misra
D T S & Associates Kanga & Co. Srikanth Venkatachari Dr. Raghunath A. Mashelkar
S R B C & Co. LLP Finance Committee
Mukesh D. Ambani (Chairman)
Nikhil R. Meswani
Hital R. Meswani

Bankers
Allahabad Bank Canara Bank Deutsche Bank Indian Bank Syndicate Bank
Andhra Bank Central Bank of India The Hong Kong and Shanghai Indian Overseas Bank Union Bank of India
Bank of America N.A. Citibank Banking Corporation Limited Oriental Bank of Commerce Vijaya Bank
Bank of Baroda Credit Agricole Corporate HDFC Bank Limited Punjab National Bank
Bank of India and Investment Bank ICICI Bank Limited Standard Chartered Bank
Bank of Maharashtra Corporation Bank IDBI Bank Limited State Bank of India

MAJOR PLANT LOCATIONS


Dahej Manufacturing Division Jamnagar KG D6 Onshore Terminal Patalganga Manufacturing Division
P. O. Dahej, Village Meghpar/Padana, Village Gadimoga, B-1 to B-5 & A3, MIDC Industrial
Taluka: Vagra, Taluka Lalpur, Tallarevu Mandal, Area, P. O. Rasayani, Patalganga
District Bharuch - 392 130, Jamnagar - 361 280, East Godavari District – 533 463, – 410 220, District Raigad,
Gujarat, India Gujarat, India Andhra Pradesh, India Maharashtra, India
Hazira Manufacturing Division Jamnagar SEZ Unit Nagothane Manufacturing Division Vadodara
Village Mora, Village Meghpar/Padana, P. O. Petrochemicals Township, Manufacturing Division
P. O. Bhatha, Surat-Hazira Taluka Lalpur, Nagothane - 402 125, Roha Taluka, P. O. Petrochemicals,
Road, Jamnagar - 361 280, District Raigad, Vadodara - 391 346,
Surat - 394 510, Gujarat, India Maharashtra, India Gujarat, India
Gujarat, India
5HJLVWHUHG2ƯFH Registrars & Transfer Agents
3rd Floor, Maker Chambers IV, 222, Nariman Point, Karvy Computershare Private Limited, Karvy Selenium Tower B, Plot 31-32,
Mumbai 400 021, India Gachibowli, Financial District, Nanakramguda, Hyderabad 500 032, India
Tel: +91 22 3555 5000 | Fax: +91-22-2204 2268 /+91-22-2285 2214 Tel: +91 40 6716 1700 | Toll Free No.: 1800 425 8998 | Fax: +91 40 6716 1680
e-mail: investor.relations@ril.com | Website: www.ril.com e-mail: rilinvestor@karvy.com Website : www.karvy.com
41st Annual General Meeting (Post-IPO) on Thursday, July 5, 2018 at 11:00 a.m. at Birla Matushri Sabhagar, 19, Sir Vithaldas Thackersey Marg,
Near Bombay Hospital & Medical Research Centre, New Marine Lines, Mumbai 400 020
Corporate Overview 1-40 Management Review Governance Financial Statements Notice

26 Reliance Industries Limited • Making Life Better. For Everyone.

Product Flow Chart


Natural Gas Crude Oil

Light Ends Middle Distillate Solids/ Fuels


Offgas LPG Propane Naphtha Refinery C4’s Gasoline Jet/Kero Diesel Fuel Oil / CBFS Pet Coke Sulphur

A
Ethane B
Ethane/
Propane

Ethylene (C2) Propylene (C3) C4's C6+


EDC EO LDPE HDPE/LLDPE PP MTBE Butene-1 Butadiene Benzene Toluene Xylenes

VCM
LAB Orthoxylene Paraxylene
TEG DEG Styrene SBR PBR
PVC Normal Paraffin Kerosene
Salt Acetic Acid
MEG PTA
Chlorine Caustic

PET
Polyester Chips

PET Bottles (Recycled)


Filament Staple
FDY POY PTY PFF PSF

Texturised /Twisted Dyed Yarn Spun Yarn Wool Viscose Silk Linen

Fabrics

Apparel

Purchased Raw Materials Partly Purchased Raw Materials Existing Products New Products

Advanced Materials & Composites (Acquired during the Year)

PE PP SBR PBR PVC PET Glass Fibre Carbon Fibre

Thermoset Resin
Graphene/ other 2D additives Carbon & Glass Textiles Formulations

Advanced Materials Composites

Example: RelWOOD, High Gloss PP, Enhanced Elastomers Example: Windmill blades, Metro & Railway facades & interiors
Integrated Annual Report 2017–18 Product Flow Chart 27

Jamnagar Expansion Projects

A Petcoke Gasification B Butyl Rubber

Pet Coke Refinery C4’s

Syngas Sulphur HPIB Butene-1

Hydrogen SNG Butyl rubber


Halogen

Halobutyl rubber

Purchased Raw Materials Partly Purchased Raw Materials Existing Products New Products

CBFS Carbon black feedstock LPG /LTXLƬHG3HWUROHXP*DV PSF Polyester Staple Fibre

DEG Di-Ethylene Glycol MEG Mono-Ethylene Glycol PTA 3XULƬHG7HUHSKWKDOLF$FLG

EDC Ethylene Di-Chloride MTBE Methyl Tertiary Butyl Ether PTY Polyester Textured Yarn

EO Ethylene Oxide PBR Poly Butadiene Rubber PVC PolyVinyl Chloride

FDY Fully Drawn Yarn PET Polyethylene Terephthalate SBR Styrene Butadiene Rubber

HDPE High Density Polyethylene PE Polyethylene SNG Synthetic Natural Gas

LAB Linear Alkyl Benzene PFF Polyester Fibre Fill TEG Tri-Ethylene Glycol

LDPE Low Density Polyethylene POY Partially Oriented Yarn VCM Vinyl Chloride monomer

LLDPE Linear Low-density Polyethylene PP Polypropylene HPIB High Purity Isobutylene


Corporate Overview 1-40 Management Review Governance Financial Statements Notice

28 Reliance Industries Limited • Making Life Better. For Everyone.

Major Products and Brands


5HƬQLQJDQG0DUNHWLQJ
Logo Business / Brand Product / Service End Uses
5HƬQLQJ
Propylene Feedstock for polypropylene
LPG Domestic, commercial and industrial fuel
Naphtha Feedstock for petrochemicals such as ethylene, propylene
& fertilisers etc. and as fuel in power plants

Gasoline Transport fuel


Alkylate High Octane blend stock for gasoline
Superior Kerosene Oil Domestic fuel
High Speed Diesel Transport fuel
Sulphur Feedstock for fertilisers and pharmaceuticals
Petroleum Coke )XHOIRUSRZHUSODQWVFHPHQWSODQWVDQGIHHGIRUJDVLƬFDWLRQ

Petroleum Retail
Reliance Gas /LTXHƬHG3HWUROHXP*DV /3* Domestic, commercial and industrial fuel

Reliance Petroleum Transportation fuels Retail distribution of fuels


Retail

Reliance Jet / Aviation Turbine Fuel Aviation fuel


Aviation

Auto LPG Auto LPG Auto fuel outlet

Trans Connect Fleet Management Services Fleet Management Solutions

A1 Plaza Highway Hospitality Services Highway food plaza

Qwik Mart Convenience shopping Shopping of beverages, snacks, gifts on highways

Refresh Foods Passengers amenities/food court on highways

Relstar Lubricants Lubricants

3HWURFKHPLFDOV
Logo Business / Brand Product / Service End Uses
Polymers
Repol 3RO\SURS\OHQH 33 :RYHQVDFNVOHQREDJV74 %233ƬOPVƬOPVDQG
containers, components for automobile and consumer
durables, moulded furniture
Integrated Annual Report 2017–18 Major Products and Brands 29

3HWURFKHPLFDOV
Logo Business / Brand Product / Service End Uses
Polymers
Relene 3RO\HWK\OHQH +'3( Woven sacks, raschel bags, containers, industrial crates &
//'3( /'3( containers, carrier bags, housewares, ropes & twines, pipes

Reon 3RO\YLQ\O&KORULGH 39& 3LSHV ƬWWLQJVGRRU ZLQGRZSURƬOHVLQVXODWLRQ 


VKHDWKLQJIRUZLUH FDEOHVIRRWZHDUƮRRULQJSDUWLWLRQV
URRƬQJ

Relpipe 3RO\2OHƬQ+'3(DQG Irrigation, water supply projects, sewerage and drainage,


PPR pipes PLQHVFRDOƬHOGVLQGXVWULDOZDWHUƮXLGVHưXHQWV
transportation, gas distribution network, telecom cable
ducts and micro ducts for FTTx, plumbing & construction

5HOƮH[w Synthetic Rubbers Tyres, Footwear soles & heels, belts & hoses
(ODVWRPHUV

5HOƮH[w&LVDPHU 3RO\EXWDGLHQH5XEEHU 3%5 $XWRPRWLYH7\UHV7\UHWUHDGV&RQYH\RU 9%HOWV6SRUWV


PBR Goods & Dock Fenders

5HOƮH[w6W\ODPHU 6W\UHQH%XWDGLHQH5XEEHU 6%5 Tyres, Footwear, Conveyor belts, Hoses & Mechanical
SBR rubber goods

5HO:RRGw A superior wood substitute that looks 5HO:RRGwFDQEHPRXOGHGWRPDNHƮRZLQJFRQVWUXFWLRQ


& feels like wood but, is much stronger. installations and furniture for indoor as well as outdoor
It is made from a unique Composite of usage
Natural Fibres, Polymers & Specialised
Blends of additives, using patented
German Technology
RelX Composites Windmill Blades, Rotor Blades, Modular Buildings, GRP
piping systems

Chemicals
Relab /LQHDU$ON\O%HQ]HQH /$% Detergents

Polyester & Fibre Intermediates


3DUD[\OHQH 3;  Raw material for PTA
3XULƬHG7HUHSKWKDOLF$FLG 37$ Raw material for polyester
0RQR(WK\OHQH*O\FRO 0(* Raw material for polyester

5_(ODQw Portfolio of Speciality Apparels


new-age Fabrics

Recron® Polyester Staple Fibres, Polyester Apparel, Home textiles, Technical textiles & Non-wovens
Filament Yarns, Speciality Polyesters
Corporate Overview 1-40 Management Review Governance Financial Statements Notice

30 Reliance Industries Limited • Making Life Better. For Everyone.

Logo Business / Brand Product / Service End Uses


Polyester & Fibre Intermediates
Recron® IDY Polyester high-tenacity industrial Conveyor belts, ropes, geo-grids, seat-belts, lashings,
yarns slings, industrial fabrics
Recron® SHT Polyester Super High Tenacity Fibres Hi-Strength, Low-shrinkage Sewing threads for apparel,
home and industrial applications

Recron® Fancyy Innovative Polyester Filament Yarns 9DOXHDGGHGƬQHTXDOLW\IDVKLRQIDEULFVZLWKXQLTXHZHDYH


patterns, textures and hand-feel

Recron® Stretch 6WUHWFK\DUQVIRUFRPIRUWDEOHƬW Denim, shirting, suiting, dress material, T-shirt, sportswear,
and freedom of movement swimwear, medical bandages & diapers

Recron® Cotluk Cotton Look, Cotton Feel Yarns Dress material, shirting, suiting, furnishing fabric, curtain &
bed sheet

Recron® Dyefast Can dye at boiling water Ladies outerwear, feather yarn for knitted cardigan,
temperature with high colour decorative fabric & home furnishing
fastness
Recron® Dope dyed black Apparel, automotive, non-woven & interlining
Superblack with high consistency in shade

Recron® Superdye Bright, brilliant colours Woven & knitted apparel, furnishing & home textile
and soft feel, low pill

Recron® Kooltex Moisture management yarns Active sports and high performance wear

5HFURQŠ)LEUHƬOO +ROORZƬEUHVZLWKKLJKERXQFHDQG Pillows, cushions, quilts, mattresses, furniture, toys & non-
resilience wovens

Recron® 3D 9LUJLQVXSHUZKLWHƬEUHVZLWKD Sleep and comfort products, Furniture, Toys & Beddings
Conjugate unique spiral structure

Recron® 3S Secondary Reinforcement Products Construction industry, cement, paper industry, battery
industry, wall papers, wipes & hygiene products & Asbestos
replacement
5HFURQŠ&HUWLƬHG 4XDOLW\&HUWLƬHG6OHHS3URGXFWV Pillows, cushions, blankets & quilts

Recron® FeelFresh $QWLPLFURELDOƬEUHV \DUQV Active sportswear, Intimate apparel, socks, home furnishings
& garments used in healthcare industry

Recron® Recrobulk +LEXONƬEUHVIRUVRIWIHHO  Sweaters, pullovers, cardigans, shawls & jackets


warmth

Recron® (FRIULHQGO\ƬEUHVPDGHIURP Apparel & home textiles


GreenGold post-consumer polyester waste

Recron® RecoSilk Speciality Polyester Filament Yarns Ideal for dress materials, velvet, sarees, embroidery threads
with a silken shimmer and in swathes of colour

Recron®FS Flame retardant Fibres & Yarns Institutional textiles for hospitality, entertainment, transport,
VDIHW\HWF$OVRXVHGLQKRPHWH[WLOHVƬOO FRPIRUWSURGXFWV
5HFURQŠ([FON Yarns for naturally Soft Apparels
Silken hand feel

5HFURQŠ(FR' High standard eco-friendly dying Apparels


process to give unbeatable washing,
sublimation & perspiration fastness
Relpet® 3RO\HWK\OHQH7HUHSKWKDODWH 3(7 Packaging for bottled water, beverages, confectionary,
pharmaceutical, agro-chemical and food products
Integrated Annual Report 2017–18 Major Products and Brands 31

2LODQG*DV([SORUDWLRQDQG3URGXFWLRQ
Logo Business / Brand Product / Service End Uses

Crude Oil and Natural Gas 5HƬQLQJSRZHUIHUWLOLVHUVSHWURFKHPLFDOVDQGRWKHULQGXVWULHV

5HWDLO
Logo Business / Brand Product / Service End Uses
Owned
Ajio Online fashion store &XUDWHGRQOLQHIDVKLRQVWRUHRƪHULQJDSSDUHOVDFFHVVRULHVIRRWZHDU
and much more
Jio Stores Speciality Store for mobility & Latest assortment of mobiles, tablets, laptops, accessories
communication
3URMHFW(YH Apparel speciality store Speciality stores catering to entire fashion & lifestyle needs of women
Reliance Digital (OHFWURQLFVVSHFLDOLW\VWRUH 2ƪHULQJZLGHUDQJHRIFRQVXPHUHOHFWURQLFVKRPHDSSOLDQFHV
entertainment, gaming merchandise
Reliance Footprint Footwear speciality store Speciality stores dealing in footwear, handbags and accessories

Reliance Fresh Neighbourhood store Dealing in fresh fruits & vegetables, food, grocery and items of
daily use
Reliance Jewels Jewellery speciality store )LQHMHZHOOHU\ZLWKRƪHULQJVDFURVVJROGVLOYHUGLDPRQGSUHFLRXV
stones and other precious metals
Reliance Market Wholesale cash & carry store Dealing in grocery, clothing, footwear, electronics and general
merchandise
Reliance Resq Consumer electronics after sales Service provider for consumer electronic products
service provider
Reliance Smart Supermarket Dealing in fresh fruits & vegetables, food, clothing, footwear,
electronics and general merchandise
Reliance Smart.in Online grocery store Dealing in fresh fruits & vegetables, food and general merchandise

Reliance Trends Apparel speciality store 2ƪHUVZLGHUDQJHRIDSSDUHOKDQGEDJVIRRWZHDUDQGDFFHVVRULHV


Reliance Trends Apparel speciality store 2ƪHUVFXUDWHGFROOHFWLRQVRI,QGLDQZRPHQZHDUDQGDFFHVVRULHV
Woman

In-store Brand
Avaasa (WKQLF,QGLDQZHDULQVSLUHGE\,QGLDQ Apparel for women
ethos and art forms
DNMX Denim inspired casuals Apparel for men, women and children

Netplay Smart casuals for the free spirited Apparel for men

Performax $FWLYHZHDUIRUVSRUWVDQGƬWQHVV Apparel and footwear for men, women and children

Point Cove Smart casuals for kids inspired by Apparel for children
California
Teamspirit Sport Inspired Casualwear Apparel for men, women and children
LYF 4G Mobile Handsets and Mobile and connectivity devices
Connectivity Devices

Reconnect ([FOXVLYH%UDQGIURP5HOLDQFH'LJLWDO (OHFWURQLFJDGJHWVDQGDFFHVVRULHV

(Q]R0DWLF Detergent Powder brand Detergent

Best Farms Premium Grade Farm Produce brand Food

Good Life Clean, Hygienic and Wholesome Food


products brand
Corporate Overview 1-40 Management Review Governance Financial Statements Notice

32 Reliance Industries Limited • Making Life Better. For Everyone.

Logo Business / Brand Product / Service End Uses


Exclusive Brand Partnership
$UPDQL([FKDQJH Unisex casual wear brand from the Casual wear, Denims
Armani house, its global in spirit, this
is a brand for the young citizens
Bally World’s second oldest luxury brand Shoes, bags and fashion accessories
%RWWHJD9HQHWD Italian Luxury accessories brand, Luxury bags, Shoes, Accessories
founded in 1966, known for discretion,
quality, and craftsmanship
Brooks Brothers American iconic brand that has Apparel and accessories for men
UHGHƬQHG VKDSHGFODVVLF$PHULFDQ
style for nearly two centuries
Canali Tailor-made Italian luxury men’s wear, Men’s formal wear
OHDGHUIRUPRUHWKDQ\HDUV

Cherokee Iconic American family lifestyle brand Apparel and accessories for kids

Coach Founded in 1941, Coach is a leading Bags & Accessories


design house of modern luxury
accessories and lifestyle collections
with an all-American attitude
DC American sportswear brand inspired by Apparel, accessories, footwear and skateboards
skateboarding and snowboarding
Diesel Iconic Italian lifestyle brand Apparel, accessories and footwear
Dune Distinctive fashion footwear & Accessories and footwear for men and women
accessories
(PSRULR$UPDQL (PSRULR$UPDQLLVDVXEODEHORI Luxury Men’s wear and Women’s wear
Giorgio Armani, includes ready-to-
wear clothes, sunglasses, perfume,
accessories and watches.
(UPHQHJLOGR Italian luxury men’s clothing Apparel, accessories and footwear for men
Zegna
Flormar Leading beauty and colour cosmetic Colour cosmetic products
brand
Furla Furla deals in Italian handbags, Luxury Bags, Shoes and Accessories
shoes and accessories since 1927.
These collections are constructed
with high quality craftsmanship and
contemporary style
Giorgio Armani Italian label founded in 1975, known Luxury Men’s wear and Women’s wear
for clean tailored lines and unisex
occasion wear
GAS ,WDOLDQFORWKLQJEUDQGRƪHULQJTXDOLW\ Apparel, accessories and footwear for men & women
products for intelligent, aware
consumers, with an international,
cosmopolitan attitude
G Star Raw G-Star RAW is a Dutch designer Denim, casual wear
clothing company, known for
technologically advanced denims
Hamleys 7KHƬQHVWWR\VKRSLQWKHZRUOG Toys

Hugo Boss German brand founded in 1924, Men’s wear, formal and semi formal
Sophisticated, modern and iconic
Men’s wear label, market leaders in
the upper premium segment of the
global apparel market.
Hunkemoller /HDGLQJ(XURSHDQOLQJHULHEUDQG Lingerie, nightwear, swimwear and accessories
Integrated Annual Report 2017–18 Major Products and Brands 33

Logo Business / Brand Product / Service End Uses


Exclusive Brand Partnership
ICONIX 'LYHUVLƬHGSRUWIROLRRIIDVKLRQDQGKRPH Apparel, footwear, accessory and home fashion
brands
Istore ([FOXVLYH$SSOH3URGXFWV6WRUH Mobile, Laptops and Connectivity Devices

Jimmy Choo Jimmy Choo is a 21st century luxury Women’s footwear and accessories
accessories brand, with shoes at its heart,
PRUHWKDQVWRUHVDQGLVSUHVHQWLQWKH
most prestigious department and specialty
stores worldwide
Kate Spade Accessible luxury for women Handbags, small leather goods, apparel and footwear

Marks & Spencer Iconic British lifestyle brand Apparel for women, men and children, lingerie, beauty and
home décor

Michael Kors Luxury accessories and ready-to-wear Bags, Footwear and accessories
brand established in 1981. Products include
accessories, footwear, watches, jewelry,
men’s and women’s ready-to-wear apparel,
eyewear and a full line of fragrance products.
MUJI Iconic Japanese lifestyle brand Accessories, home, apparel, travel, beauty, stationery, etc.

Paul & Shark Italian luxury and casual sportswear brand Apparel, accessories and footwear for men

Paul Smith Paul Smith is Britain’s foremost designer, Men’s formal wear
he combines tradition and modernity for
his Men’s wear high fashion and formalwear
label
Payless $ƪRUGDEOHIDVKLRQIRRWZHDUVSHFLDOW\VWRUH Footwear, handbags and accessories

Thomas Pink British shirt authority Apparel and accessories for men

Quiksilver Premium youth Lifestyle and culture clothing Apparel, accessories, footwear, skateboards and surfboards
brand representing action sports
Roxy *OREDOOLIHVW\OHEUDQGRƪHULQJSURGXFWVIRU Apparel, accessories, swimwear and footwear for girls
every aspect of an active girl’s life

Scotch & Soda (XURSHDQFRXWXUHEUDQG Shoes, bags and fashion accessories

Steve Madden Fashion forward Footwear & Accessories Accessories and footwear for men and women
Brand
Superdry )DVKLRQEUDQGWKDWIXVHVGHVLJQLQƮXHQFHV Apparel, accessories and footwear
from Japanese graphics and vintage
Americana, with the values of British tailoring
TUMI Founded in 1975, leading international Travel bags, wallets and Bags
business, accessory and travel lifestyle
brand.
9LOOHUR\ %RFK Luxurious and timeless pieces since 1748 Tableware
for bathroom and wellness, tableware and
tiling. Headquartered in Germany, this large
manufacturer of ceramics specialises in innovative
products
9LVLRQ([SUHVV Optical specialty store Spectacles, sunglasses, contact lenses and eyewear care
accessories
Corporate Overview 1-40 Management Review Governance Financial Statements Notice

34 Reliance Industries Limited • Making Life Better. For Everyone.

7H[WLOHV
Logo Business / Brand Product / Service End Uses
Owned
2QO\9LPDO Suitings, Shirtings, Readymade Fabrics, Apparel and Accessories
Garments

MarcoMancini Suitings, Shirtings Fabrics

Protector Anti-dust, Anti-Microbial, Quick Fabrics and Apparel


Stain Release & Anti-Pollen Fabric
Finish Technology

2QO\9LPDO6DUHHV Sarees Sarees and Dress Material for Women

9LPDO*LIWLQJ Ready-to-stitch, take away fabric in Fabrics


gift packs

D-Creased Smooth and Wrinkle-Free Fabric Fabrics and Apparel


Finish Technology

nice Cool Moisture-Absorb Fabric Finish Fabrics and Apparel


Technology

9 Ready-to-stitch, Fabrics
Take away fabric

'(22 Anti-Microbial Fabric Finish Fabrics and Apparel


Technology

Licensed
Georgia Gullini Suitings, Shirtings Fabrics, Apparel and Accessories

'LJLWDO6HUYLFHV
Logo Business / Brand Product / Service End Uses
Brand Logo
Jio Connected Intelligence Jio is an ecosystem - of best-in-class devices, applications
DQGQHWZRUNVDQHWZRUNHƪHFWE\GHVLJQ
MyJio Manage your Jio account An Omni app for - everything from signing up and paying bills
to topping up and managing account

-LR79 /LYHDQG&DWFK8S79RQWKHPRYH :DWFK/,9(79&KDQQHOVRQ\RXUVPDUWSKRQHVDQG


tablets.

JioCinema (QWHUWDLQPHQWDW\RXUƬQJHUWLSV $YDVWOLEUDU\RI0RYLHV796KRZV2ULJLQDOVPXVLFYLGHRV 


FRQWHQWDFURVVODQJXDJHVDQGJHQUHVRQSKRQHWDEOHW
79DQGZHEVLWH
JioMusic Music for you. Anytime, Anywhere Stream & download unlimited Ad-free HD Music from one
of the largest library of songs across various languages and
genres
Integrated Annual Report 2017–18 Major Products and Brands 35

Logo Business / Brand Product / Service End Uses


Brand Logo
JioMags Premium and Popular magazines Rich library of premium magazines to provide an experience
of reading a real magazine

JioXpressNews OTT News aggregator app 6WD\XSGDWHGZLWKODWHVWQHZVIURPVRXUFHVLQ


Indian languages,

JioChat )UHH&KDW6069RLFH 9LGHR&DOO $Q277DSSZLWK,QWHUIDFHLQ,QGLDQODQJXDJHVDQGXQLTXH


features like multi-party video conferencing, audio and video
notes etc.
JioCloud 6WRUHDQGDFFHVV\RXUƬOHVIURP Store online securely all your photos, videos, docs, songs
anywhere organised at one place

-LR*9RLFH 9R/7( 5LFK&RPPXQLFDWLRQRQDOO A telco-grade smartphone app enables customers to enjoy


phones -LRpVODWHVWVHUYLFHVOLNH+'9RLFH9LGHRFDOOV606RQQRQ
9R/7(GHYLFHV
JioMoney ([SHULHQFHFDVKIUHHOLYLQJ Digitising everyday consumer transactions – simple smart,
and secure payments

JioSecurity Protect your phone, secure your data Power against threats to digital life. Protects your device 24x7
proactively against risk apps and virus attacks

JioNewsPaper 'LJLWDO1HZVSDSHUVIURPVRI Daily newspapers from multiple cities - both Indian and
cities International.

JioNet Gateway to India’s largest Wi-Fi Gateway to blazingly fast Wi-Fi network
network

JioHealthHub Your digital health vault (DV\DQG6HFXUHZD\WRGLJLWDOO\VWRUHFDWHJRULVHPDQDJHDQG


share Health Data

Jioswitch Secure File Transfer & Share (DV\WRXVHGDWDWUDQVIHUDSSOLFDWLRQ6XSSRUWVDZLGHUDQJH


RIƬOHW\SHVWRWUDQVIHUIURPRQHVPDUWSKRQHWRDQRWKHU

JioGST GST Service Provider (DV\DQGVDIH*67FRPSOLDQFH FUHDWHPDQDJHDQGUHFRQFLOH


*67UHODWHGƬQDQFLDOFRPSOLDQFHGRFXPHQWV 

0HGLDDQG(QWHUWDLQPHQW
Logo Business / Brand Product / Service End Uses
TV Channels
&1%&79 (QJOLVK%XVLQHVV1HZV&KDQQHO (QJOLVK%XVLQHVVQHZV

CNBC Awaaz Hindi News Channel Hindi Business news

CNBC Bajar Gujarati News Channel Gujarati Business news


Corporate Overview 1-40 Management Review Governance Financial Statements Notice

36 Reliance Industries Limited • Making Life Better. For Everyone.

Logo Business / Brand Product / Service End Uses


TV Channels
&1%&793ULPH (QJOLVK%XVLQHVV1HZV&KDQQHO Business News with expanded focus on global market
HD

CNN News18 (QJOLVK*HQHUDO1HZV&KDQQHO (QJOLVKODQJXDJHQHZVDQGFXUUHQWDƪDLUV

News18 India Hindi General News Channel Hindi language news channel

News18 India (QJOLVK*HQHUDO1HZV&KDQQHO News from India for Indian diasporas

News18 Lokmat Marathi News Channel National and International news for Marathi viewers

News18 Urdu Regional News Channel Urdu news channel

News18 Rajasthan Regional News Channel Rajasthani news channel

News18 Regional News Channel Regional news for Bihar and Jharkhand
Bihar Jharkhand

News18 Regional News Channel Regional news for Uttar Pradesh and Uttarakhand
Uttar Pradesh
Uttarakhand
News18 Regional News Channel Regional news for Madhya Pradesh and Chhattisgarh
Madhya Pradesh
Chhattisgarh
News18 Regional News Channel Gujarati news channel
Gujarati
News18 Regional News Channel Kannada news channel
Kannada
News18 Regional News Channel Bangla news channel
Bangla
News18 Odiya Regional News Channel Oriya news channel

News18 Punjab/ Regional News Channel Regional news for Punjab, Haryana and Himachal Pradesh
Haryana/ Himachal

News18 Tamil Nadu Regional News Channel Tamil news channel

News18 Kerala Regional News Channel Malayalam news channel

News18 Assam/ Regional News Channel Regional news for North-eastern states
1RUWK(DVW
Integrated Annual Report 2017–18 Major Products and Brands 37

Logo Business / Brand Product / Service End Uses


TV Channels
Colors +LQGLJHQHUDO(QWHUWDLQPHQW&KDQQHO Hindi mass entertainment channel

&RORUV,QƬQLW\ (QJOLVK(QWHUWDLQPHQW&KDQQHO (QJOLVKHQWHUWDLQPHQWFKDQQHO

Rishtey +LQGLJHQHUDO(QWHUWDLQPHQW&KDQQHO Hindi mass entertainment channel

Rishtey Cineplex Movies Hindi Movie channel

079 Youth entertainment Youth entertainment channel & brand

079%HDWV Music Music destination for the youth

9K (QJOLVK0XVLFDQG/LIHVW\OH&KDQQHO (QJOLVKPXVLFGHVWLQDWLRQIRUWKH\RXWK

Comedy Central (QJOLVK(QWHUWDLQPHQW&KDQQHO (QJOLVKHQWHUWDLQPHQWIRULQFOXVLYHIDPLO\YLHZHUVKLS

Nickelodeon Kids Channel Comedy destination for kids

Sonic Kids Channel Action and adventure entertainment for kids and young adults

Nickelodeon Junior Kids Channel (QWHUWDLQPHQWDLPHGDWSUHVFKRRONLGV

Colors Marathi 5HJLRQDO(QWHUWDLQPHQW&KDQQHO Marathi entertainment channel

Colors Kannada 5HJLRQDO(QWHUWDLQPHQW&KDQQHO Kannada entertainment channel

Colors Bangla 5HJLRQDO(QWHUWDLQPHQW&KDQQHO Bangla entertainment channel

Colors Gujarati 5HJLRQDO(QWHUWDLQPHQW&KDQQHO Gujarati entertainment channel

Colors Odia 5HJLRQDO(QWHUWDLQPHQW&KDQQHO Oriya entertainment channel

Colors Super 5HJLRQDO(QWHUWDLQPHQW&KDQQHO .DQQDGD(QWHUWDLQPHQWFKDQQHO


Corporate Overview 1-40 Management Review Governance Financial Statements Notice

38 Reliance Industries Limited • Making Life Better. For Everyone.

Logo Business / Brand Product / Service End Uses


TV Channels

Colors Tamil 5HJLRQDO(QWHUWDLQPHQW&KDQQHO 7DPLO(QWHUWDLQPHQWFKDQQHO

+LVWRU\79 Infotainment Channel )DFWXDO(QWHUWDLQPHQWFKDQQHO

I\L79 Infotainment Channel Lifestyle channel

Filmed Entertainment
9LDFRP0RWLRQ )LOPHG(QWHUWDLQPHQW Acquisition, production, syndication, marketing and
Pictures GLVWULEXWLRQRIIXOOOHQJWKIHDWXUHƬOPVZLWKLQ,QGLDDQG
GLVWULEXWLRQRI,QGLDQƬOPVLQVHYHUDOLQWHUQDWLRQDOPDUNHWV

Content Asset Monetisation


IndiaCast Multi-platform ‘Content Asset International Channel distribution, advertising sales on
Monetisation’ entity international Channels and content Syndication

Digital Content
Moneycontrol Finance portal &RPSUHKHQVLYHƬQDQFLDOLQIRUPDWLRQQHZVDQGLQGHSWK
analysis across asset classes
News18.com General News portal Real-time coverage, sports updates, entertainment buzz,
DQFKRUEORJV FKDWVDQG/LYH79

Firstpost Opinions and News portal Digital newsroom focusing on opinions, powered by expert
writer-editors
9227 2779LGHR(QWHUWDLQPHQW 2779LGHRHQWHUWDLQPHQWGHVWLQDWLRQ

Infotainment
In.com News and entertainment portal Content & videos of Network18 entertainment channels
and websites and popular third party websites

Digital Commerce
HomeShop18 Retail platform Integrated virtual shopping on Internet, Television
and Mobile

BookmyShow Online ticket booking platform Online ticket booking for movies, plays, sporting
events and shows
Integrated Annual Report 2017–18 Major Products and Brands 39

Logo Business / Brand Product / Service End Uses


Publishing Business
Forbes India Business publication Magazine for Business/Financial News & Analysis

Better Photography Photography Magazine Magazine for photography enthusiasts

Better Interiors Interiors Magazine Magazine for interiors ideas and design

Overdrive Auto Publication Publication for auto enthusiasts and users

Allied Business
Topper Learning (GXFDWLRQ (GXFDWLRQDOFRQWHQWIRU.VWXGHQWV

Colosceum Production House &RQWHQWSURGXFHUVVSHFLDOLVLQJLQ79DQGƬOPHGHQWHUWDLQPHQW

Capital 18 Investment Investment arm of Network18

Others
Mumbai Indians Leading IPL cricket team Sports

Indian Super League ,QGLDpV3UHPLHU)RRWEDOO(YHQW Sports

Reliance Foundation CSR arm of Reliance group Philanthropic Initiatives

Sir H. N. Reliance Hospital Hospital to provide international quality healthcare services


Foundation Hospital

Reliance Foundation Platform to promote a sporting (QDEOLQJWKHHFRV\VWHPRIVFKRRODQGFROOHJHVSRUWVWKURXJK


Youth Sports culture in schools and colleges WDOHQWLGHQWLƬFDWLRQGHYHORSPHQWLQIUDVWUXFWXUHDQGVNLOO
development
Reliance Foundation Scholarship based football and Building India’s Footballing Future
Young Champs education programme

Reliance Foundation India’s largest grassroots Mass participation Sports initiative


Jr. NBA Basketball Initiative
Corporate Overview 1-40 Management Review Governance Financial Statements Notice

40 Reliance Industries Limited • Making Life Better. For Everyone.

Financial Highlights
RIL Standalone
` in crore
$ Mn 2017-18 16-17 15-16 14-15 13 -14 12 -13 11-12 10 -11 09 -10 08 - 09

Value of Sales & Services (Revenue) 48,386 3,15,357 2,65,041 2,51,241 3,40,814 4,01,302 3,71,119 3,39,792 2,58,651 2,00,400 1,46,328
Total Income 48,110 3,13,555 2,73,750 2,59,062 3,49,535 4,10,238 3,79,117 3,45,984 2,61,703 2,02,860 1,48,388
Earnings Before 9,200 59,961 51,965 47,168 40,323 39,813 38,785 39,811 41,178 33,041 25,374
Depreciation,Finance Cost and Tax
Expenses(EBDIT)
Depreciation and Amortisation 1,470 9,580 8,465 8,590 8,488 8,789 9,465 11,394 13,608 10,497 5,195
Exceptional Items - - - - - - - - - - (370)
3URƬW)RUWKH<HDU 5,157 33,612 31,425 27,384 22,719 21,984 21,003 20,040 20,286 16,236 15,309
Equity Dividend % - 110 - 105 100 95 90 85 80 70 130
Dividend Payout 499 3,255 - 3,095 2,944 2,793 2,643 2,531 2,385 2,084 1,897
(TXLW\6KDUH&DSLWDO 972 6,335 3,251 3,240 3,236 3,232 3,229 3,271 3,273 3,270 1,574
(TXLW\6KDUH6XVSHQVH$FFRXQW - - - - - - - - - - 69
Reserves and Surplus 47,305 3,08,312 2,85,062 2,50,758 2,12,923 1,93,842 1,76,766 1,62,825 1,48,267 1,33,901 1,24,730
1HW:RUWK 48,042 3,13,114 2,83,288 2,53,998 2,16,159 1,97,074 1,79,995 1,66,096 1,51,540 1,37,171 1,26,373
Gross Fixed Assets 69,427 4,52,492 4,30,093 3,93,117 3,11,815 2,64,281 2,32,270 2,05,493 2,21,252 2,28,004 2,18,673
Net Fixed Assets 46,099 3,00,447 2,87,319 2,58,448 1,90,316 1,51,122 1,28,864 1,21,477 1,55,526 1,65,399 1,69,387
Total Assets 94,749 6,17,525 5,46,746 4,81,674 3,97,785 3,67,583 3,18,511 2,95,140 2,84,719 2,51,006 2,45,706
Market Capitalisation 85,803 5,59,223 4,28,909 3,38,703 2,66,847 3,00,405 2,49,802 2,44,757 3,42,984 3,51,320 2,39,721
Number of Employees 29,533 24,167 24,121 24,930 23,853 23,519 23,166 22,661 23,365 24,679
&RQWULEXWLRQWR1DWLRQDO([FKHTXHU 8,745 56,997 51,399 43,117 33,322 31,374 28,950 28,197 28,719 17,972 11,574

Key Indicators
$ 2017-18 16-17 15-16 14-15 13-14 12-13 11-12 10-11 09-10 08-09

(DUQLQJV3HU6KDUH `) 0.81 53.1* 96.9 84.6 70.2 68.0 64.8 61.2 62.0 49.7 49.7
[excluding Exceptional item]
7XUQRYHU3HU6KDUH `) 7.64 497.8* 817.2 775.3 1,053.3 1,241.7 1,149.5 1,037.8 790.5 612.9 464.9
%RRN9DOXH3HU6KDUH `) 7.62 496.7* 889.0 784.4 668.0 609.8 557.5 507.3 463.2 419.5 401.5
Debt : Equity Ratio 0.37:1 0.37:1 0.42:1 0.45:1 0.45:1 0.40:1 0.41:1 0.44:1 0.46:1 0.63:1
EBDIT / Gross Turnover % 19.0 19.6 18.8 11.8 9.9 10.5 11.7 15.9 16.5 17.3
1HW3URƬW0DUJLQ 10.7 11.9 10.9 6.7 5.5 5.7 5.9 7.8 8.1 10.5
RONW % ** 15.5 17.1 15.1 13.4 12.9 12.8 13.4 15.5 16.4 21.6
ROCE % ** 28.7 25.4 17.2 12.7 11.5 11.2 11.6 13.2 13.9 20.3
,QWKLV,QWHJUDWHG$QQXDO5HSRUWGHQRWHV86XQOHVVRWKHUZLVHVWDWHG
86 ` ([FKDQJHUDWHDVRQ
3XUVXDQWWRLVVXHRIERQXVVKDUHVGXULQJWKH\HDULQWKHUDWLRRI
** Adjusted for CWIP and revaluation
Integrated Annual Report 2017–18 Financial Highlights | Management’s Discussion and Analysis 41

Management’s Discussion and Analysis


Page No. Title What’s Inside

42 Overview Macro environment – global and domestic

Yearly Review
43 Highlights and Key Events Brief overview of business performance and other events during the year

46 Financial Performance and Review Financial information (consolidated and standalone) and discussion on
key parameters

Business Performance
Analysis and description of all major business segments of Reliance
48 5HƬQLQJDQG0DUNHWLQJ
covering strategic advantages and competitive strengths. The discussion
56 Petrochemicals structure covers the environment the business operates in and how
66 Oil and Gas Exploration and Production Reliance’s business model and operational excellence helped achieve
74 Retail DVWURQJRYHUDOOƬQDQFLDOSHUIRUPDQFH,QDGGLWLRQJURZWKSODQVDQG
86 Digital Services strategy is elaborated for each business segment

96 Media and Entertainment


104 Liquidity and Capital Resources ,QVLJKWVLQFOXGLQJ5HOLDQFHpVƬQDQFLQJVWUDWHJ\UHVRXUFHUDLVLQJFDSLWDO
and risk management framework

Sustainable Growth at Reliance – The

Sustainable Future & Growing Responsibility


Integrated Approach
Analysis and disclosure of Reliance’s approach towards sustainable
106 Strategic Framework
106 7KH,QWHJUDWHG$SSURDFK DQGUHVSRQVLEOHJURZWKWKURXJKWKHOHQVRI,QWHUQDWLRQDO,QWHJUDWHG

108 Natural Capital UHSRUWLQJ q,5r )UDPHZRUN6'*302pVLQLWLDWLYHVVXSSRUWHGE\

114 Human Capital WKH1,7,$D\RJDQGEH\RQG,WUHƮHFWVSHUIRUPDQFHDQGRXWFRPH


124 ,QWHOOHFWXDO&DSLWDO VWHZDUGVKLSDQGLQWHUGHSHQGHQFLHVIRUWKHEURDGEDVHRIFDSLWDOV
132 Manufactured Capital QDWXUDOKXPDQLQWHOOHFWXDOPDQXIDFWXUHGƬQDQFLDOVRFLDODQG
140 Financial Capital UHODWLRQVKLS DQGFRPPXQLFDWHVWKHIDFWRUVWKDWPDWHULDOO\DƪHFWWKH
141 Social and Relationship Capital DELOLW\WRFUHDWHYDOXHRYHUWLPHVKRUWPHGLXPDQGORQJWHUP
149 Reliance's Sustainability Reporting
Journey
152 Risk and Governance
3URYLGHVRYHUDOOSHUVSHFWLYHVRQNH\VWUDWHJLFULVNDQGJRYHUQDQFH
159 Digital Platforms LQFOXGLQJWKHVWUDWHJ\WRPLWLJDWHULVNLQ9RODWLOH8QFHUWDLQ&RPSOH[
DQG$PELJXRXV 98&$ EXVLQHVVHQYLURQPHQW5HOLDQFHKDVEXLOWD
scalable platform that enables sustenance of competitive advantage with
HƪHFWLYHXVHRIWHFKQRORJ\
160 Awards and Recognitions
5HOLDQFHpVDFKLHYHPHQWVDQGHƪRUWVLQPXOWLSOHDUHDVDUHUHFRJQLVHGE\
various domestic and international agencies

163 Glossary
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

42 Reliance Industries Limited • Making Life Better. For Everyone.

Management’s Discussion and Analysis


Forward Looking Statement
7KHUHSRUWFRQWDLQVIRUZDUGORRNLQJVWDWHPHQWVLGHQWLƬHG WKHRLOSURGXFWLRQVFDOHEDFNWRPEGWLOOWKHHQGRI
E\ZRUGVOLNHoSODQVpoH[SHFWVpoZLOOpoDQWLFLSDWHVpoEHOLHYHVp 2018.
oLQWHQGVpoSURMHFWVpoHVWLPDWHVpDQGVRRQ$OOVWDWHPHQWV
WKDWDGGUHVVH[SHFWDWLRQVRUSURMHFWLRQVDERXWWKHIXWXUH Petrochemicals sector globally continued to see high cracker
EXWQRWOLPLWHGWRWKH&RPSDQ\pVVWUDWHJ\IRUJURZWK XWLOLVDWLRQOHYHOVGULYHQE\ƬUPSURGXFWGHPDQGDFURVV
SURGXFWGHYHORSPHQWPDUNHWSRVLWLRQH[SHQGLWXUHVDQG key markets. Global demand for key polymer products
ƬQDQFLDOUHVXOWVDUHIRUZDUGORRNLQJVWDWHPHQWV6LQFH 3(33DQG39& JUHZE\GXULQJOHGE\,QGLDDQG
these are based on certain assumptions and expectations of China. Polymer margins remained healthy during the year
IXWXUHHYHQWVWKH&RPSDQ\FDQQRWJXDUDQWHHWKDWWKHVHDUH supported by sustained demand.
DFFXUDWHRUZLOOEHUHDOLVHG7KH&RPSDQ\pVDFWXDOUHVXOWV
SHUIRUPDQFHRUDFKLHYHPHQWVFRXOGWKXVGLƪHUIURPWKRVH India
SURMHFWHGLQDQ\IRUZDUGORRNLQJVWDWHPHQWV7KH&RPSDQ\ )<PDUNHGDVLJQLƬFDQWHFRQRPLFPHDVXUHE\
DVVXPHVQRUHVSRQVLELOLW\WRSXEOLFO\DPHQGPRGLI\RU the government: The Goods and Services Tax (GST) was
revise any such statements on the basis of subsequent LPSOHPHQWHGIURP-XO\DVWKHQDWLRQPRYHGWRoRQH
GHYHORSPHQWVLQIRUPDWLRQRUHYHQWV7KH&RPSDQ\ QDWLRQRQHWD[p7KHUHIRUPPHDVXUHKDVKHOSHG,QGLDPRYH
GLVFODLPVDQ\REOLJDWLRQWRXSGDWHWKHVHIRUZDUGORRNLQJ into the Top 100 Club in World Bank’s ‘Global Ease of Doing
VWDWHPHQWVH[FHSWDVPD\EHUHTXLUHGE\ODZ Business’ rankings.

Overview 7KH,QGLDQHFRQRP\FRQWLQXHGWRJURZVWURQJO\DVWKH
Global economy recovered in the 2nd half post stabilisation of the
*OREDOHFRQRPLFUHFRYHU\JDWKHUHGSDFHZLWKWKHZRUOG GST regime. Gross Domestic Product growth rate in
HFRQRP\JURZLQJDWLQ&<DLGHGE\DFURVVWKH )<ZDVVXSSRUWHGE\FRQVXPSWLRQJURZWKDQG
ERDUGUHFRYHU\LQGHYHORSHGHFRQRPLHVLH8QLWHG6WDWHV JRYHUQPHQWVSHQGLQJ:LWKLPSURYLQJLQYHVWPHQWVWKHUH
(XURSHDQ8QLRQDQG-DSDQ*URZWKLQ1RQ2(&'PDUNHWV DUHVLJQVWKDWDUHFRYHU\LVXQGHUZD\,QGXVWULDODFWLYLW\
KRZHYHUUHPDLQHGPRGHVW*UHHQVKRRWVRIWUDGHUHFRYHU\ KDVUHERXQGHGZLWKVWURQJLQGXVWULDOSURGXFWLRQJURZWK
WKDWZDVVHHQWRZDUGVWKHHQGRI&<FRQWLQXHGLQ&< OHGE\DULVHLQFRQVXPSWLRQPDQXIDFWXULQJDQGHOHFWULFLW\
DLGHGE\WKHUHFRYHU\LQJOREDOGHPDQGDQGDVXVWDLQHG generation. Strong vehicle sales growth and improvement
increase in major commodity prices. The sustained rise in road freight transport following stabilisation of GST
in global trade was led by a pickup in import demand in are further positive signs for continuing demand growth.
developed markets. While this augurs well for underlying Services indicators also show positive trends with services
GHPDQGWUHQGVWKHUHDUHULVNVHPHUJLQJIURPULVLQJ FUHGLWVHUYLFHVH[SRUWVDQGLPSRUWVFORFNLQJGRXEOH
SURWHFWLRQLVPDQGWUDGHWHQVLRQVEHWZHHQPDMRUHFRQRPLHV digit growth.
DQGIURPJHRSROLWLFDOGHYHORSPHQWVLQ1RUWK(DVW$VLDDQG
the Middle East. ,QGLDUHPDLQHGWKHZRUOGpVrd largest oil consuming economy
EHKLQG86$DQG&KLQDDIWHURYHUWDNLQJ-DSDQODVW\HDU,WV
*URZWKDFFHOHUDWHGLQWKH86DVWKHHFRQRP\DSSURDFKHG annual demand for oil climbed by 0.12 mb/d to
IXOOHPSOR\PHQWODERUPDUNHWVWLJKWHQHGDQGLQƮDWLRQ 4.68 mb/d.
VWDUWHGFUHHSLQJKLJKHU7KH86)HGHUDO5HVHUYHFRQWLQXHG
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The world is slowly coming out of the low interest rate and DQGMHWIXHO  7KHJURZWKZDVOHGE\UREXVWSDVVHQJHU
abundant liquidity regime as advanced economies normalise YHKLFOHVDOHVJURZWKWZRZKHHOHUVVDOHVJURZWKDQGJURZWK
monetary policy. LQGRPHVWLFDLUOLQHSDVVHQJHUWUDƯF'RPHVWLFGLHVHO
demand rose at 6.6% with acceleration in industrial activity.
Global oil demand growth remained robust at 1.6 million
barrels per day (mb/d) in CY 2017 led by demand recovery 3RO\PHUGHPDQGJURZWKLQ,QGLDFRQWLQXHVWREHGULYHQ
in the OECD countries and healthy growth in demand from E\KHDOWK\HFRQRPLFLQGLFDWRUVLQIUDVWUXFWXUHERRVWDQG
&KLQDDQG,QGLD*DVROLQHGHPDQGWUHQGVUHPDLQHGUREXVW KLJKHUGLVSRVDEOHLQFRPH'XULQJWKH\HDUSRO\HVWHUFKDLQ
contributing around 68% of oil demand growth in the OECD margins recovered with slower capacity growth relative to
FRXQWULHV*OREDORLOSULFHVWUHQJWKHQHGLQ)< demand growth. This supported healthy operating rates and
VXSSRUWHGE\WKH23(&QRQ23(&FRRSHUDWLRQWRH[WHQG favourable margins for integrated players.
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 43

//'3(IDFLOLW\DW5HƬQHU\2ƪ*DV&UDFNHU 52*& FRPSOH[-DPQDJDU

,QWURGXFWLRQRI*67DQGHPSKDVLVRQFDVKOHVVWUDQVDFWLRQV )<DOVRPDUNHGWKHFRPPHQFHPHQWRIFRPPHUFLDO
KDYHSURYLGHGDƬOOLSWRRUJDQLVHGUHWDLOVHFWRULQ,QGLD RSHUDWLRQVRI-LR:LWKLQDVKRUWSHULRG-LRKDVWUDQVIRUPHG
2UJDQLVHGUHWDLOKDVDVKDUHLQWKHRYHUDOO,QGLDQ5HWDLOLQJ WKHGLJLWDOODQGVFDSHLQ,QGLDSURYLGLQJKLJKVSHHGLQWHUQHW
PDUNHWSURYLGLQJVLJQLƬFDQWJURZWKRSSRUWXQLWLHVWRWKH access to 186.6 million subscribers as on 31st March 2018.
formal sector.
5HOLDQFH5HWDLOEXVLQHVVDOVRVDZVLJQLƬFDQWWUDFWLRQZLWK
,QGLDpVGLJLWDOVHUYLFHVPDUNHWLVFRQWLQXLQJLWVH[SRQHQWLDO UREXVWUHYHQXHJURZWK \R\ DQG(%,7JURZWK
growth trajectory with Jio expanding its coverage and \R\ 5HOLDQFH5HWDLODGGHGVWRUHVDQG
further deepening in existing areas to achieve 99% Jio Points stores during the year and now operates 17.7
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million subscribers – Jio has ushered in an era of data RUJDQLVHGUHWDLOHULQ,QGLD
abundance in the nation. The digital infrastructure created
E\-LRZLOOSOD\DVLJQLƬFDQWUROHLQ 5HƬQLQJ 0DUNHWLQJt7KLUG
DFFHOHUDWLQJ,QGLDpVHFRQRPLFJURZWKLQ successive year of double-digit
the coming years. 5HƬQLQJ0DUJLQV
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Highlights and Key Events UHSRUWHGDUHFRUG(%,7RI`
)<PDUNHGWKHFXOPLQDWLRQ Commissioning of the world’s FURUHGXULQJ)<UHƮHFWV
RI5,/pVODUJHVWHYHUSHWURFKHPLFDO ODUJHVW5HƬQHU\2ƪ*DV 5,/pVFRQWLQXLQJIRFXVRQRSHUDWLRQDO
H[SDQVLRQSURMHFWZLWKWKH Cracker (ROGC) complex HƯFLHQFLHVDQGSURDFWLYHULVN
FRPPLVVLRQLQJRIWKH5HƬQHU\2ƪ management. Though global oil prices
Gas Cracker (ROGC) and related LQFUHDVHGGXULQJWKH\HDURLOGHPDQG
GRZQVWUHDPXQLWV'XULQJWKH\HDUWKHƬQDOSKDVHRIWKH continued to be robust in CY 2017 at 1.6 mb/d. With limited
Paraxylene (PX) expansion was completed and ethane UHƬQLQJFDSDFLW\DGGLWLRQVJOREDOUHƬQHU\XWLOLVDWLRQUDWHV
cracking at Dahej and Hazira have been stabilised. The UHPDLQHGKLJKDWVXSSRUWLQJUHƬQHU\PDUJLQV
SURMHFWVDFKLHYHGRQVSHFSURGXFWLRQDWGHVLJQFDSDFLWLHV
LQUHFRUGWLPHDWHVWLPRQ\WRWKHRSHUDWLRQDOH[FHOOHQFH &UXGHDQGSURGXFWSULFHVLQFUHDVHGGXULQJWKH\HDUZLWK
RI5,/pVWHDP7KHUREXVWHFRQRPLFVRIWKHVHSURMHFWV PDUNHWVUHEDODQFLQJDPLGGHFOLQLQJLQYHQWRULHV3URGXFWLRQ
UHƮHFWVLQVKDUSLQFUHDVHLQSHWURFKHPLFDOEXVLQHVVHDUQLQJV UHVWUDLQWE\23(&DQGVRPH1RQ23(&FRXQWULHVKHOSHG
during the year. New volumes in polyester intermediates UHVWULFWVXSSO\JURZWKLQWKHƬUPGHPDQGHQYLURQPHQW
DQGSRO\PHUVWUHDPHOHYDWHGSRO\PHUPDUJLQVDQG leading to a drawdown in crude and product inventory
improving polyester chain margins were key drivers for OHYHOVLQWKH2(&'FRXQWULHV)LUPUHƬQLQJPDUJLQVZHUH
UHFRUGSHWURFKHPLFDOEXVLQHVVHDUQLQJV5HƬQLQJEXVLQHVV underpinned by a recovery in middle distillates product
environment remained constructive with strong oil demand FUDFNVZLWKƬUPGLHVHOGHPDQGRQWKHEDFNRIUHFRYHULQJ
JURZWKRXWSDFLQJVXSSOLHVSXVKLQJJOREDOXWLOLVDWLRQOHYHOV industrial and mining activity.
KLJKHU5HƬQLQJPDUJLQVUHPDLQHGVWURQJGXULQJWKH\HDU
supported by healthy light distillate cracks and recovery in
middle distillate cracks.
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

44 Reliance Industries Limited • Making Life Better. For Everyone.

'XULQJWKH\HDU5,/SURFHVVHGQHZJUDGHVRIFUXGH International: Shale Gas


LQFOXGLQJJUDGHVIURP86$LQWURGXFHGIRUWKHƬUVWWLPH 86FUXGHDQGQDWXUDOJDVSULFHVUHPDLQHGYRODWLOHGXULQJWKH
Commissioning of the new petrochemical units at Jamnagar FRXUVHRIWKH\HDUZLWKDVWURQJXSWLFNLQSULFHVWRZDUGV
(PX and ROGC) has increased the petrochemical intensity WKHHQGRIWKH\HDU1DWXUDOJDVSULFHVZHUHƬUPGXULQJWKH
LQGH[RIWKH-DPQDJDUFRPSOH[OHDGLQJWRIXUWKHUYDOXH \HDUZLWKLQFUHDVHGRƪWDNHIURP/1*DQG0H[LFDQH[SRUWV
DGGLWLRQWRUHƬQHU\VWUHDPV %XVLQHVVFRQGLWLRQVKRZHYHUUHPDLQHGFKDOOHQJLQJDQG
5,/FRQWLQXHGZLWKLWVVWUDWHJ\RIPHDVXUHGDSSURDFKWR
Petrochemicals – 63.0% increase in earnings GHYHORSPHQWSURJUHVVLQJRQO\WKRVHSURMHFWVPHHWLQJWKH
3HWURFKHPLFDOEXVLQHVV(%,7UHDFKHGUHFRUGOHYHOVRI Group’s investment threshold.
`FURUHZLWKLQFUHPHQWDOYROXPHVIURPSURMHFWVWDUW
XSVDQGVXSSRUWLYHPDUJLQHQYLURQPHQW'XULQJWKH\HDUWKH 'XULQJWKH\HDU5HOLDQFHGLYHVWHGLWVKROGLQJVLQWKH
ƬQDOSKDVHRIWKH3;H[SDQVLRQZDVFRPSOHWHGDQG52*&  0DUFHOOXVVKDOH-9ZKLFKZHUHRSHUDWHGE\&DUUL]R2LO *DV
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FUDFNLQJVWDELOLVHGDW+D]LUDDQG'DKHMOHDGLQJWRLPSURYHG Reliance continues to focus on value maximisation in the
yields. Project management and operational excellence was remaining two JVs with focus on improvement in well design
GHPRQVWUDWHGWKURXJKWKHUDSLGUDPSXSRIQHZSODQWVWR DQGH[HFXWLRQHƯFLHQF\
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record time. Retail Business – Leadership across key consumption
baskets
)<PDUNHGWKHFXOPLQDWLRQRIWKHODUJHVW 5HOLDQFH5HWDLODFKLHYHGUHYHQXHVRIRYHU86ELOOLRQ
SHWURFKHPLFDOH[SDQVLRQXQGHUWDNHQE\5,/2YHUWKH GXULQJ)<EHFRPLQJWKHƬUVW,QGLDQUHWDLOHUWRFURVV
FRXUVHRIWKHODVWWKUHH\HDUV5,/KDVVLJQLƬFDQWO\HQKDQFHG WKLVPLOHVWRQH5HOLDQFH5HWDLO5HYHQXHVJUHZ\R\
its capacities in key product lines and has improved its global to `FURUHVXVWDLQLQJDUHYHQXH&$*5RIRYHUWKH
rankings in key products in the polyester and polymer chain. ODVW\HDUV5HOLDQFH5HWDLOGHOLYHUHG(%,7'$RI`FURUH
,PSRUWDQWO\WKHQHZSURMHFWVKDYHPDWHULDOO\LPSURYHG5,/pV XSRQD\R\EDVLVZLWKSURƬWDEOHJURZWKDFURVVDOO
cost positions in these products with appropriate choice of verticals. Reliance Retail has established a large presence
IHHGVWRFNWHFKQRORJ\DQGVFDOH:LWKWKHFRPSOHWLRQRI DFURVVDOOFRQVXPSWLRQEDVNHWVDQGLVDOHDGLQJSOD\HULQ
WKHVHSURMHFWV5,/pVSHWURFKHPLFDOSRUWIROLRKDV IRRGFRQVXPHUHOHFWURQLFVDQGIDVKLRQUHWDLOLQJ'XULQJWKH
XQPDWFKHGIHHGVWRFNLQWHJUDWLRQDQGƮH[LELOLW\WRDFKLHYH \HDU5HOLDQFH5HWDLOIXUWKHUH[SDQGHGLWVUHWDLOIRRWSULQWDQG
sustainable earnings. QRZRSHUDWHVVWRUHVLQRYHUFLWLHV

Oil and Gas Exploration and Production Digital Services – World’s largest and fastest growing
'RPHVWLF2LO *DV mobile data network
5,/FRPPHQFHGFRPPHUFLDOSURGXFWLRQIURPLWV&RDO%HG Jio continued to set new benchmarks as it consolidated its
Methane (CBM) block in March 2017. During the course of position as the world’s largest and fastest growing mobile
WKH\HDUSURGXFWLRQZDVUDPSHGXSWR006&0'OHYHOZLWK GDWDQHWZRUN-LRKDV,QGLDpVODUJHVWZLUHOHVVGDWDVXEVFULEHU
more than 200 wells having been put to production. Gas from base of 186.6 million subscribers. Across all key performance
WKH&%0ƬHOGZDVVROGWKURXJKDJRYHUQPHQWPDQGDWHG SDUDPHWHUV-LRLVUHVHWWLQJLQGXVWU\EHQFKPDUNVZLWK
FRPSHWLWLYHELGGLQJSURFHVVFDUULHGRXWE\&5,6,/ ODUJHVWKLJKTXDOLW\YLGHRFRQVXPSWLRQKLJKHVWYRLFH
consumption per subscriber and the best network quality
5,/DORQJZLWKSDUWQHU%3KDYHHPEDUNHGRQWKHQH[WZDYH with the lowest call drops and fastest download speeds.
of projects to develop existing discoveries in the KG D6 Jio is playing a transformational role in creating the digital
EORFN)RU5FOXVWHUGHYHORSPHQWDOOPDMRUFRQWUDFWVIRU HFRV\VWHPIRU,QGLDZLWKWKHJURZLQJSRSXODULW\RILWV
VXSSO\RIORQJOHDGLWHPVLQVWDOODWLRQZRUNVDQGGULOOLQJULJV digital services and applications. MyJio became the fastest
have been awarded. Field development plans for MJ gas ,QGLDQDSSWRFURVVPLOOLRQGRZQORDGVDQGLVEHFRPLQJD
DQGFRQGHQVDWHƬHOGDQGWKH6DWHOOLWH&OXVWHUKDYHEHHQ valuable customer engagement app. JioTV was awarded
approved by the Management Committee of the block. WKHq%HVW0RELOH9LGHR&RQWHQWrDSSLQWKH*ORPR$ZDUGV
ZKLOH-LR&LQHPDEHFDPH,QGLDpVQR9LGHR2Q
The development and production from the three planned Demand App.
SURMHFWV 5FOXVWHU6DWHOOLWH&OXVWHUDQG0-ƬHOGV LV
H[SHFWHGWREULQJRQVWUHDPMMSCMD of gas in Digital Services business recorded revenues of `
SKDVHVRYHU FURUHZLWK\HDUHQGVXEVFULEHUVpEDVHDWPLOOLRQDQG
6HJPHQW(%,7ZDVDW`FURUHIRUWKH\HDUZLWK(%,7
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strong fundamental and operating leverage of the business.
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 45

Media – Strengthening content and delivery


platforms
+LJKTXDOLW\PHGLDFRQWHQWLVDNH\GLƪHUHQWLDWRULQWKHGLJLWDO 'XULQJWKH\HDU5HOLDQFHFRQWULEXWHG`771 crore towards
and broadcast ecosystems. Reliance is committed to provide various community development initiatives focused in the
,QGLDQFRQVXPHUVZRUOGFODVVPHGLDIRUHQWHUWDLQPHQW DUHDVRIUXUDOWUDQVIRUPDWLRQKHDOWKHGXFDWLRQVSRUWVIRU
QHZVDQGLQIRUPDWLRQDFURVVSODWIRUPV'XULQJWKH\HDU GHYHORSPHQWGLVDVWHUUHVSRQVHDUWVFXOWXUHDQGKHULWDJH
Reliance continued to strengthen original and exclusive and urban renewal. Reliance Foundation has transformed
FRQWHQWIRULWVGLJLWDOSODWIRUPVZLWKVWUDWHJLFWLHXSVDQG OLYHVRIPLOOLRQ,QGLDQVDFURVVYLOODJHVDQG
LQYHVWPHQWVLQƬOPPHGLDSURGXFWLRQDQGPXVLFSODWIRUPV XUEDQORFDWLRQV'XULQJ)<5HOLDQFHFRQWULEXWHG
`FURUHWRWKHQDWLRQDOH[FKHTXHU5HOLDQFHFRQWLQXHV
5HOLDQFHpVƮDJVKLSPHGLD&RPSDQ\1HWZRUNFRQVROLGDWHG WRLQYHVWLQ6NLOO,QGLD0DNHLQ,QGLD 'LJLWDO,QGLD5,/KDV
its operations and continued to raise its standing in the been at the forefront of adopting an integrated thinking in
Media and Entertainment sector. WKH&RPSDQ\pVPDQDJHPHQWDSSURDFK5,/pVLQWHJUDWHG
approach to value creation culminates into its six capital
Network18 subsidiary TV18 took operational control and approach which depicts its commitment towards a
raised its stake to 51% in entertainment JV Viacom18 VXVWDLQDEOHIXWXUH5HOLDQFHpVEXVLQHVVHVDUHIXWXUHUHDG\
LQ0DUFKp 7KLVZLOOGULYHYDOXHDGGLWLRQDQGV\QHUJLHV DQGHQDEOHWKHIRXUWKLQGXVWULDOUHYROXWLRQDQDPDOJDPDWLRQ
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media businesses. Digital Platforms
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Corporate Stewardship: RUJDQLVDWLRQSURFHVVWRWDSVLJQLƬFDQWSRWHQWLDOIRULWV
Reliance believes in fostering an equitable economic growth EXVLQHVVHVWRLPSURYHHƯFLHQF\LQIRUPHG DJLOHGHFLVLRQ
and ensuring a sustainable and inclusive growth for all. making process.

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Corporate Overview Management Review 41-179 Governance Financial Statements Notice

46 Reliance Industries Limited • Making Life Better. For Everyone.

Financial Performance and Review

Alok Agarwal Srikanth Venkatachari


Delivering superior performance in today’s volatile and global environment requires sound strategy and disciplined
execution. Reliance achieved a number of milestones and performance records – underpinned by solid segment earnings
JURZWKOHGE\YROXPHDQGPDUJLQH[SDQVLRQ5HOLDQFHKDVJHQHUDWHGUHFRUGFDVKSURƬWRI86ELOOLRQ `FURUH 
IRUWKH\HDU$GGLWLRQDOO\5HOLDQFHEHFDPHWKHƬUVW,QGLDQ&RPSDQ\WRUHFRUG3%',7RI86ELOOLRQ `FURUH 
ZLWKVWURQJFRQWULEXWLRQIURP(QHUJ\DQG0DWHULDOVEXVLQHVVHVDQGWKH&RQVXPHUIDFLQJEXVLQHVVHV
7KHUREXVWSHUIRUPDQFHIRUWKH\HDUDOVRUHƮHFWVVWURQJXQGHUO\LQJIXQGDPHQWDOVRI5HOLDQFHpVUHƬQLQJDQG
SHWURFKHPLFDOVEXVLQHVV7KH&RPSDQ\pVK\GURFDUERQDQGFRQVXPHUEXVLQHVVGHPRQVWUDWHGFRPSOHWLRQRILWVODUJHVW
ever capital expenditure cycle with all major project commissioning during the year, including cracker, paraxylene
IDFLOLWLHVHWKDQHSURMHFWDQGZLUHOHVVVHUYLFHV7KHVWUXFWXUDOVWUHQJWKLQHQHUJ\ PDWHULDOVEXVLQHVVHQYLURQPHQW
augurs well for Reliance’s new capacities that have come on stream this year.

`74,184 crore
Record PBDIT

Financial Information – Consolidated and Standalone


Consolidated Standalone
Particulars FY 2017-18 FY 2016-17 FY 2017-18 FY 2016-17
` in crore US$ in billion ` in crore ` in crore US$ in billion ` in crore
9DOXHRI6DOHV 6HUYLFHV 5HYHQXH  66.1   48.4 
3%',7  11.4   9.2 
&DVK3URƬW  8.6   7.1 
6HJPHQW(%,7  8.0   6.9 
1HW3URƬW  5.5   5.2 
&DVK 0DUNHWDEOH6HFXULWLHV  12.0   10.4 
7DQJLEOHDQG,QWDQJLEOH$VVHWV  89.8   46.1 
(Ex. Goodwill)
Gross Debt  33.6   17.9 

Reliance achieved consolidated revenue of `FURUH 5REXVWUHƬQLQJDQGSHWURFKHPLFDOVPDUJLQHQYLURQPHQW


86ELOOLRQ DQLQFUHDVHRIDVFRPSDUHGWR volume growth in petrochemicals and rapidly increasing
`FURUHLQWKHSUHYLRXV\HDU,QFUHDVHLQUHYHQXH FRQWULEXWLRQIURPFRQVXPHUEXVLQHVVHVOHGWRVLJQLƬFDQW
ZDVSULPDULO\RQDFFRXQWRIKLJKHUYROXPHVZLWKVWDUWXSRI ULVHLQRSHUDWLQJSURƬWVIRUWKH\HDU2SHUDWLQJSURƬWEHIRUH
petrochemicals projects and uptrend in prices of products other income and depreciation increased by 38.9% on a
LQWKHUHƬQLQJDQGSHWURFKHPLFDOEXVLQHVVHV3URGXFW \R\EDVLVWR`FURUH 86ELOOLRQ IURP`
SULFHVZHUHOHGE\\R\LQFUHDVHLQDYHUDJH%UHQWRLO FURUHLQWKHSUHYLRXV\HDU3URƬWDIWHUWD[ZDVKLJKHUE\
SULFHWR86EEOIRUWKH\HDU5HOLDQFHpVFRQVROLGDWHG 20.6% at `FURUH 86ELOOLRQ DVDJDLQVW`
revenue was also boosted by robust growth in Retail and crore in the previous year. Higher interest and depreciation
Digital Services business. Reliance Retail recorded a 104.9% charges with the commissioning of projects across
increase in revenue to `FURUH'LJLWDO6HUYLFHV businesses resulted in relatively lower growth in
business recorded revenue of `FURUHLQLWVYHU\ƬUVW SURƬWDIWHUWD[
year of commercial operations.
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 47

• Revenue from the 5HƬQLQJDQG0DUNHWLQJVHJPHQW RQDFFRXQWRIFRPPHQFHPHQWRI'LJLWDO6HUYLFHVEXVLQHVV


LQFUHDVHGE\\R\WR`FURUH 86ELOOLRQ  Petrochemical projects at Jamnagar and higher loan balances.
LQFOXGLQJLQWHUVHJPHQWVWUDQVIHUVSULPDULO\RQDFFRXQWRI
KLJKHUFUXGHSULFHVGXULQJWKH\HDU6HJPHQW(%,7LQFUHDVHG Depreciation (including depletion and amortisation)
by 3.2% to a record level of `FURUH 86ELOOLRQ  was higher by 43.4% to `FURUH 86ELOOLRQ DV
VXSSRUWHGE\KLJKHU*URVV5HƬQLQJ0DUJLQV *50 *50 compared to `FURUHLQWKHSUHYLRXV\HDUSULPDULO\
IRUWKH\HDUZDVDWD\HDUKLJKRI86EEODVDJDLQVW on account commencement of wireless service business
86EEOLQWKHSUHYLRXV\HDU5,/pV*50RXWSHUIRUPHG LQ5HOLDQFH-LR+LJKHUGHSUHFLDWLRQDOVRUHƮHFWHGWKH
6LQJDSRUHFRPSOH[PDUJLQVE\86EEO$VDWWKHHQGRI capitalisation of new projects in the petrochemicals
WKH\HDU5,/RSHUDWHGSHWUROHXPUHWDLORXWOHWVLQWKH business and reduction in reserve estimates in
FRXQWU\5,/pVVXSHULRUUHWDLOSURSRVLWLRQUHƮHFWVLQWKHKLJKHU GRPHVWLF([SORUDWLRQ 3URGXFWLRQEXVLQHVV
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• Revenue from the Petrochemicals segment increased by 3URƬWDIWHUWD[ was higher by 20.6% at `FURUH 86
\R\WR`FURUH 86ELOOLRQ LQFOXGLQJ billion) as against `FURUHLQWKHSUHYLRXV\HDU
LQWHUVHJPHQWVWUDQVIHUVSULPDULO\GXHWRKLJKHUYROXPHV
IURPQHZ3DUD[\OHQH52*&DQGLWVGRZQVWUHDPXQLWV 3( Basic earnings per share (EPS) for the year ended 31st March
DQG0(* 3HWURFKHPLFDOVVHJPHQW(%,7LQFUHDVHGVKDUSO\ 2018 was at `60.9* as against `101.3 in previous year.
by 63.0% to its highest ever level of `FURUH 86
billion). Earnings was supported by favourable product deltas The Board of Directors of the Company has recommended
DFURVVLQWHJUDWHGSRO\HVWHUFKDLQ33DQG39&DORQJZLWK dividend of `SHUIXOO\SDLGXSHTXLW\VKDUHRI`
YROXPHJURZWK(%,7PDUJLQZDVKLJKHUE\QHDUO\ESVWR HDFKDJJUHJDWLQJ`FURUH 86PLOOLRQ LQFOXGLQJ
UHƮHFWLQJ5,/pVVWUHQJWKHQHGFRVWSRVLWLRQVDFURVV dividend distribution tax.
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• Revenue from the Oil and Gas segment increased by Reliance’s Ƭ[HGDVVHWV(excluding goodwill) stood at
\R\WR`FURUH 86ELOOLRQ LQFOXGLQJLQWHU `FURUH 86ELOOLRQ DVRQst0DUFK
segments transfers. The marginal rise in revenue is due to 7KLVLQFOXGHVƬ[HGDVVHWVRI`FURUHRILWV
UDPSXSLQ&%0RSHUDWLRQVDQGEHWWHUSULFHUHDOLVDWLRQV VXEVLGLDULHVPDLQO\LQ5HOLDQFH-LR5HOLDQFH+ROGLQJ86$DQG
LQ86VKDOHRSHUDWLRQV9ROXPHVIURPFRQYHQWLRQDOƬHOGV Reliance Retail.
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VORZGRZQLQGHYHORSPHQWDFWLYLW\6HJPHQW(%,7ZDVDW Capital expenditure for the year ended 31st0DUFK
`  FURUHDVDJDLQVW`  FURUHLQWKHSUHYLRXV\HDU was `FURUH 86ELOOLRQ LQFOXGLQJH[FKDQJHUDWH
)RUWKH\HDUGRPHVWLFSURGXFWLRQ 5,/VKDUH ZDVDW GLƪHUHQFH&DSLWDOH[SHQGLWXUHZDVSULQFLSDOO\RQDFFRXQWRI
BCFHGRZQ\R\DQGLQ866KDOH 5,/VKDUH EXVLQHVV WKH'LJLWDO6HUYLFHVEXVLQHVVSURMHFWVLQWKHSHWURFKHPLFDOV
was 139.7 BCFHGRZQ\R\EDVLV DQGUHƬQLQJEXVLQHVVDQGLQWKH2UJDQLVHG5HWDLOEXVLQHVV
• Revenue from the Organised Retail business grew by
\R\WR`FURUHIURP`FURUHLQWKH Reliance’s gross debt was at `FURUH 86
SUHYLRXV\HDU5HOLDQFH5HWDLOKDVEHFRPHWKHƬUVWUHWDLOHU billion). This includes standalone gross debt of `
LQ,QGLDWRFURVVWKH86ELOOLRQUHYHQXHPLOHVWRQH5HWDLO FURUHDQGEDODQFHLQNH\VXEVLGLDULHVLQFOXGLQJ5HOLDQFH
EXVLQHVV3%',7JUHZVKDUSO\E\WR`FURUHIRU Jio (`FURUH 5HOLDQFH+ROGLQJ86$ `FURUH 
WKH\HDU5HWDLOVHJPHQW(%,7LQFUHDVHGE\WR` Reliance Retail Group (`FURUH 5HFURQ0DOD\VLD `
IRUWKH\HDU(%,7PDUJLQVIRUVHJPHQWH[SDQGHGE\ESV FURUH 5HOLDQFH*DV3LSHOLQHV/LPLWHG `FURUH DQG
to 3.0% during the year. ,QGHSHQGHQW0HGLD7UXVW*URXS `FURUH 
• ,QLWVYHU\ƬUVW\HDURIFRPPHUFLDORSHUDWLRQVDigital
Services business recorded revenues of `FURUHZLWK Cash and marketable securities were at `FURUH
\HDUHQGVXEVFULEHUVEDVHDWPLOOLRQ5HOLDQFH-LR 86ELOOLRQ UHVXOWLQJLQQHWGHEWDW`FURUH
UHSRUWHGVWURQJƬQDQFLDOSHUIRUPDQFHIRUWKH\HDUGHVSLWH 86ELOOLRQ 
FRPSHWLWLYHSUHVVXUHV6HJPHQW(%,7ZDVDW`FURUH
IRUWKH\HDUZLWK(%,7PDUJLQRI 5,/pVstandalone revenue from operationsIRU)<
was `FURUH 86ELOOLRQ DQLQFUHDVHRI
Other income was lower at `FURUH 86ELOOLRQ 
RQ\R\EDVLV6WDQGDORQHSURƬWDIWHUWD[ZDVDW`
as against `FURUHLQWKHSUHYLRXV\HDUSULPDULO\RQ
FURUH 86ELOOLRQ DQLQFUHDVHRIDJDLQVW`
account of adverse yield movement.
crore in the previous year. Basic EPS on standalone basis for
the year was `53.1* as against `96.9 in the previous year.
Finance cost was at `FURUH 86ELOOLRQ DVDJDLQVW
`FURUHLQWKHSUHYLRXV\HDU7KHLQFUHDVHZDVSULPDULO\
* Pursuant to issue of bonus shares during the year in the ratio of 1:1
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

48 Reliance Industries Limited • Making Life Better. For Everyone.

5HƬQLQJDQG0DUNHWLQJ 5 0

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US$11.6/bbl.

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is among the largest and DQGSURFHVVGLƪHUHQW and logistics infrastructure GHERWWOHQHFNLQJFDSDFLW\
PRVWFRPSOH[UHƬQLQJ qualities of crude while availability allows crude HQKDQFHPHQWHQHUJ\
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capacity for processing 1.24 VSHFLƬFDWLRQV With inherent design quality improvement to
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by several notches with The commissioning of ROGC North American crudes. facility to export high value
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complexity provides it the ZLWKSHWURFKHPLFDOHQDEOLQJ
ability to take advantage of higher value addition.
opportunities arising out of
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 49

Hital R. Meswani C Borar Srinivas P. Raghavendran Harish Mehta Surinder Saini


Tuttagunta

5HVSRQVLYHQHVVWRFKDQJLQJPDUNHWG\QDPLFVFRQWLQXHVWRSURYLGH5,/DQHGJHLQFUXGHVRXUFLQJDQGSURGXFW
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Deepening integration post commissioning of paraxylene and ROGC facilities further improved petrochemicals
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Logistics and Market access and Petrochemical


supply-chain responsiveness Intensity

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advantage with proximity to key PDUNHWUHDFKE\ƬQGLQJQHZVLQNVIRU ƬQDOSKDVHRI3DUD[\OHQHFRPSOH[
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road loading facilities and pipeline broad coverage for crude supplies and IXUWKHUYDOXHDGGHGWR0(*/'3(
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evacuation. Marine facility comprising Ashkelon and Singapore locations allow
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infrastructure enables berthing of wide to consumption hubs and improve
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movement of products to the
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costs through opportunistic use of
time charters.
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

50 Reliance Industries Limited • Making Life Better. For Everyone.

Market Environment Asian Cracks


Q1 Q2 Q3 Q4
FY FY
Robust oil demand growth enabling market US$/bbl 2017-18 2016-17
re-balancing and supporting prices Naphtha   3.0  0.3 0.1
Global oil demand growth at 1.6 mb/d in CY 2017 remained Gasoline 14.2 16.1 14.4 13.7 14.6 13.9
VWURQJDVFRPSDUHGWRWKH\HDUDYHUDJHJURZWKRI Jet 10.8 13.2 13.3 16.1 13.3 11.5
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Non-OPEC gains market share
witnessed in relatively mature markets of OECD countries
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at 0.5 mb/d. Oil demand growth was distributed across
contracted by 0.4 mb/d as a result of adherence to the supply
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subdued demand. Demand growth for diesel got strong
as well as sharp production declines in Venezuela. Saudi
support from broad based economic growth across
Arabia shouldered a majority of the agreed cuts reducing its
the globe.
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production cut agreement.
IRUFORVHWRWZRWKLUGRIWKHJOREDORLOGHPDQGJURZWK
Chinese oil demand growth more than doubled to 0.6 mb/d
1RQ23(&VXSSOLHVURVHE\PEGLQ&<DIWHUIDOOLQJ
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growth was supported despite a slow down in the growth of
Canada grew by 1 mb/d in CY 2017 as crude price recovered
conventional vehicle sales and rising penetration of hybrids
DQG86VKDOHRLOSURGXFWLRQJURZWKUHWXUQHGDIWHUSRVWLQJD
and electric vehicles. Diesel demand rebounded in 2017 after
decline in CY 2016.
a contraction in 2016 on the back of economic recovery as
well as improving mining activity.
Receding Inventory Lift up Prices
%UHQWFUXGHRLOSULFHVDYHUDJHG86EEOLQ)<
'XULQJ)<RLOGHPDQGZDVDOVRƬUPLQ,QGLDOHGE\
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than the oil demand growth for the second consecutive year.
This led to the drawdown of crude and product inventories in
2(&'FRXQWULHVZLWKVWRFNVLQWKHVHFRXQWULHVUHFHGLQJWR
their lowest levels in last two years.

Oil Prices
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Integrated Annual Report 2017–18 Management’s Discussion and Analysis 51

%HQFKPDUN5HƬQLQJ0DUJLQV*DLQHGRQ6WURQJHU Fuel oil


Middle Distillate Crack Fuel oil demand declined in CY 2017 after growing for the
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GHPDQGJURZWKOHGWRUHƬQHULHVUXQQLQJDWKLJKXWLOLVDWLRQ EXQNHUIXHOVHJPHQWUHPDLQHGƬUP+RZHYHUGHPDQGIURP
OHYHOVJOREDOO\*OREDOUHƬQHU\XWLOLVDWLRQUHPDLQHGKLJKDW the power sector was impacted by natural gas substitution
LQ&<DVFRPSDUHGWRD\HDUDYHUDJHRI in the Middle East/West Asia and North Africa during the
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outages in Americas and strength in transportation XWLOLVDWLRQDQGVLPSOHUHƬQHULHVXSJUDGDWLRQHVSHFLDOO\LQ
fuel cracks. 5XVVLDVXSSRUWHGPDUJLQV)XHORLOFUDFNVDOVRVWUHQJWKHQHG
owing to OPEC oil output cut which is targeted mainly
Light distillates towards medium and heavy crude grades.
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18 supported by steady demand growth across regions. *OREDOUHƬQLQJHQYLURQPHQWVXSSRUWLYH
Rising crude prices seemed to have an impact on demand Global oil demand is expected to grow by 1.4 mb/d in
LQWKH86WKHODUJHVWJDVROLQHPDUNHWLQWKHZRUOGZKHUH CY 2018 supported by improved global economic outlook
GHPDQGZDVODUJHO\ƮDW\R\DIWHUVWURQJJURZWKLQWKHSDVW and strong petrochemical feedstock demand. Higher crude
\HDUV*URZWKLQ&KLQDDQG,QGLDUHPDLQHGVWDEOH oil production from North America as well as spare capacity
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in the production curtailment agreement is expected to
(Venezuela and Mexico) as a result of disruptions at domestic
help meet demand growth and limit sharp increase in oil
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hurricane Harvey supported cracks.
better global economic outlook. Gasoline demand growth is
Car sales (conventional) growth in China expected to be supported by growing demand
slowed down in CY 2017 as a result of in emerging markets aided by rising incomes.
*RYHUQPHQWpVSXVKWRSURPRWHQHZHQHUJ\ *OREDOUHƬQHU\XWLOLVDWLRQLVH[SHFWHGWRVWD\
vehicles (hybrid and electric vehicles) to curb KLJKVXSSRUWLQJSURGXFWFUDFNVLQ&<
pollution. Gasoline demand however grew by with oil demand growth expected to outpace
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of 11.6/bbl
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benchmarks
product demand and favourable naphtha
5,/DFKLHYHGGRXEOHGLJLW*50IRUWKHWKLUG\HDULQDURZ
cracking economics with narrower spread between
$W86EEOUHƬQLQJPDUJLQZDVDWD\HDUKLJK5,/
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Middle distillates
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robust risk management and higher secondary unit
previous year on the back of broad based global economic
throughputs. Better performance against benchmarks
recovery supporting strong demand growth. Middle distillate
ZDVXQGHUSLQQHGE\5,/pVDELOLW\WRRSWLPLVHSURGXFW\LHOGV
demand growth accounted for close to half of the oil product
expand product reach based on market movement and
demand growth globally. This was supported by recovery
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North America.
structurally growing demand in emerging economies of Asia.
Gasoil demand in China grew by 2% in CY 2017 recovering
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from a 4% contraction in the previous year. Demand growth
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as compared to 3% growth in the previous year.
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Jet fuel demand growth remained strong aided by robust $PHULFDQ3HWUROHXP,QVWLWXWH $3, JUDYLW\DVORZDV 0.
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Corporate Overview Management Review 41-179 Governance Financial Statements Notice

52 Reliance Industries Limited • Making Life Better. For Everyone.

5HƬQLQJ0DUJLQVYLV¹YLVJOREDOEHQFKPDUNV KLJKEDVHWKHUHKDVEHHQJURZWKLQGLHVHOFRQVXPSWLRQ
Regional Margins which has allayed some concerns pertaining to impact of
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companies and private players continue to expand their
network presence.
Financial and operational performance
Financial Performance*
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FY 2017-18 FY 2017-18 FY 2016-17 % expected due to the ambitious Bharatmala and Sagarmala
(` in crore) (US$ in billion) (` in crore) Change Pariyojana. Former plans to join 550 district headquarters
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throughput of double the industry average during
the year.
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resulted in industry leading outlet throughput.

a) Operating strategy and value proposition


Export Captive Domestic  5,/FRQWLQXHVWRVHUYHLWVIDPLO\RIVDWLVƬHGFXVWRPHUV
with a unique Quality and Quantity fuelling experience
delivered through stringent quality checks at various
Domestic Marketing
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Market Environment
through the entire length of the primary and secondary
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supply chain to the Retail Outlets. This was validated
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continues to grow across product categories with increased
by a special task force.
accessibility due to better network penetration and growing
disposable income.
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Integrated Annual Report 2017–18 Management’s Discussion and Analysis 53

with right channel partners and personnel ensures


consistent delivery of superior customer experience.

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and NBFC segment to build customised operating
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major banks has vastly improved customer convenience.

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with millions of consumers.

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 %
 \LQWURGXFLQJPRELOHEDVHGDSSOLFDWLRQV5,/KDV sales volumes.
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customers are empowered with the convenience of Aviation Turbine Fuel ($7)ǡ
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proposition has also been integrated with Jio Payment RISDVVHQJHUYROXPHVJURZWKUDWHRILQ,QGLD
*DWHZD\SURYLGLQJFXVWRPHUVWKHƮH[LELOLW\RI; continues to be the world’s fastest growing domestic
IXQGVWUDQVIHUIRUORDGLQJWKHLUƮHHWDFFRXQW aviation market for the 3rd consecutive year. Demand for
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 LWKGLJLWLVDWLRQJDLQLQJWUDFWLRQWKHƮHHWPDQDJHPHQW
SURJUDPLVHPEDUNLQJRQWKH9LUWXDO&DUGIHDWXUH %RRVWHGE\WKH8'$1 8GH'HVKND$DP1DDJULN t5HJLRQDO
E\OLQNLQJWKHFDUGZLWKRZQHUGULYHUPRELOHQXPEHU &RQQHFWLYLW\6FKHPH 5&6 WRPDNHƮ\LQJDƪRUGDEOHWRWKH
enabling quicker transactions. PDVVHV*RYHUQPHQWRI,QGLDKDVDGGHGQHZDLUSRUWV
in addition to the existing 75 scheduled airports across
HSD – Direct WKHFRXQWU\RYHUODVWWZR\HDUV*URZLQJWUDƯFIURPWKLV
'HVSLWHJURZLQJHOHFWULƬFDWLRQLQUDLOZD\VDQGLQGXVWULDO QHWZRUNZLOOVXVWDLQWKHUREXVWJURZWKLQ,QGLDQDYLDWLRQIXHO
VHJPHQW%XON'LHVHOPDUNHWVKDUHLQFUHDVHG\R\E\ GHPDQGLQWKHPHGLXPWHUP
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YROXPHJURZWKRIGHVSLWHGLƯFXOWPDUNHWFRQGLWLRQV :LWKQHWZRUNSUHVHQFHDFURVVORFDWLRQV5,/FRQWLQXHVWR
and competition led margin pressure. EHDNH\SOD\HULQWKH$7)EXVLQHVVRƪHULQJLQQRYDWLYH
HQGWRHQGVROXWLRQVWRLWVFXVWRPHUVWREULQJLQVDYLQJV
On account of superior technology and better service in fuel costs apart from ensuring best in class service
VWDQGDUGV5,/KDVEHFRPHRQHRIWKHSULRULW\VXSSOLHUIRU VWDQGDUGV5,/KDVWKHKLJKHVWPDUNHWVKDUHDWRIWKH
WKH,QGLDQ5DLOZD\V%DVHGRQVDIHW\DQGDXGLWUHYLHZV,QGLDQ airports it operates in.
5DLOZD\VKDVDZDUGHG5,/PXOWLSOHq/HWWHURI$SSUHFLDWLRQr
from across regions. 7RVWUHQJWKHQQHWZRUNSUHVHQFHDQGRƪHUPRUHFKRLFHVWR
FXVWRPHUV5,/LVFRQVWUXFWLQJQHZ$YLDWLRQ)XHO6WDWLRQV
,QFUHDVHGVHFWRUDOIRFXVLQƬVKHULHVLQIUDVWUXFWXUHDQG6WHHO (AFS) and working on adding another 10 locations in the
&RDO0LQHV 6&0 DQGHQKDQFHGFRYHUDJHLQ(DVWHUQDQG near term.
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

54 Reliance Industries Limited • Making Life Better. For Everyone.

,PSDFWLQJFXVWRPHUVZLWKDGLƪHUHQFH
Title 5HLQIRUFLQJ4XDOLW\ 4XDQWLW\DVVXUDQFHIRUWKH Engagement with customer
customer
Truck Drivers Airlines

Action • /RZHUFXVWRPHUWUXVWRQDFFRXQWRI • RIKLJKZD\VDOHVDUH • *LYLQJ(QGWRHQG


malpractices reported in retail outlets of most through drivers infrastructure solutions to get
of the competitors • 5,/ODXQFKLQJXQLƬHG the product from overseas
• Addressed by launching communication loyalty programme across terminal into aircraft
FDPSDLJQ RQJURXQGRQOLQH RQDLU DVo'HVK ,QGLDOHYHUDJLQJLQKRXVH • Helping airlines rationalize their
Ka Sacha Pump’ VWUHQJWKVRI-LR5HWDLO largest cost component
• /HYHUDJHGEHLQJWKH2QO\20&ZLWK $3OD]D RWKHUV
manual intervention proof pump

Outcome Enhanced customer trust and reinforced belief in 'LƪHUHQWLDWHGFXVWRPHUHQJDJHPHQWOHDGLQJWRKLJKHUFXVWRPHU


RXUFRUHYDOXHSURSRVLWLRQRI4 4GHOLYHU\ UHWHQWLRQUHƮHFWHGLQLQFUHDVHGVDOHV

Capex and Growth Plan


3HWFRNH*DVLƬFDWLRQ
7KH-DPQDJDU3HWFRNH*DVLƬFDWLRQLVRQHRIODUJHVWo&OHDQ XQORFNWKHHWKDQHDQGHWK\OHQHSRWHQWLDOLQWKHUHƬQHU\
)XHOpSURMHFWVLQWKHZRUOG3HWFRNHJDVLƬFDWLRQXSJUDGHV RƪJDVIRUPD[LPXPYDOXHDGGLWLRQWRSHWURFKHPLFDOVYLD
SHWFRNHDORZYDOXHUHƬQHU\UHVLGXHLQWRFOHDQV\QJDVWR WKH52*&3HWFRNHJDVLƬFDWLRQHQDEOHVLQGLUHFWq3HW
VXEVWLWXWHKLJKFRVW/1*LPSRUWV7KLVZLOOKHOSLQUHGXFLQJ FRNHWR(WK\OHQHrIRUFRVWFRPSHWLWLYHq0DNHLQ,QGLDr
WKHLPSDFWRI/1*SULFHYRODWLOLW\7KHSHWFRNHJDVLƬFDWLRQ petrochemicals.
SURMHFWVKDOOWUDQVIRUP-DPQDJDULQWRDXQLTXHqERWWRP
OHVVrUHƬQHU\ '7$*DVLƬFDWLRQKDVEHHQVWDUWHGDQGFXUUHQWO\XQGHU
VWDELOL]DWLRQDQGRSWLPL]DWLRQ6(=*DVLƬFDWLRQLVXQGHU
6\QJDVIURPSHWFRNHJDVLƬFDWLRQVKDOOEHFDSWLYHO\ FRPPLVVLRQLQJ7KH-DPQDJDUSHWFRNHJDVLƬFDWLRQLV
consumed for Hydrogen (H 2 FRJHQIXHODQGKHDWHUIXHODW projected to have a major impact on the Jamnagar complex
the Jamnagar complex. H2VKDOOEHXVHGLQK\GURSURFHVVLQJ RSHUDWLRQVLQ)<
XQLWVWRJHQHUDWHFOHDQIXHOVRIJDVROLQHDQGGLHVHO6\QJDV
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6\QJDVDVKHDWHUIXHOYLD6\QWKHWLF1DWXUDO*DV 61* VKDOO
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 55

Organisation agility to respond swiftly


Change in Law Emission standards Enhancing customer experience

• 8VDJHRIKLJKVXOSKXUIXUQDFHRLO • /DWHQWGHPDQGIRU'LHVHO • Addressing poor buying experience due to hassle


banned in Delhi ([KDXVW)OXLG '() LQ,QGLDSRVW of switching through multiple mode of payments
• 5,/UHVSRQGHGZLWKGHYHORSLQJQHZ LPSOHPHQWDWLRQRI%69,HPLVVLRQ • ,QFRUSRUDWHGXQLTXHLQWHJUDWHGV\VWHPWRVHOHFW
VWDQGDUGIXHO /6+6 norms for HCVs PXOWLSOHSD\PHQWRSWLRQVOLNHFUHGLWFDUGGHELW
• ,PPHGLDWHODXQFKHQVXUHGQRORVVWR • 5,/ODXQFKHGƬUVWQRQ2(0 FDUG83,ZDOOHWVDQG%KDUDW45FRGH
customer operation QRQ368RUJDQLVHGRƪHULQJRI'()
LQ,QGLD

/HYHUDJLQJEHWWHUUHVSRQVLYHQHVVWRFKDQJHIRUGHOLYHULQJKLJKHUYDOXHWRWKH ,PSURYHGFXVWRPHUH[SHULHQFHDQGFHPHQWHG5,/pV
customer pioneer position in technology

Business Stewardship
7KH5,/UHƬQHULHVDUHEXLOWNHHSLQJWKHSULQFLSOHRI
responsible use of resources in mind. The Jamnagar
supersite is designed to achieve zero freshwater withdrawal
E\LPSOHPHQWLQJGHVLJQHƯFLHQF\6HFRQGO\5,/HQVXUHV
productive employment for villagers residing around the
UHƬQHU\VLWHV$GGLWLRQDOO\5HOLDQFHHQFRXUDJHVHPSOR\HHV
to volunteer for social causes.

)RUDPRUHKROLVWLFYLHZRI&65DFWLYLWLHVSOHDVHUHIHUWRWKH
Report on Corporate Social Responsibility.
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

56 Reliance Industries Limited • Making Life Better. For Everyone.

Petrochemicals

q5,/DFKLHYHGUHFRUG(%,7RI`FURUH XS\R\ DQGUHFRUG


SURGXFWLRQRI007LQWKH3HWURFKHPLFDOV6HJPHQWIRUWKH\HDUHYHQ
though the global petrochemicals industry continues to face a highly
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Reliance progressed rapidly on initiatives to enhance petrochemical
capacities, strengthen integration, improve feedstock security and
bolster sustainability.

Entered into Advanced


`21,179 crore 0DWHULDOV &RPSRVLWHV
Petrochemical EBIT was at a Working on incorporating nanomaterials
record level in FY 2017-18 and composites

Strategic advantages and competitive strength

Global Flexibility and Leadership


Scale Integration

• Global scale and capacities across • ,QWHJUDWHG5HƬQLQJDQG • Relentless focus on safety and
petrochemicals petrochemicals portfolio continuous improvement
• 0DQXIDFWXULQJ/RFDWLRQVLQ,QGLD • 'LYHUVLƬHGIHHGVWRFNVODWHZLWKERWK • Technical leadership while maintaining
and 3 in Malaysia naphtha and gas based crackers FRVWHƯFLHQFLHVDQGUHVSRQVLEOHDQG
disciplined operations
• Ethane imports from North America • Enhanced capabilities to crack propane
WKURXJK9/(&V through ROGC project
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 57

Nikhil R. Meswani Vipul Shah Paramjit Singh

5,/pV(WKDQHLPSRUWSURMHFWLVQRZEHLQJVXSSRUWHGE\DIXOO\RSHUDWLRQDOƮHHWRI9HU\/DUJH(WKDQH&DUULHUV
9/(& DQGFUDFNHUVKDYHVWDUWHGUHFHLYLQJVKLSPHQWVRI(WKDQHIURP86$7KHLQVWDOODWLRQRI5HƬQHU\2ƪ*DV
Cracker (ROGC) and downstream projects at Jamnagar have been completed successfully during the year and
SODQWVDUHRSHUDWLQJDWGHVLJQHGFDSDFLWLHV)<ZLOOUHƮHFWIXOOLPSDFWRIDOOQHZLQLWLDWLYHVDQGRUJDQLF
expansions are poised to drive sustainable earnings growth.

&RQWLQXLQJWRDXJPHQWLWVFXVWRPHUFHQWULFLW\DQGFRQVXPHURULHQWDWLRQ3HWURFKHPLFDOVEXVLQHVVKDV
progressed further on the expression of ‘Chemistry for Smiles’. Reliance has created R|Elan™ – a portfolio of
VSHFLDOW\IDEULFVDSHUIHFWEOHQGRIoDUWpDQGoVPDUWp5HOLDQFHLVGHYHORSLQJQHZOLQHVRIEXVLQHVVLQWKH$GYDQFHG
0DWHULDOV &RPSRVLWHVDQGWKHFDSDELOLWLHVWRGHVLJQDQGSULQWDZLGHUDQJHRISURGXFWVXVLQJ'3ULQWLQJ
technology.

7RPLQLPLVHDQ\LPSDFWRQHQYLURQPHQW5HOLDQFHGHSOR\VZRUOGFODVVWHFKQRORJLHVDFURVVDOOVLWHVWRUHGXFHIUHVK
ZDWHUFRQVXPSWLRQSHUXQLWRISURGXFWLRQE\PD[LPLVLQJZDVWHZDWHUUHF\FOHDQGPLQLPLVLQJH[WHUQDOGLVFKDUJHr

Market Environment
)<ZLWQHVVHGVWURQJUHFRYHU\LQJOREDOHQHUJ\ 86KDVVWDUWHG007$QHZFDSDFLWLHVLQZLWKD
SULFHVZKLFKZDVPLUURUHGLQSHWURFKHPLFDOIHHGVWRFN IHZFUDFNHUVGHOD\LQJVWDUWXSGXHWRKXUULFDQH+DUYH\
and product prices. Healthy supply demand fundamentals Approximately 6 MMTA new capacities are expected to
bolstered petrochemicals operating environment and start in 2018 followed by another 2 MMTA in 2019. Additional
resulted in strong petrochemicals margins. FDSDFLWLHVLQ86DUHEDVHGRQORZFRVWHWKDQHIURPVKDOHJDV
production and are likely to impact ethylene price dynamics.
2OHƬQVDQG3RO\PHUV
*OREDOGHPDQGIRUHWK\OHQHLQFUHDVHGE\\R\WR The high incremental demand of propylene from
PLOOLRQWRQQH 007 LQ*OREDOHWK\OHQHRSHUDWLQJUDWHV GRZQVWUHDPGHULYDWLYHFDSDFLWLHVLQ$VLDUHVXOWHGLQƬUP
ZKLFKDUHLQGLFDWLYHRIWKHPDUJLQHQYLURQPHQWZHUHƮDW Polypropylene (PP) prices during the year. The demand for
during 2017 but witnessed sustainable operation above the propylene increased by 4.2 MMT in 2017 from the previous
ƬYH\HDUDYHUDJHRI2SHUDWLQJUDWHVDUHH[SHFWHGWR \HDUZKLOHVXSSO\JDLQHGDSSUR[007DVFRPSDUHGWRWKH
GLSPDUJLQDOO\LQDVQHZFDSDFLWLHVLQWKH86 SUHYLRXV\HDU$GGLWLRQRI007$QHZJOREDOFDSDFLWLHV
come online. in 2018 is expected to strengthen supply fundamentals in
WKHQHDUWHUP0DMRUFDSDFLW\DGGLWLRQVLQ1RUWKHDVW$VLD
Global Ethylene Supply/Demand 2017 LVIURPRQSXUSRVHXQLWV:LWKVWULQJHQWHQYLURQPHQWDO
Production by feedstock Demand by end use restrictions in China and rising crude and feedstock prices
Production : 153 MMT Demand : 153 MMT IRU&RDODQG0HWKDQROWR2OHƬQV &72072 DQG3URSDQH
Naphtha 41% Polyethylene 62% 'H+\GURJHQDWLRQ 3'+ WKHRSHUDWLRQVRIVXFKXQLWVDUH
Ethane 38% Ethylene Oxide 15% H[SHFWHGWRYDU\GHSHQGLQJXSRQHFRQRPLFYLDELOLW\2Q
Propane 9% (WK\OHQH'L&KORULGH 9% purpose propylene units are expected to remain marginal
Butane 5% Ethyl Benzene 6% FRQWULEXWRUVWRIXOƬOOUHJLRQDOGHPDQG
Others 7% Others 8%
Source: IHS Markit
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

58 Reliance Industries Limited • Making Life Better. For Everyone.

Making Life Better for Everyone by Harnessing the Power of Chemistry


,QWHJUDWLRQZLWKUHƬQHU\ ZLWKLQSRO\PHUDQGSRO\HVWHUFKDLQ
• ,QWHJUDWLRQZLWKUHƬQHU\DQGGRZQVWUHDPSHWURFKHPLFDOSURGXFWV
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• )HHGVWRFNRSWLPLVDWLRQWKURXJK52*&DW-DPQDJDUFRQƬJXUHGWRFUDFNUHƬQHU\RƪJDVHVDQGHYHQSURSDQH
• 8QGHU(WKDQH3URMHFWFUHDWHGDYLUWXDOSLSHOLQHIRUHWKDQHIURP86$YLD9/(&V

Fibre
Name 2OHƬQ Polymers Polyesters Elastomers
Intermediates

Description 8QVDWXUDWHGRSHQ /DUJHPROHFXOHZLWK Synthetic Fibres Raw Material for polyester Polymers with rubber like
chain hydrocarbon repeating subunits and textile industries elasticity
5,/3RUWIROLR (WK\OHQH 3RO\HWK\OHQH 3(  Polyester Filament Yarns 3XULƬHG7HUHSKWKDOLF$FLG 3RO\%XWDGLHQH5XEEHU
3URS\OHQH 3RO\SURS\OHQH 33  3)< 3RO\HVWHU6WDSOH 37$ 0RQRHWK\OHQH*O\FRO 3%5 6W\UHQH%XWDGLHQH
Butadiene Polyvinyl chloride )LEUHV 36) 3RO\HWK\OHQH 0(* 3DUD[\OHQH 3; Rubber (SBR)
(PVC) Terephthalate (PET)
Applications/ ,QGXVWULDO&KHPLFDOV &RQVWUXFWLRQ Textile / Apparel industries Polyester and textile Tyres and Automobile
Associated and Polymers $JULFXOWXUH and Beverages industries
,QGXVWULHV $XWRPRELOH
Consumer Goods
Capacities/ Global Feedstock for PE: 2.2MMTA/ 14th 3)< 36)007$nd PTA: 4.9MMTA/ 4th PBR: 120 KTA
Market Position petrochemical PP: 2.9 MMTA/ 5th PET: 1.13MMTA/ 7th MEG: 1.5MMTA/ 6th SBR: 150 KTA
products PVC: 0.7MMTA/ 16th PX: 4.2MMTA/ 2nd
Key Growth Drivers ,QFUHDVLQJ8UEDQLVDWLRQ &KDQJLQJ'HPRJUDSKLF0L[ _ +LJKHU'LVSRVDEOH,QFRPHV _ 5DSLG'LJLWLVDWLRQ
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New Growth Platforms Long Term Growth Initiatives

• Digitisation and automation initiatives to transform supply chain and • Developed capabilities to design and print a wide range of products via
deliver unparalleled customer experience at an unmatched cost basis 3D printing
• 8WLOLVLQJURERWLFVDQG$,LQSURGXFWKDQGOLQJZDUHKRXVLQJDQGLQYHQWRU\ • Block chain as a technology is currently being explored to enter into
management Smart contracts with customers and vendors
• Expanding portfolio to advanced materials and composites to diversify
5,/pVPDUNHWRƪHULQJVDQGPDNH5,/IXWXUHUHDG\

Strategic Advantages
Global Scale Flexibility and Integration Leadership
• Global scale and capacities across • ,QWHJUDWHG5HƬQLQJDQGSHWURFKHPLFDOVSRUWIROLR • Relentless focus on safety and continuous
petrochemicals • 'LYHUVLƬHGIHHGVWRFNVODWHZLWKERWKQDSKWKDDQG improvement
• 0DQXIDFWXULQJ/RFDWLRQVLQ,QGLD gas based crackers • Technical leadership while maintaining cost
and 3 in Malaysia • Enhanced capabilities to crack propane through HƯFLHQFLHVDQGUHVSRQVLEOHDQGGLVFLSOLQHG
• Ethane imports from North America ROGC project operations
WKURXJK9/(&V
New Product Development

Polymer Polyester Elastomer


• Reliance’s geotextile products being used in Reliance has created R|Elan™ – a portfolio of specialty Reliance is the only company in the world
stabilisation and ground improvement of road in IDEULFVDSHUIHFWEOHQGRIoDUWpDQGoVPDUWpWKDWSURYLGH RƪHULQJWKUHHGLƪHUHQWW\SHVRI+LJK&LV
GLƪHUHQWUHJLRQV VHYHUDODWWULEXWHVVXFKDVHQKDQFHGSHUIRUPDQFH Polybutadiene rubbers manufactured
• 0XOFKƬOPKDVEHHQXVHGIRUWRPDWRFXOWLYDWLRQLQ DHVWKHWLFVHQKDQFHGEUHDWKDELOLW\GU\IHHODQWLRGRXU XVLQJGLƪHUHQW=LHJOHU1DWWDFDWDO\VWV
7DPLO1DGXUHVXOWLQJLQEHWWHUJURZWKRISODQWV DQGKDYHH[FHOOHQWGUDSHKDQGIHHODQGDUHDPRQJPRVW &REDOW1LFNHODQG1HRG\PLXP
enhancing productivity HFRIULHQGO\IDEULFV
• Newly developed mulch for paddy can provide
better value addition for farmers
Digitisation RIL’s Sustainable Growth Approach

• &XVWRPHUHQJDJHPHQWDQGHPSRZHUPHQWWKURXJKH&50PRELOH • 2QHRIWKHODUJHVWUHF\FOHURI3(7ERWWOHVLQ,QGLD&RQYHUWVPRUHWKDQ
applications ELOOLRQSRVWFRQVXPHU3(7ERWWOHVSHU\HDU
• 'LJLWDOO\VLJQHGLQYRLFHVH32' (OHFWURQLF3URRIRI'HOLYHU\ DXWRVHUYLFH • Recron® GreenGold – Sustainable Fibres for cutting edge fashion
FHUWLƬFDWLRQIRUWUDQVSRUWHUV&UHGLWDQGGHELWQRWHVIRUFXVWRPHUVDQG LQFOXGLQJKRPHWH[WLOHVDWRQHRIWKHORZHVWFDUERQIRRWSULQWJOREDOO\
(OHFWURQLF'$7$,QWHUFKDQJH (', ZLWKVKLSSLQJOLQHV • RelWoodTMt5,/pVLQQRYDWLYHZRRGVXEVWLWXWHZLOOKHOSVDYHIRUHVWV
• $SSO\LQJ0DFKLQH/HDUQLQJVROXWLRQVWRƮHHWULVNPDQDJHPHQWIRU RƪHUVGXUDEOHZDWHUSURRIDQGVXVWDLQDEOHDOWHUQDWLYHWRQDWXUDOZRRG
enhanced distribution safety
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 59

*OREDO3RO\ROHƬQDQGPVC Demand Southeast Asia polymer margins


(In MMT) CY 2017 CY 2016 % growth (US$/MT) FY 2017-18 FY 2016-17
Polypropylene 70 66 6.1% +'3(1DSKWKD 668 721
Polyethylene 96 92 4.3% 333URS\OHQH 300 252
Poly Vinyl Chloride 43 41 4.9% 39&('&1DSKWKD 583 531
Ethylene 154 146 5.5% Source: Platts and ICIS
Propylene 106 101 5.0%
Source: IHS Markit Polymer margins continue to remain healthy during
)<RQDFFRXQWRIƬUPHQGSURGXFWSULFHVDQG
Global polymer market demand in 2017 was estimated at IDYRXUDEOHVXSSO\GHPDQGIXQGDPHQWDOV2QD\R\EDVLV
0073(DFFRXQWHGIRU33DQG39&RI PE margin corrected by 7% due to strengthening in crude
WKHPDUNHW7RWDOGHPDQGIRUSRO\PHUV 3(33DQG39&  and naphtha prices. PP margins were robust and improved
JUHZE\GXULQJGULYHQE\&KLQDDQG,QGLD/DVW E\\R\ZLWKVWURQJJURZWKLQGHPDQG39&FRQWLQXHV
year CAGR for global polymers demand has been 4.2%. The WRGHOLYHUKHDOWK\PDUJLQVVXSSRUWHGE\VRIW('&SULFHVLQ
global demand for these polymer products is estimated to the strong caustic price environment. Tight carbide based
JURZDWWKHVDPHSDFHRYHUSHULRG7KHUHFHQWEDQ PVC supply due to environmental regulation in China further
on import of recycled polymers imposed by the Chinese strengthened PVC price fundamentals. Rising trade tensions
Government is likely to increase the demand of virgin resin in EHWZHHQ86$DQG&KLQDFRXOGKDYHDQLPSDFWRQJOREDOWUDGH
the region. ƮRZVDQGUHJLRQDOSRO\PHUSULFHV

Price and Margin Environment Polyester and Fibre Intermediates


Polymer chain Polyester sector witnessed healthy recovery during the year
&UXGHRLOSULFHVWRXFKHGQHDU\HDUKLJKLQ-DQXDU\ as compared to the challenging market environment in the
ZLWKKHDOWK\GHPDQGJURZWKSURMHFWLRQKLJKHU SUHYLRXV\HDU,QWHJUDWHGSRO\HVWHUFKDLQPDUJLQVZHUHRQ
FRPSOLDQFHWR23(&OHGSURGXFWLRQFXWDQGJHRSROLWLFDO an uptrend through the year. Margins for the year improved
FRQFHUQV$YHUDJHQDSKWKDSULFHVLQ$VLDJDLQHGWUDFNLQJ DFURVVWKHSRO\HVWHUDQGLQWHUPHGLDWHVEXVLQHVVOHDGLQJWRD
strengthening of crude prices and healthy demand. Asian 5 year high chain margin across the polyester chain.
1DSKWKDSULFHVZHUHXSE\\R\LQ)<(WK\OHQH
SULFHVLQ$VLDVWUHQJWKHQHGE\\R\LQ)<GXHWR 5,/EHQHƬWWHGIURPLWVLQWHJUDWHGSUHVHQFHDFURVVWKH
ƬUPIHHGVWRFNSULFHV polyester chain. While margins shifted within the elements
RIWKHFKDLQZLWKDQRWDEOHXSWLFNLQ37$3;PDUJLQV
LQWHJUDWHGFKDLQPDUJLQVLPSURYHGVLJQLƬFDQWO\GXULQJ
the year. Capacity addition in upstream contributed to
improved integrated chain margins for Reliance with reduced
dependency on feedstock sourcing.

3RO\HVWHUƬEUHDQG\DUQPDUNHWVZHUHDEOHWRSDVVRQ
ƮXFWXDWLRQLQWKHXSVWUHDPPDUNHWVGXHWRORZLQYHQWRU\
levels and high operating rates. Polyester inventories in
&KLQDUHPDLQHGORZDIWHUWKHƬUVWTXDUWHUZKLFKVXSSRUWHG
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averaging higher volumes than the last two years. Global
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growth of 2.6 MMT.
China has in the past few years tightened environment
protection norms and enforced regulations to control
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imports of solid waste (including PET) from 2018. Recycled
PET is majorly used for producing PSF (Polyester Staple
)LEUH ZKLFKFRQVHTXHQWO\ZLWQHVVHGDVKDUSSULFHJDLQ
-DPQDJDU0DQXIDFWXULQJ'LYLVLRQ WRZDUGV4)<36)SULFHVWRXFKHG8607
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Corporate Overview Management Review 41-179 Governance Financial Statements Notice

60 Reliance Industries Limited • Making Life Better. For Everyone.

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&RWWRQWRSRO\HVWHUSULFHGLƪHUHQWLDOUHPDLQHG XSVSXVKHGXSGHPDQGIRU3;WRZDUGVWKHHQGRIWKH\HDU
KHDOWK\WRXFKLQJKLJKHVWOHYHOVVLQFHIDYRXULQJ supporting higher operating rates.
SRO\HVWHULQEOHQGLQJ*OREDOFRWWRQDFUHDJHLQ
$XJ-XO LVH[SHFWHGWRULVHDPLGVWLQFUHDVHGFRQVXPSWLRQ Elastomers
+RZHYHU,QGLDQFRWWRQSURGXFWLRQLVOLNHO\WREHLPSDFWHG Global Natural Rubber production witnessed growth
due to increasing pest issues. RI\R\WR007LQZKLOHGHPDQGJURZWK
ZDV\R\WR0077KHH[FHVVVXSSO\RIQDWXUDO
*OREDO3(7SULFHVIRUWKH\HDULQFUHDVHGE\\R\WR rubber weighed on price fundamentals during the year.
8607ZLWKWLJKWVXSSOLHVGXHWRFXUWDLOHGRXWSXW Environmental restriction in China led to reduction in
and good demand. Global PET demand remained healthy GRZQVWUHDPRSHUDWLRQRIHODVWRPHUVLQGXVWU\ZKLFK
DPLGVWƬUPEHYHUDJHFRQVXPSWLRQIURPPDMRUGHYHORSHG resulted in shortage of carbon black and limited
DQGHPHUJLQJHFRQRPLHV&<3(7FDSDFLW\LQFUHDVHG tyre production.
E\007\R\DJDLQVWDGHPDQGJURZWKRI007
KRZHYHUGLVUXSWLRQVLQIHZZHVWHUQFDSDFLWLHVUHVXOWHGLQ Global capacity of butadiene continues to remain stable at 15
tight markets. MMTA with average operating rate of around 77% in CY 2017.
The key application for butadiene is in the manufacturing
3RO\HVWHUDQGƬEUHLQWHUPHGLDWHVPDUJLQV of PBR and SBR. With more light feed crackers coming up
(US$/MT) FY 2017-18 FY 2016-17 PDLQO\LQWKH86WKHLQFUHPHQWDODYDLODELOLW\RI%XWDGLHQH
PX 346 383 is expected to be limited. The global capacity of PBR is 4.8
PTA 131 100 MMTA in 2017 with average utilisation rate of 70%. The global
MEG 538 428 capacity of SBR is 7.1 MMTA in 2017 with average utilisation
POY 282 248 rate of 67%.
PSF 201 143
PET 167 141 PBR and SBR demand are directly linked to growth in
the automobile and tyre sector. During CY 2017 global
Source: Platts, ICIS, CCF Group
passenger car production grew at 2.3% and commercial
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'XULQJWKH\HDU)LEUHLQWHUPHGLDWHVSULFHVZHUHODUJHO\ƬUP
operating rates of both PBR and SBR are expected to
supported by higher crude oil prices and strong downstream
improve in near future amid growing demand and limited
GHPDQG2QWKHVXSSO\VLGHGHOD\VLQWKHVWDUWXSRID
capacity addition.
FRXSOHRI37$SODQWVLQ&KLQDSODQWRXWDJHVDQGVKXWGRZQV
supported prices and margins. Both PTA and MEG markets
Domestic Scenario
faced tight inventory levels for a major part of the year.
Polymers
,QGLDQSRO\PHUVHFWRUZDVLPSDFWHGGXULQJWKHƬUVWKDOIRI
37$PDUJLQVLPSURYHGVLJQLƬFDQWO\GXULQJWKH\HDU
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encouraging restart of idled units and startup of new units
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during the year. CY 2017 witnessed demand growth of 3 MMT
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with capacity addition of 1.9 MMT.
'HPDQGJURZWKZDVGULYHQE\KLJKHUHFRQRPLFDFWLYLW\
ULVLQJGLVSRVDEOHLQFRPHOHYHOVLQFUHDVHGVSHQGLQJRQ
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infrastructure and uptrend in the packaging and automobiles
LQSULFHVDQG\R\LQPDUJLQV)LUPHWK\OHQHSULFHV
VHFWRU,QGLDLVDPRQJWKHZRUOGpVIDVWHVWJURZLQJSRO\PHU
VXSSRUWHGSRVLWLYHWUHQGVLQ0(*PDUNHWVZLWKSULFHV
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global capacity addition of 1 MMT was lower than demand
accounting for 11% of the Asian consumption.
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its new MEG capacity in Jamnagar. The new capacity is
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running at optimum throughput and the additional volume
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has been absorbed in domestic and export markets.
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applications and appliances. PE demand was higher by
PX market witnessed oversupply in the initial part of the
\R\RZLQJWRVWURQJRƪWDNHIURPƮH[LEOHSDFNDJLQJ
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moulded products (e.g. portable toilets – driven by “Swachh
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packaging sector. PVC demand recovered towards the end of
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WKH\HDUDQGSRVWHGDJURZWKRILQ)<
during the year. CY 2017 PX capacity increased by 3MMT and
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 61

Financial and Operational Performance Polyesters


Financial Performance )<SRO\HVWHUGHPDQGJURZWKUHPDLQHGPRGHUDWH
FY 2017-18 FY 2017-18 FY 2016-17 % ZLWK3(7  3RO\HVWHU)LODPHQW<DUQ  DQG3RO\HVWHU
(` in crore) (US$in Billion) (` in crore) Change 6WDSOH)LEUH  \R\'RPHVWLFFRWWRQSULFHVODUJHO\
Revenue  19.2  35.5 UHPDLQHGVWDEOH\R\RZLQJWRWLJKWDYDLODELOLW\ZKLFKZDV
(%,7  3.2  63.0 favorable for polyester blending.
(%,7  16.9% 14.0%
Polyester markets remain subdued due to introduction of
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demand and low operating rates. Demand revived post
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increase in imports due to higher GST rates on domestic
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production. Higher tax rates across the polyester chain also
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resulted in the shutdowns of textile units. Domestic markets
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were also impacted by the increase in imports of fabrics
to its highest ever level of `FURUH 86ELOOLRQ 
after the implementation of GST as almost all categories
Earnings was supported by favourable product deltas across
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LQWHJUDWHGSRO\HVWHUFKDLQ3339&DORQJZLWKWKHJURZWKLQ
duties on certain categories of fabrics and end products
YROXPHV(%,7PDUJLQZDVKLJKHUE\QHDUO\ESVWR
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UHƮHFWLQJ5,/pVVWUHQJWKHQHGFRVWSRVLWLRQVDFURVVSURGXFW
at a high level.
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0RUHRYHU3RO\HVWHULQGXVWU\KDVEHHQZLWQHVVLQJDJUDGXDO
Polymer Production
VKLIWLQWKHYDOXHFKDLQ1RZWKH3RO\HVWHULQGXVWU\G\QDPLFV
(Production in MMT) FY 2017-18 FY 2016-17 has shifted to ‘melt to PTY’ compared to earlier ‘melt to POY’
PP 2.8 2.7 as most of the PTY producers have backward integrated
PE 1.4 1.1 to POY.
PVC 0.7 0.7
Ethylene 2.6 1.8 PET demand remained largely stable over the previous
5,/PDQXIDFWXUHSRO\PHUSURGXFWVDFURVVVLWHVDQG year. Higher GST slabs on the carbonated drinks segment
VXSSOLHVSURGXFWVWRPRUHWKDQFRXQWULHV5,/PDLQWDLQHG DQGGLVUXSWLRQVLQ6RXWK,QGLDGDPSHQHGGHPDQGIURPWKH
WKHOHDGLQJSRVLWLRQLQWKH,QGLDQSRO\PHUPDUNHWZLWKD VHFWRU3(7YROXPHVIURP5,/pV'DKHMIDFLOLW\KDVIRXQGJRRG
share of 38%. acceptance in the international markets.

5,/LVWKHZRUOGpVƬIWKODUJHVWSURGXFHURI33'XULQJ Polyester and Intermediates Production


)<WKH&RPSDQ\SURGXFHG007RI33DQGKDVD
Indian operational performance
SUHHPLQHQWSRVLWLRQLQWKHGRPHVWLF33PDUNHW
Polyester production
with 50% share.
(Production in MMT) FY 2017-18 FY 2016-17
5,/VXFFHVVIXOO\FRPPLVVLRQHGWKH52*&SURMHFWDORQJ POY 0.8 0.8
ZLWKGRZQVWUHDPIDFLOLWLHV5,/pVWRWDOHWK\OHQHFDSDFLW\QRZ PSF 0.6 0.6
VWDQGVDW0073$3RVW52*&VWDUWXS5,/EHFDPHWKH PTY 0.3 0.3
14th largest global PE producer with capacity of 2.2 MMTA. PET 1.0 0.9
$OVR5,/EHFDPHWKHth and 11thODUJHVWSURGXFHUJOREDOO\ Fibre Intermediate Productions
IRU//'3(DQG/'3(UHVSHFWLYHO\7KHDGGLWLRQDOFDSDFLW\ (Production in MMT) FY 2017-18 FY 2016-17
KDVEHHQZHOODEVRUEHGE\WKHJURZLQJGHPDQGLQWKH,QGLDQ PX 3.7 2.3
PDUNHW5,/KDVDGRPHVWLFPDUNHWVKDUHRILQWKHRYHUDOO PTA 4.1 3.9
3(PDUNHW5,/LVWKHRQO\SURGXFHURI/'3(LQ,QGLDDQG MEG 1.2 0.7
witnessed a surge in market share from 35% to 53% post
Malaysian operational performance
commissioning of ROGC.
(Production in MMT) CY 2017 CY 2016
5,/pVWRWDO39&SURGXFWLRQZDVDW007DQGLWKDVD PTA 0.6 0.6
market share in the domestic market. POY 0.1 0.2
PSF 0.1 0.1
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FDY 0.1 0.1
PET 0.1 0.1
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

62 Reliance Industries Limited • Making Life Better. For Everyone.

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with focus on productivity improvement and niche markets. with demand of 313 KT during the year. Domestic capacity
Free Trade Agreements (FTAs) with Turkey and focus on IRUEXWDGLHQHLV.73$ZLWKSDUWRIWKHSURGXFWLRQ
domestic market opportunities helped place products FDWHULQJWRH[SRUWPDUNHWV3%5DQG6%5GHPDQGLQ,QGLD
at higher netbacks. Operations were streamlined during ZDVDURXQG.7DQG.7UHVSHFWLYHO\LQ)<
the year with emphasis on improving yields of high quality DQGLVOLNHO\WRJURZDWDQQXDOO\LQWKHPHGLXPWHUP
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PTA margins were supported by focus on reliability and QRQ7\UHVHFWRU
sustainability of PTA plant operations also helped improve
SURƬWDELOLW\ Elastomer / chemicals production:
(Production in MMT) FY 17-18 FY 16-17
Elastomers Butadiene 0.2 0.2
,QGLDQHODVWRPHUVVHFWRUZLWQHVVHGVORZRƪWDNHDWWKH PBR 0.1 0.1
beginning of the year owing to regulatory imposition of SBR 0.1 0.1
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Elastomers demand gradually improved post GST

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C3/ Reformate Petrochemicals
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propane Deliver a lasting value
proposition to customers
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Polymers Elastomers Polyesters
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process ,QWHJUDWHG6&0 CRM 5+5
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Robust product portfolio Diverse customer base  3$5&57&
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Integrated Annual Report 2017–18 Management’s Discussion and Analysis 63

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Beautiful outside
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functionality and fashion and straddle across all major
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wear and Women’s wear. R|Elan fabrics are currently placed
into three key buckets for apparel applications. They are
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R|Elan™ products will provide consumers next generation
fabrics which are in line with the latest fashion trends and
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Transforming Life to Quality Life – “Chemistry


for Smiles”
Reliance Petrochemicals constantly endeavors to harness
the power of Chemistry to enable products and services that
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that are in line with actual consumers latent and future
needs. Reliance refers to this journey as the ‘Chemistry for
Smiles’.

R|ELAN™ Recron® FS
• Portfolio of specialty fabrics with perfect • 0
 RGLƬHGSRO\HVWHUVZLWKHPEHGGHGƬUH
blend of ‘art’ and ‘smart’ retardant components
• (QKDQFHGSHUIRUPDQFHDHVWKHWLFV • (QJLQHHUHGWRSUHYHQWƬUHIURPVSUHDGLQJ
LQFUHDVHGEUHDWKDELOLW\GU\IHHODQWL • Enable weaving Smart Fabrics
odour with excellent drape and hand feel
• (FRIULHQGO\IDEULFV

RELX™ Advanced Solutions


• Material innovation • Developing new lines of business in the
advanced materials domain
• Advanced composites with the strength
for tomorrow’s applications • ,QFRUSRUDWLQJ'LPHQVLRQDODQG
nanomaterials like graphene to existing
• Creative innovation to make life more
portfolio of polymers
comfortable
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

64 Reliance Industries Limited • Making Life Better. For Everyone.

Advanced Material
Reliance is developing a new business vertical in ,QGLD5&6ZLOOGHYHORSWKHIXOOUDQJHRIFDSDELOLWLHVUDQJLQJ
WKH$GYDQFHG0DWHULDOVGRPDLQ7KHGLPHQVLRQDO IURPFRPSRVLWHSDUWGHVLJQUHVLQIRUPXODWLRQDQGƬEUH
nanomaterials such as graphene are being added to the IDEULFWRWKHƬQDOSDUWSURGXFWLRQ5,/ZLOOIRFXVRQGHVLJQ
existing polymer portfolio to deliver new formulated DQGVSHFLƬFDWLRQVGULYHQPDUNHWVDQGDSSOLFDWLRQVWKDWDUH
materials that will provide exceptional value to the FULWLFDOWR,QGLDDQGKDYHWKHSRWHQWLDOWRJUDQWEHWWHUUHWXUQV
customers. RelWood™ is an example of one such material These include:
WKDWORRNVDQGIHHOVOLNHKLJKTXDOLW\ZRRGEXWKDVVXSHULRU • Wind mill blades (especially those over 65 metres long) and
SURSHUWLHV,WLVDGXUDEOHZDWHUUHVLVWDQWƬUHUHWDUGDQW ancillary parts for the wind energy market
DQG89DQGWHUPLWHSURRISURGXFWWKDWFDQUHSODFHZRRG • 3DUWVIRUUDLOZD\VDQGPHWURVZKLFKKDYHH[DFWLQJVWDQGDUGV
across all applications. The company is in the process of RISHUIRUPDQFHDQGVDIHW\ HVSHFLDOO\ƬUHUHWDUGDQW
developing newer products in the areas of: • ,QQRYDWLYHVROXWLRQVVXFKDVFDUERQZUDSVWRUHKDELOLWDWH
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Enhanced Plastics and Elastomers – For light weighting and improved seismic performance) and pipes
disruptive performance
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aerospace and defence needs as well as the specialty
reduction in steel usage in infrastructure projects
industrial applications
Composites and Carbon Fibre
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'XULQJWKH\HDU5,/DFTXLUHGWKHDVVHWVRI.HPURFN
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The Company focussed its attention on thermoset
Government.
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Polymers (FRPs). The ability to deliver exceptional strength
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development to support the new as well as the existing
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polymer businesses.
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into any shape. Composites are used in a wide range of
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3D Printing
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design and print a wide range of products using 3D printing
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technology – in both plastic and metal – from prototypes to
Solutions (RCS) business to be the No. 1 composites player in
functional parts.

Facilitating entrepreneurial spirit across


value chain
Action Taken: 5,/KDVEHHQ in 2001 with volumes of 30
instrumental in structuring metric tonnes per month
reverse supply chain for and today process about
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PET bottles which are then SHUPRQWKJHQHUDWLQJ
UHF\FOHGLQWRSRO\HVWHUƬEUHV employment for under
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in setting up of numerous Outcome: Creating
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Integrated Annual Report 2017–18 Management’s Discussion and Analysis 65

Circular Economy
)RU5HOLDQFHo6XVWDLQDELOLW\pLVQRWMXVWDZRUGEXWLWLV LQWHJUDWHGZLWKGRZQVWUHDPIDFLOLWLHVRI/'3(//'3(
WKHo:D\5HOLDQFH2SHUDWHVr5,/FRQWLQXHVWRIRFXVRQ DQG0(*7KH52*&ZLOOKHOS5,/WRDFKLHYHVFDOHDQG
promoting ‘Circular Economy’ and delivering ‘Societal VLJQLƬFDQWO\ERRVWSURGXFWVWHZDUGVKLSDQGPDUNHW
Value’. Reliance continues to be one of the largest recyclers RƪHULQJV7KLVFRPSOH[PDUNVDSDUDGLJPVKLIWLQ
RIWKHSRVWFRQVXPHU3(7ZDVWHDQGFRQYHUWLQJLWLQWR WKHSURƬWDELOLW\DQGVXVWDLQDELOLW\RI5,/pV
YDOXHDGGHGEUDQGHGSURGXFWVOLNH5_(ODQwDQG5HFURQŠ petrochemicals business.
&HUWLƬHG5,/pVLQLWLDWLYHVOLNH3ODVWLFXOWXUHSURYLGHV
support to farmers in all areas of farming and improves 2) Ethane project:5,/VXFFHVVIXOO\FRPSOHWHGWKHZRUOG
farm productivity substantially. Through innovation and VFDOHHWKDQHLPSRUWSURMHFWODVW\HDU$OOWKHVL[9/(&V
DSSOLFDWLRQRIWHFKQRORJ\5,/FRQWLQXHWRFUHDWHVXVWDLQDEOH are operating at full capacity and delivering cargoes to
products. Dahej. Ethane cracking at Dahej and Hazira have been
streamlined and both the plants achieved the highest
Petrochemical business has strengthened the customer HYHUHWK\OHQHSURGXFWLRQ0RGLƬFDWLRQRIIHHGVWRFN
VXSSO\LQWHUIDFHZLWKKLJKO\GLJLWLVHGSODWIRUPV5 'IRFXV ƮH[LELOLW\DW1DJRWKDQHLVDOVRFRPSOHWHGDQGWKH
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please refer to page no 127.
Business Stewardship
Capex and Growth Plan ,QNHHSLQJZLWKWKHPRWWRRIo&KHPLVWU\WR6PLOHVp5HOLDQFH
1) ROGC Project: 5,/VXFFHVVIXOO\FRPPLVVLRQHGDQG FRQWLQXHVWRSURGXFHHFRIULHQGO\SURGXFWVVXFKDV
achieved design throughput of the World’s largest GreenGold (made from recycled PET bottles using renewable
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ethylene capacity at Jamnagar. The ROGC complex is 5_(ODQw DIDEULFZLWKLQFUHDVHGEUHDWKDELOLW\DQWLRGRXU
built on Reliance’s core philosophy of deep feedstock EHQHƬWVDQGH[FHOOHQWGUDSH DPRQJRWKHUV$GGLWLRQDOO\
integration to establish industry leading cost and the company continues to be one of the largest recyclers of
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LQWHJUDWLRQZLWKUHƬQHULHVSURYLGHVDVXVWDLQDEOHFRVW
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have feedstock cost advantage. The complex is also

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Corporate Overview Management Review 41-179 Governance Financial Statements Notice

66 Reliance Industries Limited • Making Life Better. For Everyone.

Oil & Gas Exploration & Production


7KH\HDUPDUNHGSURJUHVVRQSODQVWRPRQHWLVHGLVFRYHUHGUHVRXUFHV
and steps to rationalise the upstream portfolio.
5,/DORQJZLWKLWV-9SDUWQHUSODQVWRLQYHVW`FURUH a86%Q WRGHYHORS
WKHGLVFRYHUHGGHHSZDWHUUHVRXUFHVLQWKH.*'%ORFN'HYHORSPHQWZRUN
IRU5&OXVWHUƬHOGVKDVFRPPHQFHGZKLOH)LHOG'HYHORSPHQW3ODQVIRU0-DQG
6DWHOOLWH&OXVWHUƬHOGVKDYHEHHQDSSURYHGE\WKH*RYHUQPHQW7KHVHƬHOGVDUH
H[SHFWHGWRFRPHRQVWUHDPLQWKHQH[W\HDUV

`40,000 crore
Investment planned over
the next 3-5 years to develop
KG D6 discoveries

6WUDWHJLF$GYDQWDJHV &RPSHWLWLYH6WUHQJWKV
5HOLDQFHpVXSVWUHDPEXVLQHVVHQFRPSDVVHVWKHFRPSOHWHFKDLQRIDFWLYLWLHVIURPDFTXLVLWLRQWRH[SORUDWLRQGHYHORSPHQWDQG
SURGXFWLRQRIK\GURFDUERQVLQERWKFRQYHQWLRQDODQGXQFRQYHQWLRQDODUHDV5HOLDQFHKDVDQDGYDQWDJHRXVSRVLWLRQLQRƪVKRUH
GHHSZDWHU FDSDELOLWLHVFRXSOHGZLWKWKHNQRZOHGJHRIRSHUDWLRQVLQXQFRQYHQWLRQDODUHDVVXFKDV&%0DQG6KDOH*DV

Project 6LJQLƬFDQWLQIUDVWUXFWXUH Safety Partnerships


Execution on the east coast

,QGLDpVƬUVWDQGWLOOGDWH 5,/KDVFRPPHQFHG Over 10 years of safe Partnerships with global


RQO\JUHHQƬHOGGHHSZDWHU development of discovered RSHUDWLRQZLWKVDIHW\UHFRUG majors in conventional
project. resources in the KG D6 amongst the best in the as well as unconventional
Block leveraging the existing world since commencement hydrocarbon plays.
,QGLDpVODUJHVWVXUIDFH infrastructure on the East RISURGXFWLRQLQ'HHSZDWHU
The Partnerships combine
footprint hydrocarbon Coast. block KG D6 and in Coal Bed
Reliance’s Project execution
project in remote tribal areas Methane.
skills with global expertise.
with no prior infrastructure.
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 67

P.M.S. Prasad Naresh Narang Sanjay B. Roy

:LWKWKHVWHDG\UDPSXSRISURGXFWLRQIURPWKH&RDO%HG0HWKDQH &%0 ƬHOGVLQ6RKDJSXU5HOLDQFHLVVHWWR


EHFRPH,QGLDpVODUJHVWSURGXFHURIXQFRQYHQWLRQDOQDWXUDOJDV7RVXVWDLQWKHSURGXFWLRQWKHVHFRQGSKDVHRI
development has also commenced.

Reliance continues to focus on value preservation in the North America Shale Gas business. As part of portfolio
UDWLRQDOLVDWLRQ5HOLDQFHDQGLWV-9SDUWQHU&DUUL]RVROGWKHLUVWDNHLQWKH0DUFHOOXVVKDOHSOD\VWR.DOQLQ9HQWXUHV
Reliance and its partner Pioneer sold part of their acreage in the West Eagle Ford shale play.

5HOLDQFHFRQGXFWVLWVRSHUDWLRQVUHVSRQVLEO\ZLWKDWUDFNUHFRUGRIRYHU\HDUVRIVDIHRSHUDWLRQVDWSDUZLWKWKH
best in the world.

Market Environment Indian Regulatory Environment


ZDVDWXUEXOHQW\HDUIRUWKHJOREDORLO JDVLQGXVWU\ 'XULQJWKHODVW\HDUWKHUHKDYHEHHQPDQ\LQLWLDWLYHVE\
GULYHQE\FKDQJLQJGHPDQGVXSSO\HTXDWLRQVFRXSOHGZLWK WKH*RYHUQPHQWRI,QGLDWRSURPRWHWKH,QGLDQ2LO *DV
JHRSROLWLFDOLVVXHVUHVXOWLQJLQVWHDG\LQFUHDVHLQFUXGH industry.
prices.
• 3ROLF\IUDPHZRUNIRUHDUO\PRQHWLVDWLRQRI&%0ZKLFK
%UHQWSULFHVUDQJHGIURP86EEOLQ-XQHWRa86EEO provided complete Marketing and Pricing freedom for CBM
E\WKHHQGRIWKH\HDU$YHUDJH:HVW7H[DV,QWHUPHGLDWH gas and eased operational issues
:7, FUXGHRLOSULFHVIRUZDVDOVRKLJKHU\R\
• /DXQFKRI2SHQ$FUHDJH/LFHQVLQJ3ROLF\ 2$/3 ZKLFK
DYHUDJLQJDW86EEO861DWXUDO*DVSULFHVUHPDLQHG
provides options for operators to select exploration areas on
strong and Henry Hub (HH) Gas price stayed close to or
their own rather than wait for formal bid rounds
DERYH8600%78IRUPRVWRIWKH\HDU(QFRXUDJLQJ
GHPDQGIURP/1*DQG0H[LFDQH[SRUWVFRXSOHGZLWK Financial and Operational Performance*
subdued supplies supported higher gas prices. FY 2017-18 FY 2017-18 FY 2016-17 %
(` in crore) (US$ in million) (` in crore) Change
:LWKUHVSHFWWR6KDOH*DVRSHUDWLRQV:7,DQG++SULFHV Revenues  798.5  0.3%
ZHUHKLJKHU\R\ZLWK:7,RLOSULFHVKLJKHUDW (%,7  (235.7) 
86EEOLQ&<DQG++*DVSULFHVKLJKHUDW (%,7  (29.5%) (30.5%)
8600%78$OVRJDVDQGFRQGHQVDWHEHQFKPDUN *consolidated
GLƪHUHQWLDOVLPSURYHG
)RU)<UHYHQXHVLQFUHDVHGE\WR`
8SVWUHDPFDSLWDOVSHQGLQJLVH[SHFWHGWRJURZLQ
crore. This marginal change was on account of better price
0DMRUSURMHFW),'VDUHH[SHFWHGWRFRPHLQXQFRQYHQWLRQDO
UHDOLVDWLRQVDQGUDPSXSRISURGXFWLRQLQ&%0ZKLFKZHUH
DQGGHHSZDWHUDUHDV %UD]LODQG*20 ZLWK2SHUDWRUV
SDUWO\RƪVHWE\GHFOLQHLQSURGXFWLRQLQ.*'DQG6KDOH*DV
taking advantage of oversupply in the service sector to lock
&RQVHTXHQWO\XSVWUHDPRSHUDWLRQVUHJLVWHUHGQHJDWLYH
in at lower costs.
(%,7RI`  FURUH
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

68 Reliance Industries Limited • Making Life Better. For Everyone.

Operational Performance – Domestic management to overcome network and operational


Production Performance challenges.
Units of
-9SURGXFWLRQ measurement FY 2017-18 FY 2016-17 )RUHQKDQFLQJUHFRYHU\DQGƮRZDVVXUDQFH2QVKRUH
KG D6 7HUPLQDO%RRVWHU&RPSUHVVRU/RZ/RZ3UHVVXUH 27%&//3 
Oil 00%%/ 0.7 1.1 project has been commissioned. This project will help sustain
''ƬHOGSURGXFWLRQE\H[WHQGLQJOLIHRIƮRZLQJZHOOVDQG
Gas BCF 67.9 101.1
UHYLYDORI''VKXWLQZHOOV
Condensate 00%%/ 0.1 0.2
Panna- Mukta Panna-Mukta-Tapti
Oil 00%%/ 5.4 6.2 3DQQD0XNWDƬHOGSURGXFHGPLOOLRQEDUUHORIFUXGHD
Gas BCF 62.1 62.5 UHGXFWLRQRIaRQ\R\EDVLVDQG%&)RIQDWXUDO
CBM JDVDUHGXFWLRQRIRQ\R\EDVLV7KHIDOOLQSURGXFWLRQ
Gas BCF 7.1 0.0 LVRZLQJWRQDWXUDOGHFOLQHLQWKHƬHOGVKXWLQRIZHOOVGXHWR
HTXLSPHQWLVVXHVDQGXQSODQQHGVKXWGRZQRIWKHƬHOGGXH
KG D6 WRF\FORQH2FNKL/RVVLQSURGXFWLRQZDVSDUWLDOO\RƪVHWE\
KG D6 gas production declined by 27% for the year to 67.9 better production optimisation and revival of wells closed
%&)GXHWRQDWXUDOGHFOLQHRIƬHOGDQG due to integrity issues.
VKXWLQRI''DQG0$ZHOOV.*
'RSHUDWLRQVFRQWLQXHWRDFKLHYHƬHOG 7KH36&IRU3DQQD0XNWD%ORFNLV
XSWLPHRIZKLFKFRQWLQXHVWR scheduled to expire in December 2019.
be the global standard for deep water .*'LV,QGLDpVƬUVWDQGRQO\ Having reviewed the future potential and
facilities. The major challenges faced ULVNSURƬOHWKH-9SDUWQHUVKDYHWDNHQ
DUHDVVRFLDWHGZLWKUHVHUYRLUGHSOHWLRQ
JUHHQƬHOGGHHSZDWHUSURMHFW a view of not to progress on seeking
VDQGDQGZDWHULQƮX[ extension of the contract and are
currently making necessary preparation
5HOLDQFHpVQHDUWHUPDLPLVWRPDLQWDLQZHOOVƮRZLQJDQG for handover of the assets to the Government’s nominee on
sustain production until future projects are commissioned. expiry of the PSC.
7KLVLQYROYHVHƪHFWLYHUHVHUYRLUDQGSURGXFWLRQ
Tapti assets are under decommissioning. Plugging and
abandonment of all the Tapti wells has been completed.
Decommissioning activities for the associated facilities have
been initiated.

&%0 6RKDJSXU(DVW 6RKDJSXU:HVW


Reliance commenced commercial production from its Coal
Bed Methane (CBM) block SP (West)–CBM–2001/1 in March
2017. More than 200 wells were put on production with
SURGXFWLRQUDPSXSFURVVLQJWKH006&0'OHYHOGXULQJ
the year.

CBM Reservoirs are initially 100% saturated with water. At the


VWDUWRISURGXFWLRQWKHZHOOVZLOOJRWKURXJKWKHo'HZDWHULQJ
3KDVHp,QWKHGHZDWHULQJSKDVHRI&%0SURGXFWLRQZDWHULV
pumped out continuously to increase gas saturation in the
UHVHUYRLUUHVXOWLQJLQUDPSXSRIJDVSURGXFWLRQIURPWKHVH
wells. The wells put on production have been predominantly
LQGHZDWHULQJSKDVHWKLV\HDUDQGWKHSURGXFWLRQUDPSXS
LQQH[WPRQWKVLVH[SHFWHGWRPDNH5,/WKHODUJHVW
XQFRQYHQWLRQDOQDWXUDOJDVSURGXFHULQ,QGLD

5HOLDQFH*DV3LSHOLQH/LPLWHGDVXEVLGLDU\RI5,/
FRPPLVVLRQHGWKHNP6KDKGRO3KXOSXU3LSHOLQHIURP
6KDKGRO 03 WR3KXOSXU 83 7KLVSLSHOLQHFRQQHFWVWKH
Control-cum-Riser Platform – KG D6 &%0*DVƬHOGVZLWKWKH,QGLDQ*DV*ULGSURYLGLQJDFFHVVWR
consumers across the country.
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 69

Marketing of CBM gas Business Performance


For the development of alternate sources of natural gas The Company continued with its prudent strategy to
LQFOXGLQJ&RDO%HG0HWKDQH*R,QRWLƬHGPDUNHWLQJDQG improve the value of the remaining development inventory
pricing freedom to the Coal Bed Methane (CBM) in April 2017. and securing overall cost leadership.
The reform measure allows CBM producers to sell the CBM
DW$UPpV/HQJWK3ULFHLQWKHGRPHVWLFPDUNHWWKURXJKD $VSDUWRIWKLVVWUDWHJ\WKHSRUWIROLRZDVUDWLRQDOLVHG
fully transparent and competitive bidding process with the 5HOLDQFH0DUFHOOXV,,//&DVXEVLGLDU\RIWKHFRPSDQ\
objective of obtaining best possible prices. WKDWKHOGDVVHWVLQWKH&DUUL]RMRLQWGHYHORSPHQWVLJQHGD
3XUFKDVHDQG6DOH$JUHHPHQW q36$r RQth2FWREHU
5,/KLUHG&5,6,/WRFDUU\RXWDIXOO\WUDQVSDUHQWDQG ZLWK%.9&KHOVHD//&IRUVDOHRILWVDVVHWVLQ6XVTXHKDQQD
competitive bidding process with the objective of &OHDUƬHOGDQG:\RPLQJFRXQWLHVHƪHFWLYHst$SULOIRU
maximising price for sale of CBM Gas. Three rounds of DQLQLWLDOFRQVLGHUDWLRQRI8600VXEMHFWWRFXVWRPDU\
ELGGLQJSURFHVVZHUHFDUULHGRXWWKLV\HDU7KHƬUVWWZR DGMXVWPHQWV$GGLWLRQDOO\5HOLDQFH,,//&ZRXOGEHHQWLWOHG
rounds of bidding were for short duration. The third round to receive additional contingent consideration of upto
RIELGGLQJFDUULHGRXWLQ6HSWHPEHUZDVIRUVDOHRI 8600XSRQFHUWDLQFRQGLWLRQVEHLQJPHWDVSHU36$
&%0JDVWLOO)<7KHVHZHUHWKHƬUVWRSHQPDUNHW The transaction closed on 21st1RYHPEHU
WUDQVSDUHQWFRPSHWLWLYHDXFWLRQVIRU&%0JDVVDOHVLQ,QGLD
Reliance’s aggregate capital investments across JVs
North American Shale Gas Operations UHPDLQHGVWDEOHDQGZDV8600GXULQJ&<
Production Performance
Units of )RUWKHWKUXVWUHPDLQVRQSUHVHUYLQJORQJWHUPYDOXH
-9SURGXFWLRQ measurement CY 2017 CY 2016 WKURXJKKLJKJUDGLQJRIODQGDQGGHYHORSPHQWSRUWIROLR
Gas BCF 111.8 130.3 UHWDLQLQJRSWLRQDOLW\LPSURYLQJHƯFLHQF\DQGZHOOFRVWV
Condensate 00%%/ 4.7 7.3 as well as optimisation of well spacing and completions for
enhanced recoveries.
Industry Background
Operational Performance
866KDOH*DVLQGXVWU\KDVVKRZQUHPDUNDEOHUHVLOLHQFHLQ
$W3LRQHHU-9GULOOLQJDQGFRPSOHWLRQDFWLYLWLHVFRPPHQFHG
recent past and has leveraged the down turn to improve
at the end of 1st quarter of CY17 with the objective of testing
RSHUDWLRQDOHƯFLHQFLHVDQGWRUHGXFHVHUYLFHVFRVWV7KH
new well design (down spaced wells with longer laterals and
advancement in shale technology was a key success factor
PRUHLQWHQVHIUDFpLQJ $W&KHYURQ-9WKHUHZDVQRGULOOLQJ
in both basins (wells with longer laterals and improved
DQGFRPSOHWLRQDFWLYLW\LQWKH-9RSHUDWHGDUHDVZKLOHWKHUH
completion designs). With improved cost structure and
ZDVDFWLYLW\LQWKHQRQRSHUDWHGDUHDV7KHMRLQWYHQWXUHV
LPSURYHGRXWORRNRQSULFHVDFWLYLW\SLFNHGXSDQGULJFRXQWV
drilled 23 wells and put 41 wells on production. Thus there
increased in select shale plays (including Eagle Ford and
ZHUHZHOOVSURGXFLQJE\WKHHQGRI&<
Marcellus) during 2017.

7KHSULQFLSOHRI6DIHW\ƬUVWtHPEHGGHGLQ5HOLDQFHpVYDOXHV\WVHP
Process safety Cyber Security (QKDQFLQJ)LUH 6DIHW\6\VWHP
Action ,QVWDOOHGWKHPRVWFRQWHPSRUDU\YHUVLRQ Exhaustive assessment of KG D6 ,QVWDOOHG$VSLUDWLRQVPRNHGHWHFWRUV
of Rim Seal Fire Protection System for Control System covering all critical at very early stage at Field Auxiliary
&RQGHQVDWHVWRUDJHƮRDWLQJURRIWDQNV infrastructure Room (FAR) of KG D6
IRUH[WUHPHO\IDVWGHWHFWLRQDQGHƪHFWLYH
5HGHVLJQHG&RQWURO6\VWHP
VXSSUHVVLRQRIƬUHDWWKHLQFLSLHQWVWDJH
architecture on account of
SHUFHLYHGLQFUHDVHGULVNRIF\EHU
attacks
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contemporary version to mitigate
the risk
Outcome Enhancing the safety of tank Secure control system designed for Additional barrier to mitigate the risk
the production facilities RIƬUH
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

70 Reliance Industries Limited • Making Life Better. For Everyone.

*URVV-9SURGXFWLRQZDVa%&)HGIRUDOO-9VGRZQ Carrizo -9
\R\5HOLDQFHpVVKDUHRISURGXFWLRQDQGVDOHVZHUH 3ULRUWRWKHVDOHLQ1RYHPEHUJURVV-9SURGXFWLRQZDV
DW%&)HDQG%&)HUHVSHFWLYHO\LQ&< %&)HDVFRPSDUHGWR%&)HLQ&<ZKLOH5HOLDQFHVKDUHRI
compared to 174.0 BCFe and 150.4 BCFe in CY 2016. net sales was at 19 BCFe compared to 21 BCFe in 2016.

3LRQHHU-V Exploration Outlook


$W(DJOH)RUGGHYHORSPHQWDFWLYLWLHVFRPPHQFHGDVWKH Fuel strategy and energy basket
JV tested wells with new well design that involves higher Future energy outlook indicates deliberate shift towards
LQWHQVLW\ZHOOFRPSOHWLRQDQGFKDQJHGZHOOVSDFLQJZLWK cleaner fuels. There has been a revision in target
encouraging initial results. JV drilled 11 wells while it frac’ed investments by industry majors under the new business
and put on production 20 wells during HQYLURQPHQW1DWXUDOJDVEHLQJFOHDQHU
H2 2017. The 2017 wells were very is an ideal transition fuel and stranded
successful. With limited activity and UHVRXUFHVRIJDVLQ,QGLDQEDVLQVIRUPD
QDWXUDOGHFOLQHRIWKHH[LVWLQJZHOOV good investment option.
year average Gross JV production was
35% down at 118 BCFe compared to 181 Digitally enabled Considering the price forecast and
%&)HLQ&<ZKLOH5HOLDQFHVKDUH XSFRPLQJƬHOGV ORZFDUERQHFRQRP\5,/pVH[SORUDWLRQ
of net sales volume was at 47.5 BCFe targets are aligned to prepare for the
compared to 72.9 BCFe in CY 2016. The IXWXUHE\LPSURYLQJHƯFLHQF\DQG
share of liquids improved slightly from 65.2% to 67.0% in leveraging integrated business model. The key components
CY 2017. Reliance and its partner Pioneer sold part of their of the strategy include:
acreage in the West Eagle Ford shale play which was not part
• Sustain production and expeditiously develop discovered
of near term development plan.
resource base
Chevron -9 • 6DIHDQGUHOLDEOHFRPPLVVLRQLQJDQGRSHUDWLRQRIWKHƬHOGV
Progress on pad optimisation and on well designs combined
• Maximise recovery and value generation
ZLWKSURJUHVVWRZDUGV8SSHU4XDUWLOH QRWDEO\ZHOOFRVWVDQG
/2( ZHUHNH\DFKLHYHPHQWVGXULQJ7KLVKDVVHWVWDJH 7HFKQRORJ\ ,QQRYDWLRQV
for restarting development activity in JV operated areas ,Q)<IRFXVZDVRQXSJUDGLQJV\VWHPVDQG
during CY 2018. technologies in light of upcoming deepwater development
SURMHFWVVRWKDWWKHq8SFRPLQJ)LHOGVrDUHGLJLWDOO\HQDEOHGLQ
Year average gross JV production declined by 5% to 159 all possible manner.
%&)HIURP%&)HLQ&<UHƮHFWLQJVORZGRZQLQ
DFWLYLW\GHVSLWHLPSURYHGRSHUDWLRQDOHƯFLHQF\DQGVWURQJ $VWURQJIRXQGDWLRQIRUq'DWD'ULYHQ'HFLVLRQVrLVEHLQJODLG
well performance. Reliance share of net Sales volume stood WKURXJKWKHXVHRI2SHQVWDFNWHFKQRORJLHV2(0VRIWZDUH
DW%&)HFRPSDUHGWR%&)HLQ&< VWDFNDQG%LJGDWDDQDO\WLFVWHFKQRORJLHV(ƪRUWVDUHEHLQJ

Business stewardship from waste


water to farming
Action Taken:
• As part of gas production • )DUPHUVJRWZDWHU
F\FOHVLQ&%0WKHJDVZHOOV times in the crop cycle even
JRWKURXJKDGHZDWHULQJ in drought like conditions
SKDVHZKHUHLQWKHZDWHU • 245 farmers of
from the wells oozes out neighbouring villages
along with gas sowed crop in 15 lakh
• Process continues till square meters (370 acre)
the life cycle of the well DQGKDUYHVWHG
producing roughly 1 lakh TXLQWDOVDOPRVWGRXEOHG
liters of water their yield
• $JUDYLW\EDVHGZDWHUƮRZ
Outcome: Enhancing
WRWKHƬHOGVZDVGHVLJQHG
income of farmers
along with farmers
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 71

PDGHWREULQJLQq3ODWIRUPZD\RIZRUNLQJrSRZHUHGE\ 7KH7ULEXQDOE\PDMRULW\LVVXHGDƬQDOSDUWLDODZDUG o)3$p 


DSSURSULDWHVHOHFWLRQGHVLJQDQGXVHRIGLJLWDOSODWIRUPVWR DQGVHSDUDWHO\WZRGLVVHQWLQJRSLQLRQVLQWKHPDWWHURQ
VXSSRUWWKHQHZƬHOGV 12th October 2016. Claimants challenged certain parts
RIWKH)3$EHIRUHWKH(QJOLVK&RXUWVZKLFKGHOLYHUHGLWV
5HOLDQFHUHFHLYHG863DWHQW 1R86% RQ judgment on 16th April 2018 and has decided to remit one
27th0DUFKIRUGHYHORSPHQWRIq6\VWHPIRU of challenged issues back to the Arbitration Tribunal for
5HJHQHUDWLQJ0RQR(WK\OHQH*O\FRODQG$0HWKRG7KHURIr redetermination. Arbitration Tribunal is yet to schedule the
IRU5,/pV.*'2SHUDWLRQV TXDQWLƬFDWLRQSKDVHRIWKHDUELWUDWLRQZKLFKZLOOWDNHSODFH
post determination of Claimants’ request for increase in cost
Bio-CBM recovery limit under the PSCs.
7RLQFUHDVHUHFRYHU\IURP&%0ƬHOGV5HOLDQFHKDVHQJDJHG
LQ5 'HƪRUWVLQDGGLWLRQWRWKHHVWDEOLVKHGPHWKRGV Yemen Arbitration
&XUUHQWIRFXVRIWKLVUHVHDUFKLV%LR&%0 $UELWUDWLRQƬOHGEHIRUH,&&3DULVE\5HOLDQFH([SORUDWLRQ
3URGXFWLRQ'0&&DQG+RRG(QHUJ\/LPLWHG WRJHWKHU
,Q&%0PHWKDQHJDVZKLFKLVDGVRUEHGDQGWUDSSHG ‘Claimants’) against the Republic of Yemen (‘RoY’) claiming
QDWXUDOO\LQFRDOVHDPVLVSURGXFHG%LR&%0WHFKQRORJ\ that Force Majeure declaration and subsequent termination
XVHVPLFUREHLQMHFWLRQWRSURGXFHLQVLWXPHWKDQHZKHUH of the Production Sharing Agreements for Yemen Blocks 34
either the coals are devoid of methane or conventional CBM DQGZHUHYDOLGDQGWKDW/HWWHURI&UHGLWFDQQRWEHGUDZQ
extraction is uneconomical. E\WKH5R<7KH,&&7ULEXQDOUXOHGLQIDYRXURIWKH&ODLPDQWV
$QQXOPHQWDSSOLFDWLRQDJDLQVWWKH,&&$ZDUGƬOHGE\5R<LV
Currently this technology is in nascent stage and the initial ongoing before the Paris Courts.
lab tests has shown encouraging results with respect to
methane production potential. Further work is planned Dispute with NTPC
to establish ability of this technology to scale up to a 173&ƬOHGVXLWIRU6SHFLƬF3HUIRUPDQFHRI&RQWUDFWIRU
commercial operation. VXSSO\RI1DWXUDO*DVRIWULOOLRQ%78DQQXDOO\IRUDSHULRG
of 17 years. Cross examination of NTPC’s witness has been
Reliance is leveraging its infrastructure (advance completed and the Company’s fact witnesses is to be cross
ODERUDWRULHV GLYHUVHLQWHUGLVFLSOLQDU\WHFKQLFDOVNLOOV examined by NTPC.
&%0SURGXFWLRQH[SHUWLVH&%0ƬHOGVDQGNQRZOHGJHRI
UHJXODWRU\UHTXLUHPHQWVWRJLYHLPSHWXVWRWKH%LR&%0 Arbitration Relating to Alleged Migration of Gas
research. *2,VHQWDQRWLFHWRWKH.*'&RQWUDFWRURQ1RYHPEHU
2016 asking the Contractor to deposit approximately
Update On Arbitration And Other Legal Issues 86%QRQDFFRXQWRIDOOHJHGJDVPLJUDWLRQIURP
KG D6 Cost Recovery Arbitration 21*&pVEORFNV5,/DV2SHUDWRUIRUDQGEHKDOIRIDOO
Arbitration claim commenced by the Company in November FRQVWLWXHQWVRIWKH&RQWUDFWRULQLWLDWHGDUELWUDWLRQ
2011 seeking declaration that it is entitled to recover 100% SURFHHGLQJVDJDLQVWWKH*2,$UELWUDWLRQKHDULQJVKDYH
of its Contract Costs under the Production Sharing Contract concluded and the Award is awaited.
o36&p IRUWKH.*'%ORFN3DUWLHVKDYHƬOHGWKHLUUHVSHFWLYH
pleadings before the Arbitral Tribunal and are in the process Capex and Growth Plan
of completing the arbitration proceedings. KG D6
Reliance announced plans to embark on the next wave of
Public Interest Litigations projects to develop existing hydrocarbon discoveries in KG
7KUHH3XEOLF,QWHUHVW/LWLJDWLRQV o3,/Vp ZHUHƬOHGEHIRUHWKH '%ORFN7KHWKUHHSODQQHGSURMHFWV5&OXVWHU6DWHOOLWH
Supreme Court against the Company in relation to the KG &OXVWHUDQG' 0- ƬHOGVDUHH[SHFWHGWREULQJRQVWUHDP
D6 PSC seeking reliefs in the nature of disallowance of cost DGGLWLRQDOPLOOLRQFXELFPHWUHV aELOOLRQFXELFIHHW 
UHFRYHU\TXDVKLQJ*2,pVGHFLVLRQWRDSSURYHWKHFHUWDLQJDV RIJDVSHUGD\LQSKDVHVRYHU:LWKWKHVHSURMHFWV
SULFHIRUPXODWHUPLQDWLRQRI36&HWDO7KH&RPSDQ\KDV 5HOLDQFHZLOOYHQWXUHLQWRXOWUDGHHSZDWHUDQG+LJK3UHVVXUH
VXEPLWWHGWKDWWKHXQGHUO\LQJLVVXHVLQWKH3,/VDUHDOUHDG\ +LJK7HPSHUDWXUHDUHDVDƬUVWLQ,QGLD
subject matter of ongoing arbitrations relating to the KG D6
Block. Matter is still pending in the Supreme Court. Reliance has rich project execution experience including
NQRZOHGJHLQGHHSZDWHURLO JDVSURMHFWV$GGLWLRQDOO\
PMT Arbitration LWH[SHFWVWROHYHUDJHLWVSDUWQHUVKLSZLWK%3H[LVWLQJ
$UELWUDWLRQLQLWLDWHGE\%*(3,/DQG5,/DJDLQVW*2,RQ LQIUDVWUXFWXUHLQWKH.ULVKQD*RGDYDUL%DVLQDQGFXUUHQW
16th December 2010 under PSC for Panna – Mukta and Tapti GRZQWXUQLQWKHFDSLWDOHTXLSPHQW VHUYLFHSURYLGHU
EORFNVGXHWRGLƪHUHQFHLQLQWHUSUHWDWLRQRIFHUWDLQ36& market. Production from these projects is expected to
provisions between Claimants and Government.
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

72 Reliance Industries Limited • Making Life Better. For Everyone.

UHGXFH,QGLDpVLPSRUWGHSHQGHQFHDQGDPRXQWWRRYHU CBM
RIWKHSURMHFWHGJDVGHPDQGLQEHQHƬWWLQJ,QGLDDQG 7RVXVWDLQSODWHDXSURGXFWLRQIXUWKHU&%0GHYHORSPHQW
GRPHVWLFFRQVXPHUVDWODUJH5,/DORQJZLWKLWV-9SDUWQHU is being undertaken. Development activities of block SP
plans to invest `FURUH a86%Q WRGHYHORSWKH :HVW t&%0t3KDVH,,DQG63 (DVW t&%0t
discovered deepwater resources in the KG D6 Block. EORFNLVFXUUHQWO\XQGHUZD\3KDVH,,LQFOXGHVGULOOLQJDQG
completion of more than 180 wells along with an additional
)RU5&OXVWHUGHYHORSPHQWDOOPDMRUFRQWUDFWVKDYH gas gathering station and associated water gathering
EHHQDZDUGHG(QJLQHHULQJ IDEULFDWLRQDFWLYLWLHVKDYH stations for collection and processing of CBM Gas and water
FRPPHQFHG,Q)<5HOLDQFHSODQVWRFRPPHQFH respectively.
GULOOLQJ FRPSOHWLRQIRUGHYHORSPHQWZHOOVDQGLWVƬUVW
RƪVKRUHLQVWDOODWLRQFDPSDLJQ Business Stewardship
Employee volunteering and community participation are
Management Committee (MC) has approved the Field encouraged within the Company. Acting as a responsible
'HYHORSPHQW3ODQVIRU0-ƬHOGV6DWHOOLWHƬHOGVDQG2WKHU EXVLQHVVWKH&RPSDQ\DOVRHQVXUHVSURGXFWLYHHPSOR\PHQW
6DWHOOLWHƬHOGVLQ)HEUXDU\5HOLDQFHKDVLQLWLDWHG for members of the local community. For a more holistic view
contracting long lead items for wells and facilities for these RI&65DFWLYLWLHVSOHDVHUHIHUWRWKH5HSRUWRQ&RUSRUDWH
projects. Social Responsibility.

Simultaneous development of the three projects will Business and Competitive Position
HQKDQFHRYHUDOOFDSLWDOHƯFLHQF\DQGEXLOGRQSURMHFW 7KH&RPSDQ\pVRLODQGJDVDVVHWVLQFOXGH.*'3DQQD
synergies. 0XNWD7DSWLDQGWZR&RDO%HG0HWKDQH &%0 EORFNVLQ
DGGLWLRQWRRWKHUGRPHVWLFEORFNV5,/DOVRKDVWZRMRLQW
ventures in North American shale plays with Pioneer Natural
Resources and Chevron.

CBM Group Gathering Station 12 at Night


Integrated Annual Report 2017–18 Management’s Discussion and Analysis 73

Oil and Gas Portfolio


Block Country Partner RIL -9$FUHDJH Status
Stake (in acres)
Conventional
Domestic
.*':1 ,QGLD 1,.2 60%  2 Producing Fields
%3 )'3DSSURYHGIRU5&OXVWHU6DWHOOLWH&OXVWHU 0-
Panna Mukta ,QGLD %* 30%  Producing Fields
21*&
Mid and South Tapti ,QGLD %* 30% 
21*&
1(&261 ,QGLD BP – 33.33% 66.67%  DOC reviewed. Part of the Block relinquished
&%211 ,QGLD %3 70%  FDP approved for 8 discoveries. Part of Block
UHOLQTXLVKHGDV5,/GLGQRWHQWHUWKHQH[W
Exploration Phase
*6261 ,QGLD +DUG\ 90%  DOC reviewed
International
Block 39 Peru 3HUHQFR 10%  :LWKGUDZQIURP%ORFN)RUPDODVVLJQPHQWDZDLWHG
3HWUR9LHWQDP
Unconventional
Domestic
CBM
63 (DVW &%0 ,QGLD  100%  Development ongoing
2001/1
63 :HVW &%0 ,QGLD  100%  Production started

International
Shale
Pioneer JV 86$ 3LRQHHUt 45%  Producing
Newpek – 8.6%
Chevron JV 86$ Chevron – 60% 40%  Producing
* Conventional and CBM acreage converted into acres using 1 sq.km.= 247.1053 acres
During the Year, Blocks MY17 and MY18 in Myanmar were relinquished on account of lack of prospectivity.
RIL also undertook portfolio rationalisation in US Shale business with sale of assets held in JV with Carrizo, and sale of some acreage held in JV with Pioneer
Resources in West Eagle Ford shale.

Recycling green Waste


Action Taken:
• Daily 260 cu. ft. of green • <HDUO\.*'LVUHF\FOLQJ
waste is generated through about 3120 cu. ft. of green
the routine landscape/ ZDVWH FRQYHUWLQJLWLQD
Green Belt maintenance WRQQHVRIƬQHWH[WXUHG
activities vermicompost
• Vermicomposting unit is
developed to process green Outcome:,QKRXVHELR
ZDVWHWRDƬQHWH[WXUHG degradation of the available
good quality compost by green waste by using cost
means of earthworms HƪHFWLYHWHFKQLTXHV
• Compost is utilised as an
organic manure for existing
RUQDPHQWDOSODQWV IUXLW
orchards
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

74 Reliance Industries Limited • Making Life Better. For Everyone.

Retail
Reliance Retail has been one of the catalysts in the growth of modern
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leadership position in the industry that is capable of delivering unmatched
customer experience at a scale comparable to none.
'XULQJWKH\HDU5HOLDQFH5HWDLOKDVEHFRPHWKHƬUVWUHWDLOHULQ,QGLDWRFURVVWKH86ELOOLRQUHYHQXHPLOHVWRQH6HJPHQW
3%',7IRU)<JUHZE\\R\WR`FURUHIURP`FURUH:LWK5HWDLOVWRUHV2ZQHG3HWUR
5HWDLO2XWOHWVDQG&LWLHVSUHVHQFH5HOLDQFH5HWDLOLV,QGLDpV/DUJHVW5HWDLOHU

7KHSHUIRUPDQFHLVDUHƮHFWLRQRIVWURQJEXVLQHVVIXQGDPHQWDOVDQGIRFXVVHGH[HFXWLRQE\DKLJKO\WUDLQHGDQGFDSDEOH
WHDP5HOLDQFH5HWDLOLVOHYHUDJLQJ5,/pVHFRV\VWHPDQGJURXSVWUHQJWKVWRIXHOWKHQH[WVWDJHRIJURZWK

5HOLDQFH5HWDLOFRQWLQXHVWRGHOLYHULWVSURPLVHRIWUXVWWRDOOLWVFXVWRPHUVVXSSOLHUVDQGHPSOR\HHV

`2,064 crore 45&$*5


Retail segment recorded Five year revenue growth;
its highest ever EBIT doubling revenue every two years

Strategic advantages and competitive strength

'LYHUVLƬHGSRUWIROLRRIVWRUHV Adaptive / Serving the


across various consumption Responsive underserved markets
baskets

Reliance Retail has developed and Reliance Retail operates on a Reliance Retail has been consistently
strategically positioned wide array framework that fosters rapid expanding at the rate of more than
RIVWRUHVZLWKDPLQGVHWWRVHUYH adaptation to ever changing external 1 store every day for the last 5 years
customers and achieve leadership environment whether it pertains penetrating in to markets unserved and
within its category. The strategy has WRWHFKQRORJ\HYROXWLRQFRQVXPHU underserved by organised retail.
worked well as Reliance Retail has experience or the way shopping ,WHQMR\VDƬUVWPRYHUDGYDQWDJHLQ
achieved leadership in key consumption habits are changing. This has helped many cities.
EDVNHWVDQGKDVHPHUJHGDV,QGLDpV Reliance Retail in maintaining its
largest retailer. market leadership by anticipating and
responding quickly to the ever evolving
customer and market dynamics.
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 75

Subramaniam V. Darshan Mehta Akhilesh Prasad Sunil Nayak -RKQ:LOFR[

Damodar Mall Brian Bade Kaushal Nevrekar Ashwin Khasgiwala

Customer focussed Partner of Multi-channel strategy


robust ecosystem Choice

Reliance Retail has created an Reliance Retail has emerged as the 5HOLDQFH5HWDLOKDVDGRSWHGPXOWL
HFRV\VWHPFRQVLVWLQJRIIDUPHUV SDUWQHURIFKRLFHIRU,QWHUQDWLRQDO channel strategy and has integrated
PDQXIDFWXUHUVVXSSOLHUVVXSSO\FKDLQ brands and has established exclusive oRưLQHRQOLQHpPRGHOVWRWUXO\
DQGORJLVWLFVSDUWQHUVGLVWULEXWLRQ partnerships with many revered GLƪHUHQWLDWHWKHFXVWRPHUH[SHULHQFH
partners with a scalable and integrated LQWHUQDWLRQDOEUDQGV,WRSHUDWHVWKH
network of infrastructure. This largest portfolio of international retail
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unmatched experience across all retail
stores.
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

76 Reliance Industries Limited • Making Life Better. For Everyone.

Reliance Retail Operating Model

)DUPHUVJURZHUVVPDOO ODUJHHQWHUSULVHV Design and


UHJLRQDOSURGXFHUVYLOODJH FRWWDJH Sourcing Partners
industries %X\
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,QWHUYHQWLRQVDFURVVYDOXHFKDLQ SURGXFWVIRUSULYDWHEUDQGV&RQWUDFWLQJ
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procurement to product support availability of products
and product feedback

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Move Transport Fleet
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experience to all customers

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store expansion

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Integrated Annual Report 2017–18 Management’s Discussion and Analysis 77

Market Environment
)<ZLWQHVVHGVHYHUDOLPSRUWDQWUHIRUPVWDNLQJSODFH ,QGLDpVUHWDLOPDUNHWLVHVWLPDWHGDW86ELOOLRQLQ
in the economy. The Government implemented Goods and )<DQGLVH[SHFWHGWRJURZDWD&$*5RI
6HUYLFHV7D[HVZLWKHƪHFWIURP-XO\7KH0DKDUDVKWUD UHDFKLQJ86ELOOLRQE\)<7KHSHQHWUDWLRQRI
government permitted shops and retail establishments in RUJDQLVHGUHWDLOLQ,QGLDDWLVYHU\ORZ+RZHYHURUJDQLVHG
WKHVWDWHWRUHPDLQRSHQKRXUVDGD\VHYHQGD\VDZHHN retail is growing at a faster pace and is estimated to jump
and also reduced compliance requirements. WKUHHIROGIURP86ELOOLRQLQ)<WR86ELOOLRQ
E\)<3.
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GDP per capita income is estimated at `1LQ Reliance Retail has established a large presence across
FORVHUWR86PDUN2. Favourable macroeconomic DOOFRQVXPSWLRQEDVNHWVDQGLVDOHDGLQJSOD\HULQIRRG
SDUDPHWHUV\RXQJDQGDVSLULQJSRSXODWLRQJURZWKRI consumer electronics and fashion retailing delivering
GLJLWLVDWLRQDQGLQWHUQHWSHQHWUDWLRQVKLIWIURPWUDGLWLRQDOWR VXSHULRUYDOXHWRLWVFXVWRPHUVVXSSOLHUVDQGVKDUHKROGHUV
PRGHUQUHWDLOFKDQQHOVLQFOXGLQJHFRPPHUFHDUHDOOOLNHO\WR
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with increasing willingness to spend on wider assortment 5HOLDQFH5HWDLOLVWKHUHWDLOLQLWLDWLYHRI5HOLDQFH,QGXVWULHV
of products available at better quality and value. Reliance DQGDQHSLFHQWUHRILWVFRQVXPHUIDFLQJEXVLQHVVHV,WKDV
5HWDLOpVLQYHVWPHQWVLQWHFKQRORJ\LQIUDVWUXFWXUHEXVLQHVV DGRSWHGDPXOWLUHWDLOFRQFHSWVWUDWHJ\DQGRSHUDWHVDZLGH
processes and people would ensure that Reliance Retail is array of store concepts which caters to diverse needs of the
always ahead of the curve in serving its customers. FXVWRPHUVDFURVVFRUHFRQVXPSWLRQEDVNHWVRI*URFHU\
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Petro Retail.

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Grocery
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)DVKLRQ /LIHVW\OH

Petro

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DFFRXQWLQJIRUVKDUHRIWKHUHWDLOPDUNHW,WLVHVWLPDWHG potential for Reliance Retail to penetrate in this category.
DW86ELOOLRQLQ)<DQGLVH[SHFWHGWRJURZ
DWD&$*5RIUHDFKLQJ86ELOOLRQE\)<3. ,QJURFHU\5HOLDQFH5HWDLORSHUDWHVWKUHHXQLTXHVWRUH
The penetration of organised retail is lowest at 3% in this FRQFHSWV5HOLDQFH)UHVK5HOLDQFH6PDUWDQG5HOLDQFH0DUNHW
FDWHJRU\+RZHYHURUJDQLVHGJURFHU\UHWDLOLVH[SHFWHGWR (DFKVWRUHFRQFHSWKDVDFRPSHOOLQJVWRUHH[SHULHQFH
JURZDWD&$*5RIUHDFKLQJ86ELOOLRQE\)<3 HQJDJLQJVWRUHVWDƪDQGDXQLTXHSULFHYDOXHSURSRVLWLRQ

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2 IMF: http://www.imf.org/external/datamapper/NGDPDPC@WEO/OEMDC/ADVEC/WEOWORLD/IND
3 Edelweiss Research Report titled ‘India Retail Return of the Renaissance’
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

78 Reliance Industries Limited • Making Life Better. For Everyone.

Reliance Fresh is a neighbourhood store concept focused 2YHUWKH\HDUV5HOLDQFH5HWDLOKDVGHYHORSHGDZLGHUDQJHRI


RQSURYLGLQJIUHVKIUXLWVYHJHWDEOHVDQGSURGXFWVIRU RƪHULQJVXQGHULWVRZQEUDQGV%HVW)DUPV*RRG/LIH0DVWL
daily household needs with a strong focus on providing 2\H.DƪH(Q]R0RS]([SHO]+RPH2QH*UDSKLWH5HO*ORZ
FRQYHQLHQFHURXQGWKHFORFNIUHVKQHVVDWDƪRUGDEOHSULFHV HWFDUHVRPHRIWKHEUDQGVWKDWDUHRƪHUHGLQFDWHJRULHVVXFK
:LWKWKUHHFRUHSURPLVHVRI)UHVK+DPHVKD$YDLODEOH DVKRPHDQGSHUVRQDOFDUHVWDSOHVIRRG)0&*DQGJHQHUDO
+DPHVKDDQG6DYLQJV+DPHVKD5HOLDQFH)UHVKSURYLGHVJRRG merchandise. These brands are available across Reliance
quality products across entire grocery needs of a household. )UHVK5HOLDQFH6PDUWDQG5HOLDQFH0DUNHWVWRUHVDQGRƪHU
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Reliance Smart is a destination supermarket store with a
VLPSOLƬHGDQGVWURQJYDOXHSURSRVLWLRQq%LJ6KRSSLQJHTXDOV Reliance Retail directly partners with a large number of farmers
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DOOSURGXFWVFRPSHWLWLYHO\SULFHGDOO\HDUURXQGWKXVSURYLGLQJ the farm has brought about transformational changes in the
households more savings every day. www.reliancesmart.in TXDOLW\RIOLIHRIWKHIDUPHUV,WLVHQKDQFLQJWKHTXDOLW\RI
is Reliance Retail’s strategic initiative to take Reliance Smart SURGXFHUHGXFLQJZDVWDJHE\VKRUWHQLQJWKHWLPHWRPRYH
Omni channel and is currently operational in select cities. IUHVKSURGXFHDQGUHGXFLQJLQWHUPHGLDULHVLQWKHYDOXHFKDLQ
,WLVDQLQLWLDWLYHWREXLOGDQRQOLQHVDOHVFKDQQHOIRUJURFHU\ WKHUHE\EHQHƬWLQJDOO
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through existing network of Reliance stores and supply chain Consumer Electronics
infrastructure. &RQVXPHUHOHFWURQLFVDFFRXQWVIRUQHDUO\RI,QGLDpVUHWDLO
PDUNHW,WLVHVWLPDWHGDW86ELOOLRQLQ)<DQGLV
5HOLDQFH0DUNHWLV,QGLDpVODUJHVWFDVKDQGFDUU\VWRUHFKDLQ H[SHFWHGWRJURZDWD&$*5RIUHDFKLQJ86ELOOLRQ
VHUYLQJWKRXVDQGVRIWUDGLWLRQDONLUDQDVKRWHOUHVWDXUDQW E\)<7KHSHQHWUDWLRQRIRUJDQLVHGUHWDLOLQWKLV
DQGFDWHULQJ +25(&$ VPDOODQGPHGLXPLQVWLWXWLRQVDQG category is 25% and the organised consumer electronics retail
KRXVHKROGV,WZRUNVFORVHO\ZLWKLWVPHPEHUSDUWQHUVDQG LVH[SHFWHGWRJURZIDVWHUDWD&$*5RIIURP86ELOOLRQ
RƪHUVVROXWLRQVHQFRPSDVVLQJGHOLYHU\SD\PHQWHWF7KH LQ)<WR86ELOOLRQE\)<3.
business operates on the principle of ‘buy for less’ – ‘operate
for less’ – ‘sell for less’ – ‘grow sales’ relying on higher ,QFRQVXPHUHOHFWURQLFV5HOLDQFH5HWDLORSHUDWHVWZRVWRUH
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customers. The value thus created by Reliance Markets helps DUHEDFNHGE\5HV4,QGLDpVƬUVWDQGRQO\,62FHUWLƬHGPXOWL
LQVXSSRUWLQJPHPEHUSDUWQHUVRƪHULQJWKHPoSURƬWVIRU\RXU SURGXFWPXOWLEUDQGDQGPXOWLtORFDWLRQVHUYLFHQHWZRUN
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Procurement from farmers and &ROOHFWLRQ&HQWUHV 3URFHVVLQJ Fresh fruits and vegetables delivered
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2SHUDWHFROGURRPVDWGLVWULEXWLRQFHQWUHVDQGƮHHWRIYHKLFOHVWRHQVXUHIUHVKQHVVDQGTXDOLW\RIIUXLWVDQGYHJHWDEOHV

3 Edelweiss Research Report titled ‘India Retail Return of the Renaissance’


Integrated Annual Report 2017–18 Management’s Discussion and Analysis 79

5HOLDQFH'LJLWDOLVDGHVWLQDWLRQVWRUHRƪHULQJFRPSUHKHQVLYH )DVKLRQ /LIHVW\OH


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DODUJHVHOHFWLRQRILQQRYDWLYHSURGXFWVDWWUDFWLYHSULFLQJ and is the second largest category after grocery. Demographic
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a delightful ‘all under one roof’ shopping experience to WKHDSSDUHO DFFHVVRULHVFDWHJRU\,WLVHVWLPDWHGDW86
FRQVXPHUV,WFRPPDQGVPDUNHWOHDGHUVKLSLQKLJKHQG ELOOLRQLQ)<DQGLVH[SHFWHGWRJURZDWD&$*5RI
consumer electronics and home appliance categories such as UHDFKLQJ86ELOOLRQE\)<2UJDQLVHGUHWDLO
XOWUDKLJKGHƬQLWLRQ79VVLGHE\VLGHUHIULJHUDWRUVWRSORDG penetration in apparel category is at 22% and the organised
washing machines and inverter air conditioners. DSSDUHOLVH[SHFWHGWRJURZDWD&$*5RIIURP86
ELOOLRQLQ)<WR86ELOOLRQE\)<3.
Reliance Retail has a wide portfolio of own brand products
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DUHEXLOWRQWKHSUHPLVHRISURGXFWLQQRYDWLRQXQPDWFKHG DQGKDVDGRSWHGDPXOWLPRGHODSSURDFKLQUHDFKLQJRXWWR
user experience and superior quality and gives customers a its customers through various retail concepts that cater to
wider choice of products that serve their needs. customer segments from value to premium and luxury.

Jio Store and Jio Point are a small store concept that caters 7UHQGVWKHDSSDUHODQGDFFHVVRULHVVSHFLDOLW\UHWDLOFKDLQ
to rapidly growing market for mobility and communication enjoys market leadership as the largest value fashion retailer
SURGXFWV7KH\RƪHUODWHVWDVVRUWPHQWRIPRELOHSKRQHV LQ,QGLD7UHQGVEULQJVDFRPSHOOLQJSRUWIROLRRIQDWLRQDO
FRPPXQLFDWLRQGHYLFHV,7SURGXFWVDFFHVVRULHVDQG-LR brands and own brands. A range of own brands such as
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'LJLWDOpVUHDFKE\RƪHULQJDODUJHDVVRUWPHQWRIFRQVXPHU found strong traction with customers seeking fashionable
GXUDEOHVWKURXJKFDWDORJXH ZHEVDOHV,QDVKRUWSHULRG products at better prices. Each of these brands caters to
Reliance Retail has established Jio Store and Jio Point as the diverse tastes and preferences of the customers. Over
country’s largest mobile phone retail chain. Jio Store and WKH\HDUVWKHRZQEUDQGSRUWIROLRRI7UHQGVKDVJURZQ
Jio Point are increasingly becoming a distribution platform in strength and provides a competitive advantage to the
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emerging fashion trends.

Presence Across All Income Segments in Fashion and Lifestyle

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Value Apparel
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

80 Reliance Industries Limited • Making Life Better. For Everyone.

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Vertical Integration Across Fashion Value Chain


Fully integrated operations from designing to distribution
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freelancers and international %DQJODGHVKWRVXSSRUWORZFRVW 48 hours
design houses manufacturing
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design studios in Bengaluru and international brands at various
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best prices.

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Technology enabled safety pendant


Action Taken:
• The Company introduced GLVWUHVVVLJQDOLVWULJJHUHG Impact:7KLVGHYLFHEHQHƬWV
DWHFKQRORJ\HQDEOHG SHRSOHZLOOJHWDQ,95 women and addresses
SHQGDQWHPEHGGHGZLWK 5HFRUGHG&DOO VHF DQ the societal challenge of
a bluetooth device that is SMS with the user location women’s safety. The device
used to trigger an alarm and the user gets an option would instil a sense of
to 5 emergency contacts. to see and navigate to security and comfort to the
The wearable product is nearest safe place. “Call individual and their families.
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DƪRUGDEOHDQGKDVD call to the nearest police
day battery life. When the control room.

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HQWLUHVSHFWUXPRIOX[XU\EULGJHWROX[XU\KLJKSUHPLXPDQGKLJKVWUHHWOLIHVW\OH7KHVWURQJEUDQGSRUWIROLRUHLQIRUFHV
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Integrated Annual Report 2017–18 Management’s Discussion and Analysis 81

Qwik Mart – convenience store co-located with petro outlet -LRSRLQW6HUYLQJXQWDSSHGPDUNHW

Petro Retail
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Financial and Operational Performance


FY 2017-18 FY 2017-18 FY 2016-17 % Change in
Parameter
(` in crore) (US$ in million) (` in crore) y-o-y
Revenue    104.9%
3%',7  388  114.5%
(%,7  317 784 163.3%
(%,70DUJLQ 3.0% 2.3%

Reliance Retail achieved a turnover of `FURUHLQ)< ,QJURFHU\WKH)UXLWVFDWHJRU\LVFRQVLVWHQWO\VKRZLQJKLJK


PRUHWKDQGRXEOLQJIURPWKHWXUQRYHURI` growth in Reliance Fresh and Smart backed by its supply
FURUHDFKLHYHGODVW\HDU7KHEXVLQHVVGHOLYHUHGDQ(%,7RI FKDLQDQGVRXUFLQJHƯFLHQFLHV$FFRUGLQJWR1LHOVHQ
`FURUHIRU)<PRUHWKDQGRXEOLQJIURP`784 Reliance Fresh and Smart account for over 50% of all fruits
FURUHDFKLHYHGODVW\HDU'XULQJWKH\HDU5HOLDQFH5HWDLO and vegetables sold in modern trade. Reliance Fresh and
DGGHGVWRUHVDQG-LR3RLQWV Smart stores crossed a milestone of 500 stores mark during
the year and are becoming a preferred destination for buying
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cities covering an area of 17.7 million sq. ft. as on 31st0DUFK products.
2018. Reliance Retail operated 495 petro retail outlets as on
31st0DUFK 4ZLN0DUWDQHZFRQYHQLHQFHVWRUHFRQFHSWZDVODXQFKHG
GXULQJWKH\HDU4ZLN0DUWVWRUHVDUHFRORFDWHGZLWK
Business Performance 5HOLDQFH3HWUR5HWDLORXWOHWVDQGHƯFLHQWO\OHYHUDJHWKH
Reliance Retail demonstrated stellar operating performance group strength and resources.
GXULQJ)<ZLWKVWURQJJURZWKDFURVVJURFHU\
FRQVXPHUHOHFWURQLFVDQGIDVKLRQ OLIHVW\OH7KLVZDV Reliance Market witnessed strong same store sales
backed by a healthy blend of store expansion and same store JURZWKKHOSHGE\JURZWKLQ.LUDQDFXVWRPHUVEHWWHUYDOXH
sales growth across all its store concepts. proposition and focused customer strategy.
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

82 Reliance Industries Limited • Making Life Better. For Everyone.

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JURZWKDFURVVNH\FDWHJRULHVDQGGHOLYHUHGKLJKGRXEOH retailer in the country with 458 stores across 223 cities in
digit same store sales growth. Strengthening its product 28 states. Reliance Retail has added over 100 Trends stores
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5HOLDQFH'LJLWDOpVFRPSHWLWLYHDGYDQWDJHLQ+LJK(QG79V such a large expansion in a year and widespread presence.
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ResQ’s service promise and regional focus being the WKH\HDUPDNLQJLWDSUHIHUUHGGHVWLQDWLRQIRUFXVWRPHUV
distinguishing factors which contributed to an impressive
growth. ResQ carried out over 1.2 million repairs and 5HOLDQFH-HZHOVODXQFKHGo$6<$pDQH[FOXVLYHKDQGFUDIWHG
LQVWDOODWLRQVGXULQJWKH\HDUDQLQFUHDVHRIRYHUODVW\HDU collection which is inspired by noble bird HAMSA (or SWAN)
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To further enhance its distribution reach for consumer DWWUDFWVWURQJFXVWRPHUWUDFWLRQE\SURYLGLQJZLGHVWUDQJH
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the year. These cities are key feeder markets and would
provide access to untapped semi urban and rural market 3URMHFW(YHDQHZVWRUHFRQFHSWSRVLWLRQHGLQWKHPLGWR
for Reliance Digital. Jio points serve as a nodal point for SUHPLXPVHJPHQWZDVODXQFKHGGXULQJWKH\HDU3URMHFW(YH
consumers to obtain and recharge Jio services and facilitate LVDXQLTXHRQHVWRSH[SHULHQWLDOVWRUHFRQFHSWWDUJHWLQJ
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Curated Fashion and Lifestyle


Integrated Annual Report 2017–18 Management’s Discussion and Analysis 83

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stores also showcase Marks and Spencer’s curated range of partnerships of international brands by acquiring 46.6%
OLQJHULHDQGEHDXW\SURGXFWVWKURXJKD6,6IRUPDWWKHƬUVW HTXLW\VWDNHLQ*HQHVLV/X[XU\)DVKLRQ3YW/WGZKLFK
HYHUE\0DUNVDQG6SHQFHULQ,QGLD RSHUDWHVDULFKSRUWIROLRRIEUDQGVVXFKDV$UPDQL&DQDOL
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followers across social media and ranks among the top during the year. Reliance Petro Retail outlets have robust
shopping apps on Apple iOS and Google Play Store. automation of daily fuel pricing at 100% of operational retail
RXWOHWVHQVXULQJFXVWRPHUVRIFRUUHFWDQGWLPHO\SULFH
implementation.

Reliance Retail: Partner of Choice

Outlook a) Augmenting geographical reach across all


2YHUWKHSDVWGHFDGH5HOLDQFH5HWDLOKDVEXLOW,QGLDpVODUJHVW consumption baskets
UHWDLOLQIUDVWUXFWXUHZLWKEULFNDQGPRUWDUVWRUHVDFURVV  q%HWWHULQJWKH/LYHVRI,QGLDQVrHYHU\GD\KDVEHHQWKH
FLWLHVPLOOLRQVTIWRIZDUHKRXVLQJIDFLOLW\D core focus of Reliance Retail since inception. Reliance
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has helped Reliance Retail achieve an unprecedented growth in DQGEH\RQGWRDFKLHYHPDUNHWOHDGHUVKLS,WZLOOOHYHUDJH
,QGLDpVRUJDQLVHGUHWDLOPDUNHW.HHSLQJSDFHZLWKWKHPDUNHW and interplay strengths with Reliance Jio to execute this.
JURZWKDQGHYROYLQJFRQVXPHUVKRSSLQJKDELWV5HOLDQFH5HWDLO
KDVDSODQQHGURDGPDSWRFDSWXUHDVLJQLƬFDQWVKDUHRIWKH b) Innovating newer store concepts and channels to
RUJDQLVHGUHWDLO:LWKDJJUHVVLYHH[SDQVLRQSODQV5HOLDQFH meet customer expectations
Retail is getting future ready and set to further strengthen  'XULQJWKH\HDU5HOLDQFH5HWDLOUROOHGRXWDQGH[SDQGHG
and consolidate its leadership position in organised retail. This newer store concepts like Project Eve and Trends
expansion will be achieved through the following key pillars: Woman. These newer concepts are already resonating
ZLWKWDUJHWFXVWRPHUV,QRUGHUWRFDWHUWRJURZLQJDQG
GLYHUVHFXVWRPHUQHHGV5HOLDQFH5HWDLOZLOOFRQWLQXHWR
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

84 Reliance Industries Limited • Making Life Better. For Everyone.

innovate and partner with revered international brands ZKLOHGHSOR\LQJDOOLWVUHVRXUFHV(YHU\\HDU5HOLDQFH5HWDLO


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consumers. few highlights of the year:
• 3HRSOHZLWKGLVDELOLWLHVDUHXVXDOO\GHQLHGMREVLQ,QGLD
c) Enhancing customer experience across all +RZHYHU5HOLDQFH5HWDLOWUDLQHGDQGUHFUXLWHGVSHFLDOO\
concepts and channels abled people during the year. As on 31st0DUFK5HOLDQFH
 &RQYHUJHQFHRI2QOLQHDQG2ưLQHUHWDLOLQJLVEHLQJ Retail employed 793 specially abled employees. Each of
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SUHVHQFHUHDFKWR5HOLDQFH5HWDLO,QRUGHUWRHQKDQFH skills and makes them a useful asset to the organisation.
WKLVUHDFKDQGDXJPHQWFXVWRPHUH[SHULHQFHPRUH • Reliance Retail was awarded contract through a tender
LQLWLDWLYHVDUHEHLQJSODQQHGZKLFKZLOOEHUROOHGRXWLQD process to support Fair Price Shops across 10 districts of
phased manner. $QGKUD3UDGHVKFRYHULQJVKRSV7KLVLVDYROXQWDU\
program facilitated by the government of Andhra Pradesh.
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and quality oriented. Global retailers are leveraging UHDFKFRPPRQPDQRIWKHVWDWHWKHUHE\VKDULQJYDOXH
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to customers. Reliance Retail will be adopting next LVEDFNHGE\LWV0DNHLQ,QGLDFRPPLWPHQW5HOLDQFH
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Reliance Retail in association with Reliance Foundation has
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employer of choice.
that its activities create societal impact and customer value

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Integrated Annual Report 2017–18 Management’s Discussion and Analysis 85

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To encourage inclusion of openly acknowledges that it is


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Corporate Overview Management Review 41-179 Governance Financial Statements Notice

86 Reliance Industries Limited • Making Life Better. For Everyone.

Digital Services
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Integrated Annual Report 2017–18 Management’s Discussion and Analysis 87

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generation mobile network at almost negligible cost coupled &KDUJHV ,8& E\ZKLOHUHGXFLQJWKHH[WDQWFKDUJHRI
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but also consumption patterns leading to exponential
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have immensely helped in accelerating the shift towards LPSOHPHQWDWLRQRIGLJLWDOWHFKQRORJLHVZKLFK-LRKDV
digital economy and society. been pioneering.
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

88 Reliance Industries Limited • Making Life Better. For Everyone.

Digital transformation across the value chain 7KHDERYHJDSUHSUHVHQWVDQRSSRUWXQLW\RIDQDWOHDVWa


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driven by various private and public initiatives. During the $VSHU(,8IRUHFDVW,QGLDQKRXVHKROGVKDYHEHHQZLWQHVVLQJ
ODVWIHZ\HDUVWHFKQRORJLFDODGYDQFHPHQWFRXSOHGZLWK an upwards increase in their disposable income since the
WUDQVIRUPDWLYHLQLWLDWLYHVE\-LRLVHQDEOLQJDYDLODELOLW\RI ODVWIHZ\HDUV'HORLWWHSUHGLFWVWKDWULVLQJDưXHQFHRI
DƪRUGDEOHEURDGEDQGLQWHUQHWSODQV7KLVKDVSURYLGHGWKH households will lead to an increased demand for consumer
UHTXLUHGLPSHWXVIRULQFUHDVLQJLQWHUQHWXVDJHLQ,QGLD JRRGVHQWHUWDLQPHQWV\VWHPVHWFZKLFKZLOOIXUWKHU
GULYHGHPDQGIRULQWHUQHWVHUYLFHV+HQFHWKHVHXQWDSSHG
,QGLDFXUUHQWO\KDVRYHUaPLOOLRQLQWHUQHWVXEVFULEHUV households will represent the next wave for internet
&$*5RIaRYHU)< PDNLQJLWWKHVHFRQGODUJHVW JURZWKLQ,QGLD
RQOLQHPDUNHWLQWKHZRUOGUDQNHGRQO\EHKLQG&KLQD
+RZHYHUWKHRYHUDOOLQWHUQHWSHQHWUDWLRQLVVWLOODW
VNHZHGLQIDYRXURIXUEDQ,QGLDZKLFKKDVaLQWHUQHW Mobile Phone continues to be the preferred
SHQHWUDWLRQ5XUDO,QGLDLVVWLOOXQGHUSHQHWUDWHGZLWKRQO\ primary device driving internet usage (in Million)
SHQHWUDWLRQ:LWKDWRWDOUXUDOSRSXODWLRQRIa
PLOOLRQDSSUR[LPDWHO\PLOOLRQXVHUVVWLOOGRQRW 1 6
use internet.
7
17
Internet users in India – 92
8UEDQ5XUDOGLYLGH(in Million)
77

163
157

129

101
263 269
246

Rural 8UEDQ
177
Mobile 'HVNWRS/DSWRS Tablet

Even though the mobile industry’s contribution to the


FRXQWU\pV*'3FXUUHQWO\VWDQGVDW 86'ELOOLRQ 2
2014 2015 2016 2017 (Est) ,QGLDQWHOHFRPLQGXVWU\KLWKHUWRKDGPRQROLWKLFDSSURDFK
WRZDUGVFRQVXPHUZLWKOLPLWHGLQQRYDWLRQRUFROODERUDWLRQ
8UEDQ Rural WKDWGULYHVHFRV\VWHPEHQHƬWVWRWKHHQGFRQVXPHU

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been driven mostly by availability of cheaper smartphones
or through narrow band wireless access. More than 92% of
rural users (substantially through limited wireless narrow
band access) and 77% urban users have been using mobile as
a primary device for accessing internet through cellular data
connections.

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years as the largely untapped market slowly gets included
into the realms of digital services.

1 Internet in India 2016 – An IAMAI & IMRB report, Deloitte-India 2018


Predictions

Celebrating Digital Life 2 Deloitte Technology Media and Telecommunications Predictions- In-
dia 2018 Predictions
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 89

,QHDUO\,QGLDEHFDPHWKHVHFRQGODUJHVWVPDUWSKRQH :LWKWKHLQFUHDVLQJDYDLODELOLW\RIDƪRUGDEOHWHOHFRP
PDUNHWLQWKHZRUOGWUDLOLQJ&KLQDDQGRYHUWDNLQJWKH services and handsets in the market and the numerous
86ZLWKDERXWPLOOLRQVPDUWSKRQHXVHUV7KH *RYHUQPHQWLQLWLDWLYHVWRFRQQHFWWKHXQFRQQHFWHG
WHOHFRPPXQLFDWLRQVPDUNHWLQ,QGLDLVFKDUDFWHULVHGE\ 'HORLWWHSUHGLFWVWKDW,QGLDLVSRLVHGWREHDWWKHIRUHIURQWRI
DQXUEDQUXUDOGLYLGHZKLFKLVPDQLIHVWHGE\DQXUEDQWHOH WKHJOREDOGDWDUHYROXWLRQZLWKWKHLQWURGXFWLRQRIEXQGOH
density three times higher than that of rural. This explains EDVHGVDOHVRIVPDUWSKRQHVZLWKQHWHƪHFWLYHSULFHOHVVWKDQ
the high smartphone user concentration in urban cities and 86DQGGDWDUDWHVDWOHVVWKDQ86SHU*%
an overall low smartphone penetration in the country. The
current smartphone penetration in the country stands at 7KHqVPDUWIHDWXUHSKRQHVrLQWURGXFHGE\5HOLDQFH5HWDLO
DVORZDVa7KHWRSFLWLHVPDNHXSRIWKHHQWLUH (Reliance’s retail initiative to bridge the digital divide gap)
VPDUWSKRQHPDUNHWLQ,QGLD in the market proved to be a game changer. These phones
would potentially bridge the digital divide by reaching out
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functionalities bundled into the devices.

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Robust World’s 2nd largest telecommunications market 1.191 billion subscribers


  RISRSXODWLRQOLYHVLQQRQPHWURQRQXUEDQDUHDVDQGQRWIXOO\GDWDHQDEOHG
Demand
 , QFUHDVLQJFRQVXPSWLRQRIGDWDDQGPHGLDRQPRELOHQHWZRUNV

Rural teledensity 56.66


Attractive 2nd largest internet market globally
Opportunities  *
 R,ODXQFKHV'LJLWDO,QGLDSURJUDP
 (
 GXFDWLRQKHDOWKFDUHUHWDLOHWFZLOOEHFRQQHFWHGWKURXJKLQWHUQHW

 3
 URDFWLYHHƪRUWVWRWUDQVIRUP,QGLDLQWRDJOREDOWHOHFRPPXQLFDWLRQVKXE
Policy Prudent regulatory support
$GYDQWDJH,QGLD Support New National Telecom Policy 2018 to set the tone for full digitisation path.

 < RXQJSRSXODWLRQLQFUHDVLQJGLVSRVDEOHLQFRPH
Growing Quick adoption to digital life
Middle Class  a PLOOLRQLQWHUQHWXVHUVE\

Since Jio’s transformative entry and collaborative approach spectrum footprint across frequency bands provides
DFURVVWKHYDOXHFKDLQWKHLQGXVWU\LVVWHDGLO\PRYLQJ VLJQLƬFDQWQHWZRUNFDSDFLW\DQGGHHSLQEXLOGLQJFRYHUDJH
towards a converged and value added bundled services 5-,/pVWRWDOVSHFWUXPIRRWSULQWZLWKWKLVVWDQGVDW0+]
approach. XSOLQNGRZQOLQN DFURVVWKUHHVSHFWUXPEDQGVQDPHO\
0+]0+]DQG0+]EDQGDFURVVDOOWKHFLUFOHV
-LR,QWHJUDWHGGLJLWDOVHUYLFHVIUDQFKLVH with an average life of over 15 years. All of this spectrum is
Seamless converged coverage and abundant capacity liberalised and can be used for rolling out any technology.
5HOLDQFH-LRKDVEXLOW,QGLDpVODUJHVWDQH[WJHQHUDWLRQDOO,3
GDWDQHWZRUNZLWKODWHVW*/7(WHFKQRORJ\,WLVWKHRQO\ Jio’s next generation network is amongst the best in the
network built as a Mobile Video Network and providing Voice world. The network has advance features such as Software
RYHU/7( 9R/7( WHFKQRORJ\,WKDVEXLOWDIXWXUHUHDG\ 'HƬQHG1HWZRUNLQJ 6'1 DQG1HWZRUN)XQFWLRQV
network which can easily deploy 5G and beyond technology 9LUWXDOLVDWLRQ 1)9 ,WLVUHDG\IRUIXWXUHHYROXWLRQRI
in the last leg. Jio has created an ecosystem comprising WHFKQRORJ\LQFOXGLQJWUDQVLWLRQWR*ZLWKPLQLPDO
QHWZRUNGHYLFHVDSSOLFDWLRQVDQGFRQWHQWVHUYLFH additional capital expenditure in the network. The Company
H[SHULHQFHDQGDƪRUGDEOHWDULƪVIRUHYHU\RQHWROLYHWKH-LR KDVƬOHGSDWHQWVIRUWKHSDWKEUHDNLQJLQLWLDWLYHVLWKDV
'LJLWDO/LIH undertaken.

Spectrum and network Jio is one of the largest network operators in the country
Jio’s network is engineered for seamless service delivery where the coverage is at par with 2G coverage of existing
XVLQJ/7(WHFKQRORJ\LQ0+]0+]DQG0+] RSHUDWRUV%\IDU-LRKDVWKHODUJHVW/7(FRYHUDJHLQ,QGLD
bands through an integrated ecosystem. The combined and is targeting 99% coverage of the country’s population.
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

90 Reliance Industries Limited • Making Life Better. For Everyone.

,QDQWLFLSDWLRQRIWKHODWHQWDQGXQWDSSHGGDWDDQGGLJLWDO 7KLVDFTXLVLWLRQZKHQFRPSOHWHGZRXOGEULQJV\QHUJLHV
VHUYLFHVGHPDQG-LRKDVEXLOWDVWURQJGDWDQHWZRUNZLWK while adding to Jio’s network infrastructure asset portfolio
ZRUOGFODVVLQIUDVWUXFWXUHDQGƬEHUEDFNKDXOIRURƪHULQJ DFURVVVSHFWUXPWRZHUDQGRSWLFDOƬEHU
ZLUHOHVVVHUYLFHVZLUHOLQHVHUYLFHV)77+(QWHUSULVH
RƪHULQJV,R7VHUYLFHVDQGRWKHUGLJLWDOVHUYLFHV Superior Network Quality
• Continued expansion of 4G network coverage and further
5HOLDQFH-LRDOVRVLJQHGGHƬQLWLYHDJUHHPHQWIRUWKH deepening in existing areas to achieve 99% population
DFTXLVLWLRQRIVSHFLƬHGDVVHWVRI5HOLDQFH&RPPXQLFDWLRQV coverage during 2018
/LPLWHG o5&20p DQGLWVDƯOLDWHV7KHDFTXLVLWLRQLVVXEMHFW
• 2QO\QHWZRUNWRGHSOR\3DQ,QGLD*DFURVVWKH0+]
to receipt of requisite approvals from Governmental and
1800MHz/ 2300MHz bands
UHJXODWRU\DXWKRULWLHVFRQVHQWVIURPDOOOHQGHUVUHOHDVHRI
all encumbrances on the said assets and other conditions • World’s largest mobile data consumption network
precedent. The consideration is payable at completion and is • :RUOGpVODUJHVW92/7(QHWZRUN
VXEMHFWWRDGMXVWPHQWVDVVSHFLƬHGLQWKHDJUHHPHQW • 5DQNHGIDVWHVWQHWZRUNRYHUODVWPRQWKVE\75$,pV
MySpeed Analytics app (average download speed of 17.9
0ESVGXULQJ0DUFKDVSHU75$,
• /RZHVWFDOOGURSUDWHQHWZRUNDYDLODELOLW\

-LR'LJLWDO9LVLRQ

0RVWDƪRUGDEOHdata in the world – ensuring


access to the common man

Data costs less than `50/GB

Connectivity for every Indian – with bouquet


of digital services

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applications

High quality data uninterrupted and high speed


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High speed video ready network

One of the widest reaching


networks globally – spread across cities and villages

To cover >99% of India’s population

Largest Distribution and Service Network


• Continuous enablement of distribution channel through device design and engineering. To bridge the digital divide
latest technology enabled platforms and services JDSDQGWRHQDEOHDFFHVVWRDƪRUGDEOHKLJKVSHHGPRELOH
• 3DQ,QGLDGLVWULEXWLRQFKDQQHOZLWKRYHUPLOOLRQUHWDLOHUV GDWDWRWKHKLWKHUWRXQVHUYHGaPLOOLRQSOXVIHDWXUH
• Rapidly growing base of digital outlets and SKRQHDQGWKHXQFRQQHFWHGPDUNHW-LRKDVSDUWQHUHGZLWK
• Jio Points in partnership with Reliance Retail as master Reliance Retail in launching a smart feature phone ‘JioPhone’
distributor catering to this untapped market. This initiative has been
hugely popular with unprecedented demand and adoption.
Devices
Jio has been actively involved in developing the ecosystem
-LRFRQWLQXHVWRZRUNZLWKYDULRXV2(0Vp2'0VpDQGRWKHU
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adoption and cater digital services to the unserved.
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 91

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All-IP Network Seamless In-building coverage


,QVWDQWFDOOFRQQHFWLYLW\PLQLPDOFDOO Superior indoor coverage using Macro
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FTTH roll out

Rich Capacity Ubiquitous Coverage footprint


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WKHQHWZRUNDWDOOWLPHV FRPELQDWLRQ with FDD and TDD spectrum (850/
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Seamless Service experience Superior Data experience


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experience end applications

Partnerships and new ventures


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all the components of the digital value chain available and applications portfolio to ensure seamless experience to
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continues to partner and collaborate with technology
GHYHORSHUVVHUYLFHSURYLGHUVLQIUDVWUXFWXUHSURYLGHUV Financial and operational performance.
application partners and device manufacturers. 5HOLDQFH-LRLVWKHƮDJVKLSGLJLWDOFRPPXQLFDWLRQVDQG
VHUYLFHVLQLWLDWLYHRI5HOLDQFH,QGXVWULHV/LPLWHGDQG
7RHQKDQFHFDSDELOLWLHVRQFRQWHQWWHFKQRORJ\SODWIRUPV epicenter of Group’s digital revolution and transformation.
DQGDSSOLFDWLRQVVSDFHZKLOHOHYHUDJLQJJURXSV\QHUJLHV Realisation of this strategic vision is not only evident in the
a strategic transaction was announced for combination of XQSUHFHGHQWHGFXVWRPHUHQJDJHPHQWPHWULFVEXWDOVRLQ
-LR0XVLFZLWK6DDYQDOHDGLQJJOREDOPXVLF277SODWIRUPWR WKHUREXVWƬQDQFLDOSHUIRUPDQFHRI'LJLWDO6HUYLFHVEXVLQHVV
IRUP,QGLDpVODUJHVWSODWIRUPIRUPXVLFPHGLDDQGDUWLVWV LQYHU\ƬUVW\HDURILWpVFRPPHUFLDORSHUDWLRQV

To further digital initiatives into education space during the Financial Performance
\HDUDVWUDWHJLFLQYHVWPHQWDQGSDUWQHUVKLSZDVDJUHHG FY 2017-18 FY 2017-18
XSRQZLWK,QGLDYLGXDO/HDUQLQJ3YW/WG q(PELEHr DOHDGLQJ (` in crore) (US$ in million)
$,EDVHGHGXFDWLRQSODWIRUPOHYHUDJLQJGDWDDQDO\WLFVWR Gross Revenue  
deliver personalised learning outcomes to each student. (%,7  487.0
(%,7 13.3%
7REROVWHUFRQWHQWGXULQJWKH\HDUDVWUDWHJLFSDUWQHUVKLS
ZLWK(URV0HGLDZDVDJUHHGXSRQWRMRLQWO\VHWXSD`
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recorded revenues of `FURUHZLWK\HDUHQG
digital originals across all languages.
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`FURUHIRUWKH\HDUZLWK(%,7PDUJLQRI7KLV
-LRLWpVDƯOLDWHVDQGLWVEXVLQHVVSDUWQHUVFRQWLQXHWRLQYHVW
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innovate and enhance the digital ecosystem for bettering
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and operating leverage of the business.
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

92 Reliance Industries Limited • Making Life Better. For Everyone.

Jio continues to be the most popular wireless broadband • 7UDQVIRUPDWLRQUROHLQFUHDWLQJWKH'LJLWDO(FR6\VWHPLQWKH


service provider in the country with its subscriber base country
increasing at 186.6 million as on 31st0DUFK1HW • Growing popularity of Jio digital services and applications
VXEVFULEHUDGGLWLRQIRUWKH&RPSDQ\GXULQJ)<ZDVDW across the spectrum
83 million with lowest churn in the industry at 0.25% per month. • &XVWRPHUIULHQGO\DQGPRVWDƪRUGDEOHWDULƪVDFURVVXVHU
Jio continues to set new benchmarks on various performance segments
parameters GXULQJWKHH[LWTXDUWHUIRU)<: • Continuing market expansion and customer engagement
• ,QGXVWU\OHDGLQJ$538#,15SHUPRQWKRQDGLYHUVLƬHG through JioPrime
subscriber base.
(Only operator demonstrating business growth and growing Full service Digital suite
traction of digital life) Lifestyle Applications (app)
• Average voice consumption at 716 minutes per user per 7KH&RPSDQ\pVDOO,3QHWZRUNDSDUWIURP9R/7(GULYHQKLJK
month quality voice calling from and to other telecom networks
+LJKHVWSHUVXEDQGWUDƯFRIFURUHPLQXWHVSHUGD\ is fully enabled and capable of delivering content focused
• Average data consumption at 9.7 GB per user per month VHUYLFHV7KLVFDSDELOLW\WRFDUU\PXOWLPHGLDFRQWHQW
(Amongst the highest average usage on mobile globally) LQFOXGLQJPXVLFDQGYLGHRRƪHUVDULFKFXVWRPHUH[SHULHQFH
• Sustained 506 crore GB data consumption -LRDOVRWKURXJKLWV*URXSDƯOLDWHVDQGSDUWQHUVKDVHQDEOHG
:RUOGpVODUJHVWDQGIDVWHVWJURZLQJPRELOHGDWDQHWZRUN a rich suite of digital applications and tools which encompass
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• Average consumption of 13.8 hours of video consumption FRPPHUFHDQGVHOIVHUYLFHWRROV
per user per month
/DUJHVWKLJKTXDOLW\YLGHRFRQVXPSWLRQQHWZRUNZLWK Jio’s digital suite of applications are already amongst the
>240 crore hours per month) most popular in their respective categories and have won
various accolades.
This unprecedented adoption and metrics during the year are
backed by:
• 0\-LRLVWKHPRVWSRSXODUVHOIFDUHDSSZLWKRYHUPLOOLRQ
• (QGWR(QG*FRYHUDJHDWSDUZLWK*FRYHUDJHLQWKH
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country
• Best network quality in the country • -LR79LVWKHEHVWUDWHGOLYHDQGFDWFKXS79DSS
• /RZHVWFDOOGURSDW
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• Fastest down load speed at 17.9 Mbps
• 100% network availability since commencement of
operations

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Integrated Annual Report 2017–18 Management’s Discussion and Analysis 93

-LR$SSV

Jio MyJio JioTV JioCinema JioMusic JioMags

JioXpressNews JioChat JioCloud Jio4GVoice JioMoney JioSecurity

JioNewsPaper JioNet JioHealthHub Jioswitch JioGST

Outlook
• Combination of JioMusic and Saavn has created a music -LRZLOOFRQWLQXHWRHYDOXDWHDQGGHSOR\YDULRXVWHFKQRORJLHV
SRZHUKRXVHIRUPLQJ,QGLDpVODUJHVWSODWIRUPIRUPXVLF ERWKZLUHOHVVDQGZLUHOLQHWRRƪHUFRPSUHKHQVLYH
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• JioMags and JioNews are other highly popular customer
and innovating on a full suite of digital services and
RƪHULQJV
applications.
• -LRpV.%&SOD\DORQJDOLYHWYLQWHUDFWLYHJDPHZDVRQHRILWpV
kind and was hugely popular with peak concurrent user base While Jio continues to march on its promise to shape the
of 5 million participants engaged on the platform. IXWXUHRI,QGLDWKURXJKWUDQVIRUPDWLYHTXDOLW\DQGDƪRUGDEOH
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and ultimate goal of a full digital life style solution
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economic impact.
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

94 Reliance Industries Limited • Making Life Better. For Everyone.

-LRDFRPSOHWHGLJLWDOOLIHVW\OHVROXWLRQSURYLGHU

Extend the peak

Move up the value chain in Digital Service


Delay the Decline
Voice
Data Acess Digital lifestyle solution provider
Net revenue

Messaging

OTT/Digital Enabler
Service
8WLOLW\

Subscriber Penetration

Source: Chetan Sharma Consulting

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Growth Engines

Network -LR3KRQH FTTH Enterprise Digital Tech

4G LTE > 2G coverage Large addressable market Priming market for Untapped market Large addressable market
99% coverage by  a PLOOLRQIHDWXUH growth opportunity Bouquet of media/OTT
Dec’18 SKRQHVLQ,QGLD Minimal wireline Enterprise connectivity content for customers
0RUHH[WHQVLYHƬEHU  $ ƪRUGDEOHWDULƪSODQV broadband penetration and suite of new Exclusive partnership
network for new data users provides huge RƪHULQJV to enhance the
3DQ,QGLD*/7( opportunity  $
 ƪRUGDEOHVHUYLFHVIRU platform
across 800/1800/2300 Fiber backbone in SME segment Opportunity to build
MHZ bands place users Jio Advertisement
platform
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 95

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wave of automation as Reliance moves to a comprehensive Financial Management System platform.
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

96 Reliance Industries Limited • Making Life Better. For Everyone.

Media and Entertainment


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53
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channels across India

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platforms. Reliance media portfolio includes Network18
group and investment in partnerships to strengthen content
for Jio platforms. Channel-agnostic Reach for
approach impact
Strategic advantages and competitive strength
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Network18 strives to 1HWZRUNLVIXWXUHUHDG\
entertainment powerhouse with a robust foothold in
EHFKDQQHODJQRVWLFWR with its relentless focus
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ensure its content reaches RQWKHLGHQWLƬHGD[HVRI
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seamlessly to consumers growth: regional content and
content and allied media services businesses.
through their platform GLJLWDOGHOLYHU\7KLVWZR
• 2QHLQHYHU\WZR,QGLDQVFRQVXPH1HWZRUNpVFRQWHQW,WV of choice. This approach pronged approach enables
79FKDQQHOVUHDFKQHDUO\FURUH,QGLDQVUHSUHVHQWLQJ is increasingly relevant the Company to reach its
of the TV universe in the country. considering the advent of audiences regardless of
digital entertainment and JHRJUDSK\ODQJXDJHRU
• 1HWZRUNRSHUDWHV,QGLDpVEURDGHVWQHZVQHWZRUNZLWK
the splintering of demography.
unmatched coverage through 20 channels spanning 15
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ODQJXDJHVDQGVWDWHV 1R1HZVQHWZRUNE\UHDFK
across platforms.
No. 2 News network by viewership)
• Network18 also owns the fastest growing entertainment
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(QJOLVK.LGVDQG0XVLFJHQUHV 1R(QWHUWDLQPHQW
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• ,WVGLJLWDOSURSHUWLHVDUHXVHGE\RYHUPLOOLRQSHRSOH
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websites or apps.
Network18’s operating model is driven by its zeal to provide
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fair journalism and audience engagement.
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 97

5DKXO-RVKL| Sudhanshu Vats -\RWL'HVKSDQGH

+LQGL1HZVFKDQQHO1HZV,QGLDURVHWR1RVSRWRYHU
the year, and regularly beats the market leader in urban
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Thought Network Strategic Brand


leadership synergy collaborations excellence

Network18 is steered Network18 comprises Network18 has a track $W1HWZRUNWKHIRFXV


by a professional and OHDGLQJWHOHYLVLRQFKDQQHOV record of building successful is on driving the highest
experienced team that helps digital and mobile properties strategic alliances with standards of creative
it to consistently strive to and publications in all international media excellence by fostering a
KRVWWKRXJKWOHDGHUVKLSRQ key media genres. This companies such as Viacom culture of innovation to build
DLURQOLQHDQGRQJURXQG IDFLOLWDWHVFURVVSURPRWLRQ LQHQWHUWDLQPHQW&11LQ new content formats across
,WLVGHULYLQJOHDGHUVKLSQRW DQGFURVVSROOLQDWLRQRI English general news and SODWIRUPVWKHUHE\FUHDWLQJ
only through consumption content and expertise &1%&LQEXVLQHVVQHZV strong brands across diverse
QXPEHUVEXWDOVRE\ DFURVVLWVQHWZRUNHQDEOLQJ $(1HWZRUNVLQIDFWXDO media.
facilitating the development enhanced advertising entertainment and Forbes
of new ideas and emerging and subscription revenue in the business magazine
thought processes. generation. genre.
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

98 Reliance Industries Limited • Making Life Better. For Everyone.

Market Environment Growth drivers


'XULQJWKHƬUVWKDOIRI)<,QGLDpV0HGLDDQG 1) 5HFRYHU\LQHFRQRPLFJURZWKUHIRUPVDQGUHVXOWDQW
HQWHUWDLQPHQW 0 ( VHFWRUHQFRXQWHUHGVXEVWDQWLDO socio-economic upliftment: Advertising contributes
KHDGZLQGVGXHWRVKRUWWHUPLPSDFWIURPLPSOHPHQWDWLRQ WRWKHEXONRI0 (VHFWRUUHYHQXHVLQ,QGLD,WLVODUJHO\
RIWD[UHIRUPV,QWKHVHFRQGKDOIWKHLQGXVWU\JDWKHUHG LQƮXHQFHGE\WKHEURDGHUHFRQRPLFF\FOHDQGDUHYLYDO
momentum owing to a sharp revival led by robust underlying SRVWWZR\HDUVRIZHDNDGVSHQGVOHGE\PDFURHYHQWV
FRQWHQWFRQVXPSWLRQWUHQGV7KHSXOOEDFNLQDGYHUWLVLQJ
2) 79YLHZHUVKLSFRQWLQXHVWRJURZDWDIDVWFOLSGHVSLWH
VSHQGVLQƬUVWKDOIGUDJJHGGRZQDGJURZWKIRUWKH\HDUWR
the advent of digital:,QGLDpV79FRQWHQWFRQVXPSWLRQ
EXWWKHPDUNHWLVZHOORQLWVZD\WRUHFRYHU\KHDGLQJLQWR
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)< 6RXUFH(<),&&,)UDPHVUHSRUW 
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complementary and not cannibalistic to TV’s content in
to reach `ELOOLRQE\IURPLWVHVWLPDWHGVL]HRI
,QGLDWRGD\0RUHRYHU79SHQHWUDWLRQLQ,QGLDUHDFKHG
`ELOOLRQLQ 6RXUFH(<),&&,)UDPHVUHSRUW
WDNLQJWKHWRWDOQXPEHURI79YLHZLQJKRXVHKROG
 7KLVJURZWKZLOOEHGULYHQE\,QGLDpVQHHGIRUHVFDSLVP
to 183 million in 2017 (recording a 3.5% growth over the
knowledge and social acceptance.
previous year).

TV owning TV
6L]H *URZWK&$*5RI0 (VHJPHQWV Households (mn) Penetration
PQWRZQV 20 94%
11.6 PQWRZQV 19 91%
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Rural 99 52%
$OO,QGLD 183 64%

3) 6HJPHQWDWLRQRIPDUNHWIURPDJHQUHJHRJUDSK\DQG
1308 2032 pricing perspective: Content providers are creating new
9.8 channels across genres. They are incubating segmented
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digging deeper into attracting regional eyeballs through
594 862 YHUQDFXODUFRQWHQWWKHUHE\H[SDQGLQJWKHPDUNHWLWVHOI
24.9
4) Digital as a new medium of personalised and
92 224 untethered content consumption: The rapid
TV Digital 0 (,QGXVWU\ DGYDQFHPHQWLQWHOHFRPWHFKQRORJ\HVSHFLDOO\*
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2016 2020 CAGR

Moneycontrol: Leapfrogging leadership


position – union budget analysis

Action Taken:
• Created uniform budget • Budget Chatbot for users
section experience to interact in a new way
across platforms on
• 1 million concurrent users
moneycontrol with live
on mobile app (300%
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growth)
expert analysis
Outcome: Enhanced
• 8VHRILQIRJUDSKLFV
customer experience and
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real time concurrent users
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comedy events
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 99

competition has created a completely new channel of Network18 consolidated its operations and continued
content consumption through handheld devices. WRHQKDQFHLWVSURPLQHQFHLQWKH0 (VHFWRUGXULQJD
FKDOOHQJLQJ\HDUIRUWKHLQGXVWU\7KH0 (VHJPHQW
5) Free-To-Air (FTA) channels as a low-cost entry-
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point for a vast multitude of Indians: FTA channels
account of structural reforms like implementation of Goods
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the capacity to pay for content. FTA channels have
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grown rapidly over the last couple of years led by BARC
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measuring rural content consumption and creating an
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untapped advertising market.
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6) Regional content consumption gaining strength: of FTA channels and Digital platforms on the TV subscription
Data from BARC indicates that growth in content EXVLQHVV+RZHYHUPDFURWDLOZLQGVOLNHDUHFRYHULQJ
FRQVXPSWLRQLQODQJXDJHVOLNH3XQMDEL2UL\D%KRMSXUL HFRQRP\JURZLQJ79FRQVXPSWLRQDQGFDEOHGLJLWLVDWLRQ
Assamese and Gujarati is almost twice the rate of growth UHPDLQLQWDFW,QVXFKDQLQGXVWU\ODQGVFDSHGHVSLWH
RIODQJXDJHVOLNH+LQGL7DPLO7HOXJXDQGRWKHUV competitive pressures Network18 reported revenues worth
`FURUHDQG(%,7RI`(25) crore on a consolidated basis.
7) Digitisation – ‘See your customer’: With the
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The sharp revenue escalation is led by the impact of
content distribution have changed. Due to enhanced
subsidiary TV18 acquiring control of entertainment JV
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9LDFRPSDUWO\RƪVHWE\+RPH6KRSFHDVLQJWREHD
system operators (distributor aggregators) and
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broadcasters have gained.
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Financial and operational performance basis (by consolidating Viacom18 and deconsolidating
Financial Overview +RPH6KRSWKURXJKRXW 1HWZRUNUHYHQXHURVH
FY 2017-18 FY 2016-17 % Change LQ)<WR`FURUH&RPSDUDEOH UHVWDWHG (%,7
Particulars also rose to `FURUHFRPSDUHGWR`  FURUHODVWƬVFDO
(` in crore) (` in crore) y-o-y
Revenues   23.3% OHGE\UHGXFWLRQLQORVVHVLQKRPHVKRSSLQJDVWHOODU\HDU
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assets.

Movies by Viacom18
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

100 Reliance Industries Limited • Making Life Better. For Everyone.

Operational overview
Television business
News Entertainment
Business News constitutes CNBC Hindi General EntertainmentLQFOXGHVƮDJVKLSJHQHUDOHQWHUWDLQPHQWFKDQQHO *(& &RORUV
79DQG&1%&$ZDD]1R )7$*(&5LVKWH\DQG)7$+LQGLPRYLHFKDQQHO5LVKWH\&LQHSOH[
in English and Hindi business
QHZVJHQUHUHVSHFWLYHO\DQG Highlights of the year: Colors continues to be a strong leader in urban markets and Rishtey
&1%&%DMDU,QGLDpVƬUVW*XMDUDWL Cineplex has broken even within 1.5 years of its launch.
business news channel.
Highlights of the year: CNBC
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Youth and MusicLQFOXGHV079,QGLDWKH1R\RXWKEUDQGDQG[%ROO\ZRRGPXVLFFKDQQHO
%XGJHW$OVRGXULQJWKHEXGJHW
VSHHFKPDUNHWVKDUHRI&1%& MTV Beats
TV18 was higher than all English Highlights of the year: MTV Beats is the fastest growing music channel in the country.
News channels put together.

General NewsLQFOXGHV&11 English EntertainmentKDV9+&RPHG\&HQWUDO ,QGLDpVƬUVWKRXU(QJOLVKFRPHG\


1HZVDQG1HZV,QGLD FKDQQHO DQG&RORUV,QƬQLW\
Highlights of the year: News18 Highlights of the year::KLOH&RPHG\&HQWUDOLVWKHWRSUDQNHG(QJOLVK(QWHUWDLQPHQW
,QGLDKDVVXFFHVVIXOO\PRYHGWR &KDQQHOWKH(QJOLVK&OXVWHUFRPSULVLQJ&RPHG\&HQWUDO&RORUV,QƬQLW\DQG9+FRPELQHG
the fourth position in a highly control nearly 60% share of the English Entertainment space
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consistently remains a leader
during mega prime time with a
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metros. 1LFN-U7HHQ1LFNDQG1LFN+'
Highlights of the year: Nickelodeon’s School Contact Programme reached out to nearly 850
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Regional News includes News18 Regional Entertainment: 7KHUHJLRQDOHQWHUWDLQPHQWERXTXHWRI&RORUVLQ.DQQDGD%DQJOD


Channels (including erstwhile ETV 0DUDWKL*XMDUDWLDQG2UL\DFRQWLQXHVWRHQWHUWDLQHGXFDWHDQGHQWKUDOOUHJLRQDOYLHZHUV
FKDQQHOV DQG1HZV/RNPDW through innovative and rooted content. Colors Kannada and Colors Gujarati are market
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Highlights of the year: The
market share of News18 regional Highlight of the year:&RORUV7DPLOZDVODXQFKHGDVWKHVHYHQWKUHJLRQDO*(&LQWKHODUJHVW
channels have grown from 2.5% in YHUQDFXODUPDUNHW$PLGVWKLJKFRPSHWLWLRQLWVLPSDFWIXOSURJUDPPLQJKDVVXFFHHGHGLQ
ODWHWRFXUUHQWO\ g 5% viewership share within a month of launch.
carving

Infotainment has a factual entertainment channel History TV18 and a lifestyle channel fyiTV18.
Highlights for the year: History TV18 HD was launched on 1st September and was the No. 1
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Integrated Annual Report 2017–18 Management’s Discussion and Analysis 101

Film business
Film business
Film business includes Viacom18 Motion Pictures.
Highlights for the year: Worldwide release of Padmaavat and
7RLOHWt(N3UHP.DWKDERWKRIZKLFKKDYHOHIWDQLQGHOLEOH
IRRWSULQWRQWKHER[RƯFH

Digital business
Digital Content includes Moneycontrol.com (leader in the
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country) and News18.com (digital destination for all general
News).
Highlights for the year:9227ZDVUDWHGDPRQJVWWKHWRSƬYH
YLGHRVWUHDPLQJDSSVDFFRUGLQJWR$SS$QQLHDQGDOVRZRQ
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Digital Commerce includes HomeShop18 and Bookmyshow.


Highlights for the year: Bookmyshow entered live business to
VFDOHJURZWKDQGGLYHUVLI\LWVUHYHQXHVWUHDPV,WVXFFHVVIXOO\
organised the prestigious Ed Sheeran concert in Mumbai in
November 2017.

Print/publication business
3ULQWSXEOLFDWLRQEXVLQHVVhas a portfolio of highly reputed
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3KRWRJUDSK\DQG%HWWHU,QWHULRUV
Highlights of the year:6XFFHVVIXOO\H[HFXWHG,QGLDpVPRVW
SUHVWLJLRXVq)RUEHV,QGLD/HDGHUVKLS$ZDUGr
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

102 Reliance Industries Limited • Making Life Better. For Everyone.

Innovation Risks
Moneycontrol has introduced various innovative delivery Regulatory changes:7KH75$,WDULƪRUGHURQDODFDUWH
PHWKRGVOLNHOLYHVWUHDPLQJSRGFDVWVYLGHRRQGHPDQG sale of channels could change the subscription business
DQGVRRQ%HVLGHV0RQH\FRQWUROLVQRZWUXO\DQRQWKH PRGHOVXEVWDQWLDOO\WKHUHE\XVKHULQJDSHULRGRIƮX[IRU
move destination with the availability of its app on smart WKHLQGXVWU\DVDOOSDUWLFLSDQWVDGMXVW,WFRXOGFUHDWHERWK
ZDWFKHVDVZHOO:LWKDQDGIUHHSDLGDSSEHLQJODXQFKHG opportunities and challenges.
Moneycontrol now truly reaches a premium customer base
Digital investments: The digital content and digital
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commerce businesses do not have a settled monetisation
model today. Substantial investments by international and
1HZVFRPEHVLGHVEHLQJDYDLODEOHLQQLQH,QGLDQ
GRPHVWLFSOD\HUVWRFDSWXUHWKH,QGLDQPDUNHWDUHOHDGLQJWR
ODQJXDJHVFRQWLQXHGLWVIRFXVRQLQWHQVHHGLWRULDODQG
FDVKEXUQ7KLVVFHQDULRPD\WXUQLQWRDGUDJRQSURƬWDELOLW\
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for some time.
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Outlook
Network18’s growth aspirations stem from an inherently
KLJKTXDOLW\SRUWIROLRRISURSHUWLHVDUHOHQWOHVVGULYH
)LUVWSRVWKDVIXUWKHUGLYHUVLƬHGLWVRƪHULQJVWKURXJKWKH
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enthusiasts) and ShowSha.com (an integrated entertainment
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and cultural destination).
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gains international stature in terms of both advertising and
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consumer spends.
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experience even through a browser. This opens up the target
These growth aspirations represent the principal inspiration
market to beyond smartphones and even include feature
behind the following strategic moves during the year.
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apps cannot be used in earlier generation feature phones.

Lessons in Leadership with Satya Nadella Mr. Narendra Modi at the News18 Rising India Summit
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 103

Network18 subsidiary TV18 took operational control and &RORUV7DPLOpVPLG)HEUXDU\ODXQFKƬOOVDYLWDOZKLWHVSDFH


UDLVHGLWVVWDNHWRLQHQWHUWDLQPHQW-99LDFRP in Network18’s regional entertainment portfolioLQDKLJKO\
(March 2018).7KHSDUWQHUVEHOLHYHWKDWLQ,QGLDpVIDVW FRPSHWLWLYHPDUNHW,WVUHIUHVKLQJVXEMHFWVDQGFLQHPDWLF
HYROYLQJ0 (ODQGVFDSH79FDQGULYHYDOXHDGGLWLRQ quality content are being well received by the audience. The
DQGV\QHUJLHVDFURVVWKHPXOWLSODWIRUPJURXSFRPSULVLQJ channel launched with 22 hours of original programming per
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and media businesses. Viacom continues to hold 49% in RYHUWKH\HDU,WKDVJDUQHUHGYLHZHUVKLSVKDUHDQGPDGH
9LDFRPDQGVKDUHV79pVYLVLRQIRUVFDODELOLW\DQG strong inroads into urban markets like Chennai.
HQKDQFHGHƯFLHQF\DW9LDFRP9LDFRPLVQRZD
subsidiary of TV18. CNBC TV18’s digital destination CNBCTV18.com/CNBCTV18
app launched on 6th$SULO This is a premium digital
/HDGLQJ79VKRSSLQJSOD\HUV+RPH6KRSDQG6KRS&- SODWIRUPRƪHULQJLPSRUWDQWDQGXVHIXOQHZVDQGLQIRUPDWLRQ
FRPELQHGWKHLUEXVLQHVVHV )HEUXDU\  creating the DERXWWKHVWRFNPDUNHWEXVLQHVVDQGHFRQRP\LQFOXGLQJIUHVK
ODUJHVWKRPHVKRSSLQJHQWLW\LQ,QGLDXQGHU+RPH6KRSpV perspectives on entrepreneurship and leadership to audiences.
XPEUHOOD7KHHQVXLQJEHQHƬWVRIVFDOHDQGV\QHUJ\ ,WDOVRRƪHUVYLGHRIHHGFOLSVRIWKHFKDQQHO
ZLOOLPSURYHJURZWKSURVSHFWVIRUWKHFRPELQHGHQWLW\
DOORZLQJLWWRHQKDQFHLWVVWDQGLQJLQWKH79KRPHVKRSSLQJ Business Stewardship
landscape and compete better with the challenge from 1HWZRUNWKHSUHPLHUPHGLDFRPSDQ\RI5HOLDQFH*URXS
HFRPPHUFH+RPH6KRSFHDVHVWREHDVXEVLGLDU\RI VHHNVWRWUDQVIRUPSHRSOHpVOLYHVE\SURPRWLQJKHDOWK
1HWZRUNEXW1HWZRUNUHPDLQVLWVODUJHVWVKDUHKROGHU HGXFDWLRQDQGVSRUWV'XULQJ&111HZVGLGD
VRFLDOO\UHOHYDQWVWLQJRSHUDWLRQWRH[SRVHWKHPHQDFHRI
Umbrella brand ‘News18’ for all general News channels: GUXJSHGGOLQJDQGDGGLFWLRQLQ3XQMDEDQG'HOKL1HZV,QGLD
:LWKWKHUHEUDQGLQJRIWKHUHPDLQLQJƬYH(79DQG,%1 channel broadcast special stories to bring out the reality of
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brand ‘News18’ for all 17 (including 1 international) general women unsuccessfully seeking a divorce under Triple Talaq
news channels (in 15 languages covering 26 states) is HWF,QWKHƬQDQFLDO\HDUWKHFRPSDQ\VXSSRUWHGWKH
FRPSOHWH7KLVPDNHVWKH1HZVQHWZRUN,QGLDpVODUJHVW q<RXQJ&KDPSVrVSRUWVLQLWLDWLYHDLPHGDWSURYLGLQJWUDLQLQJ
general news brand. WRVSRUWVSHUVRQV'KLUXEKDL$PEDQL6FKRODUVKLSVSURJUDPPH
and Health Outreach Program in Mumbai through Reliance
Foundation.

Raising awareness about real-world problems through News


Corporate Overview Management Review 41-179 Governance Financial Statements Notice

104 Reliance Industries Limited • Making Life Better. For Everyone.

/LTXLGLW\DQG&DSLWDO5HVRXUFHV

Srikanth Soumyo Dutta


Venkatachari

Reliance manages its liquidity and funding risk by diversifying its resource base and tapping new investor pools across
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been able to deliver value by continuously reducing the spread over the benchmark rate at which it raises funding from
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GHSOR\LQQRYDWLYHƬQDQFLQJVROXWLRQV7RGD\LWLVWKHPRVWDFWLYH,QGLDQFRUSRUDWLRQLQWDSSLQJWKH(&$ƬQDQFLQJURXWHWKDW
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payables and bringing forward the receivables has ensured optimum use of debt for funding of working capital by its various
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at par with sovereign by Moody’s.

Financing Strategy
Reliance has over the last few years successfully executed $VSDUWRILWVOLDELOLW\PDQDJHPHQWH[HUFLVHGXULQJ
the largest investment cycle in its corporate history. To )<5HOLDQFHVXFFHVVIXOO\UHƬQDQFHGORQJWHUP
PHHWIXQGLQJUHTXLUHPHQWV5HOLDQFHpVGHGLFDWHGWUHDVXU\ ƬQDQFLQJRI86ELOOLRQHTXLYDOHQWV\QGLFDWHGORDQ7KLV
PDQDJHPHQWWHDPXVHVXQLTXHDQGLQQRYDWLYHƬQDQFLDO V\QGLFDWHGORDQZLWQHVVHGSDUWLFLSDWLRQIURPEDQNV,Q
LQVWUXPHQWVDQGVWUXFWXUHVWRKHOSGHULVNSURMHFWVIURPD DGGLWLRQ5HOLDQFHDOVRUHSULFHG86PLOOLRQELODWHUDOORDQ
ƬQDQFLQJYLHZSRLQW7KHWHDPKDVVXFFHVVIXOO\LGHQWLƬHG resulting in savings in interest cost over the life of the facility.
NH\HPHUJLQJWUHQGVDQGVWUXFWXUHGWDLORUPDGHqƬUVWLQ
PDUNHWrƬQDQFLQJVROXWLRQVWRUDLVHUHVRXUFHVDWFRPSHWLWLYH $VSDUWRILWVRQJRLQJOLDELOLW\PDQDJHPHQWH[HUFLVHGXULQJ
costs. )<5HOLDQFHSULFHGUXOH$5HJXODWLRQ6RƪHULQJ
RI86PLOOLRQ6HQLRU
7KURXJKSUXGHQWƬQDQFLDO 8QVHFXUHG1RWHVGXH7KLVZDV
GLVFLSOLQH5HOLDQFHKDV the lowest coupon ever achieved
maintained judicious mix E\DQ,QGLDQFRUSRUDWHIRUD\HDU
of funding sources across Issued unsecured notes of LVVXDQFHWKHWLJKWHVWHYHUVSUHDG
LQVWUXPHQWFODVVHVƬQDQFLQJ 86PLOOLRQDWORZHVWHYHU RYHU867UHDVXU\IRUDQ,QGLDQHQWLW\
SURGXFWVƬQDQFLDOPDUNHWVDQG coupon achieved by an Indian corporate IRUD\HDULVVXDQFHDVZHOODV
investor classes. WKHWLJKWHVWHYHUVSUHDGRYHU86
Treasury for a 10 year BBB corporate
Reliance maintains strong relationships with more than 100 LVVXDQFHIURP$VLD H[-DSDQ VLQFHJOREDOƬQDQFLDOFULVHV
EDQNVDQGƬQDQFLDOLQVWLWXWLRQV,WKDVDOVREXLOWUHODWLRQVKLSV The Notes were oversubscribed 1.6 times across 90
with 14 Export Credit Agencies (ECA) globally – the highest accounts.
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JOREDOƬQDQFLDOPDUNHWVDWYHU\FRPSHWLWLYHUDWHV rate unsecured notes.

Reliance actively explores opportunities to optimise the cost 5,/DOVRLVVXHGQRQFRQYHUWLEOHGHEHQWXUHVDJJUHJDWLQJWR


RIERUURZLQJDQGDOLJQWKHPDWXULW\SURƬOHRILWVH[LVWLQJGHEW `FURUHLQWKH,QGLDQFDSLWDOPDUNHWV
portfolio with the group’s business strategy.
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 105

Financing in Subsidiaries Liquidity and Treasury Management


'XULQJ)<5HOLDQFH-LR,QIRFRPP/LPLWHG 5-,/  Reliance has a strong focus on liquidity and maintains a
VXFFHVVIXOO\UHƬQDQFHGORQJWHUPV\QGLFDWHGORDQV robust cash position to ensure the group has adequate cover
DJJUHJDWLQJ86ELOOLRQUHVXOWLQJLQVXEVWDQWLDOLQWHUHVW to respond to potential short term market illiquidity.
savings over the life of these loans. This deal saw an initial
response from 17 banks and was further syndicated to Reliance’s liquidity and borrowing plans are established
additional 12 banks taking the total number to 29 banks. ZLWKLQWKHFRQWH[WRILWVDQQXDOƬQDQFLDODQGVWUDWHJLF
planning processes. Cash generated through operating
5-,/DOVRUHSULFHGDSDUWRILWVRXWVWDQGLQJ(&$IDFLOLW\ activities remains the primary source for liquidity along with
JXDUDQWHHGE\7KH([SRUW,PSRUW%DQNRI.RUHD q.(;,0r  undrawn borrowing facilities and levels of cash and cash
DQGIXQGHGE\QRQ.RUHDQFRPPHUFLDOEDQNVWRWKHWXQHRI equivalents.
86PLOOLRQDFKLHYLQJVLJQLƬFDQWVDYLQJVLQLQWHUHVWFRVW
over the life of this facility. 5HOLDQFHEHOLHYHVWKDWWKHJURXSKDVVXƯFLHQWZRUNLQJ
FDSLWDOUHVRXUFHIRUIRUHVHHDEOHUHTXLUHPHQWV,W
Capital Resources continuously monitors and optimises its working capital
'XULQJ)<5HOLDQFHDQGLWVVXEVLGLDULHVWLHGXS UHTXLUHPHQWVE\OHYHUDJLQJGLYHUVHWUDGHƬQDQFLQJVROXWLRQV
IDFLOLWLHVDFURVVYDULRXVƬQDQFLQJSURGXFWVDQGPDWXULWLHV covering receivable and payable cycles and executing
7KHWDEOHEHORZVKRZVGHEWOHYHOVIRUWKH\HDUHQGHG0DUFK innovative structured trade products.
DQG0DUFKIRU5HOLDQFHRQDFRQVROLGDWHGEDVLV
(` in crore) 5HOLDQFHKDVDZHOOGLYHUVLƬHGLQYHVWPHQWVSRUWIROLRZKLFK
31st 31st DVVXUHVOLTXLGLW\DQGVWHDG\UHWXUQVDFURVVGLƪHUHQWPDUNHW
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helped deliver superior returns and alpha over comparable
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operated under a prudent risk management framework.
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The risk management and investment process is regularly
telecom businesses.
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best practices.

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Corporate Overview Management Review 41-179 Governance Financial Statements Notice

106 Reliance Industries Limited • Making Life Better. For Everyone.

6XVWDLQDEOH*URZWKDW5HOLDQFH
7KH,QWHJUDWHG$SSURDFK

7KHQHHGWRLQWHJUDWHDQGHƪHFWLYHO\PDQDJH 4) Manufactured capital


HQYLURQPHQWDOƬQDQFLDODQGVRFLDOFRQVLGHUDWLRQVZLWK 5) Financial capital
business decisions is at the core of Reliance’s value system. 6) Social and Relationship capital
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to manage risks using four key enablers that reinforce the  5
 ,/FUHDWHVORQJWHUPVWDNHKROGHUYDOXHE\LQWHJUDWLQJ
&RPSDQ\pVIXQGDPHQWDOSKLORVRSK\to*URZWKLV/LIHp7KH the six capital approach with its activities and
four enablers are: processes. The Company takes a holistic view of the
A) Strategic Framework LQWHUUHODWHGQHVVRIWKHVHVL[FDSLWDOVWRHQKDQFHYDOXH
%  7KH,QWHJUDWHG$SSURDFK creation. This is achieved by ushering in higher level
C) Risk and Governance RIHƯFLHQFLHVE\LQFRUSRUDWLQJDOHDQPDQDJHPHQW
D) Digital Platform structure helping the Company maximise returns with
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A) Strategic Framework strategies and policies interact with the external
 5
 HOLDQFHpV6WUDWHJLF)UDPHZRUNVHWVRXWLWVVWUDWHJ\ YDULDEOHVDƪHFWLQJWKHEXVLQHVV7RVXSSRUWWKH
ƬQDQFLDODQGULVNPDQDJHPHQWIUDPHZRUNDQG EXVLQHVVPRGHO5,/KDVSXWLQSODFHHƪHFWLYHV\VWHPV
establishes its overarching goals. The expectations such as the Reliance Management System and
and boundaries within which each of the Company’s Enterprise Risk Management Framework while
businesses must operate are outlined in the Framework. leveraging digital technology.
,WSURYLGHVJXLGDQFHWRERWKFXUUHQWDQGQHZEXVLQHVVHV
LQWKH*URXSE\VHWWLQJHƪHFWLYHEXVLQHVVREMHFWLYHV C) Risk and Governance
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societal transformation by leveraging its knowledge LVFUXFLDOWRLWVFRQWLQXHGSURƬWDELOLW\DQGORQJWHUP
DQGDVVHWEDVHVDVZHOODVE\LQYHVWLQJLQVWUDWHJLF sustainability of its businesses. The infrastructure for
opportunities. risk and governance activities at Reliance comprise of
the Enterprise Risk Management (ERM) framework.
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pillars: $SSURDFK9DOXH&UHDWLRQDQG(QDEOHUV reports risks arising from the Company’s operations.
ERM enables Reliance to manage its risks within
B) The Integrated Approach acceptable limits by using risk mitigation techniques and
Reliance acknowledges the interdependence of business
allocating necessary resources.
impacts in strengthening its value creation model.
&RQVHTXHQWO\WKH&RPSDQ\KDVDGRSWHGWKHVL[FDSLWDOV D) Digital Platform
SRVWXODWHGE\WKH,QWHUQDWLRQDO,QWHJUDWHG5HSRUWLQJ Taking RMS journey forward and to create an agile and
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measure and showcase its performance: Digital Platforms Journey in 2018. The move to Digital
1) Natural capital Platforms enables the Group to evolve the Reliance
2) Human capital Management System (RMS) to the next level.
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Integrated Annual Report 2017–18 Management’s Discussion and Analysis 107

Approach Value Creation Enablers


Driving JURZWKYDOXHLQQR Shareholder value Reliance’s Group Strategy is founded
vation and transformation in Reliance drives shareholder value through active portfolio RQƬYHHQDEOHUV7KHVHLQFOXGHsafe
society management to continuously enhance the quality of RSHUDWLRQVGLJLWDOWHFKQRORJ\FDSLWDO
Reliance is pursuing its strategy to LWVEXVLQHVVSRUWIROLRFRQVLVWHQWO\GHOLYHUshareholder SURGXFWLYLW\RSHUDWLRQDOH[FHOOHQFHDQG
JURZE\OHYHUDJLQJLWVH[LVWLQJNQRZ returns and maintain a focus on long-term growth ethics.
how and asset base and investing in potential Safety and complianceDUHFRUHYDOXHV
opportunities strategic to its existing Employee value and they help Reliance to preserve
businesses and those of the future. Reliance creates value for its employees by ensuring HQWHUSULVHYDOXHDQGSURYLGHDSHUSHWXDO
Reliance initially focuses on activities WKHLUSURVSHULW\DVWKHRUJDQLVDWLRQJURZV6SHFLƬFDOO\LW license securing its right to operate
DQGLQYHVWPHQWLQ,QGLDWRFDWHUWRWKH creates employee YDOXHWKURXJKFRQWLQXRXVOHDUQLQJ DFURVV,QGLDDQGJOREDOO\
needs of the large domestic market. structured career progression opportunities and an Digital technologies underpin how
5HOLDQFHKDVDSUHHPLQHQWSRVLWLRQ LQGXVWU\OHDGLQJemployee value proposition Reliance operates its businesses. Reliance
LQWKH,QGLDQPDUNHWLQWKHEXVLQHVVHV Customer value is a pioneer in harnessing new digital
LWRSHUDWHVLQ,WEXLOGVFRPSHWHQFLHV Reliance drives customer value through its product technologies and mobility initiatives that
that can be rolled out on a global scale. innovation for customersDSSOLFDWLRQDQGVHUYLFH change how it conducts its business.
Reliance’s business creates value OHYHOVDELOLW\WRGHOLYHUDFRQVLVWHQWO\better consumer Reliance remains committed to achieve
IRULWVVKDUHKROGHUVHPSOR\HHV experience and its overall reputation and brand promise in the highest levels of operating
FXVWRPHUVDQGVRFLHW\DQGHDFKQHZ the markets it operates in HƯFLHQFLHVDQGHƪHFWLYHQHVVDFURVV
opportunity it pursues must meet Societal value DOOLWVDFWLYLWLHVERWKFXVWRPHUIDFLQJ
these criteria or it does not invest in it. 6RFLHW\SURYLGHV5HOLDQFHZLWKDOLFHQVHWRRSHUDWHDQG and internal. Along with judicial mix of
with this privilege comes the responsibility to create value. funding sources this ensures high capital
5HOLDQFHGULYHVVRFLHWDOYDOXHWKURXJKMREFUHDWLRQERWK productivity.
GLUHFWO\DQGLQGLUHFWO\VRFLDOLQQRYDWLRQWKURXJKSURGXFWV Reliance is committed to conduct all
and services and its respect for ecology and environment its initiatives with the highest levels of
integrity.

.H\5HƮHFWLRQV *Current year outcome


Businesses Shareholder value Safety and compliance
• Integrated value chain&RPSOH[ • 'LYLGHQG5HFRPPHQGHG`FURUH • 8VHRIGURQHVIRUVDIHW\
integration for unprecedented value • *Market Capitalisation – `FURUH • \HDUVRIVDIHRSHUDWLRQVDW( 3
maximisation • 0DUNHW&DSLWDOLVDWLRQ&$*5VLQFH,32 Digital technologies
• World’s ODUJHVW5HƬQHU\FRPSOH[at • *Maintained high RONW (adj.) of 15.5% (standalone) • Omnichannel initiatives in Reliance
Jamnagar Employee value Retail
• $ƬUVWRILWVNLQG5HƬQHU\
• 2YHUPLOOHQLDOUHSUHVHQWDWLRQDW5,/ • 0RELOHEDVHGDSSOLFDWLRQVIRUƮHHW
• 2ƪ*DV&UDFNHU(ROGC) setup to
• 59RLFHHPSOR\HHHQJDJHPHQWVXUYH\ZKLFKKDSSHQV PDQDJHPHQWRƪHULQJV
produce petrochemicals / polymers
ELHQQLDOO\LQFUHDVHGWRLQ • Seamless acceptance of multiple
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• /DUJHVWFRNHJDVLƬHUbeing • 58QLYHUVLW\'ULYLQJHPSOR\HHOHDUQLQJDQGWUDLQLQJ payment modes at petroleum retail
LPSOHPHQWHGDVDSDUWRI5,/pVFOHDQ • ,PSDUWHGODNKPDQKRXUVRIWUDLQLQJ outlets
fuel initiative Customer value • Building scalable platforms across
• -LRGLJLWDOHFRV\VWHPDSSV • 186.6 million Jio subscribers businesses and functions
FRQWHQWVHUYLFHH[SHULHQFHDQG • Average data consumption of 9.7 GB per user per month
on Jio during the exit quarter Capital productivity
DƪRUGDEOHWDULƪV • 52&( DGM IRU)<t
• Reliance Retail,QGLDpVODUJHVW • 7UDQVIRUPLQJ,QGLDpVWHOHFRPODQGVFDSHZLWKD
compelling customer value proposition LQFUHDVHESV\R\ VWDQGDORQH
retailer delivering superior value to • *Substantial interest savings
LWVFXVWRPHUVVXSSOLHUVDQGRWKHU • 5HWDLOVWRUHVDFURVVFLWLHV
• *79% market share in CNBC TV18 during the annual IURPVXFFHVVIXOUHƬQDQFLQJRI
stakeholders
budget speech ORQJWHUPORDQV
• /DVWPLOHUHWDLODQGGLJLWDOVHUYLFHV
to the farthest reaches of the • /DXQFKHGDUDQJHRIIXWXUHIDEULFVXQGHUWKHEUDQG 2SHUDWLQJHƯFLHQFLHVDQG
country R|Elan™ HƪHFWLYHQHVV
• Network188QSDUDOOHOHGUHDFK • 1HWZRUNpV79FKDQQHOVWRXFKOLYHVRIFURUH,QGLDQV • Fuel retail throughput well above
with multilingual content across LQHYHU\,QGLDQVLVDFRQVXPHURIWKHFRQWHQW industry average
SODWIRUPVJHQUHVJHRJUDSKLHVDQG • 1HWZRUNpVGLJLWDOSURSHUWLHVDUHXVHGE\PLOOLRQ • $Q\WLPHDQ\ZKHUHXQLQWHUUXSWHG
social demographics SHRSOHLQ,QGLDQLQWHUQHWXVHUVLVRQ1HWZRUN KLJKVSHHGGDWDDFFHVV
• 9/(&VVKLSSLQJHWKDQHIURPWKH websites or apps
86$ZLWKORZHVWFDUERQIRRWSULQW • -LRKHOSHG,QGLDQFRQVXPHUWRVDYH86ELOOLRQ Ethics
globally annually • Ethics and Compliance Task Force
Know how – 4G lab to scale • 7UDQVFRQQHFWVROXWLRQIRUƮHHWRZQHUV oversees and monitors implementation
5 ' ,QQRYDWLRQ of ethical business practices
Societal value
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development of composites from • *`FURUHFRQVROLGDWHGFRQWULEXWLRQWR
polymer national exchequer
• Algae to oil platform • Reliance Foundation transformed lives of 20 million
Product stewardship ,QGLDQVDFURVVYLOODJHVDQGXUEDQORFDWLRQV
• 1DQRPDWHULDOV FRPSRVLWHV • *`771 crore CSR expenditure for the year
• Future generation fabric
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• Future Ready 5G and beyond
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

108 Reliance Industries Limited • Making Life Better. For Everyone.

1DWXUDO&DSLWDO
Reliance lives by its vision of creating value through sustainable measures
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& fauna and enhancement of biodiversity. Every manufacturing location
works towards minimising its environmental footprint and endeavours to
be in harmony with the ecosystem.

2 crore+ 7.3 crore+ m


Saplings planted since inception Rainwater harvesting capacity created
since inception

Key Performance Indicators


Key Natural Capital Inputs FY 2017-18 FY 2016-17
Rainwater harvesting capacity created since inception FURUHP3 FURUHP3
Cumulative saplings planted since inception FURUH FURUH
Energy saved on account of conservation initiatives (‘000 GJ)  
Key Natural Capital Outputs
Total water recycled (‘000 m3)  
6RORPRQHQHUJ\LQWHQVLW\LQGH[UDQNLQJSODFHV5,/UHƬQHULHVLQWRSGHFLOHRISHUIRUPDQFH
-DPQDJDUUHƬQHULHVKDYHWRSGHFLOH1HOVRQ&RPSOH[LW\,QGH[ DPHWULFIRUTXDQWLI\LQJDQGUDQNLQJWKHFRPSOH[LW\RIUHƬQHULHV 
RI7KHFRPSOH[LW\OHYHORI-DPQDJDUVLWHLVH[SHFWHGWRLPSURYHVLJQLƬFDQWO\E\VHYHUDOQRWFKHVZLWKWKHFRPPLVVLRQLQJRI
Jamnagar expansion projects
+DRIJUHHQEHOWGHYHORSHGVHUYLQJDVDFDUERQVLQN
-LRKDVSXWKLJKO\HƯFLHQWV\VWHPVLQSODFHWRHQVXUHORZFDUERQLQWHQVLW\SHU7%RIGDWDXVDJHFRPSDUHGWRRWKHUVHUYLFHSURYLGHUV
Environmental commitment beyond compliance
Key Natural Capital Outcomes
&OHDQHUDLUFOHDQHUZDWHUFOHDQHUVRLO SUHVHUYLQJƮRUDDQGIDXQD PDULQHHFRV\VWHP
Diligent use of scarce resources with minimal environmental footprint and extracting more value from bottom of the barrel
production
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 109

Pawan Paramjit Singh


Kumar Kapil

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H[WHUQDOZRUOG5HOLDQFHKDVLPSOHPHQWHGHƪHFWLYHJRYHUQDQFHPHFKDQLVPDWHDFKPDQXIDFWXULQJORFDWLRQ
VXUSDVVLQJWKHOHJDOREOLJDWLRQVZLWKUHVSHFWWRDLUTXDOLW\IUHVKZDWHUXVDJHVRLOXVHLPSDFWRQƮRUDDQGIDXQD
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of the barrel production and maximum GB of data per unit of emission. Reliance’s biggest super site is designed
to work without withdrawing a single drop of fresh water from lakes and other sources – through desalination of
VHDZDWHUWKHUHE\HQDEOLQJFRPPXQLWLHVWRXVHWKHSUHFLRXVUHVRXUFHV5,/EHOLHYHVWKDWWLPHO\DQGVXƯFLHQW
availability of natural resources is imperative for continuity of its business operations and it is an obligation for any
LQGXVWU\WRZDUGVDOOLWVVWDNHKROGHUV5,/GHYHORSHGRYHU+DRIJUHHQEHOWHQULFKLQJHFRORJLFDOEDODQFH
and biodiversity.

United Nations’ Sustainable Development Goals

PMO’s initiatives supported by Key highlights of the year:


the NITI Aayog:
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• 1DWLRQDO3ROLF\RQ%LRIXHOV
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harvesting capacity since inception
• 1DWLRQDO3ODQIRU&RQVHUYDWLRQRI$TXDWLF
Ecosystem
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

110 Reliance Industries Limited • Making Life Better. For Everyone.

Managing Natural Capital


Focus Area Clean Air Clean Water Preventing Soil Preserving Flora and Diligent Use of
Contamination Fauna Scarce Resources
Aspect
Philosophy Going beyond Minimum dependency Minimum waste ,QVLWXSUHVHUYDWLRQ Optimisation
adopted compliance for on freshwater disposal of ecosystems of resource
stack emissions Zero discharge =HURVSLOORSHUDWLRQV consumption
by maximising
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Reliance Reduction of Desalination at /DUJHVWUHF\FOHURI Asia’s largest mango Extracting more
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HFRIULHQGO\IXHOV High water recyclability Over 2 crore saplings ERWWRPRIWKH
planted in greenbelt barrel production
Water conservation
initiatives

,PSDFWFUHDWHG Emissions reduction Reduction in water ,QFUHDVHLQZDVWH Greenbelt ,QFUHDVHLQ


and recovery consumption recyclability development operational
,QFUHDVHLQZDWHU Habitat restoration HƯFLHQF\RI
recyclability UHƬQHULHV

Managing Natural Capital at Reliance and largest ROGC complex of 1.5 MMTPA capacity
5,/EHOLHYHVWKDWHQHUJ\HƯFLHQF\LVDFRUHGLƪHUHQWLDWRU DORQJZLWKGRZQVWUHDPSODQWVDQGXWLOLWLHV,W
to remain ahead of the curve and has taken decisive steps UHGXFHGHQHUJ\LQWHQVLW\RI52*&WR%78OE
WRLPSURYHHQHUJ\HƯFLHQF\WKHUHE\UHGXFLQJJUHHQ +9& %ULWLVK7KHUPDO8QLWVSHUSRXQGRI+LJK9DOXH
KRXVHJDVHPLVVLRQ5,/KDVFRQVWLWXWHGDQo(QYLURQPHQWDO Chemicals).
Compliance Review Committee’ at each manufacturing
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location that reviews environmental performances every
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consumption.
the environment is of prime concern. The policy addresses
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and customers. The Company has installed Continuous JOREDOO\FRQFHSWXDOLVHODUJHVFDOHLPSRUWVRIHWKDQH
(PLVVLRQDQG(ưXHQW0RQLWRULQJ6\VWHPV &(06 IRU from North America as feedstock for its cracker
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petrochemical units and this is continuously reported handling facility with the cracker complex reduces
to Central Pollution Control Board (CPCB). There are no load on its propylene and ethylene refrigeration
pending or unresolved show cause/ legal notices received V\VWHPVDQGLQWXUQVLJQLƬFDQWO\ORZHUVHQHUJ\
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were conducted at three manufacturing locations to
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understand the overall environmental footprint of these
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team works relentlessly to identify and implement energy PDQXIDFWXULQJSODQWVDQGPLQLPLVHGƮDULQJRI
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UHQHZDEOHHQHUJ\SURMHFWVDWDOO5,/pVPDQXIDFWXULQJVLWHV| with relevant hardware.
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Clean Air
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with Syngas.
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Integrated Annual Report 2017–18 Management’s Discussion and Analysis 111

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observed that pressure heat recovery from the
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improvement in energy
a new control valve with
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thinking - emission reduction with enhanced business strategy to combat risks and seize opportunities and
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to the latest expansion of manufacturing prowess at  5,/KDVUHJLVWHUHGHLJKW&'0SURMHFWVZLWKWKH8QLWHG
the Jamnagar Manufacturing Division (JMD). While Nations Framework Convention on Climate Change
WKHUHƬQHU\RƪJDVLVXVHGDVIHHGVWRFNWRSURGXFH 81)&&& 7KHVHSURMHFWVDUHUHODWHGWRHQHUJ\
HWK\OHQHDQGSURS\OHQHSHWFRNHJDVLƬFDWLRQDLGVLQ HƯFLHQF\XVHRIUHQHZDEOHHQHUJ\DQGFOHDQHUIXHOV
VXSSO\LQJ6\QJDVDVIXHO+\GURJHQJDVSURGXFHGDVD 7KH&RPSDQ\KDVEXLOWLQKRXVHFDSDFLW\WRGHYHORS
E\SURGXFWLQ3&*LVXVHGDVXWLOLW\LQWKHUHƬQHU\DQG CDM projects and obtain registration and issuance of
DYRLGVRSHUDWLRQRIVRPHHQHUJ\LQWHQVLYH+\GURJHQ WKHVDPHLQWKHIRUPRI&HUWLƬHG(PLVVLRQ5HGXFWLRQV
0DQXIDFWXULQJ8QLWV +08V )ROORZLQJWKLVH[SDQVLRQ &(5V IURPWKH81)&&&
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oODVWPDQVWDQGLQJUHƬQHU\pZKHQLWERLOVGRZQWRVXUYLYDO Clean Water
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 - DPQDJDUUHƬQHULHVKDYHWRSGHFLOH1HOVRQ&RPSOH[LW\ 5,/HQVXUHVWKDWDOOZDVWHZDWHUJHQHUDWHGLVWUHDWHGDQG
,QGH[ DPHWULFIRUTXDQWLI\LQJDQGUDQNLQJWKH exceeds all state and central regulatory requirements.
FRPSOH[LW\RIUHƬQHULHV RI7KHFRPSOH[LW\OHYHO
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by several notches with the commissioning J3 projects. UHF\FODELOLW\E\PDNLQJSURFHVVPRGLƬFDWLRQV7KH&RPSDQ\
7KH1&,LVDPHDVXUHRIFRPSDULQJWKHVHFRQGDU\ KDVPDGHIRFXVHGHƪRUWVWRUHF\FOHVXEVWDQWLDOTXDQWLWLHVRI
FRQYHUVLRQFDSDFLW\RIDSHWUROHXPUHƬQHU\ZLWKWKH wastewater from processes across manufacturing locations.
primary distillation capacity. The index provides a metric &RQWLQXRXVLPSURYHPHQWVKDYHHQDEOHG5,/WRLQFUHDVH
for quantifying and ranking the complexity of various \R\UHF\FODELOLW\RISURFHVVZDWHUGHVSLWHLQFUHDVLQJ
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of Sulphur (SOx) and Oxides of Nitrogen (NOx). During (SWRO) plants to convert sea water for industrial use at
)<5,/LPSOHPHQWHGYDULRXVLQLWLDWLYHVIRU -0'7RJHWKHUZLWKWKHWKHUPDOGHVDOLQDWLRQXQLWV6:52
HPLVVLRQVUHGXFWLRQZKLFKDUHOLVWHGLQ$QQH[XUH9, plants enable generation of over 90 MGD (million gallons per
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sites have commissioned CEMS (Continuous Emission WKHHQHUJ\LQWHJUDWLRQVWDQGSRLQW-0'KDVDFKLHYHG]HUR
Monitoring Systems). IUHVKZDWHUZLWKGUDZDOE\LPSOHPHQWLQJGHVLJQHƯFLHQF\

 5
 ,/KDVLGHQWLƬHGPDWHULDOWRSLFVUHODWHGWRFOLPDWH Preventing Soil Contamination
change through a structured materiality assessment 5,/WDNHVFRQVFLRXVHƪRUWVWRXVHUHVRXUFHVDVHƯFLHQWO\
SURFHVVLQDFFRUGDQFHZLWKWKH*5,6WDQGDUGV,QLWV as possible and simultaneously works towards reducing
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

112 Reliance Industries Limited • Making Life Better. For Everyone.

Reduction in fresh water consumption Plastics and Alternatives – Myth v/s Reality
by design
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Action Taken: ETP water for horticulture. a;RUKLJKHUHQYLURQPHQWDOIRRWSULQW
At the Hoshiarpur
Outcome:'XULQJWKH\HDU During production:
0DQXIDFWXULQJ'LYLVLRQ
DWRWDORIP3 of water • /HVVHUHQHUJ\FRQVXPSWLRQ)RUH[DPSOHPLONSDFNLQJLQ
water consumption was
was saved on account of this SODVWLFSRXFKHVFRQVXPHVRQO\aRIHQHUJ\UHTXLUHG
reduced by utilising treated for packing using 1 litre glass bottles
initiative.
• /HVVHU*+*HPLVVLRQV)RUH[DPSOHSODVWLFVSURGXFHRQO\
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emissions and waste generated. The Company ensures that During use:
DOOZDVWHLVVHQWRQO\WR*RYHUQPHQWDXWKRULVHGGLVSRVDO • Higher strength to weight ratio
DJHQFLHV(ưXHQWVJHQHUDWHGDUHWUHDWHGWRPHHWWKHPRVW • ,QFUHDVHGIRRGVDIHW\TXDOLW\DQGVKHOIOLIH
VWULQJHQWVWDWHDQGFHQWUDOUHJXODWRU\UHTXLUHPHQWV5,/ • 5HVHDODEOHUHXVDEOHDQGHDV\WRFDUU\
has undertaken initiatives to ensure waste generated is During recycle:
FRQYHUWHGWRXVHIXOoELRPDQXUHpXVLQJYHUPLFRPSRVWLQJ • /HVVHUHQHUJ\VSHQWRQUHF\FOLQJ)RUH[DPSOHSDSHU
The Company has invested in technologies to extract value requires 91% more energy to be recycled than plastics
IURPZDVWHDQGFUHDWHQHZSURGXFWVWKHUHE\UHGXFLQJLWV Waste-to-energy:
waste footprint. • Plastic wastes generate twice as much energy as coal

Reliance undertakes stringent monitoring measures


to prevent spills during handling and transportation of
materials. The Company monitors spills through an online Preserving Flora and Fauna
incident reporting system and has a robust system to Reliance regularly engages in initiatives such as tree
prevent operational spills. There has not been any major plantation drives and maintenance of mangroves in coastal
DFFLGHQWJLYLQJULVHWRVLJQLƬFDQWVSLOOVDW5HOLDQFHpVIDFLOLWLHV DUHDV5,/DOORFDWHVUHVRXUFHVIRUQHZDQGH[SDQVLRQ
since its inception. SURMHFWVE\HQJDJLQJZLWKƬHOGH[SHUWVWRFRQGXFW

Waste to value through co-processing


Action Taken: Company explored various
Manufacturing plants possibilities and through
typically generate several H[SHULPHQWDWLRQƬQDOO\XVHG
types of wastes during FRSURFHVVLQJRIZDVWH
manufacturing processes
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These wastes have high
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Reducing material intensity through 100%


recycled products
Action Taken: UHF\FOHG3(7ERWWOHVLWDOVR
3(7ERWWOHVZKLFKDUHQRQ uses 90% recycled water.
ELRGHJUDGDEOHLQQDWXUH
Outcome:5,/LVUHF\FOLQJ
DIWHUGLVSRVDOOHDGWR
DERXWWRQQHV\HDURI
environmental degradation.
polyester waste with more
5HFURQ*UHHQ*ROGD WKDQELOOLRQSRVWFRQVXPHU
SRO\HVWHUVWDSOHƬEUHLV PET bottles per year. This
SURGXFHGE\DKLJKO\HFR UHVXOWVLQUHPRYDORIQRQ
IULHQGO\SURFHVV$SDUWIURP biodegradable waste from
being made from 100% the environment and diligent
use of scarce resources.
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 113

environmental impact assessment studies and periodically Reliance has initiated an evaluation of its environmental
monitors its impacts on the local biodiversity. aspects using the Natural Capital Protocol published by the
Natural Capital Coalition.
$WHDFKVLWH5,/KDVWDNHQHƪRUWVWRPDLQWDLQDJUHHQFRYHU
As on 31st0DUFKRYHU+DRIJUHHQEHOWKDVEHHQ Diligent Use of Scarce Resources
GHYHORSHGDFURVVDOOPDQXIDFWXULQJORFDWLRQV$GGLWLRQDOO\ 5,/KDVWDNHQDFWLYHVWHSVWRLQFUHDVHLWVPDWHULDOXVH
over 2 crore saplings have been planted across various green HƯFLHQF\VXFKDVFRQYHUWLQJRUJDQLFZDVWHWRPDQXUHDQG
belts since inception. ELRJDVUHF\FOLQJYDULRXVIRUPVRIXVHGRLOUHF\FOLQJ
of PET bottles and spent catalysts through
5,/XQGHUVWDQGVWKHLPSRUWDQFHRILQWHUDFWLQJZLWKYDULRXV DXWKRULVHGUHSURFHVVRUV
stake holders to mobilise actions required to protect the
HQYLURQPHQW&RQVHTXHQWO\LQDRQHRIDNLQGSDUWQHUVKLS $FFRUGLQJWRWKH6RORPRQ(QHUJ\,QWHQVLW\,QGH[5,/
ZLWKWKH0LQLVWU\RI(QYLURQPHQW)RUHVWVDQG&OLPDWH UHƬQHULHVDUHLQWKHWRSGHFLOHSHUIRUPDQFH$6RORPRQ
&KDQJH 0R()&& *RYHUQPHQWRI,QGLD *R, DQGWKH*XMDUDW VWXG\LGHQWLƬHG5,/pVNH\VWUHQJWKVDVHQHUJ\HƯFLHQF\
(FRORJLFDO&RPPLVVLRQ *(& 5HOLDQFHDFWLYHO\FRQWULEXWHG operational availability and ability to utilise processing
WRWKHVHWXSRI,QGLDpVƬUVW&HQWUHRI([FHOOHQFH &R( IRU FRPSOH[LWLHV:LWKQRSURGXFWVWKDWFDQEHFODVVLƬHGDV
the study of coastal biodiversity of Jamnagar known as the oERWWRPRIWKHEDUUHOpWKH-DPQDJDUUHƬQHU\LVSHJJHG
National Centre for Marine Biodiversity (NCMB). WREHFRPHDPRQJWKHKLJKHVWFRQYHUVLRQJOREDOUHƬQHULHV
ZLWKWKHLQVWDOODWLRQRIWKHJDVLƬFDWLRQSDUD[\OHQHDQG
ROGC plants.

Sensitising “Go Green” as a part of regular business


Action Taken: bottles and used tetra innovative development in
5HOLDQFH5HWDLOKDV SDFNV6LQFHRYHU recycling.
stores and an area of 17.7 lakh used tetra pack cartons
million sq. ft. with footfall of have been collected through Outcome:,QFUHDVHG
RYHUPLOOLRQ*R*UHHQ IDPLOLHVLQYROYLQJ VRFLHWDODZDUHQHVV ZDVWH
is an initiative by Tetra Pak VRFLHWLHV recycling.
in association with Reliance HPSOR\HHVFRUSRUDWHV
Smart to collect used tetra DQGVWXGHQWVDQG
SDFNV7\SLFDOO\DVWRUHKDV teachers through 38 schools.
a collection centre towards The initiative is listed in the
its exit door to collect PET /LPFD%RRNRI5HFRUGVIRU

Monitoring environmental footprint


Action Taken: 2. Among the faunal WHVWHGDWLQWHUWLGDO
The Hazira plant conducted VSHFLHVKHUSHWRIDXQD sampling locations.
impact assessment on were represented by 26
The results of the study were
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compared with data sets
Ecosystem to determine species and mammals by
since 1983 to create an overall
HFRORJLFDOVHQVLWLYLWLHV,Q 8 species.
assessment of the ecological
Biodiversity assessment: 3. A MoEFCC approved
status.
1. A total of 108 plant laboratory also engaged
species were observed in marine environmental Result: The balance within
in the study area out of PRQLWRULQJDVVHVVPHQW biodiversity and marine
ZKLFKVSHFLHVRIWUHHV a total of 12 water ecosystem is maintained
VSHFLHVRIVKUXEV quality parameters and with minimal environmental
31 species of herbs and 5 biological parameters LPSDFW5,/DOVRGHYHORSHG
grass and 3 species of DWVXEWLGDOVDPSOLQJ green belts which enhances
climbers were observed. locations. 9 sediment ƮRUD IDXQD
quality parameters were
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

114 Reliance Industries Limited • Making Life Better. For Everyone.

+XPDQ&DSLWDO
q7KHYDOXHVDQGEHKDYLRXUVDW5,/KDYHLQFXOFDWHGDGHHSHUVHQVHRI
connect and engagement for its people. Reliance fosters a culture that is
performance oriented, promotes rewards for results and provides equal
importance to achieving results. Reliance focusses on development of
HPSOR\HHVDWSURIHVVLRQDODQGSHUVRQDOOHYHOZLWKKROLVWLFZHOOEHLQJ

Over 10 years Over 40%


RIVDIHRSHUDWLRQVLQ5HOLDQFH( 3 Millennials representation in
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the world

Key Performance Indicators


Key Human Capital Inputs FY 2017-18 FY 2016-17
Total number of Reliance employees  
5,/+6(([SHQVHV ` in crore) 382.6 367.4
Cumulative ideas submitted under Mission Kurukshetra innovation programme  
7RWDOWUDLQLQJKRXUVLQ5HOLDQFHDUHRYHUODNKPDQKRXUV
Employees from over 15 nationalities
&DUHHU$FFHOHUDWLRQ3URJUDP &$3 Competency Assurance System (CAS) and Corporate Graduate skills programme for
employees to groom them for leadership roles
Key Human Capital Outputs
,Q)<IHDWXUHGIRUWKHVHFRQGFRQVHFXWLYH\HDULQo/LQNHG,Q7RS&RPSDQLHV:KHUH,QGLDZDQWVWRZRUNQRZp
0LOOHQQLDOVDW5,/KDVEHHQFRQVLVWHQWO\RYHUIRUWKHODVWWZR\HDUV
&ROODERUDWLRQZLWKZRUOGFODVVXQLYHUVLWLHV
59RLFHHPSOR\HHHQJDJHPHQWVXUYH\ZKLFKKDSSHQVELHQQLDOO\LQFUHDVHGWRLQ
)ODZOHVV-DPQDJDU5HƬQHU\([SDQVLRQ3URMHFWH[HFXWLRQZLWKVDIHW\DVSHFWVEHWWHUWKDQLQWHUQDWLRQDOEHQFKPDUNV
Key Human Capital Outcomes
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Direct employment created  
Exponentially high indirect employment ODNK

DNA of Reliance
• ,QGLDIRFXVVHGKLVWRU\
• (PSOR\HHFHQWULFFXOWXUH
• 8QLWHGE\YDOXHVDQGEHKDYLRXU
• Focus on skilling and reskilling
(PSOR\HHVDUHZHOODOLJQHGWRWKH&RPSDQ\YDOXHVIURPVWUDWHJ\WRH[HFXWLRQ
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 115

Hital R. Meswani Ashwani Prashara

7KHGHYHORSPHQWLQLWLDWLYHVVHHNWRSURPRWHHTXLWDEOHHFRQRPLFJURZWKDQGHQVXUHPRUHVXVWDLQDEOH
LQFOXVLYHDQGSHRSOHFHQWULFGHYHORSPHQWZLWKHƪHFWLYHXVHRIWHFKQRORJ\DQGLQWHUQDOFURZG
sourcing – all embodying DNA of Reliance. The Company continues to transform its human resource
PDQDJHPHQW5HOLDQFHVWUHQJWKHQHGWKHOHDUQLQJFXOWXUHWKURXJKVRFLDOVWUXFWXULQJLQFXOFDWLQJQH[W
generation social media technologies and collaboration with institutes of global eminence.

2YHURIHPSOR\HHVDUHPLOOHQQLDOZLWKDFRQWLQXHGIRFXVRQOHDUQLQJDQGUHVNLOOLQJ(PSOR\HH
GLYHUVLW\LVDFURVVJHQHUDWLRQJHQGHUDQGMXULVGLFWLRQZLWKSHRSOHIURPRYHUQDWLRQDOLWLHV+5KDV
evolved into a robust function which works with the aim of enabling employees to not just navigate
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United Nations’ Sustainable Development Goals

PMO’s initiatives supported by the Key highlights of the year:


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• $WDO,QQRYDWLRQ0LVVLRQ HVWDEOLVKLQJDQHZ&HQWUHIRUWKH)RXUWK
• 6XSSRUWWR7UDLQLQJDQG(PSOR\PHQW ,QGXVWULDO5HYROXWLRQLQ0XPEDL,QGLDLQ
3URJUDPPH 67(3 SDUWQHUVKLSZLWK5,/
• )HDWXUHGLQo/LQNHG,Q7RS&RPSDQLHV
:KHUH,QGLDZDQWVWRZRUNQRZpIRUWZR
consecutive years
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

116 Reliance Industries Limited • Making Life Better. For Everyone.

Reliance is committed to building a system that encourages


Workforce Breakdown (Reliance Group)
(Agewise) the development of future leaders from within the folds of
the Company. Dedicated to special needs of women at the
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6% QH[WJHQHUDWLRQSROLFLHVOLNHPRQWKVPDWHUQLW\OHDYH
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47% 47% XQGHUWDNHSURDFWLYHPHDVXUHVVXFKDV[WROOIUHH
87,829 89,258 KHOSOLQHIRUZRPHQUHVHUYHGSDUNLQJIRUH[SHFWDQWPRWKHUV
DQGVHOIGHIHQFHZRUNVKRSDPRQJRWKHUV

/HVVWKDQ\UV 30 to 50 yrs More than 50 yrs

Creating Employment Opportunities


7KH5HOLDQFH*URXSLVDPRQJ,QGLDpVODUJHVWSULYDWHVHFWRU
HPSOR\HUVDQGKDVFUHDWHGGLUHFWHPSOR\PHQWIRU
individuals. Reliance continues to shape a progressive work
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engaged and motivated by a culture of meritocracy.
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Reliance’s employees today are millennials. The Company’s
rate of attrition has consistently stayed below the industry
average over the past 3 years. Quotes by R-Aadya stalwarts and other high achievers
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the young generation to play a vital role in the organisation's DFURVVGLƪHUHQWIXQFWLRQVDQGWRGD\,IHHOKRQRXUHGDQGSURXG
growth. WREHWKHƬUVWIHPDOHSURGXFWLRQPDQDJHUDW5,/7KLVLVP\
Diversity and Inclusion JUHDWHVWDFFRPSOLVKPHQWVRIDUDQGIHHOVWUXO\VSHFLDOr+HWDO
5HOLDQFHUHFRJQLVHVDQGUHVSHFWVGLƪHUHQWFXOWXUHV .RWKDUL3URGXFWLRQ0DQDJHUt9DGRGDUD0DQXIDFWXULQJ'LYLVLRQ
QDWLRQDOLWLHVUDFHVUHOLJLRQVDQGVH[XDORULHQWDWLRQVLQWKH
ZRUOGDQGDPRQJLWVSHRSOH7KHJURXSIRFXVVHVVSHFLƬFDOO\
RQWKUHHDVSHFWVRIGLYHUVLW\JHQGHUGLYHUVLW\PXOWL
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generational diversity and employing people with disabilities.
Development
Augmenting Capabilities
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Employee Breakdown (RIL)
+53ODWIRUPDƬUVWRILWVNLQG+5VHUYLFH,WOHYHUDJHVWKH
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2% has been an increased focus on the use of analytics and
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also witnessed the application of predictive and prescriptive
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their career aspirations within the organisation.
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 117

Learning and development


Reliance aims to maximise organisational performance through
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The emphasis lies on progressing and building a learning
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employees. The Company has expanded communications and
education campaign to ensure that the learners are fully aware
of the resources available to them.

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2) Driving talent management programmes which help


align business goals and create more opportunities for
employees in transitioning to next levels
• Competency Assurance System (CAS) Process – Building
critical domains of technical and functional skills by
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level management
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to strengthen its leadership pipeline and be future ready
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Corporate Overview Management Review 41-179 Governance Financial Statements Notice

118 Reliance Industries Limited • Making Life Better. For Everyone.

3) Learning and learner environment


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and participation in learning events.

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Talent
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values and behaviours that employees are expected to
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web page and mobile interface.

59RLFHLVDIXOO\FRQƬGHQWLDOHPSOR\HHIHHGEDFNVXUYH\WR
/HDUQLQJ Community Career gain actionable insights into making the Company a great
workplace. The engagement scores have shown a steady
improvement in the last 3 years – constantly closing the
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(PSOR\HH(QJDJHPHQW+HDOWKDQG:HOOEHLQJ growing focus on continued manager support and enhanced
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IUDPHZRUNWKDWLVDSSOLFDEOHWRDOOVHQLRUOHYHODQGJURXS Employee engagement practices include policy and reward
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behavioural learning interventions are increasingly focussing
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Integrated Annual Report 2017–18 Management’s Discussion and Analysis 119

RFD Celebration: Spirit of celebrating together

Reliance Family Day (RFD) was celebrated to commemorate the birth anniversary of Shri Dhirubhai Ambani. The theme celebrated
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are carried out for all employees and their spouses. A health
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score is generated through the Health Management System
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employees and their family members across the country
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basketball and lawn tennis. A holistic wellness approach has
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Corporate Overview Management Review 41-179 Governance Financial Statements Notice

120 Reliance Industries Limited • Making Life Better. For Everyone.

The ‘Reliance Employee and Family Emergency Response   5,/VKDOOVWULYHWREHDOHDGHULQWKHƬHOGRIPDQDJHPHQW


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and their families. Environment (HSE) and process safety organisation is in
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all its locations. DQGV\VWHPDWLFDSSURDFKIRUGHƬQLQJSRWHQWLDOULVNVDQG
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SURJUDPPH5,/VHQVLWLVHVLWVHPSOR\HHVDQGWKHLUIDPLO\ (OMS) are digitalised to integrate and bring uniformity across
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Task Based Health Risk Assessment: internal and neighbouring stakeholders regarding the Highly
• 7KURXJKWKH7DVN%DVHG+HDOWK5LVN$VVHVVPHQWHPSOR\HHV Toxic Material (HTM) management programme. Various
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into HMS enables a healthy working environment.
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on the severity of risk and frequency of medical health VFKHGXOH%HVLGHVQHZUHFRUGVIRUƮDZOHVVVWDUWXSVDQG
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scope for continuous improvement. (WKLFV+XPDQ5LJKWVDQG5HGUHVVDO
The Company’s Code of Conduct ensures that all its
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workplace has featured among 15 Global Best practices SROLFLHVFRGHVDQGJXLGHOLQHVWRJRYHUQLWVHPSOR\HHV7KLV
studies. PHFKDQLVPLQFOXGHVGLUHFWRUVVHQLRUH[HFXWLYHVRƯFHUV
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Safety and third parties including suppliers and business partners
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operations. Conformance to the OMS is a dynamic process reporting concerns.
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and drive performance improvements. The performance The Company has established a vigil mechanism for
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Integrated Annual Report 2017–18 Management’s Discussion and Analysis 121

LQFLGHQWVDQGUHSRUWVWRWKH$XGLW&RPPLWWHH,WFRPSULVHV Freedom of Association


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The reportable matters may be disclosed to the Ethics and trade unions which also complies with the local and national
Compliance Task Force which operates under the supervision laws.
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report to the Chairman of the Audit Committee. Governance and Integration
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operational locations where employees can register their
complaints against sexual harassment. This is supported by Reliance focusses on three aspects surrounding business
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fair enquiry process with clear timelines for resolution. All innovation opportunities. Reliance develops and deploys
employees are sensitised on these topics through structured relevant programmes leveraging technology and harnessing
WUDLQLQJSURJUDPPHV1RFDVHRIFKLOGODERXUIRUFHGODERXU expertise aimed at creating value and a culture of innovation.
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employment were reported during the period.

Quotes from Reliance Innovation Council

Nobel Laureate Nobel Laureate Dr. William Prof. Gary Prof. George
-HDQ0DULH/HKQ Robert Grubbs Haseltine Hamel Whitesides

q,KDYHEHHQDƯOLDWHG q,WLVLQWHUHVWLQJWRZDWFK “The quality and q,PXVWFRPSOLPHQW “Reliance is one of


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Corporate Overview Management Review 41-179 Governance Financial Statements Notice

122 Reliance Industries Limited • Making Life Better. For Everyone.

Innovation Programmes
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Integrated Annual Report 2017–18 Management’s Discussion and Analysis 123

Function / Business Wide Campaigns

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pipeline. This idea eliminated the need for new construction and led to a value addition of `90 crore.
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Corporate Overview Management Review 41-179 Governance Financial Statements Notice

124 Reliance Industries Limited • Making Life Better. For Everyone.

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Corporate Overview Management Review 41-179 Governance Financial Statements Notice

126 Reliance Industries Limited • Making Life Better. For Everyone.

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Organisational Structure
Reliance focusses on:
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feedstock to valuable products. Reliance has grown to
molecular weight polyethylene (DPE) and the polymerisation
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wireless and wireline. The focus is constantly on underlying PROGHGSLSHVSXOWUXGHGURGVDQGGLVFV5,/KDVSDWHQWHG
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Corporate Overview Management Review 41-179 Governance Financial Statements Notice

128 Reliance Industries Limited • Making Life Better. For Everyone.

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syngas. Work is underway to demonstrate the technology at also partnering with global leaders in creating a benchmark
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leach out resulting in deterioration of product quality and 6LJQLƬFDQWSURJUHVVKDVEHHQPDGHLQGHPRQVWUDWLQJWKHVH
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does not deteriorate over the life cycle of product. chemicals from syngas using biological ways are extremely
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country’s energy security.
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physical reactions to convert biomass organics to valuable of synthetic biology. Synthetic biology makes it easier to
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has developed some of the world’s most innovative algae in an automation pipeline for standardisation and rapid
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rural economy by creating large number of jobs. HQYLURQPHQWDQGKHDOWK

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Integrated Annual Report 2017–18 Management’s Discussion and Analysis 129

Green solution to India’s growing energy


demand using waste as a resource
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130 Reliance Industries Limited • Making Life Better. For Everyone.

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voice commands. JioPhone can project content on any TV
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Jio continues to invest in integration and innovation across RI+HOVLQNL )LQODQG 3DFLƬF1RUWKZHVW1DWLRQDO/DERUDWRU\
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research. 5,/UXQVLQLWLDWLYHVDQGFDPSXVUHFUXLWPHQWGULYHVDFURVV
universities and colleges to attract fresh talent and the
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Integrated Annual Report 2017–18 Management’s Discussion and Analysis 131

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(` in crore)
FY 2017-18 FY 2016-17 FY 2015-16 FY 2014-15 FY 2013-14
Capital  593 631 722 810
Revenue 798 855 628 498 408
Total     
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Intellectual Property
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Corporate Overview Management Review 41-179 Governance Financial Statements Notice

132 Reliance Industries Limited • Making Life Better. For Everyone.

0DQXIDFWXUHG&DSLWDO

“Every day, advances in manufacturing technologies make factories


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expansion project, one of the world’s most complex and highly integrated
project, set a world record for fast track project execution.

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Key Performance Indicators


Key Manufactured Capital Inputs 2017-18 2016-17
Total Asset Value (` in crore)  
Grades of crude processed 65 65
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Key Manufactured Capital Outputs


Petrochemical production 30.8 MMT 24.9 MMT
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No. of stores operated (Retail)  
Coverage area (Retail) 17.7 million sq. ft. 13.5 million sq. ft.
No. of fuel outlets operated  
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Crude throughput of 69.8 MMT
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350 million footfall in Retail Store
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1.5% of world’s transportation fuel processed
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Integrated Annual Report 2017–18 Management’s Discussion and Analysis 133

Hital R. Pawan Kumar B Narayan Paramjit Singh


Meswani Kapil

Deepak Datta Ravinder Batra A. Srinagesh Lalit Kasliwal

United Nations’ Sustainable Development Goals

PMO’s initiatives supported by the Key highlights of the year:


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remained above 5 year average
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Corporate Overview Management Review 41-179 Governance Financial Statements Notice

134 Reliance Industries Limited • Making Life Better. For Everyone.

Smart Manufacturing Mobility applications and robotics technology are few


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dynamic environments. Smart manufacturing technology smart manufacturing technology including:
also aids the Company to improve its performance in terms
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in inert atmosphere
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manufacturing facilities.
situation evaluation
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6) Machine learning based solution for prediction of
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equipment and process health to take corrective/
in prescribing the solution for process performance and
preventive actions for any future performance
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solutions along with technology partners. This includes the
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Hybrid models using prescriptive analytics for
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Integrated Annual Report 2017–18 Management’s Discussion and Analysis 135

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operations by learning through advanced analytics to predict the future state established on the foundation of securely
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structure occupies four component system ZLWKUHJHQHUDWRUV  LQ3RO\ROHƬQFDWDO\VW
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complex process with potential of licensor technology
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

136 Reliance Industries Limited • Making Life Better. For Everyone.

Switching spinneret cleaning from a


hazardous to a safer process

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payments and so on.
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 5,/LVH[SORULQJFROODERUDWLRQZLWKLQGXVWU\OHDGHUV 2) Augmented Customer Experience:
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and the digital manufacturing platform. Reliance is customers and enable value added services is currently
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value to the society and industry. thus to higher customer service levels. Fleet Risk
management dashboard through machine learning
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Integrated Annual Report 2017–18 Management’s Discussion and Analysis 137

management. This is expected to give insights into • PLOOLRQHQJLQHHULQJPDQKRXUV0RUHWKDQ- -


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heavy lifts
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to enter into smart contracts with customers and institutional competencies in these areas.
vendors for instant matching and settlement processing
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achieved are substantially better than those accomplished are being done to establish extensive use of machine
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Corporate Overview Management Review 41-179 Governance Financial Statements Notice

138 Reliance Industries Limited • Making Life Better. For Everyone.

  &ORXG)LUVW0RELOH)LUVW to enhance its competitive strengths. Examples of such


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operational reliability.
Petrochemicals
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stabilisation and ground improvement of roads
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Integrated Annual Report 2017–18 Management’s Discussion and Analysis 139

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Corporate Overview Management Review 41-179 Governance Financial Statements Notice

140 Reliance Industries Limited • Making Life Better. For Everyone.

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Key Performance Indicators


(` in crore)
Key Financial Capital Inputs FY 2017-18 FY 2016-17
Capital expenditure  
Key Financial Capital Outputs
Revenue  
3%',7  
Paid up capital  
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*Return on Capital Employed (%) 28.7 25.4
Key Financial Capital Outcomes
Market capitalisation  
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United Nations’ Sustainable Development Goals


Integrated Annual Report 2017–18 Management’s Discussion and Analysis 141

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Key Performance Indicators


(` in crore)
Key Social and Relationship Capital Inputs FY 2017-18 FY 2016-17
*Contribution to National Exchequer  
*Reinvested in the Group to maintain and develop operations  
*Providers of Debt  
(PSOR\HH%HQHƬWV  
#
Providers of Equity Capital  
*Contribution to Society 745 659
*Total Value Created  
Spent on indigenous suppliers  
CSR expenditure 771 674
Total number of startups supported 29 29
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Partnerships for change with various organisations
Key Social and Relationship Capital Outputs
Total villages impacted  
8UEDQORFDWLRQV  74
Total number of Jio subscribers (million) 186.6 108.9
Reliance Retail has a portfolio of over 40 international brands
Created an ecosystem of digital startups within the country and directly engaged with 80 startups
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Dividend recommended for FY 2017-18 is `4,281 crore, including `728 crore as dividend distribution tax.
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

142 Reliance Industries Limited • Making Life Better. For Everyone.

Key Social and Relationship Capital Outcomes


Community outreach of Reliance Foundation is more than 20 million
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Market capitalisation crossed `FURUH
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Source: Institute for Competitiveness

United Nations’ Sustainable Development Goals

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community and NGOs – with whom the Company establishes
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through frequent engagement and established processes
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expectations and is able to foster strong relationships with
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 143

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the second largest startup ecosystem with an estimated
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its two cohorts – of which 29 startups made the cut to
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programme. startups) and Cohort 6 (18 startups) with a total of 29
startups. The industry network has strengthened to a
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Corporate Overview Management Review 41-179 Governance Financial Statements Notice

144 Reliance Industries Limited • Making Life Better. For Everyone.

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discussions and transactions as a neutral party. • Contract worker care
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stakeholder (suppliers and internal customers) relationship
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management more proactive and transactional procurement
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more automated. Reliance’s technology architecture aims
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expand their capabilities and increase their economic value.
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for nearby communities and businesses. The Company
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(CoE) for the study of the coastal biodiversity of all components of the digital value chain available to its
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Biodiversity (NCMB). continues to partner and collaborate with technology
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oil and gas sector. The partnership aims to combine BP's enhancing the digital ecosystem.
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Reliance's exceptional project management and operations Academia Partnerships
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the gap between academic excellence and the needs of the
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operational experience in the hydrocarbons business.
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research facilities to students.

Reliance partners with ISRO – ‘Make in India’


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Corporate Overview Management Review 41-179 Governance Financial Statements Notice

146 Reliance Industries Limited • Making Life Better. For Everyone.

Connected by purpose
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content and unparalleled customer experience.

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to catapult to the rank of the highest mobile data user in the world. Such unprecedented success by a digital network is
attributable to its ability to make broadband and digital services accessible to every nook and corner of the nation through its
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* Source: Institute for Competitiveness, 2018

Opening the window to Tadoba Finding one’s own voice


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could leapfrog the villages around the Tadoba Andhari not let his speech impairment come in the way of living
Tiger Reserve (TATR) in Maharashtra from digital a full life. With the need to communicate through sign
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seven villages in the Moharli region of TATR get digitally
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additional burden on her poor parents.
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success in his business.

The fearless traveller Breathing life into art


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anywhere. A common scene in the trains nowadays is of breathed new life into his business. The display window
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the digital medium.
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

148 Reliance Industries Limited • Making Life Better. For Everyone.

Enabling the Fourth Industrial Revolution


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Key Trends Overall 5 ' Reliance Presence
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‘Reliability’. The reports are available at KWWSZZZULOFRP delivery of the Group’s strategy and is integrated across
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4) Business Responsibility Framework based on the
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Environmental and Economic Responsibilities of
aligned to the Company’s risk management framework and
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its strategic approach based on the four areas:
5) World Business Council for Sustainable Development’s
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with its stakeholders through structured dialogues. For more
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information on Materiality refer to the Sustainability Report.

Capital Material Topic


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Corporate Overview Management Review 41-179 Governance Financial Statements Notice

150 Reliance Industries Limited • Making Life Better. For Everyone.

Reliance Goals for Sustainable Development Highlights for FY 2017-18 /LQNDJHVWR,5!816'*


and PMO’s initiatives
supported by the NITI Aayog

Safety • Over 10 years of safe operations <IR> Human Capital


:RUNZLWKLQGXVWU\SHHUVWRGHƬQHDQGXSJUDGHVWDQGDUGV LQ( 3 NITI Aayog:6NLOO,QGLD
on process safety and proactively promote safety for itself • ,QVWDOODWLRQRIPDVWFOLPELQJZRUN UN SDGs:
DQGDFURVVWKHLQGXVWU\&RPPLWWHGWRUHPDLQWRSTXDUWLOH platform
performer in all safety metrics across all operations. • 6WHZDUGVKLSLQ5 '
Page No. 129

Clean Energy • Set up of ROGC at Jamnagar <IR> Natural Capital


(QVXUHPD[LPXPXVHRIFOHDQHQHUJ\LQDOOWKHRSHUDWLRQV Page No. 110 NITI Aayog:&OHDQ,QGLD
collaborate with best available technologies licensors. Ensure • 6WHZDUGVKLSLQ5 ' UN SDGs:
benchmarking of energy consumption across all the sites with Page No. 129
EHVWLQFODVVWHFKQRORJLHVDQGQHZHPHUJLQJWHFKQRORJLHV

Asset utilisation • Extracting value from bottom of <IR>,QWHOOHFWXDO&DSLWDO


(ƯFLHQWDQGPD[LPLVHGXWLOLVDWLRQRIWKHDVVHWVWRRSWLPLVH the barrel NITI Aayog:0DNHLQ,QGLD
energy consumption through operational excellence ensuring Page No. 110 UN SDGs:
VDIHDQGUHOLDEOHRSHUDWLRQV(QVXUHLPSOHPHQWDWLRQRIEHVW • Petro Retail throughput is twice
LQFODVVWHFKQRORJLHVIRUUHDOWLPHPRQLWRULQJRIRSHUDWLRQDO the industry standard
SDUDPHWHUVIRUVDIHUHOLDEOHDQGHƯFLHQWRSHUDWLRQV • Constructed the world’s largest
/'3(XQLW
• ,QVWDOOHGWKHZRUOGpVODUJHVW
H[WUXGHULQWKH//'3(XQLWDW
Jamnagar
• (8529,FDSDEOHUHƬQHU\
• 8VHRIGURQHIRUVDIHW\

2SSRUWXQLW\ GLYHUVLW\ • Employees from over 15 <IR> Human Capital


$VDQHTXDORSSRUWXQLW\HPSOR\HUSURPRWHDFXOWXUHRI nationalities NITI Aayog:'LJLWDO,QGLD
WUDQVSDUHQF\HPSRZHUPHQWDQGPHULWRFUDF\(PSRZHUZRPHQ • 40% plus are millennials UN SDGs:
by advancing opportunities in the Company’s activities and • %HVWLQFODVVSROLFLHVIRUZRPHQ
aspire to achieve 15% women workforce by 2030.

Product stewardship • (XUR9,FDSDEOHUHƬQHU\ <IR> Manufactured Capital


'HYHORSURDGPDSIRUHDFKSURGXFWLQLWVSRUWIROLREDVHGRQ • R|Elan™ Fabric 2.0 with the lowest NITI Aayog:&OHDQ,QGLD
continuous engagement with customers to understand their carbon footprints globally UN SDGs:
FXUUHQWDQGIXWXUHUHTXLUHPHQWVDQGEHSDFHVHWWHULQDGDSWLQJ • Advanced materials and
new and emerging technologies. composites (e.g. RelWood)
• FURUH*%RIGDWD

Customer satisfaction • World’s largest migration from <IR> Social and Relationship
$VSLUHWREHWKHPRVWFXVWRPHUIRFXVHGFRPSDQ\ZLWKWKH free to paid services Capital
highest customer loyalty. • /RZHVW&KXUQ5DWHRISHU NITI Aayog:0DNHLQ,QGLD
month for digital services UN SDGs:
• /DXQFKRISURMHFW$&(

Managing environmental impacts • WRQQHVRI3(7ERWWOHV <IR> Natural Capital


(QVXUHLQGXVWU\OHDGLQJHQHUJ\FHOOVDWHDFKVLWHZRUNLQJ recycled in a year NITI Aayog:&OHDQ,QGLD
towards energy security with focus on reducing consumption • /&$VWXGLHVIRUSRO\SURS\OHQH UN SDGs:
and increased use of clean energy to progressively reduce GHG products
emissions intensity. Demand minimum level of HSE compliance • 5 '6WHZDUGVKLSt$OJDHWRRLO
from all stakeholders.
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 151

Reliance Goals for Sustainable Development Highlights for FY 2017-18 /LQNDJHVWR,5!816'*


and PMO’s initiatives
supported by the NITI Aayog

Community development • Transformed lives of 20 million <IR> Social and Relationship


(PSRZHULQJWKHXQGHUSULYLOHJHGHQKDQFLQJWKHLUDFFHVVWR people Capital
better amenities and increasing the outreach of community • CSR expenditure of `771 crore NITI Aayog:&OHDQ,QGLD
initiatives to 20 million people by 2030 with the minimum CSR 6NLOO,QGLD
H[SHQGLWXUHDWRIWKHQHWSURƬW UN SDGs:

Waste management • Developed advanced ionic liquid <IR> Natural Capital


(QVXUHHƯFLHQWXVHRIVROLGFDWDO\VWVLQFOXGLQJLQYHVWPHQWLQ catalysts NITI Aayog&OHDQ,QGLD
GHYHORSPHQWRIELRFDWDO\VWVWRUHSODFHVROLGFDWDO\VWV UN SDGs:

Supply chain management • 9/(&VVKLSSLQJHWKDQHIURP86$ <IR> Manufactured Capital


&RPPLWWHGWREXLOGDQGPDLQWDLQDWRSTXDUWLOHVXSSO\FKDLQZLWK with the lowest carbon footprint NITI Aayog:0DNHLQ,QGLD
IRFXVRQVXVWDLQDELOLW\E\FROODERUDWLQJZLWKVXSSOLHUVKHOSLQJ • Warehouse automation UN SDGs:
them build their capacity and address sustainability issues
WKURXJKVLWHOHYHOWUDLQLQJ

Health • %HVWLQFODVVVSRUWVIDFLOLWLHVIRU <IR> Human Capital


&RPPLWWHGWRSURYLGHKHDOWKFDUHIDFLOLWLHVWRDOOSHRSOH RQUROO employees NITI Aayog:+HDOWK\,QGLD
HPSOR\HHVDQGFRQWUDFWVWDƪ ZRUNLQJDFURVVDOOVLWHVDWSDU • 5RXQGWKHFORFNHPHUJHQF\ UN SDGs:
with global standards using latest technologies and practices medical services to all employees
including maintaining medical history for all. and family members across the
country through REFERS
• +,9$,'6DZDUHQHVVDQGVXSSRUW
programmes at manufacturing
divisions

Water management •  oP3) of water <IR> Natural Capital


'HSOR\ZRUOGFODVVWHFKQRORJLHVDFURVVDOOVLWHVWRUHGXFHIUHVK UHF\FOHGLQ)< NITI Aayog:&OHDQ,QGLD
water consumption per unit of production by maximising waste • Total water recycled and UN SDGs:
water recycle and minimising external discharge. desalination of seawater at
Jamnagar
• Achieved zero water discharge at
Silvassa and Hoshiarpur

PMO’s initiatives supported by the NITI Aayog includes:


  6NLOO,QGLD$WDO,QQRYDWLRQ0LVVLRQ6XSSRUWWRWUDLQLQJDQGHPSOR\PHQWSURJUDPPH 67(3
  0DNHLQ,QGLD
  'LJLWDO,QGLD
  &OHDQ,QGLD1DWLRQDO6RODU0LVVLRQ1DWLRQDORƪVKRUHZLQGHQHUJ\SROLF\1DWLRQDO3ROLF\RQELRIXHOV1DWLRQDO
HQYLURQPHQWDOSROLF\1DWLRQDOSODQIRUFRQVHUYDWLRQRIDTXDWLFHFRV\VWHP
  +HDOWK\,QGLD
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

152 Reliance Industries Limited • Making Life Better. For Everyone.

Risk and Governance

Nikhil R. Meswani Harish Shah Laxmidas V.


Merchant
q$GLVFLSOLQHGDSSURDFKWRULVNLVLPSRUWDQWLQDGLYHUVLƬHGRUJDQLVDWLRQOLNH5HOLDQFHWRHQDEOHWKHDFKLHYHPHQWRILWV
strategic objectives and to ensure that Reliance has an acceptable level of risk commensurate to expected returns. Reliance’s
(QWHUSULVH5LVN0DQDJHPHQWIUDPHZRUNGULYHVDFRQVLVWHQWDQGV\VWHPDWLFDSSURDFKIRULGHQWLI\LQJDQGPDQDJLQJULVNV
both at the strategic and operational levels. Reliance’s integrated risk management framework provides the capability
IRUWLPHO\DQGLQIRUPHGUHVSRQVHWRDGGUHVVULVNVDQGWRFDSWXUHRSSRUWXQLWLHVr “Reliance has a comprehensive Reliance
0DQDJHPHQW6\VWHPDKROLVWLFVHWRIPDQDJHPHQWV\VWHPVRUJDQLVDWLRQDOVWUXFWXUHVSURFHVVHVSROLFLHVDQGJRYHUQDQFH
IUDPHZRUN'XULQJWKH\HDUVLJQLƬFDQWSURJUHVVKDVEHHQPDGHZLWKGULYLQJDULVNDZDUHFXOWXUHWKURXJKLQWHJUDWLQJWKH
ULVNSURFHVVLQWRSODQQLQJDQGGHFLVLRQPDNLQJSURFHVVHVDVVLJQLQJFOHDUDFFRXQWDELOLWLHVIRUULVNRZQHUVKLSDQGRQJRLQJ
RYHUVLJKWE\GHVLJQDWHG&RPPLWWHHV)XUWKHUPRUH5HOLDQFHLVVWUHQJWKHQLQJLWVFRQWLQXRXVFRQWUROVPRQLWRULQJFDSDELOLW\
DFURVVWKHWKUHHOLQHVRIGHIHQVHHQDEOHGE\DQDO\WLFVWHFKQRORJ\FRYHULQJDOONH\ULVNDUHDVr

Enterprise Risk Management


1) Introduction
Reliance actively stimulates entrepreneurship to avoid harm to employees and the community.
throughout the organisation and encourages its 5HOLDQFHVWULYHVWRGHOLYHUVDIHUHOLDEOHDQG
people to identify and seize opportunities. The current compliant operations.
HFRQRPLFHQYLURQPHQWLQFRPELQDWLRQZLWKVLJQLƬFDQW • Compliance and Control: Compliance with laws
growth ambitions of the Reliance Group carries with it and regulations is fundamental to maintaining its
an evolving set of risks. Reliance recognises that these licence to operate in the various industries that it
ULVNVQHHGWREHPDQDJHGWRSURWHFWLWVFXVWRPHUV operates in. Reliance also believes that accurate
HPSOR\HHVVKDUHKROGHUVDQGRWKHUVWDNHKROGHUVLQWKH and reliable information provides a competitive
society to achieve its business objectives and enable DGYDQWDJHDQGLVNH\WRHƪHFWLYHPDQDJHPHQWRI
sustainable growth. Risk and opportunity management LWVEXVLQHVV,WWKHUHIRUHDFFHSWVPLQLPDOULVNLQ
is therefore a key element of the overall Reliance relation to reporting risks.
strategy. This section provides Reliance’s view on risk • )LQDQFLDO5HOLDQFHPDQDJHVƬQDQFLDOULVNWR
and the key risk factors for Reliance as well as how it PDLQWDLQDSUXGHQWƬQDQFLQJVWUDWHJ\HYHQZKHQ
manages risks through its risk management framework. undertaking major investments and therefore
taking controlled risks in this area.
2) Reliance's View On Risk
  ,Q5HOLDQFHULVNDSSHWLWHLVIRUPDOO\DUWLFXODWHG
2.1) Risk Appetite
WKURXJKVSHFLƬFSROLFLHVUHODWHGWRFRPPRQULVNV
Reliance’s risk appetite is linked to its strategic
EXVLQHVVGHFLVLRQVRUDFWLYLWLHV)RUH[DPSOH
approach and is based on the stance it has taken
SROLFLHVVXFKDVƬQDQFLQJDQGGHDOOLPLWVYHQGRU
across four areas:
VHOHFWLRQFULWHULD+6(FXVWRPHUFUHGLWDQGQHZ
• Strategic and Commercial: Reliance manages
country entry describe the level of risk Reliance
VWUDWHJLFULVNLQWKHSXUVXLWRISURƬWDEOHJURZWK
LVZLOOLQJWRWDNHLQFOXGLQJWKHVSHFLƬFWROHUDQFHV
in both mature and emerging markets. Given the
limits and other boundaries within which decisions
volatile markets and economic climate in which it
shall be taken or activities shall be carried out.
RSHUDWHVWKHDGDSWDELOLW\RILWVSHRSOHLWVVHUYLFH
These policies are then enforced through controls
RƪHULQJVDQGLWVLQIUDVWUXFWXUHDUHNH\
integrated in its business processes and its
• Safety and Operations: Reliance is committed to
governance architecture.
conduct all its activities in a manner appropriate
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 153

2.2) Risk Factors


Reliance emphasises risks that threaten the GLVUXSWLRQWRGLJLWDOLQIUDVWUXFWXUHGXHWR
achievement of the Group’s business objectives LQWHQWLRQDORUXQLQWHQWLRQDODFWLRQVVXFK
over the short to medium term. As part of its annual DVF\EHUDWWDFNVRUKXPDQHUURUFRXOG
SODQQLQJSURFHVV5HOLDQFHUHYLHZVSODQUHODWHGULVNV lead to serious business impact. These
RSSRUWXQLWLHVDQGXQFHUWDLQWLHV,WLGHQWLƬHVWKRVH LQFOXGHLQMXU\WRVWDƪORVVRISURFHVV
as having a high priority for particular oversight FRQWUROLPSDFWRQEXVLQHVVFRQWLQXLW\RU
by the Board and its various committees and by GDPDJHWRDVVHWVDQGVHUYLFHVKDUPWRWKH
Executive Committees. An overview of these risks HQYLURQPHQWWKHORVVRIVHQVLWLYHGDWDRU
LVSURYLGHGKHUHDIWHULQFOXGLQJWKHDFWLRQVWDNHQWR LQIRUPDWLRQOHJDODQGUHJXODWRU\EUHDFKHV
mitigate these risks and any related opportunities: and reputational damage.
I) Strategic And Commercial Risks
Mitigation: Reliance continues to
   D  &RPPRGLW\3ULFHVDQGPDUNHWV
strengthen its responses to cybersecurity
  5HOLDQFHpVƬQDQFLDOSHUIRUPDQFHLVVXEMHFW
threats through proactive and reactive
WRWKHƮXFWXDWLQJSULFHVRIFUXGHRLODQG
ULVNPLWLJDWLRQV7KHVHLQFOXGHSURDFWLYH
gas and downstream petroleum products.
activities to continuously enhance its
3ULFHVRIRLODQGJDVSURGXFWVDUHDƪHFWHG
F\EHUVHFXULW\SROLFLHVVWDQGDUGVWHFKQLFDO
E\VXSSO\DQGGHPDQGERWKJOREDOO\
VDIHJXDUGVRQJRLQJPRQLWRULQJRIQHZ
DQGUHJLRQDOO\)DFWRUVWKDWLQƮXHQFH
and existing threats and cyber security
ƮXFWXDWLRQVLQFUXGHSULFHVDQGFUXGH
awareness initiatives. Reactive responses
DYDLODELOLW\LQFOXGHRSHUDWLRQDOLVVXHV
WRF\EHUVHFXULW\WKUHDWVZKLFKLQFOXGH,7
QDWXUDOGLVDVWHUVSROLWLFDOLQVWDELOLW\
GLVDVWHUUHFRYHU\HPHUJHQF\UHVSRQVH
LQFOXGLQJJHRSROLWLFDOULVNVHFRQRPLF
and business continuity management
conditions and Government pricing policy of
FDSDELOLWLHVHQDEOHWKHUHGXFWLRQRIWKH
petroleum products among others.
impact of a cybersecurity event.
Mitigation: Since Reliance operates an
Changes since last year:
LQWHJUDWHGK\GURFDUERQEXVLQHVVVRPH
The industry continues to witness a
RIWKHVHULVNVFDQEHRƪVHWE\JDLQVLQ
JURZWKLQF\EHUVHFXULW\ULVNVERWKLQ
other parts of the Group. To mitigate
their prevalence and in their disruptive
WKHULVNVUHVXOWLQJIURPQRQDYDLODELOLW\
potential. Breakdown of critical information
RIFUXGHDQGIHHGVWRFN5HOLDQFHKDVD
infrastructure and networks (Critical
GLYHUVLƬHGFUXGHVRXUFLQJVWUDWHJ\IURP
information infrastructure breakdown)
PXOWLSOHJHRJUDSKLHV $VLDWKH0LGGOH
KDVEHHQLGHQWLƬHGDVRQHRIWKHWRSF\EHU
(DVW:HVW$IULFD/DWLQ6RXWK$PHULFD
security risks by the World Economic
DQG1RUWK$IULFD XQGHUERWKVKRUWWHUP
Forum (WEF) in its latest Global Risk Report
DQGORQJWHUPDUUDQJHPHQWV,QDGGLWLRQ
 ,WQRWHVWKDWF\EHUGHSHQGHQF\
Reliance has put in place commodity risk
increases vulnerability to outage of critical
management policies which provide the
LQIRUPDWLRQLQIUDVWUXFWXUH HJLQWHUQHW
IUDPHZRUNIRUGHFLVLRQPDNLQJZLWK
VDWHOOLWHVHWF DQGQHWZRUNVFDXVLQJ
respect to exposures from commodity
ZLGHVSUHDGGLVUXSWLRQ/DUJHVFDOHF\EHU
trading positions.
attacks or ransomware as well as massive
incidents involving data fraud or theft
Changes since last year:
DƪHFWLQJWKHRUJDQLVDWLRQRUWKHVXSSO\
  7KHUHKDYHEHHQQRVLJQLƬFDQWFKDQJHVLQ
chain are some of the key cyber security
the nature of the risk exposures over the
risks that have the potential to cause
last 12 months.
PDVVLYHHFRQRPLFGDPDJHVJHRSROLWLFDO
tensions or widespread loss of trust in the
 E  &\EHUVHFXULW\ULVN
internet.
As Reliance continues to forge ahead with
digital technology led business process
Considering the large digital footprint of
HQDEOHPHQWLWIDFHVDQLQFUHDVHGH[SRVXUH
5HOLDQFHRQJRLQJHƪRUWVDUHUHTXLUHG
to cyber risks. A digital security breach or
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

154 Reliance Industries Limited • Making Life Better. For Everyone.

to continuously counter these evolving     /


 HYHUDJH-LRpV3DQ,QGLDQHWZRUN
threats. footprint and digital ecosystem to
H[SDQG-LRpVSURGXFWRƪHULQJVWR
Some of the notable measures are: diversify revenue sources and
    $
 &RQWLQXRXV,PSURYHPHQW3URJUDP customer base.
&,3 IRUF\EHUVHFXULW\WKDWZDV
2) Ongoing investments and operational
LQVWLWXWHGDFURVV5HOLDQFHWRNHHSSDFH
excellence in the network infrastructure
ZLWKHYHULQFUHDVLQJWKUHDWVKDVQRZ
contributes to delivering on full
been extended to cover the Critical
population coverage with superior
,QIRUPDWLRQ,QIUDVWUXFWXUHORFDWHGDW
customer experience.
plant operations.
3) Jio Prime Membership Programme: A
2) While Reliance routinely conducts OR\DOW\SURJUDPPHWKDWQRWRQO\RƪHUV
Cyber Security Awareness programs PRVWFRPSHWLWLYHPRQWKO\WDULƪSODQV
and ongoing user awareness connect LQWKHLQGXVWU\EXWDOVRPDQ\RWKHU
DFWLYLWLHVDFURVVWKH*URXSUHPRWH DWWUDFWLYHGHDOVDQGRƪHUVIURPERWK-LR
plant locations as well as international and its partners to ensure retention and
operations have also been brought loyalty.
under this awareness initiative.
    - LRSULFLQJDQGWDULƪVWUDWHJ\
focuses on continuous innovation on
3) Several businesses of Reliance are now
SURGXFWVVHUYLFHRƪHULQJVNHHSLQJ
EHQFKPDUNHGDJDLQVW,62WKH
YDULRXVFXVWRPHUVHJPHQWQHHGV
JOREDOVWDQGDUGIRU,606 ,QIRUPDWLRQ
UHTXLUHPHQWVDQGDƪRUGDELOLW\7KH
Security Management System)
RƪHULQJVDUHDOZD\VEHQFKPDUNHGZLWK
best value and quality service assurance
4) Retail business operation’s card
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payment transaction processing is
QRZFHUWLƬHGWRWKHJOREDO3&,'66 Changes since last year:
3D\PHQW&DUG,QGXVWU\'DWD6HFXULW\   7KHUHKDYHEHHQQRVLJQLƬFDQWFKDQJHVLQ
Standard) the nature of the risk exposures over the
last 12 months.
 F  -LR&XVWRPHU([SHULHQFHDQG5HWHQWLRQ
Reliance Jio has now more than 186 II) Safety and Operational Risks
million customers following an innovative
D  +HDOWK6DIHW\DQG(QYLURQPHQWDO +6( ULVNVLQ
customer acquisition strategy. Along with
Operations
H[SDQVLRQRILWVFXUUHQWFXVWRPHUEDVH
Reliance is exposed to a wide spectrum of HSE
customer retention and experience are
ULVNVJLYHQWKHGLYHUVLW\DQGFRPSOH[LW\RI
of utmost importance for Jio to generate
WKHLQGXVWU\LWRSHUDWHVLQ7KHH[SORUDWLRQ
sustainable business performance and
SURGXFWLRQRIRLODQGJDVDQGWKHLUIXUWKHU
return on its investments. Jio is committed
UHƬQLQJDQGSURFHVVLQJLVUHJXODWHGE\YDULRXV
WRGHOLYHURQDGLƪHUHQWLDWHGFXVWRPHU
HSE related regulations across the geographies
experience and constant endeavour is to
ZKHUH5HOLDQFHRSHUDWHV$PDMRU+6(LQFLGHQW
proactively mitigate any such risks that may
VXFKDVƬUHRLOVSLOOVHFXULW\EUHDFKFDQUHVXOW
ZHDNHQ-LRpVYDOXHSURSRVLWLRQVEUDQGDQG
LQORVVRIOLIHHQYLURQPHQWDOGHJUDGDWLRQDQG
customer loyalty.
overall disruption in business activities.
Mitigation: To successfully capitalise
Mitigation: The Reliance HSE policy requires
RQ3DQ,QGLDDOO,3QHWZRUNEDFNHGE\
that ‘Safety of persons overrides all production
H[WHQVLYHƬEHUWRGHOLYHUQH[WJHQHUDWLRQ
targets’. This ensures that all employees strive
digital services and for ensuring sustained
for excellence in their own personal safety
FXVWRPHUYDOXHSURSRVLWLRQ-LRpVVWUDWHJLF
DQGWKHVDIHW\RIRWKHUVLQFOXGLQJHPSOR\HHV
and risk framework encapsulates the
FRQWUDFWRUVFXVWRPHUVDQGWKHFRPPXQLWLHV
following mitigations/plans:
ZLWKLQZKLFK5HOLDQFHRSHUDWHV)XUWKHUPRUH
5HOLDQFHEHOLHYHVWKDWDOOLQMXULHVRFFXSDWLRQDO
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 155

illnesses as well as safety and environmental YHVVHOVRSHUDWLQJFKHPLFDOWDQNHUVRSHUDWLQJ


incidents are preventable. Reliance focusses DODUJHƮHHWRIWXJVDQGSRUWVHUYLFHYHVVHOV
on process safety management as a key area DVZHOODVRZQLQJDQGRSHUDWLQJDVLJQLƬFDQW
to manage its risks. A separate Safety and amount of port and terminal infrastructure. With
2SHUDWLRQDO5LVN 6 25 IXQFWLRQZKLFKLV 96% of all crude being supplied to Reliance by
independent of the line provides oversight on YHVVHODQGWKHRYHUZKHOPLQJPDMRULW\RIUHƬQHG
VDIHW\ RSHUDWLQJH[SRVXUHVDQGSHULRGLFDOO\ products being exported by vessel it is essential
conducts assessments and reviews to provide that these activities are actively managed to
independent assurance on the conformance to DYRLG+6(LQFLGHQWVRLOVSLOOVRUGLVUXSWLRQWR
the Operating Management System. business activities and processes.

Changes since last year: Mitigation: An augmented ship vetting


All entities within the Reliance Group have programme has been introduced to ensure
progressed risk management through its annual that all vessels contracted to carry Reliance
risk review process which is in place upto facility cargoes undergo an enhanced risk assessment
OHYHO7KLVSURFHVVFRQƬUPVWKDWFRQWUROVDUH VFUHHQLQJXVLQJVWDWHRIWKHDUWSUHGLFWLYH
in place and it sets priorities for further risk risk software. For incident response in shipping
reduction or elimination. Accountabilities for formal documentation and cascading has been
risk reduction actions are clear and actions completed.
tracked. A cascaded governance structure is
LQSODFHWRSURYLGHULVNRYHUVLJKW$GGLWLRQDOO\ Reliance is further improving the controls
IRUWKHKLJKHVWULVNVDFWLRQSODQVKDYHEHHQ framework for road transportation working
GHƬQHGDQGHQGRUVHGE\([HFXWLYH0DQDJHPHQW hand in hand with its contractors. Reliance has
involving capital investments as well as enhanced its capabilities through defensive
enhancing administrative and operational GULYLQJWUDLQLQJURXWHKD]DUGPDSSLQJDQGUHDO
controls. time tracking. Contractors are able to use these
in an integrated way to deliver safe operations
Reliance has made good progress in enhancing while on contract with Reliance.
conformance to the requirements of its
integrated Operating Management System Changes since last year:
(OMS). The transition to the OMS was prioritised Road transport contractors have been
with a proactive focus on incident prevention. utilising the services for improving safety in
7KHIRFXVZDVRQWKRVH206VXEHOHPHQWV their operations. The emergency response
ZKLFKKDYHDKLJKLPSDFWRQSURFHVVVDIHW\ communication facility has been enhanced
UHOLDELOLW\DQGFRQWURORIGD\WRGD\DFWLYLWLHV through a dedicated emergency response
performed by its personnel. Conformance to centre for road transportation in the country so
OMS requirements are continuously monitored that contractors can immediately respond to
through a three lines of defense model. These any emergency.
initiatives contribute to safety and operating
excellence delivering HSE Excellence. F  3K\VLFDO6HFXULW\DQG1DWXUDO&DODPLW\ULVNV
Hostile acts such as terrorism or piracy could
E  6DIHW\DQGHQYLURQPHQWDOULVNVGXULQJ harm the Company’s people and disrupt its
7UDQVSRUWDWLRQ operations. Some of Reliance’s sites are also
7HFKQLFDOLQWHJULW\IDLOXUHQDWXUDOGLVDVWHUV VXEMHFWWRQDWXUDOFDODPLWLHVVXFKDVƮRRGV
H[WUHPHZHDWKHUKXPDQHUURUDQGRWKHU F\FORQHVOLJKWLQJDQGHDUWKTXDNHV,IWKH
adverse events or conditions could lead to &RPSDQ\GRHVQRWUHVSRQGRULVSHUFHLYHG
loss of containment of hydrocarbons or other WRQRWUHVSRQGLQDQDSSURSULDWHPDQQHUWR
KD]DUGRXVPDWHULDOVDVZHOODVƬUHVH[SORVLRQV HLWKHUDQH[WHUQDORULQWHUQDOFULVLVLWVEXVLQHVV
or other personal and process safety incidents and operations could be severely disrupted.
GXULQJWUDQVSRUWDWLRQE\URDGVHDRUSLSHOLQH ,QDELOLW\WRUHVWRUHRUUHSODFHFULWLFDOFDSDFLW\WR
the required level within an agreed timeframe
Reliance is exposed to a complex and diverse would prolong the impact of any disruption and
range of marine risk including: exploration FRXOGVHYHUHO\DƪHFW5HOLDQFHpVEXVLQHVVDQG
YHVVHOVRLOWDQNHUVFKHPLFDOWDQNHUVJDV operations.
WDQNHUVGU\FDUJRYHVVHOVRSHUDWLQJHWKDQH
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

156 Reliance Industries Limited • Making Life Better. For Everyone.

Mitigation: Reliance maintains a proactive Mitigation: Reliance recognises that meeting


posture by continuously monitoring and all applicable regulatory requirements can be
DVVHVVLQJHPHUJLQJWKUHDWVYXOQHUDELOLWLHVDQG challenging. A comprehensive and digitally
risks to manage its physical security. Global enabled compliance management framework
Corporate Security (GCS) is a distinct function has been deployed which is designed to:
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secure the Company by harnessing expertise in a timely manner and assess their impact to
from across the spectrum. The group security VWUHQJWKHQGHFLVLRQPDNLQJSURFHVVHVDQG
function and embedded security teams provide integrate these in the business strategy of each
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LWVSHRSOHDVVHWVDQGRSHUDWLRQV,WDFWLYHO\ and controls mechanisms to ensure continued
monitors the threat landscape to RSHUDWLRQDOHƯFLHQF\DQGHƪHFWLYHQHVVRI
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business continuity. compliance activities in the organisation.
Changes since last year:
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continuity management plans to respond to a
focussed on a seamless migration. There have
disruption or an incident.
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risk exposures related to other regulatory
Changes since last year:
compliances during the last 12 months.
Despite the prominence and increased
Automation of a comprehensive compliance
perception of environmental and natural
management framework has been key for this
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period and has been successfully implemented
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detailed analysis of past events and emerging
and transparent controls related to regulatory
trends indicate that dealing with these threats is
compliances.
likely to become more complex in the
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IV) Financial Risks
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ensured to reduce exposure levels. Reliance is D  7UHDVXU\ULVNV
proactively engaging with as many stakeholders 7UHDVXU\ULVNVLQFOXGHDPRQJRWKHUVH[SRVXUH
as possible through external strategic to movements in interest rates and foreign
interventions to mitigate future security risks exchange rates. Reliance also maintains
to Reliance. This includes capitalising and VXƯFLHQWOLTXLGLW\VRWKDWLWLVDEOHWRPHHWLWV
strengthening sustainable relationship with ƬQDQFLDOFRPPLWPHQWVRQGXHGDWHVDQGLVQRW
the government agencies to enhance the forced to obtain funds at higher interest rates.
VHFXULW\FRYHUDWDQHQWHUSULVHOHYHOHVSHFLDOO\ ,WKDVDFFHVVWRPDUNHWVZRUOGZLGHDQGXVHVD
against terrorism. range of products and currencies to ensure that
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III) Compliance and Control Risks markets and investor types.
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• ,QWHUHVW5DWHULVN
The evolution of the global regulatory
Reliance borrows funds from domestic and
environment and at home the Government of
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has resulted into increased regulatory
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scrutiny that has raised the bar with regards
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Mitigation: The interest rate risk is managed
alignment between corporate performance
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regulatory requirements.
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 157

OLDELOLWLHVRUYLFHYHUVDDQGLVDLPHGDWUHGXFLQJ
• 8QGHUVWDQGWKHULVNHQYLURQPHQWDQGDVVHVVWKHVSHFLƬF
the cost of borrowings.
risks and potential exposure for Reliance
• Determine how to deal best with these risks to manage
• Foreign Exchange risk
overall potential exposure
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• 0DQDJHWKHLGHQWLƬHGULVNVLQDSSURSULDWHZD\V
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• 0RQLWRUDQGVHHNDVVXUDQFHRIWKHHƪHFWLYHQHVVRI
and receivables of hydrocarbon business are
the management of these risks and intervene for
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improvement where necessary
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• Report up the management chain to the Board on a
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fund its capital investments. Reliance also avails
made
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working capital. 3.1) Group Risk Management Framework
The Group Risk Management Framework is designed
Mitigation: Foreign exchange risk arising from to help ensure risk management is an integral part
PLVPDWFKRI)RUHLJQ&XUUHQF\$VVHWV/LDELOLWLHV of the way that Reliance works everywhere to
and Earnings is tracked and managed within the HQDEOHULVNVWREHLGHQWLƬHGDVVHVVHGDQGPDQDJHG
risk management framework. appropriately. The Group Risk Management
Framework comprises three levels:
The foreign exchange market is highly regulated • 2YHUVLJKWDQG*RYHUQDQFH5HOLDQFHpV%RDUG
and Reliance ensures compliance with all the along with executive and functional leadership have
regulations. articulated an absolute commitment of the Group to
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Changes since last year: LGHQWLI\DQGXQGHUVWDQGVLJQLƬFDQWULVNVERWK
7KHUHKDYHEHHQQRVLJQLƬFDQWFKDQJHVLQ ORQJWHUP VXFKDVFOLPDWHUHODWHGULVNV
the nature of the risk exposures over the last RSSRUWXQLWLHVDQGLWVƬQDQFLDOLPSDFWV DQG
12 months. Monitoring mechanisms within VKRUWWHUP VXFKDVFRPPRGLW\SULFHULVNV
the Treasury function have been enhanced to H[FKDQJHƮXFWXDWLRQULVNHWF 7KH\DOVRSXWLQ
further strengthen the control framework. SODFHV\VWHPVRIULVNPDQDJHPHQWFRPSOLDQFHDQG
control to mitigate these risks. Dedicated Executive
3) How Reliance Manages Risk VXEFRPPLWWHHVUHYLHZDQGPRQLWRUJURXSULVNV
 5HOLDQFHPDQDJHVPRQLWRUVDQGUHSRUWVRQWKHSULQFLSDO throughout the year depending on the criticality and
risks and uncertainties that can impact its ability to impact with the respective risk owners to drive a risk
achieve its strategic objectives. The Company’s risk management culture.
management framework encompasses internal control • %XVLQHVVDQG6WUDWHJLF5LVN0DQDJHPHQW7KURXJK
LQDQLQWHJUDWHGPDQQHUDQGLVWDLORUHGWRWKHVSHFLƬF %XVLQHVV5LVNDQG$VVXUDQFH&RPPLWWHHV %5$& 
5HOLDQFHVHJPHQWVEXVLQHVVHVDQGIXQFWLRQV,WWDNHV Reliance businesses and functions manage risk as
into account various factors such as the size and nature SDUWRINH\EXVLQHVVSURFHVVHVVXFKDVVWUDWHJ\
of the inherent risks and the regulatory environment of SODQQLQJRSHUDWLRQVSHUIRUPDQFHPDQDJHPHQW
the individual business segment or operating company. resource and capital allocation and project appraisal.
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 7KH5HOLDQFHPDQDJHPHQWV\VWHPVRUJDQLVDWLRQDO ULVNPDQDJHPHQWDFWLYLWLHVUHYLHZLQJQHDUPLVVHV
VWUXFWXUHVSURFHVVHVVWDQGDUGVFRGHRIFRQGXFWDQG and incidents through root cause analysis followed
values and behaviours together govern how Reliance by implementation of required improvements.
conducts its business and manages associated risks. • 'D\WRGD\5LVN0DQDJHPHQW0DQDJHPHQWDQG
VWDƪDW5HOLDQFHpVIDFLOLWLHVDVVHWVDQGIXQFWLRQV
Reliance’s risk management framework is designed to be LGHQWLI\DQGPDQDJHULVNSURPRWLQJVDIHFRPSOLDQW
DVLPSOHFRQVLVWHQWDQGFOHDUIUDPHZRUNIRUPDQDJLQJ DQGUHOLDEOHRSHUDWLRQV)RUH[DPSOH5HOLDQFHpV
and reporting risks from the Group’s operations to the *URXSZLGH2SHUDWLQJ0DQDJHPHQW6\VWHP
Board. The framework and related processes seek to 206 LQWHJUDWHV5HOLDQFHUHTXLUHPHQWVRQKHDOWK
avoid incidents and maximise business outcomes by VDIHW\VHFXULW\HQYLURQPHQWVRFLDOUHVSRQVLELOLW\
allowing management to: operational reliability and related issues. These
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Corporate Overview Management Review 41-179 Governance Financial Statements Notice

158 Reliance Industries Limited • Making Life Better. For Everyone.

WKHDSSOLFDEOHOHJDODQGUHJXODWRU\UHTXLUHPHQWV Third Line of Defense - Group Audit


underpin the practical plans developed to help Reliance has established an independent Group
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performance. the Board and the Audit Committee. The Group
Audit function is mandated to provide assurance
3.2) Continuous Assurance Through the
and advisory support on the management
Three Lines of Defense
systems that manage the key group risks across
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all subsidiaries and investments by the Reliance
model to enable continuous and real time
Group. Group Audit function is aligned to the
assurance on key risk exposures and the
key business segments in order to deliver Group
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Wide assurance coverage as part of the third line
of defense.
First Line of Defense
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The Group Audit function has been set up as a
verify for themselves that risk management
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conjunction with the risk management activities
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Second Line of Defense
techniques and external benchmarking of
A network of functional experts provides
best practices are leveraged extensively to
functional assurance to the businesses in their
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area of expertise by:
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manner. The Group Audit function operates in
of risks within their area of functional
line with international auditing standards and
expertise
continuously improves its functional capabilities
2) Setting standards for the management of
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risks and provide guidance on mitigations
to relevant businesses in their area of
expertise
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of controls and other risk management
activities completed by the business
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 159

Digital Platforms

Kiran Thomas Anish Shah Rui Bastos

/HYHUDJLQJ'LJLWDOWHFKQRORJ\FDSDELOLWLHVWRHQDEOHUDSLGLQQRYDWLRQ
organizational agility and market responsiveness

Reliance is moving to a digital strategy that leverages of value. The Reliance digital services platforms strategy
the new digital and cloud capabilities to create new value includes the rollout of 4 key elements:
propositions for the businesses and markets in which
Reliance operates.   6
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based hosting environments for storing and accessing
Reliance’s digital strategy aims to reformulate a company’s loosely connected services which deliver business
value proposition in the markets in which it operates by solutions and services
integrating a combination of products and digital services
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that seek to anticipate and respond to current and future
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customer needs. To consistently deliver new digital
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capabilities:
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• $FORXGHQDEOHGRSHUDWLRQDO,7EDFNERQHWRGULYHHƯFLHQF\
capabilities used for converting data into meaningful
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• A digital services platform to support business agility and
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rapid innovation through new digital products and services.
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connections to data and processes that reside in the
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company’s operational backbones.
provide foundational capabilities that are needed to enable
digital services platforms but have historically been designed
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and digital services platforms also require developing and
development and elastic scaling required for rapid digital
embedding fundamental management practices related to:
innovation.
• Rapid innovation and agility in identifying emerging trends
and opportunities
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• &URVVIXQFWLRQDOGHYHORSPHQWRIGLJLWDOVROXWLRQVDQGXVHU
backbone with technology and business capabilities to
centered product and service design that integrate business
build and operate digital services platforms which deliver
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• Agile development and DevSecOps practices and the use
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of MVP (minimum viable product) concepts and continuous
operations.
improvement capabilities and mindsets
• /HYHUDJLQJEXVLQHVVLQVLJKWVIURPELJGDWDUHSRVLWRULHVRI
Digital services platform enable rapid innovation and agile
structured and unstructured data
change through technology and business capabilities that
• 5HXVLQJDQGUHGHSOR\LQJSOXJDQGSOD\WHFKQRORJLHVDQG
facilitate rapid development and implementation of digital
business skills and capabilities
solutions and innovations. The architecture of a digital
services platform also facilitates experimentation and Moving to digital services platform strategy is therefore
reusability of technologies and digital services to improve DVWUDWHJLFLQYHVWPHQWLQEXLOGLQJLQWHJUDWHGGLƯFXOWWR
RSHUDWLRQDOSHUIRUPDQFHXVHUH[SHULHQFHVDQGQHZVRXUFHV replicate capabilities that deliver and sustain Reliance’s long
term strategy in a digital future.
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

160 Reliance Industries Limited • Making Life Better. For Everyone.

Awards and Recognitions

Business Leader Award for Corporate Excellence

Leadership Quality
• 6KUL0XNHVK'$PEDQLZRQ(7%XVLQHVV/HDGHUDZDUGIRU • $q4XDOLW\&LUFOH/DNVK\DrIURP+'3(3ODQWZDVDZDUGHG
corporate excellence in 2017 ZLWKKLJKHVWFDWHJRU\q*ROG$ZDUGrDW,QWHUQDWLRQDO
• Shri Mukesh D. Ambani ranked amongst the World’s 50 &RQYHQWLRQRQ4XDOLW\&RQWURO&LUFOHV ,&4&& 
*UHDWHVW/HDGHUVE\)RUWXQH0DJD]LQHLQ • ‘Jazbaa’ Quality Circle was awarded with ‘Par Excellence
• 6KUL0XNHVK'$PEDQLLVWKHRQO\,QGLDQEXVLQHVVOHDGHUWR Award’ and ‘Topaz’ Quality Circle was awarded with
be ranked amongst the ‘World’s 75 Most Powerful People’ by ‘Distinguished Award’ at the 31st Annual Convention of
Forbes magazine 1DWLRQDO/HYHOFRPSHWLWLRQRQ4XDOLW\&RQFHSWV 1&4& 
• 6PW1LWD0$PEDQL,QGLDpVƬUVWZRPDQPHPEHURIWKH 2017
,QWHUQDWLRQDO2O\PSLF&RPPLWWHHPDGHLWWRWZRSUHVWLJLRXV
commissions: Olympic Channel Commission and Olympic (QHUJ\DQG:DWHU&RQVHUYDWLRQ(ƯFLHQF\
Education Commission • 5HFHLYHG([FHOOHQW(QHUJ\(ƯFLHQW8QLW$ZDUGDW&,,pVth
• 6PW1LWD0$PEDQLIRXQGHURI5HOLDQFH)RXQGDWLRQ National Award for Excellence in Energy Management in 2017
felicitated by Metropolitan Museum of Art for her • $FKORUDONDOLSODQWUHFHLYHGWKHEHVWSHUIRUPHUDZDUGXQGHU
philanthropic work PAT scheme by BEE in 2017
• )LUVWSHWURFKHPLFDOFRPSOH[LQ,QGLDWRDFKLHYH&,,q*UHHQ&R
Human Resources *ROGrFHUWLƬFDWLRQ
• 5HFRJQLVHGDVRQHRIWKHFRPSDQLHVLQWKH/LQNHG,Q
7RS
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OLVW 7HFKQRORJ\3DWHQWV5 'DQG,QQRYDWLRQ
• Won Golden Peacock Award 2017 for Corporate Ethics • 5HFHLYHGKLJKHVWFDWHJRU\o*ROGpUDWLQJE\,QWHUQDWLRQDO
• 7KUHHHPSOR\HHVRI5,/UHFHLYHGo6KUDP$ZDUGVpGHFODUHG 5HVHDUFK,QVWLWXWHIRU0DQXIDFWXULQJDW,*0&$ZDUG
E\*RYHUQPHQWRI,QGLDRUJDQLVHGE\0LQLVWU\RI/DERXUDQG • Received the ‘Drivers of Change’ award at the Financial
(PSOR\PHQWDW9LJ\DQ%KDYDQ'HOKLKHOGRQth February Times ArcelorMittal Boldness in Business Awards
2018 • o%HVW,QQRYDWLRQ$ZDUGpLQ5 'DW570IRUGHYHORSPHQWDQG
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additive
• :RQWKH,%&,QQRYDWLRQ$ZDUG
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 161

Golden Peacock Award CSR - 2017 Golden Peacock Award Most innovative project - CII

• Product innovator of the year in petrochemical sector by +HDOWK6DIHW\DQG(QYLURQPHQW


),&&,IRUo,QGLJHQRXV7HFKQRORJ\IRU3RO\SURS\OHQH&DWDO\VW • :RQWKH*ROGHQ3HDFRFN(FRLQQRYDWLRQ$ZDUGIRU
([WHUQDO'RQRUV\VWHPIRU5DƯDJUDGHp reducing its carbon footprint in Recron Green Gold products
• Received Gold Award for outstanding achievement in Safety
• 8th3/$67,&21DZDUGIRULQQRYDWLRQLQJUHHQWHFKQRORJ\
Management in Textile Sector at the 16th Annual Greentech
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Safety Award 2017
3HUIRUPDQFH&DWDO\VW)RU3URGXFLQJ+RPR ,PSDFW33p
• Received “Golden Peacock Environment Management Award
• ,&&$FKDU\D3&5D\DZDUGIRU5,/)LUVWWR:RUOG5(/6 rLQWKHq3HWUROHXPVHFWRUr
precursor based Polypropylene Catalyst Technology • 5HFHLYHGWKHq0RVW,QQRYDWLYH3URMHFWrDWq&,,
Development (QYLURQPHQWDO%HVW3UDFWLFHV$ZDUGVr
• *OREDOO\FHUWLƬHGDVDo+HDOWK\:RUNSODFHpE\*OREDO&HQWUH
• ,&&DZDUGIRUq([FHOOHQFHLQ3URFHVV'HVLJQDQG
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indigenous technology for benzene recovery from FCC
• CASHe and Wellness initiatives won a Special Mention Award
gasoline
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of Duty of Care Awards 2017
Capital Resources
• 7KH$VVHW&RUSRUDWH$ZDUGt3ODWLQXP$ZDUGWR
5HOLDQFH,QGXVWULHV/LPLWHG+LJKHVWLQGXVWU\UHFRJQLWLRQ
Risk Management
• 5HFHLYHGWKHDZDUGIRU%HVW5LVN0DQDJHPHQW)UDPHZRUN 
bestowed by The Asset to leading corporates in Asia
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• 7KH$VVHW7ULSOH$$VLDQ$ZDUGVt%HVW6\QGLFDWHG
2018
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syndicated term loan facilities
• $VLD3DFLƬF/RDQ0DUNHWV$VVRFLDWLRQ $3/0$ t6\QGLFDWHG
Corporate Social Responsibility
• Won Golden Peacock Award 2017 for CSR.
&RUSRUDWH'HDORIWKH<HDU$ZDUGIRU5HOLDQFH,QGXVWULHV
• Reliance Foundation was awarded ‘Rashtriya Khel Protsahan
/LPLWHGpV86ELOOLRQV\QGLFDWHGWHUPORDQIDFLOLWLHV
Puruskar’ by Honourable President on the occasion of
National Sports Day for its contribution towards promotion
of sports
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

162 Reliance Industries Limited • Making Life Better. For Everyone.

• RF Jr. NBA programme entered the Guinness Book of • 5HOLDQFH-HZHOVZRQo,QQRYDWLYH-HZHOOHU\RIWKH<HDUpDZDUG


World Records as over 3400 Jr. NBA students received DW*HPVƬHOG5HWDLO-HZHOOHU\$ZDUG
basketball lessons from the legendary Kevin Durant in the • 3HWUR0DUNHWLQJWUDLQLQJZRQWZRDZDUGVDWWKH&/2$ZDUGV
ZRUOGpVODUJHVWHYHUWHFKHQDEOHG1%$FOLQLFKHOGIRUIXWXUH RUJDQLVHGDQGHYDOXDWHGE\7,66DQG/HDS9DXOW
basketball talent
• Reliance Foundation received mBillionth Award South Asia Digital Services
XQGHU$JULFXOWXUH (QYLURQPHQW&DWHJRU\IRULWV • Reliance Jio ranked 17th in American business magazine Fast
LQIRUPDWLRQVHUYLFHVWRIDUPHUVƬVKIRONVDQGOLYHVWRFN &RPSDQ\pVo0RVW,QQRYDWLYH&RPSDQLHVOLVWp
owners • Won ‘Best Mobile Operator Service for Consumers’ at Global
• 5HOLDQFH)RXQGDWLRQUHFHLYHG,QGLD&65FRPPXQLW\LQLWLDWLYH Mobile Awards 2018
DZDUGIRUVXSSRUWLQJWKHƮRRGDƪHFWHGFRPPXQLWLHV • JioTV won the ‘Best Mobile Video Content’ award at Global
through technology driven digital platforms during relief Mobile Awards 2018
operations in Madhya Pradesh • :RQo*OREDO*DPH&KDQJHU$ZDUGpLQWKHVHYHQWKHGLWLRQRI
• Reliance Foundation received the Best Corporate Supporter WKH0DULFR,QQRYDWLRQ)RXQGDWLRQ$ZDUGV
RI,QGLDQ6SRUWVDWWKHWKLUG0DKLQGUD6FRUSLR7LPHVRI,QGLD • :RQJROGIRUEHVWZRUNLQWKHo%UDQG,GHQWLW\pFDWHJRU\DWWKH
Awards for its contribution towards promoting multiple German Design Awards 2018
sports in the country • :RQo,QQRYDWLYH0RELOH79pDZDUGIRUo-LR79pDWWKHth edition
• 5HFHLYHGWR*ROG,$$2OLYH&URZQ$ZDUGVXQGHUWKH of Aegis Graham Bell Awards
FDWHJRULHVq&RUSRUDWH&UXVDGHURIWKH<HDUrDQGq(YHQWVr • Won ‘Data Science’ award for its innovation ‘Smart Network
Coverage’ at the 8th edition of Aegis Graham Bell Awards
Sustainability • :RQo%HVW,QWHJUDWLRQRI'LJLWDO&RQWHQWZLWK79pDZDUGLQ
• Won the best ‘Sustainable Corporate of the year’ 2018 at Prime Time Awards 2017
6XVWDLQDELOLW\DZDUGVE\)URVWDQG6XOOLYDQDQG7(5, • :RQEURQ]HPHGDOLQo%HVW,QWHJUDWHG79FDPSDLJQpDZDUGLQ
• Won the ‘Golden Peacock Award for Sustainability’ in 2017 in Prime Time Awards 2017
the ‘Petroleum Sector’ • Won the|o%HVW0RELOH*DPHIRU0DUNHWLQJp|DZDUGLQWKHth
• 5HOLDQFH&RUSRUDWH3DUNUHFRJQLVHGDVo,FRQLF,QGLDQ3URMHFW HGLWLRQRI,QGLD'LJLWDO$ZDUGV
LQ(QHUJ\(ƯFLHQF\DQG6XVWDLQDELOLW\pLQ$&5(;+DOORI)DPH • $ZDUGHGo7KH'LVUXSWRUpWLWOHLQ&1%&79,QGLD%XVLQHVV
2018 /HDGHU$ZDUG
• 5HFHLYHGo&RPPHQGDWLRQIRU6LJQLƬFDQW$FKLHYHPHQWLQ
&RUSRUDWH([FHOOHQFHpIURP&,,LQVXVWDLQDELOLW\ Media
• CNBC TV18 and CNBC AWAAZ were awarded with the
Retail English and Hindi Business News Channel of the Year
• Reliance Smart was awarded ‘Hypermarket of the Year’ at UHVSHFWLYHO\DWWKHH[FKDQJHPHGLD1HZV%URDGFDVWLQJ
Annapoorna Food Retail Awards 2017 Awards (ENBA) 2018
• Reliance Digital was awarded ‘Consumer Durables Retailer of • ,QGLD%XVLQHVV+RXUZRQWKH(1%$%HVW%XVLQHVV
the Year’ at Star Retailer Awards Program award
• 5HOLDQFH'LJLWDOZRQo&',7 7HOHFRPPXQLFDWLRQV5HWDLOHURI • VOOT awarded the coveted ‘Best of 2017’ apps by the iOS
WKH<HDUpLQ,QGLD5HWDLO$ZDUGV App Store
• 9227pV3URJUHVVLYH:HE$SSSURGXFWZDVDZDUGHGWKH,%&
*OREDO,QQRYDWLRQ$ZDUGLQ$PVWHUGDP
• MoneyControl was awarded the Best Mobile App for Business
at the GSMA Asia Awards in June 2017
Integrated Annual Report 2017–18 Management’s Discussion and Analysis 163

Glossary
1) Downstream 7KHGRZQVWUHDPFRPPRQO\UHIHUVWRWKHUHƬQLQJRISHWUROHXPFUXGHRLODQGWKHSURFHVVLQJDQG
SXULI\LQJRIUDZQDWXUDOJDVDVZHOODVWKHPDUNHWLQJDQGGLVWULEXWLRQRISURGXFWVGHULYHGIURP
crude oil and natural gas.

2) 8SVWUHDP The upstream includes searching for potential underground or underwater crude oil and natural
JDVƬHOGVGULOOLQJH[SORUDWRU\ZHOOVDQGVXEVHTXHQWO\GULOOLQJDQGRSHUDWLQJWKHZHOOVWKDWUHFRYHU
and bring the crude oil and/or raw natural gas to the surface.

3) 1HOVRQ&RPSOH[LW\,QGH[ 7KH1HOVRQFRPSOH[LW\LQGH[ 1&, LVDPHDVXUHWRFRPSDUHWKHVHFRQGDU\FRQYHUVLRQFDSDFLW\RI


DSHWUROHXPUHƬQHU\ZLWKWKHSULPDU\GLVWLOODWLRQFDSDFLW\7KHLQGH[SURYLGHVDQHDV\PHWULFIRU
TXDQWLI\LQJDQGUDQNLQJWKHFRPSOH[LW\RIYDULRXVUHƬQHULHVDQGXQLWV

*URVV5HƬQLQJ0DUJLQ *50LVWKHGLƪHUHQFHEHWZHHQFUXGHRLOSULFHDQGWRWDOYDOXHRISHWUROHXPSURGXFWVSURGXFHGE\
4)
(GRM) WKHUHƬQHU\

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6) Crack spreads &UDFNVSUHDGVDUHGLƪHUHQFHVEHWZHHQZKROHVDOHSHWUROHXPSURGXFWSULFHVDQGFUXGHRLOSULFHV

$UHƬQHU\RƪJDVFUDFNHULVDSHWURFKHPLFDOXQLWWKDWXVHVWKHJDVJHQHUDWHGDVDE\SURGXFWRI
7) 5HƬQHU\2ƪJDV&UDFNHU
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9) Coal Bed Methane (CBM) CBM is a form of natural gas extracted from coal beds.

/RQJ7HUP(YROXWLRQ /7( LVRIWHQUHIHUUHGWRDVWKHQH[WJHQHUDWLRQZLUHOHVVQHWZRUNEH\RQG*


10) /7(7HFKQRORJ\
with the capacity to support a high demand for connectivity and supporting fast moving mobiles.
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

164 Reliance Industries Limited • Making Life Better. For Everyone.

Report on Corporate Social Responsibility

Jagannatha Sudarshan Jalaj Dani Hemant Desai Dhanraj


Kumar Suchi Nathwani

Reliance has taken a comprehensive approach towards development,


striving to maximise its impact and reach the unreached. By working at
the grassroots level, the Company has already touched the lives of 20
million people, and endeavours to build a more empowered India.

Reliance: Changing Lives and Empowering India through Collaboration and Digital Technology
Reliance Industries Limited strongly believes in inclusive social development. Reliance has strategically chosen the
economic growth. The Company’s CSR initiatives are company’s CSR initiatives with a focus on improving the
based on this principle, and resonate with India’s National quality of life. The initiatives focus on seven areas: Rural
Development Goals as well as the Sustainable Development Transformation, Health, Education, Sports for Development,
Goals (SDGs) outlined in the United Nations 2030 Agenda for Disaster Response, Arts, Culture and Heritage and Urban
Sustainable Development. Renewal. During FY 2017-18, Reliance spent `771 crore on
CSR initiatives under these focus areas.
Most of the CSR activities of the Company are carried out
under the aegis of Reliance Foundation (RF), which in a The key philosophy of all the social development initiatives of
span of seven years has emerged as a leading corporate RIL is based on three core commitments of Scale, Impact and
foundation addressing nation’s multiple development Sustainability.
challenges. The Foundation was established in 2010 under
the leadership of Smt. Nita M. Ambani. Till March 2018, Reliance’s development initiatives have
touched the lives of 20 million people across India. The
Schedule VII of Section 135 of the Companies Act, 2013 lists Company’s initiatives registered an impressive reach across
out various areas in which corporate entities are expected India as shown in the accompanying map.
to deploy their CSR funds and implement programmes for

Expenditure on CSR Initiatives


The following table presents theme-wise CSR expenditure of Reliance for the year 2017-18.
CSR Expenditure (` in crore) FY 2017-18
Rural transformation 195
Health 148
Education 373
Sports for development 50
Disaster response 4
Arts, culture & heritage 1
Urban renewal* -
Total 771
Of the total expenditure, `FURUHLVIURP5,/DQGWKHUHVWLVIURPWKH*URXS&RPSDQLHV)LJXUHVDUHURXQGHGRƪDVDSSURSULDWH
*Urban renewal - `34 lakh in FY 2017-18
Integrated Annual Report 2017–18 Report on Corporate Social Responsibility 165

Geographical reach of Reliance’s development initiatives

Legend
Rural Transformation Health Education
Sports for Development Disaster Response
Arts, Culture & Heritage Urban Renewal
Plant locations with CSR activities

Reliance Foundation focuses on its social initiatives with a with the communities and penetrate into the critical issues
three-pronged strategy: that are physically untouched through direct interventions.
(i) direct engagement with the community,
(ii) forging partnerships and collaborations, and Reliance leverages technologies to provide sustainable
(iii) leveraging the power of information technology. solutions. These technological interventions connect
communities on multiple digital platforms for optimum
Reliance Foundation directly engages with the communities use of resources, informed decision making and capacity
through a team of trained professionals. It collaborates with building. This has been greatly aided by the emergence of Jio
the communities right from understanding their needs, Infocomm as a major player in digital services in recent years.
planning and implementing the programmes, and measuring 7KURXJKWKHXVHRIWHFKQRORJ\5HOLDQFHKDVPDGHVLJQLƬFDQW
the values and impact it has created. In the process, progress in reaching out to the people with various products
Reliance engages the community members in planning and and services such as information advisories, digital
implementation, empowers them through trainings and classrooms, virtual sports clinics, record keeping of patients
works towards scalability and sustainability of the initiatives. among others.

Reliance Foundation forms strategic partnerships with In addition to Reliance Foundation’s interventions, the
organisations to bring in synergy to its development Company also encourages its employees to voluntarily
initiatives. These partnerships include state and local contribute to social causes. Periodic inputs are obtained
governments and non-government organisations working from employees on their interest to contribute to a
at the grassroots level. Reliance collaborates with the particular cause. Additionally, depending upon the needs of
organisations for sharing technical know-how, human FRPPXQLWLHVWKH&RPSDQ\OHYHUDJHVVSHFLƬFVNLOOVHWVRI
resources and infrastructure. These partnerships support HPSOR\HHVDQGDOORFDWHVUHVRXUFHVIRUHƪHFWLYHGHOLYHU\
in delivering Reliance’s commitment by intensively engaging The following sections present an overview of various CSR
initiatives taken up by the Company.
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

166 Reliance Industries Limited • Making Life Better. For Everyone.

Reliance Foundation Key Highlights

Increased agricultural produce Quality healthcare for all RF Young Champs in action

Rural Transformation Health

• Livelihoods of 1.2 million+ farmers, • More than 73 billion litres of water • Over 0.44 million health consultations
ƬVKHUIRONDQGOLYHVWRFNRZQHUV harvesting capacity has been created provided to patients through Reliance
enhanced (over 4.8 million since since inception. As a result, 307 managed hospitals, mobile and static
inception) villages were made water secure medical units and various health
camps (4 million since inception)
• Eco-consistent soil conservation • Over 7 million saplings were planted
resulted in bringing more than this year to promote biodiversity (over • The eye care services supported 1,207
7,000 Ha of land under sustainable 20 million since inception) visually impaired individuals under the
agricultural practices (over 64,000 Ha Drishti Programme (17,000+ corneal
since inception) transplants since inception)
• Water harvesting and conservation
HƪRUWVUHVXOWHGLQEULQJLQJRYHU
hectares of land under irrigation since
inception

RF Voice services Water conservation through earthen dam construction


Integrated Annual Report 2017–18 Report on Corporate Social Responsibility 167

Sairandri Sahu conducts a Women’s Saving Group Meeting Promoting Arts and Culture

Education Sports for Development

• Providing quality education to • The RF Jr. NBA programme has scaled their skills with world-class facilities
16,000 students through 14 Reliance up to 10,000+ schools across 34 and best-in-class trainings
Foundation Schools cities through its physical education
• In its second year, RF Youth Sports
curriculum. So far, the programme has
• 713 talented students were given programme introduced athletics
inspired 9 million children and youth to
scholarships to pursue higher studies while continuing with football. The
adopt healthy, active lifestyle
(over 13,644 scholarships since programme reached out to 4.7 million
inception) • The RF Young Champs programme is youth from 3,400+ educational
supporting 48 talented young football institutions across
players through scholarships to hone 34 cities

Disaster Response Arts, Culture and Heritage

• Supported over 10,000 individuals • Supported ‘8 Prahar’, an event


IURPƮRRGDƪHFWHGYLOODJHVDFURVV dedicated to Indian classical music,
Assam’s 11 districts bringing together singers including
Padma Vibhushan Sangeet Martand
• Helped over 0.15 million individuals
Pandit Jasraj to delight music lovers in
IURPƮRRGDƪHFWHGYLOODJHVDFURVV
Mumbai
2 districts of Gujarat. Adopted four
worst-hit villages to provide required
• Supported the annual concert ‘Abbaji’,
assistance for rehabilitation, beyond
organised by Ustad Zakir Hussain
WKHLPPHGLDWHUHOLHIHƪRUWV
in the memory of renowned tabla
• The early warning advisories maestro, Ustad Allah Rakha Khan
disseminated during Ockhi cyclone in
Southern India saved lives of 27,000
ƬVKHUPHQDQGRYHU+DRISDGG\
ƬHOGV
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

168 Reliance Industries Limited • Making Life Better. For Everyone.

1) Rural Transformation PRELOLVLQJSK\VLFDODQGƬQDQFLDOUHVRXUFHVLQWLPHV


Reliance has been addressing the challenges of of crisis. Some of these leaders are also elected by
rural communities through its rural transformation people as representatives of Gram Panchayats,
programme. Key initiatives in this programme include given their active participation in community
building rural institutions, making villages water secure, development initiatives. Today, over 86,000 rural
mentoring producer companies and enabling alternative households in 1,100 villages from 32 districts
OLYHOLKRRGRSWLRQVRQDQGRƪWKHIDUP7KHSURJUDPPH across 12 states in India are associated with the
also uses technology based solutions for securing programme.
OLYHOLKRRGVRIIDUPHUVƬVKHUIRONDQGOLYHVWRFNRZQHUV
across the country. 1.2) Water Security
The programme aims to provide water security to
In addition to direct engagement, Reliance supported villages for irrigation and domestic use. Reliance
VHYHUDORUJDQLVDWLRQVZRUNLQJLQWKHƬHOGRIUXUDO works for conserving every drop of rain within the
GHYHORSPHQWZLWKDQDLPWREHQHƬWWKHUXUDOFRPPXQLW\ village. More than 73 billion litres of water harvesting
This year, the initiatives supported are aimed at building capacity has been created since inception by
GURXJKWUHVLOLHQWYLOODJHVE\HQVXULQJZDWHUVXƯFLHQF\ constructing or renovating water harvesting
income enhancement through women-led cooperative structures, including earthen/masonry dams and
VRFLHWLHVDQGƬVKHUPHQSURGXFHUFRPSDQLHVDQG check dams, farm ponds, open wells, etc). Owing to
capacity building of farmers for better price realisation. WKLVHƪRUWRYHUKHFWDUHVUHFHLYHGDVVXUHG
Together, these initiatives help achieve the SDGs 1 (No irrigation for two cropping seasons, despite the rain
Poverty), 2 (No Hunger), 6 (Clean Water and Sanitation) GHƬFLWLQPDQ\SDUWVRI,QGLDWKLV\HDU7KHVHHƪRUWV
and 10 (Reduced Inequalities). resulted in water security of 307 villages. Moreover,
several villages have reported an increase in ground
1.1)Institution Building water level by over 2 metres, even at the peak of
The programme empowers rural communities to summer seasons.
organise themselves into Village Associations,
Producer Companies and Women Thrift Groups.   )RUHƯFLHQWZDWHUPDQDJHPHQWXVHUJURXSVZHUH
These community level institutions have facilitated formed across 260 villages that manage and regulate
the development of village level leadership for sustainable water use. Assessments show that
addressing local social development issues. Many of the intervention has positively impacted farmer
these institutions have taken up advocacy roles at livelihood in terms of land use pattern, cropping
GLƪHUHQWOHYHOV intensity and income levels.

For long-term sustainability of these institutions, Reliance supported Paani Foundation’s Water
the members have come together to contribute Cup initiative to ensure water security in rural
towards creating a community owned fund, infuse Maharashtra. Through this initiative, over 96 billion
equity into producer companies, savings and thrift litres of water storage capacity has been created
activities. They have also been instrumental in across 1,300+ villages.

Village Transformation by a Woman Leader


Smt. Lachchho Bai Dehriya and had a vision for holistic All these inspired her to tobacco shops, after which
(age 62) is a housewife hailing development of her village contribute to the village and the Gram Sabha submitted
from Chikhla village of Seoni and the need for women to women around her. a resolution to the local
district, Madhya Pradesh. contribute to this. police. The Police Station
Her life was distressed Equipped with her enhanced of Kurai block awarded her
when her husband was After she joined the leadership skills, Lachchho for this initiative. Under her
struck by paralysis. With a rural transformation Bai led a thrift group of 30 leadership, the village has
limited farm income from programme in 2012, she women to win freedom from made substantial progress
just 2 hectares of land, received support in land exploitative money-lenders. including formation of
she managed to raise her development, besides Besides agriculture, she seed bank, construction of
FKLOGUHQDQGPDUULHGRƪWZR EHQHƬWWLQJIURPWUDLQLQJV focussed on pressing social toilets, availability of piped
daughters. During all these and exposure visits to issues such as alcoholism. water supply, and enhanced
years, she felt the need for widely acknowledged model Along with 55 women, she incomes.
environmental conservation villages of Maharashtra. fought for banning liquor and
Integrated Annual Report 2017–18 Report on Corporate Social Responsibility 169

Transforming Lives: Water Conservation in Value Creation through Enhanced Water


Sendhwa Security
In Bijapuri village of A water-budgeting exercise The focus areas of Rural interventions reach out to
Sendhwa block (Barwani, carried out revealed that Transformation programme around 5,100 people. By
Madhya Pradesh), people the village could be made include enhancement of the end of March 2018, the
tend to migrate annually water secure by harvesting water security and creating programme in Agar has
to neighbouring states rainwater at strategic livelihood opportunities FRPSOHWHGDOPRVWƬYH\HDUV
including Maharashtra and spots. After technical for small and marginal of operations.
Gujarat. With predominant assessment, Reliance farmers. During 2018,
rain-fed agriculture and lack constructed a check dam Reliance initiated an The study looks at indicators
of irrigation, the farmers that helped assure irrigation impact assessment of such as improvement in
were unable to cultivate of 80 hectares. With this its water security and ZDWHUHƯFLHQF\HFRQRPLF
more than a single crop that support, the farmers can livelihood interventions stability, education and
resulted in dependency now cultivate in at least using the Social Returns health, livelihoods, reduction
on non-farm livelihood two cropping seasons on Investment (SRoI) in migration, increase in
options during Rabi and Zaid annually. This has resulted methodology. FRQƬGHQFHDVSLUDWLRQV
seasons. in year-round availability of and self-worth. Findings
livelihood options within )RUWKLVDVVHVVPHQWƬYH show that the investments
the villages. programme villages of Agar made by Reliance have had a
(Madhya Pradesh) were positive impact on most of
selected. In these villages, these aspects.
the water and livelihood

1.3) Farmer Producer Companies


Perennially, India’s farmers have faced the challenge
This aggregation also enhances the bargaining
of establishing market linkages. To help the farmers
power of farmers. So far, Reliance has mentored 19
overcome this challenge, Reliance empowers them
FPCs, spanning 10 states. As on 31st March 2018, the
to set up Farmer Producer Companies (FPCs).
RF-mentored FPCs had 21,500 farmers associated
These farmer-owned and farmer-driven companies
with them. During FY 2017-18, the annual turnover of
sensitise rural producers on the need to come
FPCs was `67.5 crore. Each farmer who transacted
together as collectives, aggregate farm produce
through FPCs, on an average had an additional
to bring in economies of scale for fetching better
income of `5,000 to `6,000.
prices, have sustainable access to markets, etc.

Highlights of Reliance mentored Farmer


Producer Companies for the year
• RF received Krishi government prices. The
Pragati Award 2017 from FPC has been ranked as
NCDEX for outstanding Grade “A” organisation by
contribution in improving NABARD.
income of small and
• Jamwa Ramgarh FPC
marginal farmers through
was recognized as the
FPCs.
Most Promising Producer
• Bhimpahad Krushak Company.
Producer Company in
• In collaboration with
Balangir, Odisha was
Gujarat State Co-Operative
licensed as a supplier of
Cotton Federation Limited,
seeds and fertilizers by
Jasdan Producer Company
the Govt. of Odisha. This
transacted 54,000+
ZRXOGEHQHƬWWKHIDUPHU
quintals of groundnut that
members in getting quality
EHQHƬWWHGIDUPHUV
seeds at nominal subsidized
Corporate Overview Management Review 41-179 Governance Financial Statements Notice

170 Reliance Industries Limited • Making Life Better. For Everyone.

1.4) Nutrition Security


To improve nutritional outcomes among rural
Virtual platforms for informed decision-
population, Reliance has been promoting its unique
making
kitchen garden model across its programme
Reliance Foundation has In addition, the users can
locations as well as providing technical support
been using multiple digital also seek information
to government. This year, Reliance Foundation
solutions tailored to the with the help of key words
extended the scope of its partnership under
QHHGVRILWVEHQHƬFLDULHV through chat. So far, 15,000
Rajmata Jijau Nutrition Mission of Government of
This year, RF leveraged GLƪHUHQWDGYLVRULHVKDYH
Maharashtra. Under this, RF would provide technical
Jio Infocomm’s “JioChat” EHHQXSORDGHGLQGLƪHUHQW
support to anganwadis across 16 districts in setting
application and added languages. The content
up Reliance Nutrition Gardens. This initiative is
essential features in it disseminated through the
aimed at improving nutritional outcomes of 0.2
to provide solutions to a DSSLVEHQHƬWWLQJDODUJH
million mothers and children in these districts thus
range of rural users seeking population which seeks
reducing the burden of malnutrition in the state.
customised information and information to make the
advice on improving their best decisions about their
1.5) Alternative Rural Livelihoods and
lives and livelihood. The app livelihoods.
Entrepreneurship
allows users to send and
Reliance promotes alternative livelihood options
receive information in the
to provide protection against uncertainties and
form of text, images, voice
FDWDVWURSKHVWKDWDƪHFWIDUPEDVHGOLYHOLKRRGV
and video.
The Company encourages small farmers to initiate
goat-rearing, poultry, nursery raising and
vermi-composting, among others. Till date, ~9,500
1.7) Information Services
UXUDOIDPLOLHVKDYHEHQHƬWWHGIURPDOWHUQDWLYH
Reliance, through its information services
livelihoods (over 7,000 families during FY 2017-18).
programme, empowers communities by providing
reliable information, tailored to the needs of
1.6) Ecological Security
IDUPHUVƬVKHUIRONOLYHVWRFNRZQHUVHWFLQPRUH
Reliance promotes ecological security in three ways:
than 13,000 villages across 12 states. This is
increasing the supply of cultivable land; enhancing
disseminated both digitally and through community
the green cover through large-scale plantation
level interventions that include information on
activity; and improving soil health.
crop management, livestock care, schemes and
subsidies, healthcare, civic services etc. The mobile-
The Company adopts eco-consistent soil
based advisories have reached an additional 1.2
conservation methods that result