Biggie's Network - Eps 01

 RELIANCE INDUSTRIES

As of 2022, on the Fortune Global List of the world's biggest corporations, a company to be ranked 104 among 500 is Reliance Industries! 

A company that has access to the market in more than 100 countries including exporting 8% of India's total merchandise products, say in short, India's largest exporter is Reliance Industries! 

A conglomerate company, to be the largest publicly traded company in India by market capitalization of US$243 billion as of 2022, is Reliance Industries!

A company that is responsible for almost 5% of the government of India's total revenues from customs and excise duty is Reliance Industries!

I think the above mentioned will be a good introduction for the great company💫 To say something good about someone, you just need to notify their achievements. But in the case of RIL, that requires a book of pages......... I guess in the mid of 2020, a casual talk with my friend who recently bought a jio sim. At the start, a free sim, and now, everywhere you see, it is jio, jio, jio, and jio. He said that most people use it, RIL earns more and Mr. Mukesh earns more money through it. But one thing struck me up! when we talk about Reliance, the first thing in the head is Jio, next may be the trends. I just wanted to know does really Mr. Mukesh earn most of his income from the famous jio?  The answer to it is this blog! and a start to a new series called "Biggie's Network" 

The answer is down here..... Ok!  Why waiting? Let's get into it! 

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The growth of Reliance right from the start is massive! To know well about it, Let's get in through a written flow chart! 

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Launch Of  Vimal, 1966 

Dhirubhai Ambani returns to India in 1957 after a stint with A. Besse and Co., Aden, Yemen.  Ambani starts his own brand which sells polyester material for sarees and dresses known as the 'Vimal' in 1966 after the end of his partnership with Champaklal Damani, as they both started the Reliance Commercial Corporation.

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Reliance Industries, 1973

'Vimal' brand became very popular and to be is a major brand in the years dominating the polyester brand business. And the Reliance Commercial Corporation is now turned into Reliance Industries Limited in 1973.

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Creating history, 1977

This year, RIL created history by introducing the equity cult in India as the company held its IPO which was oversubscribed seven times leading to its growth and high ambitions to be successful.

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Expansions, 1985 - 2000

From 85 to 92, serious expansions were made as the company installed capacity for producing polyester yarn by over 1,45,000 tons per annum! These were the years Reliance concentrated on Petroleum and its products.

In 91-92, the major manufacturing complex was set up and commissioned by the RIL known as the Hazira Petrochemical plant, the third main manufacturing complex. The one at Naroda, and at Patalganga are the first and second respectively.

This Plant now has a total area of 700 acres and produces mainly petrochemical products.

In search of funds, RIL turned its view on the overseas capital market through a global depositary issue of Reliance Petroleum in 93.

96 is the year where RIL entered the telecom industry by having a joint venture with NYNEX, the USA which promoted Reliance Telecom Private Limited India. 

Under the brand name Reliance Gas, it introduced packaged LPG in 98/99

In 2000, Reliance commissions the world's largest grassroots refinery in a record 36 months: the Jamnagar petrochemicals and integrated refinery complex. With the development of the associated green belt, the desert surrounding Jamnagar becomes home to another man-made wonder – Asia’s largest mango orchard!

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2K Millenniums:

2K to 2K2:

In terms of Revenue and financial parameters, RIL and Reliance Petroleum Ltd became the two largest companies in India, and Reliance Petroleum Ltd merged with RIL in 2K1. 

In 2K2, RIL discovered India's largest natural gas discovery at Krishna Godavari Basin, which has an in-place volume of 7 trillion cubic feet that equals 1.2 billion barrels of crude oil.

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From 2K2:

After the death of Dhirubhai Ambani in 2002, The company was demerged among his two sons. Mukesh got Reliance Industries and IPCL.  The Anil Ambani Group includes Reliance Communications, Reliance Infrastructure, Reliance Capital, Reliance Natural Resources, and Reliance Power 2005.

The RIL entered the Retail market under the brand name "RELIANCE FRESH" in 2006.

By purchasing a majority of the stake of Indian Petrochemical Corporations Ltd, IPCL in 2002/2003, it merged the IPCL with RIL after buying it from Govt of India in 2008.

In 2009, the RIL issued a 1:1 bonus share to its shareholders as the public owns the RIL for around 50%

Infotel Broadband Services Ltd is bought by the RIL by purchasing a majority stake of 95% of it through an auction held by the govt of India in 2010. 

By revenue, Reliance Retail became the largest retailer as it served people with affordable rates across the country in 2014. 

After the rename of Infotel Broadband Services Ltd to Reliance Jio Infocomm Ltd in 2013, Jio came into the hands of the public in September 2016. The largest mobile network operator in India and the third largest in the world with 408.79 subscribers.

In 2019, Reliance became the first Indian company to cross the ₹10 Trillion market capitalization.

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BUSINESS OF THE RIL:

Here, it is done to know from which sources RIL earns money! 

Eyes Below👇👇

PETROLEUM REFINING AND MARKETING:

Yeah! The major income of RIL comes from this business. The paramount asset of R&M is the Jamnagar manufacturing division. It is the largest refining hub in the world and too it is built in a record time with competitive capital costs. 

The high production capacity of 1.24 Million barrels per stream day is one of the main boosts for its success in the industry. A massive marine facility there opens the gates for the best product vessels. 

In simple words, Reliance converts crude oil which they obtain from many sources to petroleum products like LPG, Jet turbine fuel, Gasoline, propylene, etc... which are applied as Domestic fuel, Aviation fuel, transport fuel, and feedstock for polypropylene respectively and sell them all over the world!

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EXPLORATION AND PRODUCTION:

Reliance entered the (E&P) business after becoming an unincorporated joint venture with Shell and ONGC.

It now operates and produces oil and gas from KG-D6 (Krishna Godavari Dhirubhai 6) and CBM Blocks (Coal Bed Methane) which are located in Andhra Pradesh and Madhya Pradesh respectively.

The CBM Blocks ( East and West of Sohagpur ) were commenced in 2017 and in a motive to develop it, 300 wells are drilled and 3 gas gathering stations are set up. And the gas which is obtained here is transported by Reliance Gas pipeline limited (RGPL) from Madhya Pradesh to Uttar Pradesh on a natural gas pipeline length of 300 kilometers. 

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 PETROCHEMICALS:

The largest producer of petrochemical products in the country is the RIL. The unique portfolio of B2B businesses of the polymer and its products makes the company profitable in this business.

They produce different ranges of polymers, polyesters, elastomers, fiber intermediaries, aromatics, and composite solutions. 

RIL is best in the sale of these products as they convert them into finished products and sell them under different brands of their own such as RelWood, R|Elan, and RelX.

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TEXTILES:

RIL's success in the textile industry lies in the big name called the 'Vimal' brand and then its manufacturing division in Naroda.

The manufacturing division at Naroda is recognized as one of the largest and most modern textile complexes in the world by the World Bank!

RIL supplies premium finished fabrics to great international brands in over 58 countries due to its quality of products as they use sophisticated infrastructure at Naroda among the ever-developing fashion industry.

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RETAIL:

One of the major pluses of Reliance Retail is that it has looped in many farmers and small producers for growth.

Since its start in 2006, Reliance Retail has gained millions of customers, and a fact to be added is that it serves 1,00,000 customers every hour! 

It placed its name in this business powerfully and has a partnership with international brands such as Armani Exchange, Burberry, Canali, Diesel, Superdry, Hamleys, etc.

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JIO:

The telecom industry giant operates a national LTE (Long Term Evolution) network with coverage across 22 telecom circles.

To create an advanced digital and connectivity ecosystem in India, Jio invested nearly or maybe more than US$50 billion.

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EMPLOYEES' LEARNING AND DEVELOPMENT:

Learning culture in RIL is something that every person strives for. The programs conducted here help many employees inside the industry to boom their skills and motivate them to a top-gear acceleration in their careers. Here are some learning programs of the RIL.

Career Acceleration Programme (CAP):

A program meant for middle-level managers to groom themselves by providing multi-faceted learning, development, and mentorship careers.

Step-Up Programme:

Since its inception in 2015, this program makes the employees ready in terms of skills as it will help them to undertake higher leadership responsibilities.

Spectrum:

The spectrum is a week-long initiative as this initiates participants to learn from how to play the flute to how to beat pollution.

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OUTCOME:

Through this blog, it is clear that constant development in a particular field and the application of new and different ideas in that area can give a huge outcome known as Success. The idea of Expansion of the business is one of the keys to the growth of Reliance into an industrial giant! It is to be noted that the administration team of the RIL played a huge role in making decisions, but something is more than that played an important role in its success and that is the motto of the Reliance,

" GROWTH IS LIFE "

REFERENCE:

https://www.ril.com/

https://en.wikipedia.org/wiki/Reliance_Industries

https://en.wikipedia.org/wiki/Jio