Market Leader In India Reliance example essay topic

RELIANCE India's No. 1 Business Group Founded as a textile mill in 1966 by Dhirubhai H. Ambani, the Chairman of the Reliance group, Reliance continued to be a textile company until early 1980's. However, seizing the opportunities emanating from the growing Indian economy as well as the opening up of the regulation-driven sectors of the economy such as petrochemicals, plastics etc., Reliance pursued the policy of backward integration from textiles as well as diversification from the early 1980's onwards to set up world-scale facilities for manufacturing polyester and textile intermediates, plastics and polymer intermediates, detergent intermediates etc. Diversified business interests Reliance group's business activities encompass all major growth sectors of the Indian economy: - Oil & gas exploration - Refining & marketing - Petrochemicals including intermediates - Textiles - Power - Telecom - Information & Communication - Insurance - Financial services and so on Market leader in India Reliance holds leading major market shares for all its major products in India Polyesters (Filament Yarn, Staple Fibre and Resin) 51% Fibre Intermediates (Purified Terephthalic Acid, Mono Ethylene Glycol, P-Xylene) 78% Polymers (Polyethylene, Polypropylene, PVC) 48% India's largest exporter During the year, Reliance's exports, including deemed exports, increased to Rs 11,510 crore (US$2,424 million), from Rs 11,200 crore in the previous year, recording an annual growth of 3 per cent. Reliance continued to maintain its leadership position as the largest exporter in the country. Reliance exports its products to over 100 countries, including the most quality conscious customers in the US and Europe. This demonstrates Reliance's global competitiveness, the world-class quality of its products, and superior logistics capabilities.

The strong growth in exports has been achieved while retaining the thrust on the domestic markets, with exports still representing only 18 per cent of Reliance's gross turnover. Reliance has set up new export offices in China, UAE, Vietnam, Turkey and Indonesia. Contribution to Indian Economy Reliance enjoys a pre-eminent position in India's economy with group revenues of nearly 3.5 per cent of India's GDP. The group's leadership position in India is also reflected in its all round contribution to the national economy. The group contributes: . 5 per cent of India's total exports.

10 per cent of the Government of India's indirect tax revenues RIL alone accounts for: . 30 per cent of the total profits of the private sector in India. 10 per cent of the profits of the entire corporate sector in India. 7 per cent of the total market capitalization in India. Weightage of 15 per cent in the BSE Sensex. Weightage of 12 per cent in the Nifty Index.

One out of every four investors in India is a Reliance shareholder. RELIANCE GROUP 1. Reliance Industries Limited 2. Reliance Capital Limited 3. Reliance Capital Mutual Fund 4. Reliance Industrial Infrastructure Limited 5.

Power Initiatives - BASES 6. Reliance Telecom 7. Reliance Infocomm 8. Reliance General Insurance Co Ltd 9. Reliance Life Sciences 10. Indian Petrochemicals Corporation Ltd 1.

Reliance Industries - India's largest private sector company The Reliance Group founded by Dhirubhai H. Ambani (1932-2002) is India's largest business house with total revenues of Rs 80,000 crore (US$16.8 billion), cash profit of over Rs 9,800 crore (US$2.1 billion), net profit of over Rs 4,700 crore (US$990 million) and exports of Rs 11,900 crore (US$2.5 billion). The group's activities span exploration and production (E&P) of oil and gas, refining and marketing, petrochemicals (polyester, polymers, and intermediates), textiles, financial services and insurance, power, telecom and infocom initiatives. Reliance has emerged as India's Most Admired Business House, for the third successive year in a TNS Mode survey for 2003. Leadership rankings in all major businesses Reliance is India's largest private sector E&P player with nearly 290,000 sq kms of awarded exploration and production acreage, in 35 offshore and onshore, deep and shallow water blocks, including one in Yemen Reliance's 27 million tonne refinery at Jamnagar, which accounts for 24 per cent of India's refining capacity, is the world's largest grassroots refinery and the 5th largest refinery at any single location Reliance is also the world's: . 2nd largest producer of polyester fibre and yarn. 3rd largest producer of para xylene (PX).

5th largest producer of purified terepthalic acid (PTA), and. 7th largest producer of polypropylene (PP). In India, Reliance enjoys leading market shares for all its major businesses. Reliance has a market share of 51 per cent in polyester, 48 per cent in polymers and 78 per cent in fibre intermediates. 2. Reliance Capital Limited Financial Review: Reliance Capital Ltd.

(RCL), one of India's leading private sector non-banking financial services companies (NBFCs), has reported satisfactory financial and operating performance during the period under review i.e. financial year 2001-02. Gross income for the year increased 11.46% to Rs. 548.59 crores compared to Rs. 492.20 crores in the previous financial year. Net profit also increased from Rs. 93.45 crores to Rs.

101.22 crores for the year 2001-02. Depreciation was lower at Rs. 55.18 crores (previous year Rs. 71.97 crores), and the tax provision decreased to Nil (previous year Rs. 7.50 crores). Gross profit for the year was lower at Rs.

156.40 crores as against Rs. 172.92 crores in the previous year. Resources and Liquidity: During the financial year 2001-02, RCL redeemed preference shares of Rs. 800 crores as per the terms of the offer. RCL also redeemed non-convertible debentures (N CDs) to the tune of Rs.

700 crores and discount bonds to the tune of Rs. 202 crores during the year. RCL's gross debt: equity ratio, including long term and short term debt, as on 31st March, 2002, is a conservative 1.91: 1 well below the comparable levels in the industry. During the year, the ratings on the company's long term debt were re-affirmed at "AA+" by Credit Analysis and Research Ltd. (CARE). The instruments carrying this rating are of high quality by all standards, and are of high investment grade.

RCL's short term borrowing programme is rated 'PR 1+' by CARE, the highest credit rating that may be assigned to short term debt instruments. Industry Structure and Developments: The Non-Banking Financial Services (NBFCS) industry in the private sector in India is represented by a mix of a few large companies with nationwide presence, and a large number of small and medium sized companies with regional focus. These NBFCs provide a variety of services including fund based, and fee based activities, as well as cater to retail and non-retail markets, and niche segments. The financial sector through the last decade has undergone wide volatility and change.

During this period, effective regulations have brought in wide ranging changes on prudential norms and continuous monitoring mechanism, thereby improving overall industry environment. The NBFCs with high credibility, efficiency, and customer-oriented services will dominate the sector in future. Business Review: RCL continued to focus on the infrastructure projects providing immense growth opportunities and substantial tax benefits. Leasing: The Company's activity in the leasing business stood at Rs. 22 crores. Investments in the Infrastructure Sector: RCL's investment in infrastructure sector included high growth areas of power, telecommunications, ports etc., contributing to the overall economic development.

Your company's investment in infrastructure projects stood at Rs. 1,238 crores. Insurance: During the year, RCL has taken a new strategic initiative by entering into the life insurance and general insurance business. The company's investments in the insurance sector stood at Rs. 78 crores, and upon receipt of approval from the Reserve Bank of India, RCL intends to invest further in this sector.

Opportunities: The Indian economy provides several attractive growth opportunities with GDP generally forecast to grow by 5%-6% per annum over the next several years. Development of key infrastructure sectors is a focus area for the government, presenting additional opportunities for companies like RCL that are active in the area of infrastructure investments. The service sector in India is expected to contribute at a faster pace to the overall economy in the future. This is likely to create a positive environment for the financial services industry in India.

RCL is well positioned to take advantage of emerging attractive growth opportunities in the Indian economy by offering wide range of products to suit the needs of the Indian consumer. Challenges: RCL faces normal market competition in its business. RCL's strong financial position, reflected by healthy credit rating and low debt: equity ratio, and adoption of prudent business strategies have enabled it to consistently post satisfactory performance despite competitive conditions. Outlook: RCL is likely to maintain its focus on infrastructure investments and insurance sector. The company will also seek attractive opportunities in other growth areas in the financial services sector. Risks and Concerns: RCL is exposed to the normal industry risk factors of interest rate volatility, economic cycle, and credit risk.

RCL manages these risks by maintaining a conservative financial profile, and by following prudent business and risk management practices. Adequacy of Internal Control: RCL has a proper and adequate system of internal controls to ensure that all activities are monitored and controlled against any unauthorised use or disposition of assets, and that the transactions are authorised, recorded and reported correctly. RCL ensures adherence to all internal control policies and procedures as well as compliance with all regulatory guidelines. The audit committee of the Board of Directors reviews the adequacy of internal controls. Human Resource Development (HRD): RCL has a team of able and experienced industry professionals. The number of employees stood at 29. web.