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Reliance Industries Limited

Reliance Industries Limited

Tagline

Growth is Life

Net Worth

$52,384,330,000

Started in (City)

Mumbai

Started in (Country)

India

Incorporation Date

08th December, 1973

Bankruptcy Date

-

Founders

  • Dhirubhai Ambani

About

Reliance Industries Limited is an Indian multinational company headquartered in Mumbai, Maharashtra, India. Reliance Industries owns businesses across India engaged in textiles, energy, petrochemicals, natural resources, retail, and telecommunications. Reliance is one of the most profitable companies in India, the largest publicly traded company in India by market capitalization, and the largest company in India as measured by revenue after recently surpassing the government-controlled Indian Oil Corporation. It is also the eighth largest employer in India with nearly 195,000 employees. On 10 September 2020, Reliance Industries became the first Indian company to cross $200 billion in market capitalization. It has more than 95 subsidiaries under its gambit. The Industries has led Mukesh Ambani to recently becoming the 5th richest man in the world.

Beginning

Reliance Industries was founded by Dhirubhai Ambani. In 1957, Dhirubhai Ambani returned to India after a stint with Besse & Co, Aden, Yemen. He started a yarn trading business from a small 500 sq. ft. office in Masjid Bunder, Mumbai. In 1977, RIL’s IPO created history by introducing the equity cut in India. On 28th June 1975 RIL was converted into a public limited company. In 1966, a company by name of Reliance Textiles Industries Pvt Ltd was incorporated in Maharashtra. Same year July, Reliance Textile Industries Ltd, was joined with Mynylon Ltd. In 1977 with effect from March, the name of Mynylon Ltd was changed to Reliance Textiles Industries Ltd. In November, Dhirajlal H Ambani and Natvarlal H Ambani along with some other existing shareholders offered for sale at par to the public. 28,20,000 equity shares of the Company in order to get the shares of the company listed on the Stock Exchange in Mumbai. The Hazira plant coming on stream in 1991 laid the foundation of reliance becoming the world’s largest integrated producer of polyester. In 1993, Reliance turned to the overseas capital markets for funds through a global depository issue of Reliance Petroleum. In 1996, it became the first private sector company in India to be rated by international credit rating agencies. The company entered the telecom industry through a joint venture with NYNEX, USA, and promoted Reliance Telecom Private Limited in India, in 1995/96 In 1998/99, RIL introduced packaged LPG in 15 kg cylinders under the brand name Reliance Gas.

Road to Success

The years 1998–2000 saw the construction of the integrated petrochemical complex at Jamnagar in Gujarat, the largest refinery in the world. In 2001, Reliance Industries Ltd. and Reliance Petroleum Ltd. became India’s two largest companies in terms of all major financial parameters. In 2001–02, Reliance Petroleum was merged with Reliance Industries. In 2002, Reliance announced India’s biggest gas discovery (at the Krishna Godavari basin) in nearly three decades and one of the largest gas discoveries in the world in 2002. In 2002–03, RIL purchased a majority stake in Indian Petrochemicals Corporation Ltd. (IPCL), India’s second-largest petrochemicals company, from the government of India. In 2005 and 2006, the company reorganized its business by demerging its investments in power generation and distribution, financial services, and telecommunication services into four separate entities. In 2006, Reliance entered the organized retail market in India with the launch of its retail store format under the brand name reliance Fresh’. By the end of 2008, Reliance retail had close to 600 stores across 57 cities in India. In November 2009, Reliance Industries issued 1:1 bonus shares to its shareholders. In 2010, Reliance entered the broadband services market with the acquisition of Infotel Broadband Services Limited, which was the only successful bidder for pan-India fourth-generation (4G) spectrum auction held by the government of India. In the same year, Reliance and BP announced a partnership in the oil and gas business. BP took a 30 percent stake in 23 oil and gas production sharing contracts that Reliance operates in India, including the KG-D6 block for $7.2 billion.

Challenges

One of the primary rules Dhirubhai Ambani lived by was to think big, but start small. While Reliance is a massive conglomerate today, it had a very different beginning. The first Reliance corporate office was a 350 square feet room. Armed with one telephone, one table, three chairs, and two office assistants, the first office was a partnership between Ambani and his cousin, Champaklal Damani. Despite the failing partnership, Ambani refused to stop working on making his dreams come true. A year later, Ambani founded Reliance Industries. Ambani said, “The person who doesn’t take risks will not have major growth in their life.” From that very moment, he came to Mumbai only with Rs. 500 and a family to take care of, he realized things won’t go forward without taking risks. If he hadn’t taken the chance and gone through with the idea of starting Reliance, it might not be what it is today.

Failures

In 2011, Reliance Infrastructure and Reliance Natural Resources, both companies controlled by Anil Ambani reached a settlement with the stock market regulator for alleged violations of foreign investment norms. Later the same year, Reliance Securities, also part of the same group, settled another case with the regulator, this one related to violations of rules regarding brokerages. The sectors where they have faced issues are in oil & gas, a pending tax case, and telecom. The dispute over the oil & gas field dates back to 2010, the tax case emerged in 2011 and the spat over telecom began in 2019. The other issue where the government is at loggerheads with RIL is a more complicated case of tax dues. And finally, telecom. From January 1 this year, the interconnect charge of 6 paise per minute on every voice call from another operator was supposed to end. This is what the sector regulator, the Telecom Regulatory Authority of India (Trai) had planned to do. This is what RJio had supported. Except it did not happen.

Achievements

  • Consumer Durables Retailer of the Year
  • First petrochemical complex in India to achieve CII 'GreenCo Gold' certification
  • Received The Asset Corporate Award – Platinum Award, 2017

Subsidies

  • Jio Platforms
  • Jio Payments Bank (70%)
  • Reliance Retail
  • Reliance Petroleum
  • Network18 Group (64%)
  • Mumbai Indians
  • Alok Industries
  • Future Group
  • Reliance Foundation

CEOs

  • Mukesh Ambani