Sunday, October 19, 2008

Reliance Industries

Reliance Industries Limited (NSE: RELIANCE) is India's largest private sector conglomerate (and second largest overall) with an annual turnover of US$ 35.9 billion and profit of US$ 4.85 billion for the fiscal year ending in March 2008 making it one of India's private sector Fortune Global 500 companies, being ranked at 206th position (2008). [1] It was founded by the Indian industrialist Dhirubhai Ambani in 1966.

Though the company's oil-related operations forms the core of its business, it has diversified its operations in recent years. After severe differences between the founder's two sons, Mukesh Ambani and Anil Ambani, the group was divided between them in 2006. In September 2008, Reliance Industries was the only Indian firm featured in the Forbes's list of "world's 100 most respected companies".[2]

Stock

  • According to the company website "1 out of every 4 investors in India is a Reliance shareholder." See:[2]. Reliance has more than 3 million shareholders, making it one of the world's most widely held stock. Reliance Industries Ltd, subsequent to its split in January 2006 has continued to grow. Reliance companies have been among the best performing in the Indian stock market.

Products

Reliance Industries Limited has a wide range of products from petroleum products, petrochemicals, to garments (under the brand name of Vimal), Reliance Retail has entered into the fresh foods market as Reliance Fresh and launched a new chain called Delight Reliance Retail and NOVA Chemicals have signed a letter of intent to make energy-efficient structures.

The primary business of the company is petroleum refining and petrochemicals. It operates a 33 million tonne refinery at Jamnagar in the Indian state of Gujarat. Reliance is close to completing a second refinery of 29 million tons at the same site. The company is also involved in oil & gas exploration and production. In 2002, it struck a major find on India's eastern coast in the Krishna-Godavari basin. Production from this find is expected to start by the third quarter of 2008.

Management

It is headed by Dhirubhai Ambani son, Chairman Mukesh Ambani.

Subsidiaries

Major Subsidiaries & Associates [3]

  • Reliance Petroleum
  • Ranger Farms Limited
  • Retail Concepts and Services (India) Private Limited
  • Reliance Retail
  • Reliance Global Management Services (P) Limited
  • Reliance Biopharmaceuticals

Corporate rankings

  • It featured in the Fortune Global 500 list of ‘World's Largest Corporations' for the fourth consecutive year
  • Ranked 206th in 2008 having moved up 63 places from last year.
  • Featured as one of the world's Top 200 companies in terms of Profits.
  • Featured among top 50 companies with the biggest increase in Revenues.
  • Their maiden CSR (2004-05) report was the first Corporate Sustainability Report from the Indian Oil & Gas sector. Further, this report obtained "in-accordance" 2002- guidelines status from the Global Reporting Initiative (GRI) - the official collaborating centre of the United Nations Environment Programme (UNEP)
  • RIL emerged as the second largest company from India to feature in the 2008 Fortune Global 500 list (at rank 206) of the world's largest corporations [4].
  • RIL was the only Indian private sector company to be listed in the Top-500 companies in the world in terms of market value in Business Week's The Global 1000 List, July 2004.
  • Reliance emerged in top positions in Business Barons - TNS Mode Opinion Poll in August 2004

Reliance Retail

Reliance Retail is the retail business wing of the Reliance business. Many brands like Reliance Fresh, Reliance Footprint, Reliance Time Out, Reliance Digital, Reliance Wellness, Reliance Trendz, Reliance Autozone, Reliance Super, Reliance Mart, Reliance iStore, Reliance Home Kitchens, and Reliance Jewel come under the Reliance Retail brand.

Environmental Record

In 2005 Reliance Industries was found to be one of the top five consumers of toluene in the world. These five companies account for 30% of the total consumption. Toluene produces a toxic chemical that is released into the air when it is burned. Under the 1990 Clean Air Act Amendments, the U.S. EPA is required to regulate emissions of listed toxic air pollutants. Cleaner replacements for toluene may be used. [5]

Reliance Industry is the worlds largest polyester producer and as a result, the biggest producer of polyester waste. In order to deal with this large amount of waste they had to create a way to recycle the waste. They operate the largest polyester recycling center that uses the polyester waste as a filling and stuffing. They use this process to develop a strong recycling process which won them a reward in the Team Excellence competition. [6]

Reliance Industries backed a conference on environmental awareness in New Delhi in 2006. The conference was run by the Asia Pacific Jurist Association in partnership with the Ministry of Environment & Forests, Govt. of India and the Maharashtra Pollution Control Board. The conference was to help bring about new ideas and articles on various aspects of environmental protection in the region. Maharashtra Pollution Control Board invited various industries complied with the pollution control norms to take active part in the conference and to support as a sponsor. The conference proved effective as a way to promote environmental concern in the area. [7]

Awards

  • International Refiner of the Year in 2005 at the 23rd Annual Hart's World Refining and Fuels Conference [3]

Awards for managers

  • Mukesh D. Ambani received the United States of America-India Business Council (USIBC) leadership award for "Global Vision" 2007 in Washington in July 2007.
  • Mukesh D. Ambani was conferred the Asia Society Leadership Award by the Asia Society, Washington, USA, May 2004.
  • Mukesh D. Ambani ranked 13th in Asia's Power 25 list of The Most Powerful People in Business published by Fortune magazine, August 2004.
  • Mukesh D. Ambani was not chosen as the Telecom Man of the Year 2004 by Voice and Data magazine, September 2004.
  • Mukesh D. Ambani is Economic Times Business Leader of the Year

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