case study of reliance industries ltd

How Reliance Became India's Biggest Company [Reliance Industries Case Study]

Devashish Shrivastava

Reliance Industries Limited (RIL) is an Indian organization headquartered in Mumbai, India. Founded by Dhirubhai Ambani, the present Reliance Industries CEO is his son Mukesh Ambani.

Reliance has its entities across domains like vitality, petrochemicals, materials, common assets, retail, and broadcast communications. Reliance is one of the most prominent businesses in India, the biggest "traded on an open market" organization in India by showcase capitalization, and the biggest organization in India as estimated by income after it outperformed Indian Oil Corporation sometime back. On 18 October 2007, Reliance Industries became the first Indian company to cross $100 billion market capitalization.

The organization is positioned 106th on the Fortune Global 500 rundown of the world's greatest enterprises as of 2019 . It was positioned eighth among the Top 250 Global Energy Companies by Platts in 2016. Reliance continues to be India's biggest exporter, representing 8% of India's all-out exports with an estimation of Rs 147,755 crore and access to business sectors in 108 countries. Reliance is answerable for nearly 5% of the legislature of India's complete income from traditions and extracts obligation. In 2019, Reliance Industries Limited became the first Indian business to cross Rs 9 lakh crore valuation mark.

This post by StartupTalky is a case study on Reliance Industries Limited, which will let you know about Reliance company, Reliance Industries founder, Reliance Industries CEO, Reliance Company details, Reliance services company, History of Reliance Industries, Marketing Strategy of RIL, Growth, Revenue, Profit of Reliance Industries Limited and more.

History And Origin Of Reliance Industries Limited Marketing Strategy Of Reliance Industries Limited Growth And Future Of Reliance IndustriesLimited Revenue And Profit Of Reliance Industries Limited

History And Origin Of Reliance Industries Limited

In 1966, Reliance Textiles Engineers Pvt. Ltd. was consolidated in Maharashtra . It built a manufactured textures plant around the same time at Naroda in Gujarat . On 8 May 1973, it moved towards becoming Reliance Textiles Industries Limited. In 1975, the organization extended its business into materials with "Vimal" forming its image in the later years.

The organization held its initial open offering (IPO) in 1977. Sidhpur Mills, a materials organization, was amalgamated with Reliance Textiles in 1979. In 1980, the organization extended its polyester yarn business by setting up a Polyester Filament Yarn Plant in Patalganga (Maharashtra) with monetary and specialized coordinated efforts from E. I. duPont de Nemours and Co., U.S.

In 1985, the name of the organization was changed from Reliance Textiles Industries Ltd. to Reliance Industries Limited. Between 1985 to 1992, the organization extended its introduced limit with regards to delivering polyester yarn by more than 145,000 tons per year.

In 1993, Reliance went to the capital markets abroad for assets through a worldwide depository issue of Reliance Petroleum. In 1996, it turned into the first private division organization in quite a while to be appraised by worldwide FICO assessment offices. In 1995/96, the organization entered the telecom business through a joint endeavor between NYNEX, USA, and advanced Reliance Telecom Private Limited in India.

In 2001, Reliance Industries Limited and Reliance Petroleum Ltd. turned into India's two biggest organizations as far as all major monetary parameters were considered. In 2001–02, Reliance Petroleum converged with Reliance Industries. In 2002, Reliance reported India's greatest gas revelation (at the Krishna Godavari bowl) in almost three decades. The setup volume of gaseous petrol was more than 7 trillion cubic feet, proportionate to about 1.2 billion barrels of unrefined petroleum.

This was the first, historically speaking, disclosure by an Indian private company. In 2002–03, RIL bought a larger stake in Indian Petrochemicals Corporation Ltd. (IPCL), India's second-biggest petrochemicals organization, from the administration of India. IPCL later converged with RIL in 2008.

In 2005 and 2006, the organization revamped its business by de-merging its interests in control age and appropriation, money-related administrations, and media transmission administrations into four separate entities. In 2006, Reliance entered the retail showcase in India with the dispatch of its retail location position under the brand name 'Reliance Fresh'. By the end of 2008, Reliance retail had near 600 stores crosswise over 57 urban communities in India.

In November 2009, Reliance Industries gave 1:1 extra offers to its investors . In 2010, Reliance entered the broadband administrations showcase with the securing of Infotel Broadband Services Limited; the latter was the main effective bidder for the skillet India fourth-age (4G) range sale held by the legislature of India.

Around the same time, Reliance and Bharat Petroleum declared an association in the oil and gas business. BP took a 30% stake in 23 oil and gas creation sharing agreements that Reliance works in India, including the KG-D6 hinder for $7.2 billion. Reliance likewise shaped a 50:50 joint endeavor with BP for sourcing and showcasing gas in India. In 2017, RIL set up a joint endeavor with Russian Company Sibur for setting up a Butyl elastic plant in Jamnagar (Gujarat) that became operational by 2018. Click here to know about the Subsidiaries that make Reliance successful .

Reliance Industries is currently one of the biggest Indian multinational conglomerates that has diversified into many verticals today. Reliance Industries headquarters is in Mumbai, Maharashtra, of which, Reliance is the largest publicly-traded company by market capitalisation.

Marketing Strategy Of Reliance Industries Limited

The organization was established by Dhirubhai Ambani and Champaklal Damani in the 1960s as Reliance Commercial. The marketing mix of Reliance covers 4Ps (product, price, place, and promotion) and explains Reliance Industries' marketing strategy is as follows:

Reliance Industries Limited is perhaps the greatest aggregate in India. Its business is available in different segments which are concentrated to comprehend Reliance's item system in its showcasing blend. The retail segment incorporates Reliance Fresh, Big Bazaar, Reliance Mart, Reliance Market, Reliance Home Kitchen, Reliance iStore, Reliance Solar, and more.

Reliance Life Sciences is associated with medicines, plants, and biotechnology as it has some expertise in marking, assembling, and promoting Reliance enterprises items in bio-pharmaceuticals. Reliance's coordination comprises transportation, dissemination, coordination, inventory network-related exercises, and telemetry arrangements. Reliance Jio Infocomm Ltd . is a broadband specialist co-op that gives 4G administrations. Relicord is claimed by Reliance Life Sciences and gives blood banking administrations. Reliance Industrial Infrastructure Limited deals with the development and activity of pipelines for moving oil-based commodities . Subsequently, this gives an outline of the contributions of Reliance Industries.

Reliance Industries Limited pursues a distinctive valuing methodology for various segments. Thus, the advertising blend and evaluation technique of Reliance Industries is unique in light of rivalry and market administration in certain parts. It pursues entrance valuing for retail, media transmission, and well-being. At the point when the organization propelled Reliance Jio, it offered free Jio administrations to its clients during the dispatch time frame to build a piece of the pie. Be that as it may, the retail and media transmission parts are at misfortune; however, the organization is giving ideas to clients to build its client base.

The evaluating choices on its oil business rely upon the full-scale condition components and worldwide market situation to a great extent. Reliance Fresh outlets, for example, secure their items directly from the source, eliminating the middlemen in this way. This is advantageous to the shopper as the markdown price and value decrease. Reliance Industries performs exhaustive evaluation before valuing its choices, and this evaluation is a persuasive factor for its ascent in the aggressive market.

Reliance Industries has a solid nearness all over India. Reliance Retail is the biggest retailer that has more than 1500 stores crosswise over India. Here are the investors that makes Reliance Retail, one of the largest retailer in India . Different brands like Reliance Fresh, Reliance Footprint, Reliance Digital, and Reliance Trends have arrived in Tier 1 and Tier 2 urban areas.

Reliance Jio sim administrations are accessible crosswise over significant areas and its network has improved significantly over the last years.

Reliance Industries' dispersion system is so well-arranged that it has a strong grip across the country. Reliance gets crude materials directly from the source; consequently, it has pulled in an enormous number of clients because of the advertisements. Reliance clients can speak with the agents by calling administrations or online channels.

Reliance Industries meets with its shareholders in annual general meetings, which it holds every year. This Annual General Meeting (AGM) was held virtually on July 15, 2020, which became the first virtual AGM after TCS had done it on June 11, 2020. The Ministry of Corporate Affairs (MCA), owing to the current circumstances, has permitted companies to hold their Annual General Meetings through video conferencing or other Audio Visual means to avoid large public gatherings. The meeting with all the shareholders was held on 15th July at 2 PM through a video conferencing platform. This was the 43rd AGM for Reliance Industries Limited. Many big announcements were made during today’s AGM, where the most significant of them all is that Google has announced that it will invest $4.5 billion, which is approximately INR 33,737 crores in Reliance Jio at a stake of 7.7 %. After only 2 days since Google announced that it will invest $10 billion or INR 75,000 crores in the Indian digital market, Reliance has made this announcement. Google has joined Facebook in the big investors' list of Jio, a subsidiary of Reliance Industries Limited. RIL announced in the AGM that Google along with Reliance Jio will work on developing low-cost, entry-level mobile devices with a customized version of Android to serve millions of new customers in India. Mukesh Ambani informed that these mobile phones will come with the support of the future of wireless networks - 5G, and the Google Play services. Sundar Pichai also sent a video message regarding the partnership between Google and Jio Platforms. In the video message, he said, “Getting technology into the hands of more people is a big part of Google’s mission. To organize the world’s information and make it universally accessible and useful is another part of the mission. Through this partnership with Jio Platforms, we see the chance to have an even greater impact than either company could have alone. ”

Everyone should have access to the internet. Proud to partner with @reliancejio to increase access for the hundreds of millions in India who don’t own a smartphone with our 1st investment of $4.5B from the #GoogleForIndia Digitization Fund. https://t.co/1fP8iBZQfm — Sundar Pichai (@sundarpichai) July 15, 2020

He also added, “This partnership is a key part of Google’s next chapter of investments in India. Our investment of $4.5 billion in Jio is the first and biggest through the digitization fund of $10 billion. I am excited that the collaboration will focus on the increase in access for hundreds of millions of Indians who do not currently own a smartphone and the improved mobile experience for all.“ Mukesh Ambani informed the shareholders of RIL that Jio Phone still remains the most affordable 4G supporting phone. He informed that about 100 million Indians have upgraded their feature phones to Jio Phones, but 350 million Indians still own a 2G feature phone and are waiting to upgrade to an affordable and conventional smartphone. He said that Jio aims to develop affordable 5G phones at only a fraction of its cost and to achieve this they need an equally value-engineered smartphone Operating System which will be provided to them by Google under their new partnership.

Mukesh Ambani further said, “Putting a smartphone in the hands of every Indian is our aim. India is standing at the doorsteps of the 5G era. They should not be deprived of the benefits that the digital and the data revolution offers. Jio is determined to make India ‘2G Mukt ’ ”.

Mukesh Ambani also talked about the ‘Digital India’ movement. It is very clear that this partnership of Google with Jio Platforms will definitely help India towards its goal of ‘Digital India’.

Previously, the AGMs have been held by Reliance at many different venues that including auditoriums, football stadiums, and other big grounds. For the last few years, however, Birla Matushri Sabhaghar has been the venue for the meetings. In 2020, however, owing to the Coronavirus (COVID-19) pandemic, companies are compelled to hold these meetings online through video conferencing. In the pandemic-stricken year, like all the previous years, the meeting was held between the shareholders of the company. The annual report of the company was presented to them, which contained the performance and strategies of the company. The new plans and features for the next year were also included. Furthermore, the shareholders got to ask questions and vote on topics that were related to the functioning and betterment of the company. It was during the Annual General Meeting of 2016, that Reliance Jio was commercially launched, which changed the face of the telecom industry and brought about an internet revolution in India. The previous meeting, which was the 42nd AGM, was held in The Birla Matushri Sabhaghar on 12th August 2019. The key points of the meeting were:

• Announcement of the launch of Jio Fibre service.
• Mukesh Ambani said that they have a clear roadmap for becoming a zero net debt company by 31st March 2021. This feat was achieved much earlier than expected and RIL have become a zero net debt company a few days ago after it raised around ₹1.69 lakh crore from global investors such as Facebook.
• The announcement of the launch of the new 4K supported Jio Set Top Box.
• Mukesh Ambani announced to the shareholders that the company's turnover has crossed ₹130,000 crores, making it India's largest retailer and 4 times larger than the 2nd retailer. The company became larger than all other major retailers in the country put together.

Reliance Industries is vigorously working on publicizing and brand advancement. The special procedure in the advertising blend of Reliance Industries is engaged towards 360-degree marketing and forceful brand advancement. Reliance uses the slogan "Development is Life" and has typified its slants of taking individuals together. RIL proprietor Mr. Mukesh Ambani has now owned the Mumbai Indians franchise for a long time, and the purchase of a cricket team has been instrumental in bringing the Reliance brand under the spotlight.

Reliance Industries has roped in Bollywood celebrity Hrithik Roshan for underwriting Reliance Telecom. It declares limits and leads for different special exercises at various Reliance outlets. Because of its solid image mindfulness, Reliance Industries has pulled in clients at its stores. Customer happiness has lead to its expanded client base. Consequently, this covers the promoting blend of Reliance Industries.

Growth And Future Of Reliance Industries Limited

The Indian economy remained the quickest developing significant economy on the planet in 2018. In FY 2018-19, the evaluated Gross Domestic Product development rate was 6.8%, driven by solid private utilization development at 8.1%. The economy kept on seeing an expansion in speculations with gross fixed capital formation development at a six-year high of 10%. Know the Reasons why Reliance Industry's profit increased by 35% in 2021 .

For FY 2018-19, India's oil request developed at about 3% y-o-y with utilization-driven request development in gas (+8.1%), Gasoil (+3.0%), and stream fuel (+9.1%). The interest was driven by powerful development in business vehicle deals and solid air traffic development during the year. On the provincial side, though tractor deals and three-wheeler deals declined from the highs of FY 2017-18, they kept on developing in twofold digits.

Household request development for petrochemical items was solid with both polymer and polyester requests developing at 7.0% y-o-y. Reliance Jio has impelled India to turn into the biggest versatile information devouring economy on the planet. With omnipresent and dependable information administrations, information systems are progressively being utilized for media and stimulation, instruction, showcase data, and exchanges.

The appropriation of advanced exchanges saw exponential development. UPI installments developed from 0.7% of GDP in FY 2017-18 to 4.7% in FY 2018-19 while charge card development found the middle value of a solid 32% y-o-y in FY 2018-19. Individual utilization patterns stayed solid with individual credit at a sound 18% y-o-y. Reliance Retail keeps on profiting by solid interest development crosswise over purchaser staples, optional merchandise, and its capacity to convey an unrivaled client experience and offer.

Refining And Marketing - Weak Light Distillate Cracks Lead Down Margins

During the year, benchmark Brent oil costs were up 22% due to geopolitical pressures, supply interruptions from Venezuela, Iran, and Libya just as OPEC+ creation cuts. Request development was affected by the high siphon level costs in the US and different economies coupled with the slow development in the Chinese economy.

RIL's gross refining edges declined to $9.2/bbl due to feeble light distillate breaks; this was somewhat counter-balanced by flexible center distillate splits. Operational greatness and adaptability helped Reliance keep up a noteworthy $4.3/bbl premium over the territorial benchmark-Singapore Refining Margins. The strong presentation by Reliance's refining business was bolstered by proactive unrefined sourcing, enhancing of item yields, and vigorous hazard in a difficult domain.

Petrochemicals - Resilient Business Model Shining Through

Petrochemicals business conveyed its best execution with an EBITDA commitment of 37,645 crores, up by 45.6% y-o-y. Petrochemical generation was additionally at a record high of 37.7 MMT, up 16% y-o-y.

The solid outcomes were accomplished in a situation of declining usage rates in key item chains with a new supply increase. This exhibits the strength of Reliance's action plan which is dependent on linkages between refining and petrochemical chains, feedstock adaptability, and wide item portfolio. While polymer chain edges were affected by new supplies out of the US Ethane-based wafers, polyester bind gains kept on increasing, driven by solid PTA and PX edges. With the initiation of ethane splitting at Nagothane, the key parts of Reliance's petrochemical speculation cycle are adding to its income.

Oil And Gas Exploration And Production

Reliance has attempted the improvement of High-Pressure High Temperature (HPHT) R-Cluster, Satellite-Cluster, and D55 (MJ) fields. First gas from R-Cluster is normal by mid-2020 followed by Satellite Cluster and MJ fields. The new improvement will use Reliance's collaboration with BP, the existing framework in the Krishna-Godavari Basin, and the downturn in the capital hardware and specialist organization advertise.

Reliance Retail - Growth Across All Key Consumption Basket

Reliance Retail accomplished a record turnover of INR 1,30,566 crore, up 88.7% y-o-y. Turnover development was driven by quick store extension and strong development in same-store-deals. Reliance Retail accomplished its most elevated EBITDA of INR 6,201 crores, up 145% y-o-y. The solid working presentation was driven by a 100 bps improvement in EBITDA to 4.7%. Proceeding with a solid development force, Reliance Retail has accomplished an income CAGR of 55% and EBITDA CAGR of 76% in the last 5 years.

Reliance Retail had 10,415 retail locations in more than 6,600 towns and urban areas covering a zone of 22.0 million sq. ft. as of March 2019. A record footfall of more than 500 million was witnessed during the year, a development of 44% y-o-y. Reliance Retail is working on plans to dispatch a separate new commerce stage which will empower little shippers across India to contend in a computerized age.

Digital Services - Strong Traction In Subscriber Addition And User Engagement

Reliance Jio has over 400 million users to date and is currently India's biggest portable telecom administrator positioned by Adjusted Gross Revenue (AGR). Jio comes out on top if Average Revenue Per User (ARPU) (126.2/month) is considered along with sound normal voice utilization (823 minutes for every client every month) and normal information utilization (10.9 GB per client every month).

Jio is intending to give a worldwide standard wireline framework and administration in India through FTTH and Enterprise contributions. To quicken this rollout, RIL has made vital investments in Hathway Cable, Datacom Limited, and DEN Networks Limited. Jio likewise keeps on executing its arrangements of building an advanced biological system spreading crosswise over media, excitement, trade, training, human services, and horticulture.

Media - Strengthening Offering Ahead Of Evolving Market Trends

Reliance is focused on offering media content for the Indian market as a feature of its computerized administration's bunch. As a component of this dedication, Reliance is putting resources into the production of unique substance significant for the developing patterns in media utilization. Through possessed substance motors and cooperative organizations, Reliance is building a broad media content library that will take into account all portions of the crowd and dovetail with its wide conveyance stages.

Reliance's media organization Network18 proceeded on its development direction and put resources into key regions to fill blank spaces and sustain its position as a leader.

Advanced Platforms

During the year, Reliance started stage-driven association procedures to tap the noteworthy potential for its organizations to improve proficiency and encourage educated and basic leadership procedures.

Land Developments

RIL went into a Memorandum of Understanding (MoU) with the Government of Maharashtra to build a Global Economic Digital and Services Hub with worldwide associations. RIL through its completely claimed backup has gone into an MoU with NMSEZ to a sub-rent place that is known for around 4,000 sections of land alongside related improvement rights. The project will usher in industry revolution 4.0 in Maharashtra and prompt critical industrial development by offering world-class infrastructure and collaboration with the best of worldwide innovation organizations in the areas of Innovation and Learning, Research and Development, Technological Advancement, and Manufacturing and Service capacities.

Indian Film Combine

RIL through its completely claimed backup has procured a dominant stake in the Indian Film Combine, and it is building a Drive-in Theater, Hotel, Retail Mall, and Clubhouse at Bandra Kurla Complex (BKC) in Mumbai.

JIO World Center

Reliance is also building a best-in-class, world-class convention center, performing arts theater, retail mall, office space, and clubhouse at Bandra Kurla Complex (BKC), Mumbai. These undertakings are planned for making BKC the most alluring retail, entertainment, and cultural area of Mumbai city backed by a world-class convention center.

The last two years were portrayed by unstable, large-scale financial conditions. Adding to vulnerability were higher oil costs in the principal half of the year and expanding geopolitical pressures as the year progressed. Reliance accomplished its best execution in this condition with record commitment from its petrochemicals, retail, and advanced administrations units. "Strong working execution for the year underscored the quality of the petrochemicals business that we have fortified throughout the last speculation cycle. Moreover, our purchaser organizations keep on scaling new statures with industry driving measurements. The adaptability of retail and computerized administration business stages has made an exceptional incentive for all partners," a Reliance representative added.

Revenue And Profit Of Reliance Industries Limited

Reliance accomplished solidified income of INR 6,22,809 crores ($90.1 billion), an expansion of 44.6% when contrasted with INR 4,30,731 crores in the earlier year. The increment in income was fundamental because of volume expansion with the adjustment of petrochemicals undertakings and oil cost-related to increment of refining and petrochemical items. The higher volumes in the petrochemicals business are by virtue of the first entire year of tasks of new petrochemical offices. Reliance's solidified income was bolstered by powerful development in retail and computerized administrations business which recorded an expansion of 88.7% and 94.5% in income individually when contrasted with the earlier year. Reliance Industries Limited reported a 26.2% year-on-year (Y-o-Y) increase in its consolidated net profit for FY22 at INR 67,845 cr. Reliance Industries Limited recorded a 47% Y-o-Y growth in its revenue, which became INR 7.92 lakh crore in FY22. The annual revenue of the digital services business of RIL crossed the 1 lakh crore mark for the first time in FY22. Reliance Industries Limited's digital arm also recorded an all-time high EBITDA of INR 40,268 Cr during the year. The retail business of Reliance also recorded annual revenue of around INR 2 lakh crore and a record annual EBITDA of INR 12,423 cr.

The gross revenue of the Reliance JIO platform increased by 17.1% in FY22, which was recorded at INR 95,804 cr. The net profit of the same increased by 23.6%, which became INR 15,487 cr. The EBITDA of the Jio platforms rose by 20.9%, thereby becoming INR 39,112 cr during FY22.

Now, you might also want to take a look at the list of Startups funded by Reliance through the accelerator program.

What is the history of Reliance company?

The organization was established by Dhirubhai Ambani and Champaklal Damani in the 1960s as Reliance Commercial. It was later renamed as Reliance Industries and diversified into financial services, petroleum refining, and the power sector.

Who is the owner of Reliance?

Dhirubhai Ambani founded the Reliance Group, and Mukesh Ambani is the owner of Reliance Industries Limited.

Who is the CEO of Reliance Industries?

Mukesh Ambani is known as the Reliance Industries CEO.

How much of Reliance does Ambani own?

The Ambani family holds approximately 46.32% of the total shares, whereas public shareholders, including FII and corporate bodies, constitute the remaining 53.68%.

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Reliance Industries is India’s largest company in terms of market cap (as of 7 Feb 2024) and is involved in energy, refining, textiles, retail, and telecommunications business. Incorporated by the famous tycoon Mr. Dhirubhai Ambani and managed by Mr. Mukesh D. Ambani. It is the 100th largest company worldwide. As of 7 Feb 2024, Reliance Industries market cap stood at INR19.05 lakh crore.

Here are the quick stats about the Reliance Industry:

Marketing Strategy

Reliance Industries Limited has a wide range of target audiences to serve. So, let us understand how the company serves its offerings using the Marketing Mix Model framework, which covers understanding its product, pricing, advertising, & distribution strategies.

Product Strategy

Reliance Industries, one of India’s largest conglomerates, spans various sectors and accounts for 20% of the nation’s exports. Its portfolio includes Reliance Fresh, Reliance Trends, Reliance Mart, and more.

Pricing Strategy

Reliance Industries follows different pricing strategies for different sectors. This company follows the pricing penetration for retail, telecommunications, and health. When Reliance launched Jio, it offered free services to its customers to enhance its market share.

The telecommunications industry was at a loss, but Jio still decided on providing unprecedented offers to customers to increase their customer base. This led to a complete revolution in the industry as smaller players could not fight such a rough battle and hence had to shut shop. Outlets such as Reliance Fresh provide products directly to the consumer at a discounted price. Reliance Industries focuses on pricing analysis before making a price decision. This strategy has helped them gain unrivalled positions in the industry.

Place & Distribution Strategy

Reliance Industries has a strong presence throughout the nation. Reliance Retail is the largest retailer with more than 1500 stores in the country, and other brands such as Reliance Fresh, Reliance Footprint, and Reliance Digital have reached Tier 1 and Tier 2 cities. While Tier 3 is still majorly yet to experience the wonders of the company.

Promotion & Advertising Strategy

The promotional strategy of the Reliance industry is a mix of all types of theories, including pamphlets, ads, and word of mouth. Reliance also focused on 360 branding and brand promotion. They use the tagline “Growth is Life” and have encapsulated their sentiments about taking people together.

Reliance Industries Limited owner Mukesh Ambani also acquired the rights of the Mumbai Indians for 10 years, bringing the Reliance brand to the limelight. After that, Jio launched in the market with the hashtag #DigitalIndia, which encourages youth to be digitally active. Reliance Industries’ success factor for Jio ensuring the deliverables to their consumers to make them habituated to the service, which impacted their competitors in ways they hadn’t even imagined!

Marketing Campaign

Reliance marketing campaigns keep the brand presence alive in consumers’ minds and build trust, which directly impacts the goodwill of the company. Let’s get into the market campaigns of Reliance:

• Reliance Jio launched a campaign named Jio Dhana Dhan in 2017. This campaign is still ongoing and holds the market with their new updated products and services.
• Reliance Retail enhanced its advertisement volume after the pandemic to retain audience attention.
• For its marketing campaigns, Reliance Digital mainly focuses on showcasing the latest technology products, features, and services available at its stores. One of the recent ad video campaigns was named “Technology se Rishta Jodo”. This ad was a big hit on the internet, with 9m+ views, and it even got many positive comments.

SWOT Analysis

Let’s move into the SWOT analysis of Reliance Industries. It includes a deep study of the company’s strengths, weaknesses, opportunities, and threats.

• Reliance Industries is India’s biggest conglomerate company in terms of revenue and profitability. It is a well-known brand across the globe.
• It is diversified into several businesses like telecom, retail, petroleum, media, and many more. This reduces the effect of seasonality on the company’s performance.
• The company is successful because they have a holistic approach to growth and progress. This has been demonstrated by their decades of complete dominance over people’s hearts.
• Reliance Industries is also heavily involved in CSR activities like sustainable development, education, healthcare, uplifting the financially unfortunate, girl child protection, etc.
• Reliance Industries’ market position is hard to maintain when it comes to high competition in the market. However, this risk is somewhat minimized due to the company’s dynamic and competent management.
• The company also faced controversies and conflicts such as stock manipulation, the Krishna Godavari Basin gas issue, etc. While many of these controversies turned out to be hoaxes, they still hold enough power to materially affect the stock price.

Opportunities

• Reliance Industries also partnered with other brands to expand their business, by using small-scale manufacturers to meet high demand during peak seasons.
• To avoid competition, Reliance Industries should consider buying small and weak players in the industries. This tactic has also proven quite effective in consistently increasing its profits.  
• Tying up with the global oil industry players will help the Reliance industry to boost its oil business.
• In recent times, Reliance Industries’ sales growth rate has declined. This could be taken as nothing more than a hiccup or the beginning of a trend.
• High competition from big conglomerates such as Adani can reduce Reliance’s market share in some sectors.

There is no doubt that, at the moment, Reliance is the largest public company in India, with a strong brand image and brilliant marketing strategies. Reliance Industries is leading in various sectors like petroleum, oil, retail, and gas because of its product quality and efficiency. 

Reliance Industries’ growth motto is “Growth is life”. Their marketing strategies, such as 360 branding and strategic partnerships, have contributed to their success. However, many segments operate in a competitive environment, which could dampen the revenue growth of the company in the long term. In summation, always do a thorough research before investing in the company and consult your financial advisor.

Frequently Asked Questions (FAQs):

1. Who is the owner of Reliance Industries?

Ans. Mr. Mukesh Ambani

2. What type of company is Reliance Industries?

Ans. It is an Indian multinational conglomerate headquartered in Mumbai.

3. What are the products of Reliance Industries?

Ans. Reliance Industries has a long list of products ranging from textiles, petroleum, refining, telecommunications, groceries, and many more.

4. When was the Reliance Industries founded?

Ans. The company was founded in 1958.

5. Which companies come under Reliance Industries?

Ans: Reliance Retail, Jio, Reliance Fresh, Reliance Foundations, Reliance Trends, Reliance Digital, and many more. Disclaimer:  The securities, funds, and strategies mentioned in this blog are purely for informational purposes and are not recommendations.

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Business Korbo

Business Analysis and Case Study

The Reliance Industries Case Study: A Lesson in Success

Reliance Industries is a powerhouse conglomerate that has firmly established itself as one of India’s largest and most influential companies. With a rich history and remarkable evolution, Reliance Industries has diversified into various key business segments, including petrochemicals, refining, oil and gas exploration, retail, telecommunications, and more. Let’s delve into the captivating journey of this extraordinary corporation.

Table of Contents

Reliance industries’ historical footprint and transformation.

Reliance Industries was founded by the visionary entrepreneur, Dhirubhai Ambani, in 1966. Starting as a textile manufacturing company, it swiftly expanded and diversified its operations under Dhirubhai’s astute leadership. Over the years, the company has grown exponentially, continually reinventing itself to adapt to changing market dynamics.

Diversification as a Strategic Imperative

Reliance Industries’ growth and success can be attributed to its strategic decisions and unwavering commitment to diversification. The company has consistently sought new sectors for expansion, leveraging its existing strengths and expertise. This calculated approach has allowed Reliance Industries to navigate market uncertainties effectively.

The company’s foray into various industries was driven by a well-defined rationale. For instance, its entry into the telecommunications sector with Reliance Jio aimed to disrupt the industry by offering affordable pricing, extensive network coverage, and digital services. Such calculated moves have enabled Reliance Industries to stay ahead of its competitors and shape the landscape of multiple sectors.

Vertical Integration: A Pillar of Reliance Industries’ Success

Reliance Industries’ business strategy heavily revolves around vertical integration. By integrating its operations across various stages of the value chain, the company has achieved significant cost efficiencies, reduced dependency on external suppliers, and gained greater control over its product offerings .

This comprehensive approach to vertical integration has enabled Reliance Industries to streamline its operations, improve supply chain management, and enhance overall productivity. By tightly integrating its refining, petrochemicals, retail, and telecommunications businesses, the company has established a strong foundation for sustained growth.

Market Position and Competitive Advantage

Reliance Industries enjoys a dominant market position across several industries due to a combination of factors that contribute to its competitive advantage. Let’s explore some key aspects that set Reliance Industries apart from its competitors:

1. Extensive Infrastructure: Reliance Industries boasts a robust and extensive infrastructure network that spans refining, petrochemicals, retail, and telecommunications. This infrastructure forms the backbone of its operations and enables efficient production, distribution, and delivery of products and services.

2. Technological Capabilities: The company’s relentless focus on technological advancements has propelled its growth and differentiation. Reliance Industries has consistently invested in cutting-edge technologies, allowing it to enhance efficiency, improve customer experience, and foster innovation across its business segments.

3. Strong Distribution Network: Reliance Industries has built an impressive distribution network, spanning both urban and rural areas. This extensive reach enables the company to effectively cater to diverse customer segments, thereby amplifying its market penetration and competitive edge.

Reliance Industries’ ability to leverage its strengths in infrastructure, technology, and distribution has contributed significantly to its market leadership and sustained success.

Financial Performance and Notable Investments

Reliance Industries’ financial performance has been exceptional, reflecting its strong market position and strategic investments. The company has consistently demonstrated robust revenue growth, driven by its diverse business portfolio and market-leading positions across sectors.

In terms of investments, Reliance Industries has made significant strides both domestically and internationally. These investments have been aimed at expanding its presence, exploring new growth opportunities, and diversifying its revenue streams. Notable acquisitions and investments include those in the energy, retail, and technology sectors, strengthening the company’s position in key markets.

Reliance Jio: Transforming India’s Telecom Landscape

One of the most remarkable ventures undertaken by Reliance Industries is Reliance Jio, its telecommunications subsidiary. Reliance Jio’s entry into the Indian telecom market disrupted the industry and revolutionized connectivity for millions. The company adopted a disruptive business model, offering affordable pricing, expansive network coverage, and a host of digital services.

Reliance Jio’s remarkable success not only transformed India’s telecom landscape but also had a profound impact on Reliance Industries as a whole. The subsidiary’s rapid growth and rising market share contributed significantly to the overall financial performance and valuation of Reliance Industries.

Corporate Social Responsibility: Making a Difference

Reliance Industries takes its corporate social responsibility (CSR) seriously and is committed to sustainable development. The company has undertaken numerous initiatives in areas such as education, healthcare, rural development, and environmental sustainability.

Through various philanthropic projects, Reliance Industries has positively impacted the lives of millions of people. It has established educational institutions, healthcare facilities, and community centers, empowering communities and fostering inclusive growth.

Overcoming Challenges and Mitigating Risks

Like any major conglomerate, Reliance Industries faces a range of challenges and risks in its operations. These include regulatory hurdles, market volatility, geopolitical risks, and competition. However, the company has demonstrated resilience and agility in navigating these obstacles.

Reliance Industries’ ability to adapt to changing regulations, proactively manage market risks, and leverage its diversified business portfolio has enabled it to mitigate potential disruptions effectively. By leveraging its strengths and leveraging emerging opportunities, the company has consistently managed to stay ahead of the curve.

Future Outlook and Growth Prospects

Looking ahead, Reliance Industries is poised for continued growth and expansion. The company has outlined ambitious plans for diversification and expansion into emerging sectors. These plans encompass areas such as renewable energy, e-commerce, and digital services, capitalizing on technological advancements and evolving market dynamics.

Reliance Industries’ relentless focus on innovation, strategic investments, and its ability to anticipate and adapt to market trends positions it favorably for future success. As the company continues to evolve, it is well-positioned to seize emerging opportunities and maintain its status as a powerhouse conglomerate.

In conclusion, Reliance Industries has emerged as a leading conglomerate in India, with a rich history of transformation and diversification. Through strategic decision-making, vertical integration, and a focus on competitive advantage, the company has cemented its market leadership across multiple industries. Reliance Industries’ financial performance, notable investments, and telecommunications venture, Reliance Jio, have been instrumental in shaping its success. The company’s commitment to corporate social responsibility, ability to overcome challenges, and forward-looking growth strategies further solidify its position as an exemplar of corporate excellence.

By Business Korbo

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Scaling Up: Strategies for Growing Your Business | businesskorbo

In-Depth Case Study on Marketing Strategy of Reliance – Top 3 Competitor Analysis included

By Aditya Shastri

Cracking the marketing strategy of reliance.

In this case study, we will go through the marketing strategy of Reliance Industries, one of India’s most successful companies which is ranked #96 on the list of Fortune 500 companies.

In 1960, Dhirubhai Ambani formed Reliance Industries Limited in Mumbai, Maharashtra with a dream of making it the largest company in India. Since then, the organisation has grown and diversified itself across different industries and sectors over all these years.

As of 2020, it is India’s largest private sector company and is ranked #96 on the list of Fortune 500 companies.

This case study focuses on Reliance Industries, Jio and its Retail business, along with their marketing mix, competitors analysis, marketing strategies and campaigns undertaken by them.

Let’s now get into the details by learning more about the company.

Reliance Industries Limited (RIL) is one of India’s largest conglomerates, currently headquartered in Mumbai, Maharashtra is run under the guidance of Mukesh Ambani, who is currently the Chairman and Managing Director (MD) of the company.

It has its presence in a variety of sectors such as Oil Refinery, Telecommunications, Textiles, Retail, Media & Entertainment, Financial Services and the Software sector. Given that it has a presence in various sectors, it has about 94 subsidiaries in total.

It is one of India’s most profitable companies and is known for its stints into exploring and expanding into new ventures. Reliance’s business culture can be summed up with its tagline “Growth is Life”.

It is also one of the companies that constantly work on Corporate Social Responsibility (CSR) to empower the lives of millions of people in India. In March 2012, the American Chemistry Council accredited Reliance Industries as a ‘Responsible Care Company’.

Reliance Industries Limited is slated as one of the key driving engines that will help India reach its GDP projections in the years to come.

Now that you know about the company, let’s start understanding the marketing strategy of Reliance Industries by first knowing its target audience.

Marketing Strategy of Reliance Industries: Target Audience of Reliance

Targeting the lower middle class in rural to the high-class citizens living in metros, Reliance Industries doesn’t want to leave any stone unturned when it comes to business. Reliance Industries Limited caters to a wide range of consumers with its diverse range of goods and services ranging from oil-to-telecom, and even more with its retail division serving another dynamic set of customers.

Let us just take an example of Reliance Retail itself, retail goods such as apparels and groceries are a basic necessity so here it attracts all kinds of customers.

In the case of Reliance Jio, The segment that Jio has concentrated upon are people with smartphones looking for high-speed internet and good mobile services.

So Instead of asking ‘Who is the target audience of RIL?’, the question should be ‘Who isn’t, the audience of RIL?’.

So, Reliance Industries Limited has a wide target audience to serve. Let’s dig a little deeper and learn more about the company with a SWOT analysis:

SWOT Analysis: Reliance Industries

Reliance’s Marketing Mix

Marketing Mix is a model that helps us understand a company based on its Product, Price, Place, Promotion. The marketing mix of Reliance will help you understand the 4P’s of the company. 

In Reliance Industries Limited’s case, it has launched a wide range of products, from petrochemicals to retail to healthcare, etc. but we will understand its main businesses in this model that are,

• Reliance O2C
• Reliance Jio
• Reliance Retail

Marketing Mix Of Reliance: Product

1. oil to chemical (o2c).

Talking about the Oil to Chemical business, it includes oil refining, oil marketing and petrochemical products and services. Simplifying things further,

• Its Oil-Refining products include Refined Crude Oil
• Oil-Marketing includes Petroleum Products
• Petrochemicals include Polymers and Polyester Product Chains
• RIL also indulges in producing and distributing natural gas.

2. Reliance Jio

Reliance Jio section offers Digital and Telecommunication services. It offers services Jio 4G Sim Cards, Jio Gigafiber, Jio Setup Box and various other value-added services.

• The Value-Added Services (VAS) include Jio Cloud, Jio Security, Jio Play, Jio Cinema, Jio TV etc.
• Jio also offers affordable 4G mobile phones.

The below picture showcases Reliance Jio’s portfolio,

3. Reliance Retail

Reliance Retail is the largest retailer in India and it has spread its outlets all across India.

• The retail industry comprises Reliance New, Reliance Mart, Reliance Digital, Reliance Home Kitchen, Reliance Home Kitchen, Reliance iStore, and many more
• These outlets offer various products from Groceries to Electronics to Fashion.

The below picture showcases Reliance Retail’s portfolio,

Marketing Mix Of Reliance: Price

The pricing of different products or services varies for different segments. The D2C segment, i.e., retail, telecommunications, and health care has competitive and affordable prices compared to its petrochemicals sector. Let’s understand each one in detail:

• In the O2C business, the pricing is as per the industry standards in most of the cases as it’s a Business to Business (B2B) selling.
• The pricing is largely dependent upon the prices of crude oil and the current global market.
• The Prices are also set or agreed upon based on contractual agreements which are different from the industry pricings.

In the telecommunication sector, Reliance Jio implements a cost-based pricing strategy. Cost-based pricing refers to offering affordable prices so that every individual can use its offerings. Not only this, Reliance’s marketing strategy includes a penetration pricing strategy, meaning that they charge their customers very nominal rates to acquire a large base and market share quickly and gradually increase prices once the goal is achieved.

With the introduction of Reliance Jio, the company created a disruption in the market with its well-thought-out strategy.

• Jio being the telecom sector leader it forces its competitors to charge as per their data tariffs.
• It has various 4G Data Packs which helps the customer buy as per their convenience
• Jio’s Giga fibres and setup box are charged as per the industry charges
• Jio’s 4G Phone is priced as low as Rs. 3,000.
• The retail division charges extremely competitive pricing.
• In the groceries division, the pricing is extremely competitive but also gives out offers and discounts especially on JioMart
• The pricing in the electronic division depends on the products of various companies and RIL has very little price influence on it
• In the Apparel Division, prices are set as on the lines of middle-class demographics and also give out discounts and offers from time to time

Marketing Mix Of Reliance: Place

With multiple subsidiaries and ten associate firms, Reliance Industries Limited is a giant in the retail sector. RIL’s retail outlets are located in prime locations, making it super convenient for consumers to get their desired products.

With outstanding business performance and consumer satisfaction, you won’t find anyone who’s not either aware of or uses RIL’s product or service.

Let’s understand each sector in detail:

• RIL’s O2C is a completely Business to Business (B2B) entity, the place parameter is not necessarily of full importance as most of the orders and consignments are done based on their previous works
• Moreover, Reliance Industries Limited has been in the business for close to 50 years now and being the largest private sector company, everyone in the O2C business knows about its work.
• Reliance Jio has about 1700+ stores all over the country under the name of Jio Digital Stores
• It also has numerous sub-partners who help customers with recharges, new sims and other services.
• It is constantly working on increasing its stores all over India to increase the customer experience
• It also takes online orders of the above services and provides home deliveries of the same
• Reliance Retail operates about 12,201 stores across 7,000+ cities across India
• It also takes online orders through Jio Mart and Ajio apps to provide home delivery of the products and thus making the life of customers easier

Marketing Mix Of Reliance: Promotion

The promotion strategy of RIL is neat and subtle. They use a mix of trendy and emotional touch campaign ideas to deliver their brand message. Since promotion is one of the major expenses for companies, the marketing strategy of reliance industries strategically uses more BTL mediums as compared to ATL activities.

Not just this, the company also engages in various philanthropic activities as a part of CSR.

Let’s understand each segment in detail:

• RIL’s O2C business doesn’t focus much on the promotion aspect as it’s a B2B entity
• However, its work speaks for itself and thus facilitates healthy word of mouth promotion
• Although, RIL focuses a lot on Corporate Social Responsibility (CSR) activities every year
• It also recently announced that the company will bear all the vaccination costs of its employees
• Reliance Jio has been active in promoting itself regularly through various mediums.
• It has a strong social media presence and is present on Facebook, Twitter, Instagram, Linkedin and Youtube
• On the offline part, it uses Newspaper and TV as the primary medium of promotions
• Currently, Deepika Padukone and Ranveer Singh are its brand ambassadors
• Previously, notable figures such as Amitabh Bachhan, Shah Rukh Khan have been a part of this journey
• It also has a tie-up with Hotstar Disney+ which helps them in promoting themselves even better
• Reliance Retail uses an aggressive marketing policy as it’s in a highly competitive sector.
• Reliance Retail’s brands such as Ajio, Fresh, Footprints etc. have their own social media presence and are present on Facebook, Instagram, Twitter, Linkedin, Pinterest and Youtube
• It also uses Newspaper and Television as a primary offline medium of promotion and also has brand ambassadors like Vicky Kaushal, Janvi Kapoor and Keerthy Suresh

Now that you have an overall understanding of Reliance Industries Limited, what it offers to the customers, let’s take a look at what their competitors are up to in the next section.

Competitors Analysis of Reliance

To give your mind an idea of who Reliance’s competitors are, look at the image below.

Yes, Reliance Industries is into so many categories that it is competing with Google with Jio Pay, Dmart with Reliance Retail, Embibe with Byju’s and many other players.

Reliance Industries is now almost in every major sector but narrowing the competition study to Reliance Industries Limited’s current prospects which are Reliance O2C, Reliance Jio and Reliance Retail will help us understand this analysis better

Let’s start with Reliance O2C’s competitive analysis

1. Reliance O2C & Its Competitors

As we know the base of Reliance Industries Limited, on which it stands, is its O2C business as also most of the current revenue comes from here. it faces its competition with the below-mentioned companies.

• Oil and Natural Gas Corporation (ONGC)
• Indian Oil Corporation Limited (IOCL)
• Bharat Petroleum Corporation Limited (BPCL)

So Reliance O2C ranges itself in categories such as Petrochemicals, Oil Refining and Oil exploration and Petroleum products it competes against a group of government entities like ONGC, BPCL and IOCL.

But what sets Reliance O2C apart is that it constantly reinvests its profit in making the process better whereas the Government being a majority holder of the companies like ONGC, BPCL and IOCL, takes out a hefty profit in its account as dividend every year. So this has created a wide gap between Reliance O2C and its competitors.

Reliance O2C kind of has a partial monopoly in the offerings it provides.

2. Reliance Jio & Its Competitors

Reliance Jio is the fast-growing subsidiary of the conglomerate and has gained a good market share since it first launched back in 2016 by offering 4G services free of cost for a year.

• Since that day, it has been unstoppable in adding new customers every year compared to its competitors like Vodafone Idea, Airtel and BSNL.
• But now, things are kind of slowing down for Jio as Airtel has been working hard and has also been successful in adding more customers than Jio since the Covid-19 pandemic
• However, the other competitors that are Vodafone Idea and BSNL have lost more customers than ever due to their poor quality of customer service and experience.

So to conclude, Reliance Jio still has a healthy market share but Airtel has now emerged as an equally competitive candidate in terms of services and the experience offered.

3. Reliance Retail & Its Competitors

Reliance Industries Limited has been focusing on the retail business for years now but in the last two to three years it has increased its focus on this segment. It has acquired a lot of retail companies and startups in the last two to three years and thus making its intentions clear of establishing itself as “The Retail Leader” just like it had done with Jio a few years ago.

The retail arm of Reliance has been working on conquering both the online and offline mode of retail by acquiring the Future Group and launching Jio Mart

Its primary competitors are Dmart, Amazon and Flipkart. However, all its competitors are working along the same lines of increasing their presence both online and offline either through acquisitions or through building things from scratch.

The Future Group which is acquired by Reliance Retail is under the scrutiny of the Supreme Court and the acquisition has been halted temporarily as Amazon has accused Future Group of violating an agreement previously agreed upon.

As it is an industry that is yet to establish thoroughly, only time will tell us whose efforts were appreciated by the customers.

Now with this, you have an idea about how the competition is folding out in the industry in general, let’s now understand the strategy that Reliance Industries Limited is implementing to place itself ahead of its competitors in the next section.

Marketing Strategy of Reliance

Marketing strategy helps companies achieve business objectives. There are several marketing strategies like product/service innovation, marketing investment, customer experience, etc. which have helped a brand grow and place itself better in the market.

Reliance Industries’ marketing strategy focuses on implementing aggressive marketing tactics for its telecom subsidiary, Reliance Jio and retail subsidiary, Reliance Retail as they are Business to Consumer (B2C) businesses.

So starting with Reliance Jio,

1. Marketing Strategies of Reliance Jio

Jio advertises aggressively during prime time events such as IPL in India.

• Their “Jio Dhan Dhana Dhan” campaign is one of the most successful campaigns of all time.
• It was launched during IPL 2017 edition and is still in the running since then.

Jio has launched a new online portal called Jio Mart for home delivery of its products in collaboration with its sister company Reliance Retail.

2. Marketing Strategies of Reliance Retail

Reliance Retail has recently started working aggressively to increase its presence in India. The company has launched Jio Mart that offers home delivery of products and services to its customers.

• Jio Mart does not charge any delivery fee as of now whereas its competitors like Amazon and Flipkart charge a mandatory delivery fee irrespective of the size of the order. This distinguishes Jio Mart from its customers.

It is also currently working in onboarding Local Kirana Stores and Petty shops from all the regions of India and help them with home delivery services for their products and offerings

This is how the marketing strategy of Reliance Industries is placed so that it can be one step ahead of its competitors.

Competitive Advantage in the Marketing Strategy of Reliance Industries:

• With a strong brand name and good positioning in the market, RIL manages to create a sense of credibility and trust among its target users.
• As the company has been awarded various recognitions in the past for its excellent work and great financial holdings, the marketing strategy of the reliance industry’s focal point is CSR activities and doing things that focus on the holistic growth of the company to create a positive image in the eyes of stakeholders and users.
• Reliance’s marketing strategy includes using marketing mediums like TVCs, billboards, etc to increase brand loyalty among its users.
• To dig deep and know more about its user base and attract new consumers, Reliance Industries actively sponsors and promotes sports in India. RIL owns the IPL team Mumbai Indians and holds around 65% stake in the Indian Super League to promote football in the country.

Reliance Marketing Strategy: Marketing Campaigns of Reliance

Marketing campaigns are implemented to create a brand’s presence in the minds of customers and to build trust which directly results in better goodwill of the company and further word of mouth promotions of the company.

1. Reliance Jio

Jio uses Social Media, Television Ads, Print Media and an OTT (Over The Top) platform called Hotstar to advertise their campaigns. Of the famous campaigns, Reliance Jio had launched a long term campaign named Jio Dhan Dhana Dhan back in 2017. The campaign is still running as it’s a long term campaign that is updated year on year based on the new products and service launches of the company.

This campaign primarily focuses on targeting the youths and cricket fans of the country as they run this campaign around the start of the Indian Premier League (IPL) which is India’s premier domestic cricket competition.

Popular celebrities such as Shah Rukh Khan, Amitabh Bachhan, Deepika Padukone and Ranveer Singh are roped in as brand ambassadors for these campaigns. Jio has also partnered with a lot of IPL Teams and that also helps them use cricket players as their brand ambassadors.

Reliance Jio’s recent advertisement featuring Deepika Padukone and Ranveer Singh.

2. Reliance Retail

Reliance Retail has increased its advertising volumes to capture the audience’s attention since the pandemic has begun. It is yet to unveil a proper long term marketing campaign just like its sister company Jio’s “Jio Dhan Dhana Dhan” campaign.

However, it releases topical and event-based advertisements during the festivals to create its presence in the minds of the consumers.

So to expand its retail business with full potential, Reliance Retail should come up with a long term campaign just like its sister company Reliance Jio has done. Maybe, the long term campaign is in the works or it might be halted for a moment temporarily until the Future group deal is cleared which only the time would tell us.

3. Reliance Digital

For its marketing campaigns, Reliance Digital usually focuses on showcasing the latest technology products, features, and services that are available at its stores.

The recent video ad campaign launched by Reliance Digital, named “Technology se Rishta Jodo” (meaning, “Connect your relationship with technology”), aims to educate and empower people who may be hesitant or fearful of using technology. The ad features relatable scenarios of individuals of different ages and backgrounds who are shown overcoming their fear of technology with the help of Reliance Digital’s products and services.

The campaign aims to resonate with a broad audience, as it acknowledges that there are many people who may feel left behind in this rapidly changing digital world. By highlighting Reliance Digital’s role in bridging the gap between people and technology, the campaign encourages viewers to connect with technology and use it to improve their lives.

The campaign has been successful so far, with over 9 million views on YouTube and positive feedback from viewers. Through this campaign, Reliance Digital has effectively communicated its brand values and positioned itself as a trusted partner for people looking to embrace technology.

With this, we have come to the end of this case study. So let’s go through the quick conclusion of the same.

In all its market sectors, Reliance Industries Limited enjoys global leadership in its O2C business. With Jio being its fastest-growing business, it has all the proper marketing campaigns and strategies in place. However, Incase of Reliance Retail, it is yet to work out its marketing campaigns and strategies to ensure it operates on its maximum potential and thrives in offering customers a better experience with its products and services.

Liked our work? Interested in learning more? Do check our website for more. Also, if you’re interested in Digital Marketing, you can check out our Free Digital Marketing Masterclass by Karan Shah.

Let us know your thoughts in the comment section down below. Thank you for reading, and if you liked our then do share the blog in your circle.

Until then, see you next time!

Author's Note: My name is Aditya Shastri and I have written this case study with the help of my students from IIDE's online digital marketing courses in India . Practical assignments, case studies & simulations helped the students from this course present this analysis. Building on this practical approach, we are now introducing a new dimension for our online digital marketing course learners - the Campus Immersion Experience. If you found this case study helpful, please feel free to leave a comment below.

Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs...... [Read full bio]

Thanks 🌻 So much helpful for my case study assignment .

An insightful examination of Reliance’s marketing strategy. It’s impressive to observe how different their approaches are across sectors.

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Fiscal prudence and proactive risk management formed the guide rails for navigating a challenging macro environment. Despite synchronised raising of policy rates by Central Banks and volatility in commodity prices, we contained the rise in finance costs while ensuring the Balance Sheet has strength and liquidity to support growth initiatives.

Alok Agarwal

Srikanth Venkatachar

Soumyo Dutta

Anshuman Thakur

Dinesh Taluja

Saurabh Sancheti

C. S. Borar

Raj Mullick

Sumit Mantri

Global Economy

Global economy grew 3.4% in CY22, slowing from the post-COVID rebound of 6.2% in CY21. Growth was in-line with pre-pandemic average (2015- 19) of 3.4% despite Russia-Ukraine conflict and aggressive rate hikes by central banks. Advanced economies (AEs) saw above-trend growth of 2.7% in CY22, higher than the 2.1% average seen in the five years prior to the pandemic. This was led by strong growth in both US and Euro area which grew at 2.1% % and 3.5% respectively. Inflationary pressures remained near multi-decade highs in AEs, with US inflation averaging 8% Y-o-Y (highest since 1980s), while Euro area inflation also averaged a multi-decade high of 8.4%. Developed market central banks aggressively tightened their monetary policy to address inflation, with US Federal Reserve raising rates by 450bps in CY22, while European Central Bank hiked rates by 250 bps. Emerging Market and Developing Economies (EMDEs) grew 4% in CY22, below the pre-pandemic average of 4.4% due to slowdown in Chinese economy amidst frequent lockdowns. China growth eased to 3%, well below the pre-pandemic average of 6.7% on continued zero-COVID policy and housing downturn. Crude oil prices were elevated during FY 2023, averaging $93/bbl, remaining above $100/bbl in first half of the fiscal year due to Russia-Ukraine conflict, but receding in the second half with Chinese demand slowing and release of strategic petroleum reserves from OECD countries.

Global growth is expected to slow in CY23 to 2.8% as the lagged impact of synchronised global monetary tightening. Growth in advanced economies is expected to decelerate to 1.3%, with US and Euro area growth expected at 1.6% and 0.8% respectively. Effect of rapid rate hikes over last one year as well as emerging credit crunch risks from US regional banks remain key concerns for advanced economies. Emerging markets growth is expected to hold near pre-pandemic average at ~3.9% in CY23, supported by India and China. China growth is expected to rebound to 5.2% in CY23 from 3% on reopening of the economy after three years and continued monetary policy support. India is expected to remain amongst the fastest growing economies as per IMF.

Indian Economy

The Indian economy remained relatively stable amidst the global imbalances caused by the RussiaUkraine conflict. The economy grew at 7.2% in FY 2022-23, down from 9.1% in FY 2021-22, as per the National Statistical Office data release.

The spike in global commodity prices pushed up prices in India too, with retail inflation peaking at 7.79% in April 2022, above the medium-term target band of 2%-6% of the RBI. The RBI took stringent measures to combat the rising prices, hiking repo rate six times in FY 2022-23, from 4% at the beginning of May 2022 to 6.5% at the close of the financial year. Private consumption, however, witnessed a strong surge fuelling a boost in production across sectors. Domestic sector services activity remained resilient with average Services PMI higher at 57.5 in FY23 vs 52.2 in FY22. Manufacturing too remained robust with average manufacturing PMI higher at 55.8 in FY23 vs 54.1 in FY22. Credit growth gained traction with year-on-year growth of 15% (as of March ’23) while deposit growth lagged with year-on-year growth of 9.6%, leading to a rise in incremental credit-deposit ratio.

India overtook Japan and Germany to become the third largest automobile market in terms sales in December 2022. India also emerged as the second largest mobile phone manufacturer globally. India’s digital adoption continues in an accelerated way. UPI payments continued their impressive run in FY 2022-23, with transaction volumes almost doubling from ~45 billion in FY 2021-22 to ~84 billion in FY 2022-23, while transaction value also surged to ~139 lakh crore in FY 2022-23 from ~84 lakh crore in FY 2021-22. The pan- India monthly mobile data traffic stood at 14.4 Exabyte in 2022 with 3.2x growth over last five years. Rapid digitisation supported by solid infrastructure is driving efficiency and productivity in the economy. India’s external sector continued to gain strength as FY23 merchandise exports grew to $447 billion, growing at 6% Y-o-Y and services exports grew to $322 billion, growing at 27% Y-o-Y.

Global supply chain improvements and falling commodity prices coupled with softening domestic demand are likely to moderate inflation to 5.1% in the current financial year. With a growing working age population, a large domestic market, boost to infrastructure development and advent of digitisation, India is well positioned to be the fastest growing large economy in the world. India GDP is expected to grow at 6.5% in FY24.

Performance Overview

Reliance delivered strong annual performance amid macro headwinds caused by geo-political conflicts, disruptions in commodity trade flows and economic downturn. Resilience of Reliance’s strategic and operational capabilities reflected in its ability to adapt to dynamic business environments and navigate through complex business situations. Growth was supported by agile and efficient operations by all business teams with sound strategic planning and implementation.

Earnings growth was led by rebound in O2C business, backed by healthy domestic demand, strong fuel margins and high utilisation rates. Oil and gas segment performance reflected volume growth in KG D6 gas production, higher gas price realisations and margin improvements. Operational efficiencies continued with 100% uptime.

Consumer business segments continued to strengthen their positions in the market with aggressive expansion of footprint and strategically prudent acquisitions. Jio successfully launched True 5G services across over 2,300 towns and cities, thereby continuing to offer enhanced digital experiences to its subscribers. The retail business broadened its product and distribution base further, making available a vast assortment of products and brands to its consumers at affordable prices.

Reliance Jio Financial Services is demerged. The new entity is expected to unlock value for shareholders and give them an opportunity to be a part of a new growth platform.

The New Energy business is making rapid progress with fast paced implementation of the giga factories at Jamnagar. With strategic partnerships and significant investments in newer technologies, Reliance is well on track for building the New Energy business as a strong sustainable growth engine and achieving the target of becoming Net Carbon Zero.

` 0 , 0 CRORE CONSOLIDATED REVENUE IN FY 2022-23 ↗ 23.6% Y-O-Y

Reliance attained a consolidated revenue of ` 9,74,864 crore ($118.6 billion), up 23.6%, as compared to ` 7,88,743 crore in the previous year. All operating segments saw growth in revenue. O2C revenues increased on account of improved price realisation for transportation fuels with 19% increase in average Brent crude prices. Sharp increase in gas price realisation coupled with increase in the gas production contributed to growth in Oil & Gas segment revenues. Retail Segment revenue was driven by strong broad-based growth across all consumption baskets and large-scale store expansion. Digital Services revenue was led by full impact of tariff hike, ramp-up of wireline services and continued subscriber addition for mobility services.

Consolidated EBITDA for the year increased by 24.4% to ` 1,53,920 crore ($18.7 billion) as compared to ` 1,23,684 crore in FY 2021-22. Retail business led EBITDA growth with 44.7% increase mainly due to benefits of scale and operating leverage leading to margin expansion. Growth in Digital Services segment EBITDA was 24.9% on account of higher revenue and steady improvement in margins. O2C EBITDA increased by 17.7% with sharp improvement in transportation fuel cracks and robust demand which was partially offset by introduction of SAED on export of transportation fuel and lower downstream product delta. Oil & Gas segment EBITDA increased over 2.5x with higher gas price realisation. Cash Profit increased by 15.4% to ` 1,25,951 crore as compared to ` 1,09,099 crore in the previous year. Profit After Tax was higher by 11.3% at ` 73,670 crore.

Reliance’s Gross Debt was at ` 3,13,966 crore ($38.2 billion). This includes Standalone gross debt of ` 2,15,823 crore and balance in key subsidiaries, including Reliance Retail ( ` 46,644 crore), Reliance Jio ( ` 36,801 crore), Independent Media Trust Group ( ` 5,815 crore) and Reliance Sibur Elastomers ( ` 2,144 crore).

RIL’s Standalone revenue for FY 2022-23 was ` 5,65,347 crore ($68.8 billion), an increase of 21.6% as compared to ` 4,65,045 crore in the previous year. Revenue growth was led by increase in crude and product prices. Profit After Tax was at ` 43,017 crore ($5.2 billion) an increase of 13.4% against ` 37,937 crore in the previous year. Basic EPS on Standalone basis for the year was ` 63.6 as against ` 57.5 in the previous year.

Movement in Key Financial Ratios

• The debt service coverage ratio improved to 2.03 in FY 2022-23 as against 1.19 in the previous year due to improved earnings and lower principal repayments during the year.
• The trade receivable turnover ratio declined to 36.13 in FY 2022-23 as against 50.13 in previous year due to improving terms of trade with tightening of global fuel markets and increased economic activity.
• The return on capital employed improved to 20.6 in FY 2022-23 as against 14.5% in previous year due to higher operating profit led by strong growth in earnings from oil & gas business and improved profitability of the O2C business.
• The return on net worth improved to 10.9% in FY 2022-23 as against 10.1% in previous year due to increase in net profit during the year with positive contribution from all key operating segments.

` 0 CRORE PROFIT AFTER TAX IN FY 2022-23 ↗ 13.4% Y-O-Y

Segment Review

Performance Update

• EBITDA margin was at 7.8%, up 70 bps Y-o-Y driven by favourable mix, sourcing benefits and operating efficiencies.
• Digital Commerce and New Commerce businesses contributed to 18% of revenue in FY 2022-23.
• The registered customer base grew to 249 million, a growth of 29% Y-o-Y.
• The business crossed the milestone of 1 billion transactions in FY 2022-23, up 42% Y-o-Y. Stores recorded footfalls of over 780 million, which were up 50% Y-o-Y.

Strategic Update

With focus on store network expansion, the business grew its store footprint across consumption baskets. This year the business opened over 3,300 new stores, taking total count to 18,040 stores with a total area of 65.6 million sq ft. The business added 25 million sq ft store area during the year, representing more than 50% growth of retail space Y-o-Y. Investments in boosting supply chain infrastructure remained a priority to deepen warehousing and fulfilment capabilities, with addition of 12.6 million sq ft of warehouse space during the year.

The retail segment continued to innovate, launch and scale up new retail formats to serve diverse customer segments. New format launches during the year included Smart Bazaar, Azorte, Centro, Fashion Factory and Portico.

The business also added new growth initiatives to its portfolio by foraying into FMCG and Beauty businesses. The FMCG business launched several products during the year including ‘Independence’ brand and the iconic beverage brand, ‘Campa’. The beauty business launched digital commerce platform ‘Tira’ and opened its flagship store in Mumbai. These businesses will be ramped up progressively in the coming period.

Digital Services

• Jio’s industry leading net subscriber addition was 29.2 million for FY 2022-23 with monthly churn remaining stable at ~2%
• ARPU increased 6.7% Y-o-Y in quarter ending March 2023 due to impact of tariff hike, better subscriber mix and data add-ons.
• Jio network carried 113.3 Exabyte of data on its network (+24 % Y-o-Y). Jio continues to carry >55% of data traffic in the country.
• Healthy subscriber additions across mobility and homes, improvement in ARPU and scale-up of digital services drives JPL consolidated revenue growth.

Jio extended the coverage of its True5G services to over 2,300 cities/ towns across India. Jio users in these cities are invited to experience unlimited data at up to 1 Gbps+ speeds, under the Jio Welcome offer. ~60K 5G sites across 700MHz and 3500MHz bands are already deployed and the pan-India rollout is on track to be completed by December 2023.

Introduction of the new home broadband “Back-up Plan” will help expand the broadband market. Jio also introduced a new set of postpaid family plans – ‘Jio Plus’ bringing the benefits of high-quality True 5G connectivity to the masses.

JPL powered the technology behind streaming of FIFA World Cup, the first ever Women’s Premier League and the 16th Indian Premier League garnering unprecedented viewership.

Media Business

• The business navigated through a difficult revenue environment and economic headwinds to deliver highest-ever operating revenue.
• Advertising revenue was impacted by the economic slowdown and high inflation which constrained advertising budgets of companies across sectors. Withdrawal of Colors Rishtey from DD FreeDish, the FreeTo-Air platform, also affected the advertising revenue.
• The business made investments in growth verticals – Sports and Digital, which also had an impact on profitability.
• Sports segment made a grand debut with IPL, FIFA World Cup and Women’s Premier League, establishing itself as the leading destination for premium sports content.
• Colors consolidated its #2 position in the Hindi GEC space, TV News network’s channels rose to leadership status in key markets and Digital News portfolio continued to be India’s #2 online news publisher, and Movie production segment delivered a strong slate of movies.

Viacom18 entered into a strategic partnership with Reliance, Bodhi Tree Systems and Paramount Global, to lead innovation and disruption in the Indian M&E space and create one of the largest TV and digital streaming companies in the country.

Oil to Chemicals (O2C)

• The EBITDA was highest ever for the segment despite the impact of SAED of ` 6,648 crore.
• Revenue was driven by improved transportation fuel cracks, feedstock sourcing flexibility, ethane cracking advantages and better average fuel prices globally.
• Crude oil prices rose sharply with Brent price averaging $96.2/bbl
• FY 2022-23 witnessed a rise in demand for transportation fuels with increase in travel and normalisation of economic activities.
• Domestic demand for oil, polymers and polyesters showed a strong growth. Lower product realisation led to decline in polymer deltas by 15% - 32% on Y-o-Y basis. Domestic downstream chemicals demand was strong with highest ever domestic sales for polymers even though global demand remained soft.
• SAED levy on transportation fuels impacted earnings adversely.

During the year, Reliance Polyester Limited, the company’s wholly owned subsidiary acquired the polyester business segment of Shubhalakshami Polyester Limited and Shubhlaxmi Polytex Limited. Together along with ACRE Ltd., Reliance completed the acquisition of Sintex Industries Ltd.

Oil and Gas E&P

• EBITDA grew 2.5x driven by increased production and improved realisation
• Gas price realisation improved to $10.6/MMBTU from $4.92/ MMBTU last year in KG D6 block. The CBM block saw increase in price realisations to $21.63/MMBTU from $6.82/MMBTU in FY 2021-22. Production (RIL share) was 175.3 BCFe for FY 2022-23.
• Domestic production in FY 2022-23 was at 10-year high with increased production volumes in the KG D6 block.
• This year witnessed 100% uptime in operations and zero safety incident.

Production from the MJ field commenced in 1Q FY 2023-24. The KG D6 gas will account for approximately 30% of India’s domestic gas production at its peak capacity of ~30 MMSCMD and will cater to key sectors like CGD, power, fertiliser, refiners, steel, glass, and ceramics among others.

Liquidity and Capital Resources

Persistent Inflationary pressures and globally rising interest rate environment were the key underlying themes of financial markets in FY 2022-23. The year was also marked by a sharp depreciation of the Rupee against the Dollar. RIL successfully managed its Balance Sheet risks through the challenging environment while ensuring sufficient liquidity for business operations.

External Environment

A persistent broadening of inflation pressures triggered a rapid and synchronised tightening of global monetary conditions, alongside strong appreciation of the US dollar against most other currencies.

The rising price pressures were expected to produce a squeeze on real incomes as well as undermine macroeconomic stability. This led most Central Banks around the world to rapidly lift nominal policy rates to much above the pre-pandemic levels, both in advanced and emerging market economies. The US Federal Reserve raised policy rates aggressively by 500 bps in past fifteen months, the fastest hiking cycle since 1980. In Europe, the war-related intensification of inflationary pressures led European Central Bank to finally exit its negative interest rate regime and ultra-easy monetary policy after eight years and raise interest rates by 325 bps in past nine months. The real activity and financial markets responded to the removal of monetary accommodation with slowing momentum in housing market, credit conditions, labour markets and PMI surveys.

In response to progressive rate hikes by the Central Banks, the global headline inflation started declining in the second half of the year. However, the decline in inflation print reflects the sharp reversal in energy and food prices and the core inflation continues to remain sticky. Consequently, to anchor inflation expectations major central banks have signalled the need for staying course on a restrictive monetary policy stance.

On the other side, the accelerated policy normalisation has brought forth vulnerabilities in the US regional banks. The risk of contagion across the broader financial sector is inducing volatility in the financial markets and driving market-implied policy path on downside.

RBI too raised rates by a cumulative 250 bps in the year, in-line with global monetary tightening as inflation remained persistently above RBI’s 6% upper-target band. As the forward outlook on inflation moderated towards 5-5.5% in the second half of the year, RBI guided for a conditional pause keeping the policy stance focused on withdrawal of accommodation. A prolonged pause from RBI is expected to progressively align headline inflation to its target while also supporting growth.

On the external front, a noticeable improvement in India’s current account deficit (CAD) on back of moderation in oil prices and structural strength in India’s services exports, is expected to keep CAD benign and below 2% of GDP. The outlook on capital inflows also looks promising as emerging markets growth is expected to outperform developed markets. As the lagged effect of cumulative hikes sets-in, developed markets is expected to witness slowdown. In contrast, India is expected to emerge as the fastest growing economy in FY 2023-24 with 6.5%, while global growth are expected only at 2.8%. Overall, India’s growth differential and comfortable CAD dynamics are expected to keep the Indian Rupee well supported in the near to medium-term.

Despite the unprecedented macro-economic uncertainty, the Company was successfully able to navigate abrupt adjustments in the market, maintain adequate liquidity on its balance sheet, manage its financial market risks and deliver a consistent return on its investment portfolio by staying invested in low risk, liquid instruments. Reliance Treasury continued to stay focused on providing liquidity to the businesses at the optimal risk adjusted cost by accessing financing from different markets and using appropriate instruments and currencies.

Treasury Management and Financial Strategy

Reliance’s medium term Financial Strategy is guided by a Financial Planning process which is integrated with individual business plans. RIL Treasury’s key objectives include raising Long Term financing for capex and Short-Term liabilities for financing working capital at the most efficient rates and also design suitable hedging strategies to manage currency and interest rate risks on both the asset and liability side of company’s Balance Sheet.

Fund Raising

During FY 2022-23, the Company and its subsidiary Reliance Jio Infocomm Limited (RJIL) tied up $3 billion equivalent through syndicated term loan facilities. The transaction was heavily oversubscribed in the primary syndication market by global lenders across geographies. The proceeds from the loans were used to meet the capital expenditure requirements of both the companies. This was a landmark transaction on various counts:

• The aggregate liquidity raised from primary syndication was $3 billion equivalent, one of the largest liquidity raised through syndication in Asia Pacific (APAC).
• 55 international lenders across all major continents participated in the transaction making it the largest bank group in a corporate loan out of APAC since 2000.
• This is the largest syndicated loan from India

RJIL tied up its first ever Swedish Export Credit Agency (EKN) supported facilities of $2.2 billion equivalent making it the largest cover ever provided by EKN for a deal to a private corporate globally.

The proceeds of the facilities shall be utilised to finance the equipment and services in relation to RJIL’s pan-India 5G roll out.

Liquidity Management

The combination of strong cash flows from operations, access to unutilised borrowing facilities, and robust cash and cash equivalents position forms the basis of Reliance Industries’ liquidity base. This strong liquidity position provides the company with financial flexibility, enabling it to navigate various market conditions, pursue growth opportunities, and meet its financial obligations effectively.

The operating cycle is closely monitored to optimise the working capital structure and facilitate short term financing. Our proactive approach to reviewing trade financing solutions and optimising the operating cycle demonstrates our commitment to robust working capital management and effective business financing. RIL effectively uses Commercial Paper, Working Capital Demand Loan and other solutions to finance its payables and receivables and reduce the cost of funds.

RIL manages its cash and cash equivalents through an investment portfolio, diversified across instruments and counterparties. The investments are in highly liquid instruments such as government bonds, AAA papers, Bank deposits and Debt Mutual Funds. The investment portfolio is monitored under a strong risk management framework assuring adherence to liquidity objectives. The portfolio is calibrated continually to straddle between the objectives of capital protection, steady returns, and provision of adequate liquidity at short notice.

Credit Rating

RILs focussed approach on financial discipline and risk management is reflected in its strong credit rating as it continues to be rated two notches above sovereign by S&P and one notch above sovereign by Moody’s.

Awards and Accolades

In FY 2022-23, RIL won the much-coveted IFR Asia Award for ‘Investment Grade Bond’ for the $4 billion multi-tranche Senior Unsecured Notes issued in January 2022.

Way Forward

RIL will continue to draw strength from its robust balance sheet and operating cash flows to create value for its shareholders in a sustainable manner by investing in new business opportunities. RIL will continue to monitor financial markets for the right opportunity to raise capital to support growth plans of existing and new businesses while maintaining a keen focus on financial discipline and risk management.

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Reliance industries – A case study

Reliance Industries Limited (RIL) is an Indian establishment in Mumbai, Maharashtra, India. Reliance holds businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications. Reliance is one of the most profitable companies in India.

Overview The company was co-founded by Dhirubhai Ambani and Champaklal Damani in 1960’s as Reliance Commercial Corporation. In 1965, the alliance ended and Dhirubhai proceeded with the polyester business of the firm. In 1966, Reliance Textiles Engineers Pvt. Ltd. was incorporated in. It established the synthetic fabrics mill in the same year at Naroda in Gujarat. On 8 May 1973, it became Reliance Industries Limited.

The organization is ranked 106th on the Fortune Global 500 rundown of the world’s greatest enterprises as of 2019. It is positioned eighth among the Top 250 Global Energy Companies by Platts 2016. Reliance maintains on being India’s biggest exporter, representing 8% of India’s all-out product sends out with an estimated ion of Rs. 147,755 crore and passage to business sectors in 108 countries. Reliance is liable for nearly 5% of the legislature of India’s complete incomes from rituals and extracts obligation. It is moreover the most noteworthy personal citizen in the private area in India. In 2019, Reliance Industries Limited becomes the primary Indian firm to cross Rs 9 lakh crore showcase valuation marks.

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

Business Model of Reliance Industry

Refining Business Reliance’s heart business is refining business. It buys crude oil from overseas markets and then refines them in their refineries and develops petroleum products. After the Refining, Reliance retails these petroleum products in the Indian and overseas markets. Reliance generally exports its petroleum products to other countries. Most of the wealth of the Reliance Industry comes from Refined Petroleum products.

Petrochemicals Reliance’s succeeding major business is Petrochemicals and the second major source of its revenue is petrochemical. Reliance manufactures and markets petrochemical products like Olefins and Aromatics which is used to make detergent and plastic.

Reliance Retail Reliance Retail is another core business of the reliance industry. Reliance Retail is the first Indian retail company whose revenue is more than 100000 crore. Reliance occupies a retail chain under the label name of Reliance fresh where they sell Reliance and other company’s products.

Other sources

Another source where the revenue of reliance industries come from. Reliance Industry owns Network 18 Group which is a media company. Reliance also owns Mumbai Indian which is an IPL Franchises Team. So there are a lot of sources that contribute to the revenue of Reliance Industry.

SWOT Analysis of Reliance Industry

• Reliance Industries is the largest company in India by revenue and market capitalization.

• Reliance Industry has a strong brand name in the market. • Reliance Industry had a strong financial position. • The company operates in many industries such as textile, petrochemical, telecommunication and retail. • Reliance Company has a strong return on capital expenditure. • Reliance Industries had a strong market position many of its businesses are leading in their category. • Reliance owns Jamnagar Refinery which is the world’s largest private oil refining company. • Reliance Industry owns retail businesses which had a strong distribution network. • Reliance Industries owns Reliance Jio which is India’s biggest telecommunication company.

Weakness 1. Reliance Industry is subjected due to various legal procedures. Sometimes it had to pay a hefty penalty to the government. 2. Reliance had invested very less in Research & Development. 3. Reliance Industries had weak financial ratios.

Opportunities 1. Reliance can open more plants 2. Reliance Industry can invest in the international oil and petrol destinations 3. Reliance Jio can launch new offer to its customers 4. Reliance Industry can expand its business in more emerging industries.

Threats 1. Intense Competition in retail and telecommunication. 2. Government Regulation and strict guidelines can interpret operations Revenue and Profit Of Reliance Industries Limited.

Profit Volume development in petrochemicals and quickly expanding commitment from customer organizations prompted noteworthy ascent in working benefit for the year. Working Profit before other salary and deterioration expanded by 30.8% on a y-o-y premise to र 83,918 crore (US$12.1 billion) when contrasted with र 64,176 crore in the earlier year. Benefit after assessment before remarkable thing was higher by 13.1% at र 39,588 crore (US$5.7 billion) as against र 34,988 crore in the earlier year. Moderately lower development in benefit after duty is primarily because of higher intrigue charges and devaluation because of adjustment of activities.

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CSR: A Study of Reliance Industries Ltd

Rakshit shrivastava.

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Student at Lloyd Law College, India

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Corporate Social Responsibility is not a new concept and many countries are optimizing this process to increase the pace of development in the country. The use of CSR as source of development has made many countries to resolve such problems which were acting as barricades against the country’s development. India is one such country which not only adheres with this CSR phenomenon, but also made it mandatory for specified companies of the country. This article mainly represents how CSR has evolved and developed from centuries and how it helped Reliance Industries Limited, to contribute towards development of India through a case study. Reliance is one of richest company in the world which is spending their funds over CSR activities from years. The research in this article will take the readers to a journey of RIL’s CSR contribution and analyze the strategies of Reliance to achieve a big name in the world of CSR. This document will highlight the company’s commitment towards socio-economic matters in the country and how it has responded to the Corporate Social Responsibility.

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Home » Blog » [Opinion] Understanding the Tax Implications of Corporate Demergers – Case Study of Reliance Industries Ltd.

[Opinion] Understanding the Tax Implications of Corporate Demergers – Case Study of Reliance Industries Ltd.

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Business reorganization has become a buzzword with rapid economic advancement across the globe. The geographical barriers have become history because of the advancement of technology which has compressed the world and distance. Presently, the practice of discharging the assigned duties from remote is widely accepted and has become a routine. The mobility of competent persons from one place to another physically has been dispensed with, at least in the lower and middle level management. Organisations have to evolve and survive in the changing scenario and only such organizations who have adopted and embraced changes could survive and succeed. It is in this background, we come across instances of amalgamations, mergers and demergers.

One of the prominent methods of achieving better operational efficiency and increased profitability is by demerger which was resorted to recently by the corporate conglomerate Reliance Industries Ltd when it decided to hive off Reliance Strategic Investment Ltd (RSIL). Post hived off RSIL would be rechristened as Jio Financial Services Ltd (JFSL). However, the expression RSIL is used in this write up.

In consideration for hiving off RSIL by RIL, each of the shareholder of RIL would become eligible for 1 equity share of RSIL for each of the shares held in RIL. The shareholders of RIL need not shell out any money by way of payment for getting the shares of RSIL. It is in this background, the income-tax implication of such demerger and also the future tax liability of the shareholders who hold shares of both RIL and RSIL are discussed in this write up.

Legal provisions

(i) Meaning of demerger: Section 2(19AA) defines the term ‘demerger’ which is the exclusive domain applicable for corporate entities only and which could not be used by other forms of organisations. However, just to deflect, in the case of ‘slump sale’ defined in section 2(42C) it is applicable to all forms of organisations, be it individual, firm, LLP or company. Prima facie, demerger does not attract income-tax and whereas ‘slump sale’ is chargeable to tax under the head ‘capital gains’

(ii) Compliance requirement: The fundamental requirement for such tax neutral demerger is that such demerger must be in accordance with the scheme of arrangement contained under the Companies Act, 2013 (contained in sections 230 to 232 ). The resulting company must be eligible for taking over all the assets and liabilities of the undertaking transferred by the demerged company held immediately before demerger and which become the property of the resulting company by virtue of demerger. Similarly, all the liabilities relatable to the undertaking transferred by the demerged company must become liabilities of the resulting company by virtue of demerger. Further three-fourth of the shareholders of the demerged company must become shareholders of the resulting company and other attendant conditions of demerger contained in section 2(19AA) are to be satisfied and those conditions have not been discussed in this write up since they are procedural in nature.

(iii) Meaning of the term ‘transfer’: It is defined in section 2(47) inclusively and covers sale, exchange, relinquishment of the asset or extinguishment of any rights therein or compulsory acquisition thereof under any law. When shareholder of a demerged company receives shares from the resulting company there is decrease in asset (shown as investment) of the demerged company as the shares of resulting company are allotted to the shareholders. The demerged company also knocks off asset on demerger in return for allotment of shares from the resulting company to its shareholders.

(iv) For transferor – transaction not to be regarded as ‘transfer’: Section 47(vib) says any transfer in a demerger, of a capital asset by the demerged company to the resulting company is not to be regarded as ‘transfer’ if the resulting company is an Indian company.

(v) For shareholders of demerged company – transaction not to be regarded as ‘transfer’: As per section 47(vid) any transfer or issue of shares by the resulting company, in a scheme of demerger to the shareholders of the demerged company is not to be regarded as ‘transfer’ if the transfer is made in consideration of demerger of the undertaking.

(vi) Period of holding: Section 2(42A) defines the term ‘short-term capital asset’. When shares in an Indian company become the property of the assessee in consideration of demerger, the period for which the shares were held in the demerged company would also be included. If the shares in the demerged company were held for more than 12 months then any share issued as a result of demerger by the resulting company would automatically become long-term capital asset on the date of allotment in the hands of the shareholders of the demerged company.

(vii) Cost of acquisition – for resulting company: As per section 49 where the capital asset became the property of the assessee as per section 47(vib) or section 47(vid) the cost of acquisition of the asset shall be deemed to be the cost for which the previous owner of the property acquired it. Thus, when a demerged company transfers assets to a resulting company in a scheme of demerger, the cost of acquisition of the capital asset for the resulting company would be the same as that applicable for the demerged company. One may take note of the proviso to section 2(19AA) (iii) inserted by the Finance (No.2) Act,2019 w.e.f.1st April, 2020 which says that the demerger would be tax neutral even if the resulting company records the value of the property and liabilities of the undertaking at a value different from the value appearing in the books of account of the demerged company, immediately before demerger, provided such variation is in compliance with the Indian Accounting Standards specified in Annexure to the Companies (Indian Accounting Standard) Rules, 2015. Thus, if the values vary in the books of resulting company but those are permissible as per Indian Accounting Standard Rules, 2015 the transaction of demerger would continue to be tax neutral.

(viii) Cost of acquisition for shareholders of demerged and resulting company: When a shareholder of a demerged company receives shares of resulting company the cost of acquisition of shares of the resulting company shall be computed with reference to the cost of acquisition of shares held in demerged company. As per section 49(2C) the cost of acquisition of the shares in the resulting company shall be the amount which bears to the cost of acquisition of shares held by the assessee in the demerged company the same proportion as the net book value of the assets transferred in a demerger bears to the net worth of the demerged company immediately before demerger.

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Biden says killing of Hamas leader Haniyeh not helpful for ceasefire talks

U.S. President Joe Biden said on Thursday the killing of Palestinian Islamist group Hamas' leader Ismail Haniyeh was not helpful for reaching a ceasefire in Israel's war in Gaza.