Reliance Industries

Not to be confused with Reliance Anil Dhirubhai Ambani Group.
Reliance Industries Limited
Traded as BSE: 500325, NSE: RELIANCE, LSE: RIGD
BSE SENSEX Constituent
CNX Nifty Constituent
Industry Conglomerate
Predecessor Reliance Commercial Corporation
Founded 1966 (1966)
Founder Dhirubhai Ambani
Headquarters Mumbai, Maharashtra, India
Area served
Key people
Mukesh Ambani
(Chairman and MD)
Products Petroleum
Natural gas
Services Security services
Revenue Increase2,960 billion (US$44 billion) (2016)[1]
Increase 359 billion (US$5.3 billion) (2016)[1]
Profit Increase 276 billion (US$4.1 billion) (2016)[1]
Total assets Increase6,062 billion (US$90 billion) (2016)[1]
Number of employees
24,930 (2016)[1]

Reliance Industries Limited (RIL) is an Indian conglomerate holding company headquartered in Mumbai, Maharashtra, India. Reliance owns businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications. Reliance is the third most profitable company in India,[2][3] the second-largest publicly traded company in India by market capitalization,[4] and the second largest company in India as measured by revenue after the government-controlled Indian Oil Corporation.[5] The company is ranked 215th on the Fortune Global 500 list of the world's biggest corporations as of 2016.[6] RIL contributes approximately 20% of India's total exports.[7] It is ranked 8th among the Top 250 Global Energy Companies by Platts as of 2016.



The company was co-founded by Dhirubhai Ambani and his brother Champaklal Damani in 1960s as Reliance Commercial Corporation. In 1965, the partnership ended and Dhirubhai continued the polyester business of the firm.[8] In 1966, Reliance Textiles Industries Pvt Ltd was incorporated in Maharashtra. It established a synthetic fabrics mill in the same year at Naroda in Gujarat.[9] In 1975, the company expanded its business into textiles, with "Vimal" becoming its major brand in later years. The company held its Initial public offering (IPO) in 1977.[10] The issue was over-subscribed by seven times.[11] In 1979, a textiles company Sidhpur Mills was amalgamated with the company.[12] In 1980, the company expanded its polyester yarn business by setting up a Polyester Filament Yarn Plant in Raigad, Maharashtra with financial and technical collaboration with E. I. du Pont de Nemours & Co., U.S.[9]


In 1985, the name of the company was changed from Reliance Textiles Industries Ltd. to Reliance Industries Ltd.[9] During the years 1985 to 1992, the company expanded its installed capacity for producing polyester yarn by over 145,000 tonnes per annum.[9]

The Hazira petrochemical plant was commissioned in 1991–92.[13]

In 1993, Reliance turned to the overseas capital markets for funds through a global depositary issue of Reliance Petroleum. In 1996, it became the first private sector company in India to be rated by international credit rating agencies. S&P rated Reliance "BB+, stable outlook, constrained by the sovereign ceiling". Moody's rated "Baa3, Investment grade, constrained by the sovereign ceiling".[14]

In 1995/96, the company entered the telecom industry through a joint venture with NYNEX, USA and promoted Reliance Telecom Private Limited in India.[13]

In 1998/99, RIL introduced packaged LPG in 15 kg cylinders under the brand name Reliance Gas.[13]

The years 1998–2000 saw the construction of the integrated petrochemical complex at Jamnagar in Gujarat,[13] 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.[15] In 2002–11, Reliance Petroleum was merged with Reliance Industries.[10] 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 during 2002. The in-place volume of natural gas was in excess of 7 trillion cubic feet, equivalent to about 1.2 billion barrels of crude oil. This was the first ever discovery by an Indian private sector company.[10][16] In 2002–03, RIL purchased a majority stake in Indian Petrochemicals Corporation Ltd. (IPCL), India's second largest petrochemicals company, from Government of India.[17] IPCL was later merged with RIL in 2008.[18][19] In the years 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.[20] In 2006, Reliance entered the organised retail market in India[21] with the launch of its retail store format under the brand name of 'Reliance Fresh'.[22][23] By the end of 2008, Reliance retail had close to 600 stores across 57 cities in India.[10] In November 2009, Reliance Industries issued 1:1 bonus shares to its shareholders. In 2010, Reliance entered Broadband services market with acquisition of Infotel Broadband Services Limited, which was the only successful bidder for pan-India fourth-generation (4G) spectrum auction held by Government of India.[24][25] In the same year, Reliance and BP announced a partnership in the oil and gas business. BP took a 30 per cent stake in 23 oil and gas production sharing contracts that Reliance operates in India, including the KG-D6 block for $7.2 billion.[26] Reliance also formed a 50:50 joint venture with BP for sourcing and marketing of gas in India.[27] In 2012, RIL set up a joint venture with Russian Company Sibur for setting up a Butyl rubber plant in Jamnagar, Gujarat. The plant is scheduled to be operational in 2015[28] Presently, Tejpal Singh Bisht is the President and CEO of New Ventures in the Chairman's Office at Reliance Industries Limited.[29]


Chairman and MD: Mukesh Ambani

The number of shareholders in RIL are approx. 3 million.The promoter group, Ambani family, holds approx. 52% of the total shares whereas the remaining 48% shares are held by public shareholders, including FII and corporate bodies.[30][31] Life Insurance Corporation of India is the largest non-promoter investor in the company with 7.98% shareholding.[7]
Buyback: In January 2012, the company announced a buyback programme to buy a maximum of 120 million shares for 104 billion (US$1.5 billion). By the end of January 2013, the company bought back 46.2 million shares for 33.66 billion (US$500 million).[32]


The company's equity shares are listed on the National Stock Exchange of India Limited (NSE) and the BSE Limited. The Global Depository Receipts (GDRs) issued by the Company are listed on Luxembourg Stock Exchange.[33][34] It has issued approx. 56 million GDRs wherein each GDR is equivalent to 2 equity shares of the company. Approx. 3.46% of its total shares are listed on Luxembourg Stock Exchange.[30]
Its debt securities are listed at the Wholesale Debt Market (WDM) Segment of the National Stock Exchange of India Limited (NSE).[35]
Credit Ratings: It has received domestic credit ratings of AAA from CRISIL (S&P subsidiary) and Fitch. Moody's and S&P have provided investment grade ratings for international debt of the Company, as Baa2 positive outlook (local currency issuer rating) and BBB+ outlook respectively.[36][37][38]


The company's petrochemicals, refining, and oil and gas-related operations form the core of its business; other divisions of the company include cloth, retail business, telecommunications and special economic zone (SEZ) development. In 2012–13, it earned 76% of its revenue from Refining, 19% from Petrochemicals, 2% from Oil & Gas and 3% from Other segments.[7]

In July 2012, RIL informed that it was going to invest US$1 billion over the next few years in its new aerospace division which will design, develop, manufacture, equipment and components, including airframe, engine, radars, avionics and accessories for military and civilian aircraft, helicopters, unmanned airborne vehicles and aerostats.[39]

Major subsidiaries and associates

On 31 March 2013, the company had 123 subsidiary companies and 10 associate companies.[7]


As on 31 March 2013, the company had 23,519 employees of which 1,159 were women and 83 were employees with disabilities. It also had 29,462 temporary employees on the same date.[7] As per its Sustainability Report for 2011–12, the attrition rate was 7.5%. But currently, the same attrition rate has gone up to 23.4% in 2015 as per latest report released within the organisation.[62]
In its 39th Annual General Meeting, its Chairman informed the shareholders of the investment plans of the company of about 1,500 billion (US$22 billion) in next three years. This would be accompanied by increasing the staff strength in Retail division from existing strength of 35,000 to 120,000 in next 3 years and increasing employees in Telecom division from existing 3,000 to 10,000 in 12 months.[63]

Awards and recognition


De-merger of RIL in 2005–2006

The Ambani family holds around 45% of the shares in RIL.[73] Since its inception, the company was managed by its founder and chairman Dhirubhai Ambani. After suffering a heart attack in 1986, he handed over the daily operations of the company to his sons Mukesh Ambani and Anil Ambani. After the death of Dhirubhai Ambani in 2002, the management of the company was taken up by both the brothers. In November 2004, Mukesh Ambani, in an interview, admitted to having differences with his brother Anil over 'ownership issues'.[74] He also said that the differences "are in the private domain". The share prices of RIL were impacted by some margin when this news broke out. In 2005, after a bitter public feud between the brothers over the control of the Reliance empire, mother Kokilaben intervened to broker a deal splitting the RIL group business into the two parts.[75] In October 2005, the split of Reliance Group was formalized. Mukesh Ambani got Reliance Industries and IPCL. Younger brother Anil Ambani received telecom, power, entertainment and financial services business of the group. The Anil Dhirubhai Ambani Group includes Reliance Communications, Reliance Infrastructure, Reliance Capital, Reliance Natural Resources and Reliance Power.[76][77]
The division of Reliance group business between the two brothers also resulted in de-merger of 4 businesses from RIL.[78][79] These businesses immediately became part of Anil Dhirubhai Ambani Group. The existing shareholders in RIL, both the promoter group and non-promoters, received shares in the de-merged companies.[20]

Relationship with ONGC

In May 2014, ONGC moved to Delhi High Court accusing RIL of pilferage of 18 billion cubic metres of gas from its gas-producing block in the Krishna Godavari basin.[80] Subsequently, the two companies agreed to form an independent expert panel to probe any pilferage.[81]

See also


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  2. "Reliance Industries Limited leads India Inc as the highest profit earner". Times of India. Retrieved 31 May 2015.
  3. "Reliance Industries Overtakes ONGC to Become India's Most Profitable Firm". NDTV. Retrieved 31 May 2015.
  4. "Top '50' companies by market capitalisation as on March 31, 2013". Retrieved 14 August 2013.
  5. "Global 500". Retrieved 14 August 2013.
  6. "Fortune Global 500 list". CNN Money. Retrieved 14 August 2013.
  7. 1 2 3 4 5 6 7 "Annual Report 2012-13" (PDF). 8 May 2013.
  8. "Ambani: From a gas station attendant to Reliance owner". Arab News. 2 November 2012. Retrieved 26 August 2013.
  9. 1 2 3 4 5 6 "Company History – Reliance Industries Ltd.". Economic Times. Retrieved 26 August 2013.
  10. 1 2 3 4 "Major Milestones". Retrieved 22 August 2013.
  11. "Reliance Industries: Milestones of an oil giant – Slide 4". Retrieved 25 August 2013.
  12. "Company History – Reliance Industries". Retrieved 26 August 2013.
  13. 1 2 3 4 "Reliance Industries Ltd". HDFC Securities. Retrieved 26 August 2013.
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  15. "Reliance Industries: Milestones of an oil giant – Slide 9". Retrieved 25 August 2013.
  16. "Krishna-Godavari basin to yield 160mt oil: RIL". Economic Times. 1 November 2002. Retrieved 25 August 2013.
  17. "Reliance makes it big with IPCL". The Hindu. 20 May 2002. Retrieved 25 August 2013.
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  20. 1 2 "Scheme of Demerger". Retrieved 25 August 2013.
  21. "BTvIn - Retail: Growth Engine For RIL". Btvin.
  22. "Reliance launches retail venture". BBC News. 3 November 2006. Retrieved 25 August 2013.
  23. "Coming to your neighbourhood – Reliance Fresh". Business Standard. 3 November 2006. Retrieved 25 August 2013.
  24. "Reliance Bets Big on 4G". WSJ. 12 June 2010. Retrieved 25 August 2013.
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  26. "BP partners Reliance in $7.2 billion Indian oil hunt". Reuters India. 22 February 2011. Retrieved 25 August 2013.
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  29. "Vivek Lall to head US India general aviation working group". The Hindu. 4 October 2013.
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  41. "Ambani tops retailer list, too". Business Standard. 17 August 2013. Retrieved 19 August 2013.
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  44. "Changing its DNA". Business Today. 30 September 2012. Retrieved 26 August 2013.
  45. "Welcome to Reliance Institute of Life Sciences". Retrieved 18 August 2013.
  46. "Reliance Institute of Life Sciences". Retrieved 26 August 2013.
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  50. "Reliance Logistics Ltd". Retrieved 27 August 2013.
  51. "Reliance set to combine two logistics arms". Financial Chronicle. 31 March 2009. Retrieved 27 August 2013.
  52. "Clinical Research Services (CRS) group of Reliance Life Sciences". Retrieved 18 August 2013.
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  61. "LYF Smartphones - Its All About Your Lifestyle". MyLYF. Retrieved 2016-03-01.
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External links

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