case study of reliance industries ltd

How Reliance Became India's Biggest Company [Reliance Industries Case Study]

Devashish Shrivastava

Reliance Industries Limited (RIL) is an Indian organization headquartered in Mumbai, India. Founded by Dhirubhai Ambani, the present Reliance Industries CEO is his son Mukesh Ambani.

Reliance has its entities across domains like vitality, petrochemicals, materials, common assets, retail, and broadcast communications. Reliance is one of the most prominent businesses in India, the biggest "traded on an open market" organization in India by showcase capitalization, and the biggest organization in India as estimated by income after it outperformed Indian Oil Corporation sometime back. On 18 October 2007, Reliance Industries became the first Indian company to cross $100 billion market capitalization.

The organization is positioned 106th on the Fortune Global 500 rundown of the world's greatest enterprises as of 2019 . It was positioned eighth among the Top 250 Global Energy Companies by Platts in 2016. Reliance continues to be India's biggest exporter, representing 8% of India's all-out exports with an estimation of Rs 147,755 crore and access to business sectors in 108 countries. Reliance is answerable for nearly 5% of the legislature of India's complete income from traditions and extracts obligation. In 2019, Reliance Industries Limited became the first Indian business to cross Rs 9 lakh crore valuation mark.

This post by StartupTalky is a case study on Reliance Industries Limited, which will let you know about Reliance company, Reliance Industries founder, Reliance Industries CEO, Reliance Company details, Reliance services company, History of Reliance Industries, Marketing Strategy of RIL, Growth, Revenue, Profit of Reliance Industries Limited and more.

History And Origin Of Reliance Industries Limited Marketing Strategy Of Reliance Industries Limited Growth And Future Of Reliance IndustriesLimited Revenue And Profit Of Reliance Industries Limited

History And Origin Of Reliance Industries Limited

In 1966, Reliance Textiles Engineers Pvt. Ltd. was consolidated in Maharashtra . It built a manufactured textures plant around the same time at Naroda in Gujarat . On 8 May 1973, it moved towards becoming Reliance Textiles Industries Limited. In 1975, the organization extended its business into materials with "Vimal" forming its image in the later years.

The organization held its initial open offering (IPO) in 1977. Sidhpur Mills, a materials organization, was amalgamated with Reliance Textiles in 1979. In 1980, the organization extended its polyester yarn business by setting up a Polyester Filament Yarn Plant in Patalganga (Maharashtra) with monetary and specialized coordinated efforts from E. I. duPont de Nemours and Co., U.S.

In 1985, the name of the organization was changed from Reliance Textiles Industries Ltd. to Reliance Industries Limited. Between 1985 to 1992, the organization extended its introduced limit with regards to delivering polyester yarn by more than 145,000 tons per year.

In 1993, Reliance went to the capital markets abroad for assets through a worldwide depository issue of Reliance Petroleum. In 1996, it turned into the first private division organization in quite a while to be appraised by worldwide FICO assessment offices. In 1995/96, the organization entered the telecom business through a joint endeavor between NYNEX, USA, and advanced Reliance Telecom Private Limited in India.

In 2001, Reliance Industries Limited and Reliance Petroleum Ltd. turned into India's two biggest organizations as far as all major monetary parameters were considered. In 2001–02, Reliance Petroleum converged with Reliance Industries. In 2002, Reliance reported India's greatest gas revelation (at the Krishna Godavari bowl) in almost three decades. The setup volume of gaseous petrol was more than 7 trillion cubic feet, proportionate to about 1.2 billion barrels of unrefined petroleum.

This was the first, historically speaking, disclosure by an Indian private company. In 2002–03, RIL bought a larger stake in Indian Petrochemicals Corporation Ltd. (IPCL), India's second-biggest petrochemicals organization, from the administration of India. IPCL later converged with RIL in 2008.

In 2005 and 2006, the organization revamped its business by de-merging its interests in control age and appropriation, money-related administrations, and media transmission administrations into four separate entities. In 2006, Reliance entered the retail showcase in India with the dispatch of its retail location position under the brand name 'Reliance Fresh'. By the end of 2008, Reliance retail had near 600 stores crosswise over 57 urban communities in India.

In November 2009, Reliance Industries gave 1:1 extra offers to its investors . In 2010, Reliance entered the broadband administrations showcase with the securing of Infotel Broadband Services Limited; the latter was the main effective bidder for the skillet India fourth-age (4G) range sale held by the legislature of India.

Around the same time, Reliance and Bharat Petroleum declared an association in the oil and gas business. BP took a 30% stake in 23 oil and gas creation sharing agreements that Reliance works in India, including the KG-D6 hinder for $7.2 billion. Reliance likewise shaped a 50:50 joint endeavor with BP for sourcing and showcasing gas in India. In 2017, RIL set up a joint endeavor with Russian Company Sibur for setting up a Butyl elastic plant in Jamnagar (Gujarat) that became operational by 2018. Click here to know about the Subsidiaries that make Reliance successful .

Reliance Industries is currently one of the biggest Indian multinational conglomerates that has diversified into many verticals today. Reliance Industries headquarters is in Mumbai, Maharashtra, of which, Reliance is the largest publicly-traded company by market capitalisation.

Marketing Strategy Of Reliance Industries Limited

The organization was established by Dhirubhai Ambani and Champaklal Damani in the 1960s as Reliance Commercial. The marketing mix of Reliance covers 4Ps (product, price, place, and promotion) and explains Reliance Industries' marketing strategy is as follows:

Reliance Industries Limited is perhaps the greatest aggregate in India. Its business is available in different segments which are concentrated to comprehend Reliance's item system in its showcasing blend. The retail segment incorporates Reliance Fresh, Big Bazaar, Reliance Mart, Reliance Market, Reliance Home Kitchen, Reliance iStore, Reliance Solar, and more.

Reliance Life Sciences is associated with medicines, plants, and biotechnology as it has some expertise in marking, assembling, and promoting Reliance enterprises items in bio-pharmaceuticals. Reliance's coordination comprises transportation, dissemination, coordination, inventory network-related exercises, and telemetry arrangements. Reliance Jio Infocomm Ltd . is a broadband specialist co-op that gives 4G administrations. Relicord is claimed by Reliance Life Sciences and gives blood banking administrations. Reliance Industrial Infrastructure Limited deals with the development and activity of pipelines for moving oil-based commodities . Subsequently, this gives an outline of the contributions of Reliance Industries.

Reliance Industries Limited pursues a distinctive valuing methodology for various segments. Thus, the advertising blend and evaluation technique of Reliance Industries is unique in light of rivalry and market administration in certain parts. It pursues entrance valuing for retail, media transmission, and well-being. At the point when the organization propelled Reliance Jio, it offered free Jio administrations to its clients during the dispatch time frame to build a piece of the pie. Be that as it may, the retail and media transmission parts are at misfortune; however, the organization is giving ideas to clients to build its client base.

The evaluating choices on its oil business rely upon the full-scale condition components and worldwide market situation to a great extent. Reliance Fresh outlets, for example, secure their items directly from the source, eliminating the middlemen in this way. This is advantageous to the shopper as the markdown price and value decrease. Reliance Industries performs exhaustive evaluation before valuing its choices, and this evaluation is a persuasive factor for its ascent in the aggressive market.

Reliance Industries has a solid nearness all over India. Reliance Retail is the biggest retailer that has more than 1500 stores crosswise over India. Here are the investors that makes Reliance Retail, one of the largest retailer in India . Different brands like Reliance Fresh, Reliance Footprint, Reliance Digital, and Reliance Trends have arrived in Tier 1 and Tier 2 urban areas.

Reliance Jio sim administrations are accessible crosswise over significant areas and its network has improved significantly over the last years.

Reliance Industries' dispersion system is so well-arranged that it has a strong grip across the country. Reliance gets crude materials directly from the source; consequently, it has pulled in an enormous number of clients because of the advertisements. Reliance clients can speak with the agents by calling administrations or online channels.

Reliance Industries meets with its shareholders in annual general meetings, which it holds every year. This Annual General Meeting (AGM) was held virtually on July 15, 2020, which became the first virtual AGM after TCS had done it on June 11, 2020. The Ministry of Corporate Affairs (MCA), owing to the current circumstances, has permitted companies to hold their Annual General Meetings through video conferencing or other Audio Visual means to avoid large public gatherings. The meeting with all the shareholders was held on 15th July at 2 PM through a video conferencing platform. This was the 43rd AGM for Reliance Industries Limited. Many big announcements were made during today’s AGM, where the most significant of them all is that Google has announced that it will invest $4.5 billion, which is approximately INR 33,737 crores in Reliance Jio at a stake of 7.7 %. After only 2 days since Google announced that it will invest $10 billion or INR 75,000 crores in the Indian digital market, Reliance has made this announcement. Google has joined Facebook in the big investors' list of Jio, a subsidiary of Reliance Industries Limited. RIL announced in the AGM that Google along with Reliance Jio will work on developing low-cost, entry-level mobile devices with a customized version of Android to serve millions of new customers in India. Mukesh Ambani informed that these mobile phones will come with the support of the future of wireless networks - 5G, and the Google Play services. Sundar Pichai also sent a video message regarding the partnership between Google and Jio Platforms. In the video message, he said, “Getting technology into the hands of more people is a big part of Google’s mission. To organize the world’s information and make it universally accessible and useful is another part of the mission. Through this partnership with Jio Platforms, we see the chance to have an even greater impact than either company could have alone. ”

Everyone should have access to the internet. Proud to partner with @reliancejio to increase access for the hundreds of millions in India who don’t own a smartphone with our 1st investment of $4.5B from the #GoogleForIndia Digitization Fund. https://t.co/1fP8iBZQfm — Sundar Pichai (@sundarpichai) July 15, 2020

He also added, “This partnership is a key part of Google’s next chapter of investments in India. Our investment of $4.5 billion in Jio is the first and biggest through the digitization fund of $10 billion. I am excited that the collaboration will focus on the increase in access for hundreds of millions of Indians who do not currently own a smartphone and the improved mobile experience for all.“ Mukesh Ambani informed the shareholders of RIL that Jio Phone still remains the most affordable 4G supporting phone. He informed that about 100 million Indians have upgraded their feature phones to Jio Phones, but 350 million Indians still own a 2G feature phone and are waiting to upgrade to an affordable and conventional smartphone. He said that Jio aims to develop affordable 5G phones at only a fraction of its cost and to achieve this they need an equally value-engineered smartphone Operating System which will be provided to them by Google under their new partnership.

Mukesh Ambani further said, “Putting a smartphone in the hands of every Indian is our aim. India is standing at the doorsteps of the 5G era. They should not be deprived of the benefits that the digital and the data revolution offers. Jio is determined to make India ‘2G Mukt ’ ”.

Mukesh Ambani also talked about the ‘Digital India’ movement. It is very clear that this partnership of Google with Jio Platforms will definitely help India towards its goal of ‘Digital India’.

Previously, the AGMs have been held by Reliance at many different venues that including auditoriums, football stadiums, and other big grounds. For the last few years, however, Birla Matushri Sabhaghar has been the venue for the meetings. In 2020, however, owing to the Coronavirus (COVID-19) pandemic, companies are compelled to hold these meetings online through video conferencing. In the pandemic-stricken year, like all the previous years, the meeting was held between the shareholders of the company. The annual report of the company was presented to them, which contained the performance and strategies of the company. The new plans and features for the next year were also included. Furthermore, the shareholders got to ask questions and vote on topics that were related to the functioning and betterment of the company. It was during the Annual General Meeting of 2016, that Reliance Jio was commercially launched, which changed the face of the telecom industry and brought about an internet revolution in India. The previous meeting, which was the 42nd AGM, was held in The Birla Matushri Sabhaghar on 12th August 2019. The key points of the meeting were:

• Announcement of the launch of Jio Fibre service.
• Mukesh Ambani said that they have a clear roadmap for becoming a zero net debt company by 31st March 2021. This feat was achieved much earlier than expected and RIL have become a zero net debt company a few days ago after it raised around ₹1.69 lakh crore from global investors such as Facebook.
• The announcement of the launch of the new 4K supported Jio Set Top Box.
• Mukesh Ambani announced to the shareholders that the company's turnover has crossed ₹130,000 crores, making it India's largest retailer and 4 times larger than the 2nd retailer. The company became larger than all other major retailers in the country put together.

Reliance Industries is vigorously working on publicizing and brand advancement. The special procedure in the advertising blend of Reliance Industries is engaged towards 360-degree marketing and forceful brand advancement. Reliance uses the slogan "Development is Life" and has typified its slants of taking individuals together. RIL proprietor Mr. Mukesh Ambani has now owned the Mumbai Indians franchise for a long time, and the purchase of a cricket team has been instrumental in bringing the Reliance brand under the spotlight.

Reliance Industries has roped in Bollywood celebrity Hrithik Roshan for underwriting Reliance Telecom. It declares limits and leads for different special exercises at various Reliance outlets. Because of its solid image mindfulness, Reliance Industries has pulled in clients at its stores. Customer happiness has lead to its expanded client base. Consequently, this covers the promoting blend of Reliance Industries.

Growth And Future Of Reliance Industries Limited

The Indian economy remained the quickest developing significant economy on the planet in 2018. In FY 2018-19, the evaluated Gross Domestic Product development rate was 6.8%, driven by solid private utilization development at 8.1%. The economy kept on seeing an expansion in speculations with gross fixed capital formation development at a six-year high of 10%. Know the Reasons why Reliance Industry's profit increased by 35% in 2021 .

For FY 2018-19, India's oil request developed at about 3% y-o-y with utilization-driven request development in gas (+8.1%), Gasoil (+3.0%), and stream fuel (+9.1%). The interest was driven by powerful development in business vehicle deals and solid air traffic development during the year. On the provincial side, though tractor deals and three-wheeler deals declined from the highs of FY 2017-18, they kept on developing in twofold digits.

Household request development for petrochemical items was solid with both polymer and polyester requests developing at 7.0% y-o-y. Reliance Jio has impelled India to turn into the biggest versatile information devouring economy on the planet. With omnipresent and dependable information administrations, information systems are progressively being utilized for media and stimulation, instruction, showcase data, and exchanges.

The appropriation of advanced exchanges saw exponential development. UPI installments developed from 0.7% of GDP in FY 2017-18 to 4.7% in FY 2018-19 while charge card development found the middle value of a solid 32% y-o-y in FY 2018-19. Individual utilization patterns stayed solid with individual credit at a sound 18% y-o-y. Reliance Retail keeps on profiting by solid interest development crosswise over purchaser staples, optional merchandise, and its capacity to convey an unrivaled client experience and offer.

Refining And Marketing - Weak Light Distillate Cracks Lead Down Margins

During the year, benchmark Brent oil costs were up 22% due to geopolitical pressures, supply interruptions from Venezuela, Iran, and Libya just as OPEC+ creation cuts. Request development was affected by the high siphon level costs in the US and different economies coupled with the slow development in the Chinese economy.

RIL's gross refining edges declined to $9.2/bbl due to feeble light distillate breaks; this was somewhat counter-balanced by flexible center distillate splits. Operational greatness and adaptability helped Reliance keep up a noteworthy $4.3/bbl premium over the territorial benchmark-Singapore Refining Margins. The strong presentation by Reliance's refining business was bolstered by proactive unrefined sourcing, enhancing of item yields, and vigorous hazard in a difficult domain.

Petrochemicals - Resilient Business Model Shining Through

Petrochemicals business conveyed its best execution with an EBITDA commitment of 37,645 crores, up by 45.6% y-o-y. Petrochemical generation was additionally at a record high of 37.7 MMT, up 16% y-o-y.

The solid outcomes were accomplished in a situation of declining usage rates in key item chains with a new supply increase. This exhibits the strength of Reliance's action plan which is dependent on linkages between refining and petrochemical chains, feedstock adaptability, and wide item portfolio. While polymer chain edges were affected by new supplies out of the US Ethane-based wafers, polyester bind gains kept on increasing, driven by solid PTA and PX edges. With the initiation of ethane splitting at Nagothane, the key parts of Reliance's petrochemical speculation cycle are adding to its income.

Oil And Gas Exploration And Production

Reliance has attempted the improvement of High-Pressure High Temperature (HPHT) R-Cluster, Satellite-Cluster, and D55 (MJ) fields. First gas from R-Cluster is normal by mid-2020 followed by Satellite Cluster and MJ fields. The new improvement will use Reliance's collaboration with BP, the existing framework in the Krishna-Godavari Basin, and the downturn in the capital hardware and specialist organization advertise.

Reliance Retail - Growth Across All Key Consumption Basket

Reliance Retail accomplished a record turnover of INR 1,30,566 crore, up 88.7% y-o-y. Turnover development was driven by quick store extension and strong development in same-store-deals. Reliance Retail accomplished its most elevated EBITDA of INR 6,201 crores, up 145% y-o-y. The solid working presentation was driven by a 100 bps improvement in EBITDA to 4.7%. Proceeding with a solid development force, Reliance Retail has accomplished an income CAGR of 55% and EBITDA CAGR of 76% in the last 5 years.

Reliance Retail had 10,415 retail locations in more than 6,600 towns and urban areas covering a zone of 22.0 million sq. ft. as of March 2019. A record footfall of more than 500 million was witnessed during the year, a development of 44% y-o-y. Reliance Retail is working on plans to dispatch a separate new commerce stage which will empower little shippers across India to contend in a computerized age.

Digital Services - Strong Traction In Subscriber Addition And User Engagement

Reliance Jio has over 400 million users to date and is currently India's biggest portable telecom administrator positioned by Adjusted Gross Revenue (AGR). Jio comes out on top if Average Revenue Per User (ARPU) (126.2/month) is considered along with sound normal voice utilization (823 minutes for every client every month) and normal information utilization (10.9 GB per client every month).

Jio is intending to give a worldwide standard wireline framework and administration in India through FTTH and Enterprise contributions. To quicken this rollout, RIL has made vital investments in Hathway Cable, Datacom Limited, and DEN Networks Limited. Jio likewise keeps on executing its arrangements of building an advanced biological system spreading crosswise over media, excitement, trade, training, human services, and horticulture.

Media - Strengthening Offering Ahead Of Evolving Market Trends

Reliance is focused on offering media content for the Indian market as a feature of its computerized administration's bunch. As a component of this dedication, Reliance is putting resources into the production of unique substance significant for the developing patterns in media utilization. Through possessed substance motors and cooperative organizations, Reliance is building a broad media content library that will take into account all portions of the crowd and dovetail with its wide conveyance stages.

Reliance's media organization Network18 proceeded on its development direction and put resources into key regions to fill blank spaces and sustain its position as a leader.

Advanced Platforms

During the year, Reliance started stage-driven association procedures to tap the noteworthy potential for its organizations to improve proficiency and encourage educated and basic leadership procedures.

Land Developments

RIL went into a Memorandum of Understanding (MoU) with the Government of Maharashtra to build a Global Economic Digital and Services Hub with worldwide associations. RIL through its completely claimed backup has gone into an MoU with NMSEZ to a sub-rent place that is known for around 4,000 sections of land alongside related improvement rights. The project will usher in industry revolution 4.0 in Maharashtra and prompt critical industrial development by offering world-class infrastructure and collaboration with the best of worldwide innovation organizations in the areas of Innovation and Learning, Research and Development, Technological Advancement, and Manufacturing and Service capacities.

Indian Film Combine

RIL through its completely claimed backup has procured a dominant stake in the Indian Film Combine, and it is building a Drive-in Theater, Hotel, Retail Mall, and Clubhouse at Bandra Kurla Complex (BKC) in Mumbai.

JIO World Center

Reliance is also building a best-in-class, world-class convention center, performing arts theater, retail mall, office space, and clubhouse at Bandra Kurla Complex (BKC), Mumbai. These undertakings are planned for making BKC the most alluring retail, entertainment, and cultural area of Mumbai city backed by a world-class convention center.

The last two years were portrayed by unstable, large-scale financial conditions. Adding to vulnerability were higher oil costs in the principal half of the year and expanding geopolitical pressures as the year progressed. Reliance accomplished its best execution in this condition with record commitment from its petrochemicals, retail, and advanced administrations units. "Strong working execution for the year underscored the quality of the petrochemicals business that we have fortified throughout the last speculation cycle. Moreover, our purchaser organizations keep on scaling new statures with industry driving measurements. The adaptability of retail and computerized administration business stages has made an exceptional incentive for all partners," a Reliance representative added.

Revenue And Profit Of Reliance Industries Limited

Reliance accomplished solidified income of INR 6,22,809 crores ($90.1 billion), an expansion of 44.6% when contrasted with INR 4,30,731 crores in the earlier year. The increment in income was fundamental because of volume expansion with the adjustment of petrochemicals undertakings and oil cost-related to increment of refining and petrochemical items. The higher volumes in the petrochemicals business are by virtue of the first entire year of tasks of new petrochemical offices. Reliance's solidified income was bolstered by powerful development in retail and computerized administrations business which recorded an expansion of 88.7% and 94.5% in income individually when contrasted with the earlier year. Reliance Industries Limited reported a 26.2% year-on-year (Y-o-Y) increase in its consolidated net profit for FY22 at INR 67,845 cr. Reliance Industries Limited recorded a 47% Y-o-Y growth in its revenue, which became INR 7.92 lakh crore in FY22. The annual revenue of the digital services business of RIL crossed the 1 lakh crore mark for the first time in FY22. Reliance Industries Limited's digital arm also recorded an all-time high EBITDA of INR 40,268 Cr during the year. The retail business of Reliance also recorded annual revenue of around INR 2 lakh crore and a record annual EBITDA of INR 12,423 cr.

The gross revenue of the Reliance JIO platform increased by 17.1% in FY22, which was recorded at INR 95,804 cr. The net profit of the same increased by 23.6%, which became INR 15,487 cr. The EBITDA of the Jio platforms rose by 20.9%, thereby becoming INR 39,112 cr during FY22.

Now, you might also want to take a look at the list of Startups funded by Reliance through the accelerator program.

What is the history of Reliance company?

The organization was established by Dhirubhai Ambani and Champaklal Damani in the 1960s as Reliance Commercial. It was later renamed as Reliance Industries and diversified into financial services, petroleum refining, and the power sector.

Who is the owner of Reliance?

Dhirubhai Ambani founded the Reliance Group, and Mukesh Ambani is the owner of Reliance Industries Limited.

Who is the CEO of Reliance Industries?

Mukesh Ambani is known as the Reliance Industries CEO.

How much of Reliance does Ambani own?

The Ambani family holds approximately 46.32% of the total shares, whereas public shareholders, including FII and corporate bodies, constitute the remaining 53.68%.

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Case study of Reliance: An unconventional diversification story

With this piece, we take a look at a case study of reliance: An Unconventional Diversification story. It covers everything about the rise of Reliance starting…

“Taking advantage of an opportunity is smart; creating one is excellence.”

In the near future, every management school in the World would be analysing the critical case study of Reliance Industries. The company that surpassed the learnings of a management classroom and rose to become a behemothic conglomerate.

In 2002, after the death of business tycoon Dhirubhai Ambani, there was a tussle between the two sons, Anil and Mukesh, to gain control over the Reliance Empire. Started in 1973, it traversed from polyester business to financial services, infrastructure, power, and communication industry. With a gross turnover of US $13.7 Bn, it was one of the biggest firms in India. It was considered in the same group as the coveted Tatas and Birlas.

The Conception of Jio

Mukesh, the elder brother, was allotted the same assets from his split with Anil. He had entered a pact of a non-competition agreement with him for the telecommunication sector. After the contract expired, he acquired Infotel Broadband in 2010 to enter the telecom market.

By then, Mukesh was the richest man in India and controlled a firm having deep significance in the value chain of the most valuable resource -Oil. It did not take him much to realise that ‘data was going to be the new oil’. Thus in 2012, when RIL Chairman uttered the words, “What has brought us here, will not take us to the future”. Only a few would have anticipated the disruption the man thought of bringing to the Indian Economy.

It just took him 4 years to establish the entire digital infrastructure to launch the world’s cheapest internet service provider, Jio, in September 2016. A brand that has dwarfed all its other competitors and forayed into uncharted waters.

Winning in uncharted waters

In 2016, Mukesh Ambani was ranked 36th in the Forbes world’s wealthiest rankings. His firm, RIL, had a valuation of INR 3.42 lakh crores. It was a time when Indian telecom firms had introduced the 4G technology. But only the affluent class could afford the highly-priced service while the middle class had to track every byte consumed. With over a billion telecom users in India, only 300 Mn were using data-enabled smartphones. There was a huge market that Mukesh could tap. RIL made announcement providing lifetime voice calls and free data for the initial three months (which eventually got extended for three more quarters). This fed on the misery of the incumbent telecom firms while acting as a boon for the complementary product, the smartphones.

Aircel, Reliance Communications, Sistema, Telenor-all ceased to exist in the next few months. And, the ones who survived ended up merging their businesses (Vodafone-idea) or faced a historic decrease in profit margins (Airtel).

The Rise and Rise of Reliance Jio

In 9 months Jio had amassed 108 million users (72 million users who had paid Rs 99 for Jio Prime Membership). Reliance had huge debts from the investments foregone into establishing the entire digital infrastructure. Jio, to sustain loyalty, introduced plans with free calling and high-speed 4G data at the rate of $0.2 per GB. This led the competitors, who were charging $5 per GB, to follow suit.

Jio was one of the fastest-growing telecom firms worldwide. Nevertheless, only the naïve thought that Ambani aspired just to become a telecom giant. If the Internet was privately owned, perhaps Amazon, Alphabet and Facebook will not have been so exciting. Following the same thought, the vision of RIL was not to earn from Jio as a telecom business… But, instead to create an ecosystem which would house all the new modern-age profit-generating businesses.

In 2019, taking advantage of data privatisation matters of the Indian Government… Reliance struck a deal with Microsoft to create data centres in India. Jio, apart from telecom, focused on additional revenue streams as well.

The telecom networks had a fixed source of revenue, whereas, the firms using their bandwidth such as Google, Apple, and Netflix became multi-billion-dollar firms. Jio showed other firms that the entire asset, infrastructure, and licensing costs can be monetised by smart investments. And showcased their vision of creating substantial B2B revenue-generating divisions. Among all the OTT platforms, it is the Jio TV which is the current market leader in terms of downloads. Yes, way ahead than even Netflix or amazon prime. This vertical integration in the value chain reaped benefits as Reliance leveraged its ownership of Viacom18, Balaji telefilms, Eros and Saavn.

Venturing into the Retail Business

This tenacity and challenging behaviour of Mukesh Ambani set the firm apart. Instead of focusing on conventional charge-the-customer for the call, it created an entirely different portfolio of retail chains. This led to even robust growth of Reliance Retail whose 34% of revenue in FY20 came from JIO billing and sim card sales (strong network effects). In the last five years, Reliance Retail has piggybacked on the growth of Jio and quadrupled to 11,784 stores from 2621 stores in 2015. Thus, witnessing substantial revenues from grocery, lifestyle, and fashion segments. However, with all the success still not being enough; Mr Ambani is already financing the deal, as we write, to buy another successful retailer-Future Group founded by Kishore Biyani.

The suitability of this entire diversification can be understood from the fact that in 2020 itself. RIL’s stock price has nearly doubled, and Mr Ambani ranked 4th richest person in the world (he currently ranks 6th richest). All this while the petroleum prices (the OG business) reached its lowest price in the last two decades. In 2007 before the financial crisis, RIL’ shares had a beta value of 0.7, with only Brent crude in its portfolio. Today the figure stands at 0.14 signifying the reducing dependence on oil prices.

From partnering with Facebook (invested $ 5.7 billion for nearly 10% stake) to Google ( about to invest $ 4.5 billion for 7.7% stake in addition to joint development of smartphones) to Amazon (rumoured to be interested in buying a stake in RIL’s retail arm); The business has the vision of absolute domination over a host of Indian Sectors. Mukesh promised its shareholders that RIL would be debt-free by March 2021. By selling 33% stake of Jio’s multiple platforms for an investment of INR 1,52,000 crores, he achieved the feat in 2020 itself.

Future of Reliance Industries

Carrying on this spirit of entering fields with disruptions, Jio is now eyeing creating its 5G network solution. This solution will be competing against the likes of Nokia, Ericsson and ZTE.

The company’s emphasis on becoming a digital leader in domains of AI, ML, IoT, Blockchain, Gaming, Videoconferencing, AR/VR , e-commerce. All supported by Cloud/edge computing is evident from nearly 33+ mergers and acquisitions it has engaged in with most deals in the domain of digital, retail and related verticals. All of this has cost RIL a whopping $3 Billion.

Thus, what followed Jio is nothing short of a revolution which has changed the nation as we know it.

The entry of Jio was a game-changer as it made affordable internet access to all. The billion-dollar start-up valuations, availability of anything at a click. And finally, the Direct Benefit Transfer leading to reductions in corruption – all are some of the indirect outcomes that can be attributed to the Jio. It democratised the opportunities and broke the digital divide between the elites and the commons by bringing data at dirt-cheap prices.

As we were writing this piece.. only a few days back on 18th August, RIL bought a majority stake of 60% in an e-pharmacy start-up called Netmeds for INR 620 crore. The decision was pending for a long time. Netmeds is a licensed e-pharma portal that offers authenticated prescription. It also offers over the counter (OTC) medicine along with other health products in India. The move came after Amazon setup its “Amazon Pharmacy” in Bengaluru setting the stage for a hot contest between Amazon and RIL. Indian E-pharmacy has been witnessing rise post-COVID-19 and with this move, Reliance is now competing with Amazon in every sector.

Final thoughts

From a business perspective, RIL is conventionally an organisation with 90% of its cash flows in the past decade coming from the petrochemical business. Something ubiquitous for the owners of the largest refinery of the world. But in FY20, the firm generated 35% of its cash flows from the consumer business. This was done by combining the power of 387 million strong 4G Jio Subscribers with its modern retail platforms. Today JPL’s valuation is more than the start-ups like Zoom, Uber, Twitter that entered way before Jio in the market. No wonder, it is an organisation which has strategic partners like Microsoft, Google, and Facebook, three of the biggest firms in the world.

The authors of this piece are Shshank Pandey and Ankit Thakur , students at XLRI Jamshedpur. If you liked the piece, go ahead and share it on WhatsApp or Twitter . We’ve also created an HD Infographic that summarizes some bits of this story, you can get it by signing up .

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Reliance Industries is India’s largest company in terms of market cap (as of 7 Feb 2024) and is involved in energy, refining, textiles, retail, and telecommunications business. Incorporated by the famous tycoon Mr. Dhirubhai Ambani and managed by Mr. Mukesh D. Ambani. It is the 100th largest company worldwide. As of 7 Feb 2024, Reliance Industries market cap stood at INR19.05 lakh crore.

Here are the quick stats about the Reliance Industry:

Marketing Strategy

Reliance Industries Limited has a wide range of target audiences to serve. So, let us understand how the company serves its offerings using the Marketing Mix Model framework, which covers understanding its product, pricing, advertising, & distribution strategies.

Product Strategy

Reliance Industries, one of India’s largest conglomerates, spans various sectors and accounts for 20% of the nation’s exports. Its portfolio includes Reliance Fresh, Reliance Trends, Reliance Mart, and more.

Pricing Strategy

Reliance Industries follows different pricing strategies for different sectors. This company follows the pricing penetration for retail, telecommunications, and health. When Reliance launched Jio, it offered free services to its customers to enhance its market share.

The telecommunications industry was at a loss, but Jio still decided on providing unprecedented offers to customers to increase their customer base. This led to a complete revolution in the industry as smaller players could not fight such a rough battle and hence had to shut shop. Outlets such as Reliance Fresh provide products directly to the consumer at a discounted price. Reliance Industries focuses on pricing analysis before making a price decision. This strategy has helped them gain unrivalled positions in the industry.

Place & Distribution Strategy

Reliance Industries has a strong presence throughout the nation. Reliance Retail is the largest retailer with more than 1500 stores in the country, and other brands such as Reliance Fresh, Reliance Footprint, and Reliance Digital have reached Tier 1 and Tier 2 cities. While Tier 3 is still majorly yet to experience the wonders of the company.

Promotion & Advertising Strategy

The promotional strategy of the Reliance industry is a mix of all types of theories, including pamphlets, ads, and word of mouth. Reliance also focused on 360 branding and brand promotion. They use the tagline “Growth is Life” and have encapsulated their sentiments about taking people together.

Reliance Industries Limited owner Mukesh Ambani also acquired the rights of the Mumbai Indians for 10 years, bringing the Reliance brand to the limelight. After that, Jio launched in the market with the hashtag #DigitalIndia, which encourages youth to be digitally active. Reliance Industries’ success factor for Jio ensuring the deliverables to their consumers to make them habituated to the service, which impacted their competitors in ways they hadn’t even imagined!

Marketing Campaign

Reliance marketing campaigns keep the brand presence alive in consumers’ minds and build trust, which directly impacts the goodwill of the company. Let’s get into the market campaigns of Reliance:

• Reliance Jio launched a campaign named Jio Dhana Dhan in 2017. This campaign is still ongoing and holds the market with their new updated products and services.
• Reliance Retail enhanced its advertisement volume after the pandemic to retain audience attention.
• For its marketing campaigns, Reliance Digital mainly focuses on showcasing the latest technology products, features, and services available at its stores. One of the recent ad video campaigns was named “Technology se Rishta Jodo”. This ad was a big hit on the internet, with 9m+ views, and it even got many positive comments.

SWOT Analysis

Let’s move into the SWOT analysis of Reliance Industries. It includes a deep study of the company’s strengths, weaknesses, opportunities, and threats.

• Reliance Industries is India’s biggest conglomerate company in terms of revenue and profitability. It is a well-known brand across the globe.
• It is diversified into several businesses like telecom, retail, petroleum, media, and many more. This reduces the effect of seasonality on the company’s performance.
• The company is successful because they have a holistic approach to growth and progress. This has been demonstrated by their decades of complete dominance over people’s hearts.
• Reliance Industries is also heavily involved in CSR activities like sustainable development, education, healthcare, uplifting the financially unfortunate, girl child protection, etc.
• Reliance Industries’ market position is hard to maintain when it comes to high competition in the market. However, this risk is somewhat minimized due to the company’s dynamic and competent management.
• The company also faced controversies and conflicts such as stock manipulation, the Krishna Godavari Basin gas issue, etc. While many of these controversies turned out to be hoaxes, they still hold enough power to materially affect the stock price.

Opportunities

• Reliance Industries also partnered with other brands to expand their business, by using small-scale manufacturers to meet high demand during peak seasons.
• To avoid competition, Reliance Industries should consider buying small and weak players in the industries. This tactic has also proven quite effective in consistently increasing its profits.  
• Tying up with the global oil industry players will help the Reliance industry to boost its oil business.
• In recent times, Reliance Industries’ sales growth rate has declined. This could be taken as nothing more than a hiccup or the beginning of a trend.
• High competition from big conglomerates such as Adani can reduce Reliance’s market share in some sectors.

There is no doubt that, at the moment, Reliance is the largest public company in India, with a strong brand image and brilliant marketing strategies. Reliance Industries is leading in various sectors like petroleum, oil, retail, and gas because of its product quality and efficiency. 

Reliance Industries’ growth motto is “Growth is life”. Their marketing strategies, such as 360 branding and strategic partnerships, have contributed to their success. However, many segments operate in a competitive environment, which could dampen the revenue growth of the company in the long term. In summation, always do a thorough research before investing in the company and consult your financial advisor.

Frequently Asked Questions (FAQs):

1. Who is the owner of Reliance Industries?

Ans. Mr. Mukesh Ambani

2. What type of company is Reliance Industries?

Ans. It is an Indian multinational conglomerate headquartered in Mumbai.

3. What are the products of Reliance Industries?

Ans. Reliance Industries has a long list of products ranging from textiles, petroleum, refining, telecommunications, groceries, and many more.

4. When was the Reliance Industries founded?

Ans. The company was founded in 1958.

5. Which companies come under Reliance Industries?

Ans: Reliance Retail, Jio, Reliance Fresh, Reliance Foundations, Reliance Trends, Reliance Digital, and many more. Disclaimer:  The securities, funds, and strategies mentioned in this blog are purely for informational purposes and are not recommendations.

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Reliance Industries

India’s juggernaut.

R eliance Industries was founded as a textile and polyester company 58 years ago by Dhirubhai Ambani. Today the sprawling conglomerate—which has aligned its growth with Indian Prime Minister Narendra Modi’s vision for a “self-reliant” India—is the country’s most valuable company, with a market capitalization of more than $200 billion. Now led by Ambani’s son Mukesh, the Mumbai-based company has ventures in energy, retail, and telecommunications, among others, and has made its chairman Asia’s richest man. In February, Reliance came out on top in a fiercely competitive race to dominate India’s burgeoning streaming market by striking a $8.5 billion merger deal with Disney’s India business. The deal will bring together more than 100 television channels and give the combined group around a 31% share of India’s streaming market compared to rivals Netflix and Amazon Prime with 8% each, according to analytics firm Comscore.

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Case Study 14: Reliance Indian Limited (RIL): Growth Through Innovation?

• First Online: 09 September 2016

Cite this chapter

• Sudeepta Pradhan 4 &
• Sanjit Kumar Roy 5  

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As per a study by the Varkey Foundation in partnership with UNESCO reported on January 16, 2015, Reliance Industries Limited (RIL) was quoted to have spent a huge sum of USD 5.4 million on education related Corporate Social Responsibility (CSR) activities. RIL ranks the 80th position the top-100 list as per the world’s first comprehensive study in the global corporate education CSR spends. Incidentally, RIL was the first Indian private sector company to post a profit of USD 1 billion net profit in a quarter (Press Trust of India. Mukesh Ambani-led Reliance Industries Ltd becomes first private company to post USD 1 billion quarterly net profit, July 19, 2014, Retrieved from http://indianexpress.com/article/business/companies/reliance-industries-q1-net-profit-up-13-7-per-cent-beats-estimates/ ). It also spent over INR 700 crore of its net profit on CSR in the year 2013–2014 a major portion of it in healthcare and rural development initiatives. The 2014 annual report of RIL reported an expenditure of 3.24 % of its net profits. 59 % of the total INR 712 crore was spent on healthcare, 23 % for rural development, 11 % on education for poor children, and 7 % on other social activities. The new Companies Bill that was passed in the previous fiscal year mandates every firm with a net worth of Rs. 100 crore to spend a minimum of 2 % of their 3-year average annual net profits for CSR activities. During the year 2014–2015, the CSR activities of RIL affected over 1 million lives, across 5500 locations and over 407,000 farmers. RIL was in news in 2013 for being a potential CSR leader.

“At Reliance, business priorities co-exist with social commitments and our activities support inclusive growth”……. “ Our fundamental belief is that for us growth is a way of life and we have to grow at all times.” —Mukesh D. Ambani, Chairman and Managing Director, RIL The life of a business and the lives of its stakeholders are interdependent. At Reliance we consciously develop and nurture relationships across the entire range of stakeholders. This helps us understand pertinent issues, develop our businesses, enhance shareholder value and manage risks better. It is the relationship, trust and commitment to stakeholder interest and the warm reciprocal of the same by the stakeholders that makes Reliance robust, resilient and sustainable ( http://www.ril.com/DownloadFiles/SustainiabilityReports/RIL_CSR_2006.pdf ).

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Press Trust of India ( 2015 ).

Press Trust of India ( 2014 )

PTI ( 2014 )

Subramanian and Mulgaonkar ( 2013 )

Bhasin ( 2015 )

www.ril.com/html/aboutus/about_brands

www.ril.com/html/aboutus/aboutus.html

http://www.ril.com/ar2014-15/RIL%20AR%202014%20-15.pdf

http://www.ril.com/DownloadFiles/SustainiabilityReports/RIL_SR2007_08.pdf

http://www.ril.com/getattachment/d5fd70ef-e019-47e5-bb83-de2077874505/Corporate-Social-Responsibility-Policy.aspx

RIL aims to continue its efforts to build on its tradition of Social Responsibility to empower people and deepen its engagement with a view to improve lives, living and livelihood of millions on a sustainable basis.

www.reliancefoundation.org/aboutus.html

www.ril.com/html/aboutus/our_commitments

www.relianceadagroup.com/ada/corporate

http://www.ril.com/DownloadFiles/SustainiabilityReports/ril_sr2013_14.pdf

Stakeholders include shareholders, customers, suppliers, employees, regulatory authorities, local community, trade unions, NGOs and contractors, investors and opinion leaders to name a few.

Gujarat Safety Council is an NGO committed to creating awareness and cultivating a safety culture among the people of Gujarat for the last 30 years.

www.karmayog.org/csr501to1000/csr501to1000_21458.htm

Kanya Kelvani : The Kanya Kelavani is a flagship program of the Government that encourages formal education with special focus on the girls, amidst celebratory claims of 0 % dropout rates being attained in several districts in Gujarat.

www.ril.com/html/aboutus/social_resp_comm_dev

Life Line Foundation : The Lifeline Foundation works towards ensuring that there are no deaths in the cities or on the highways of India, due to lack of timely medical aid. It is a registered NGO that pioneered emergency medical services on the highways and cities of India.

Gujarat Engineering Research Institute (GERI) : The GERI, Vadodara established in 1960 is a premier R&D Institute of Government of Gujarat engaged in investigations, testing and R&D activities in almost all the fields of Civil Engineering. The main laboratories of the Institute is located at Vadodara and deals in subjects of Material Testing, Soil Mechanics, Geo-mechanics, Geology, Hydraulic Model Study, Sedimentation Survey and Road Research Study. The institute deals with various research projects and testing of various material and final products like cement concrete, mortar, etc.

Gokul Gram Yojana (GGY): The main objectives of the GGY are to provide basic amenities, Increase employment opportunities, Integrate development schemes, Integrate people participation in the development process, Idolize the feeling of community partnership and help create villages with clean environment, beautiful surrounding and having basic amenities within a stipulated frame.

Swajaldhara Scheme: The scheme provided drinking water by laying pipeline in neighboring villages.

Bhasin, H. (2015). Marketing mix of Reliance industries – Reliance industries marketing mix , December 20, 2015. Retrieved from http://www.marketing91.com/marketing-mix-of-reliance-industries-reliance-industries-marketing-mix/

Press Trust of India (2014). Mukesh Ambani-led Reliance Industries Ltd becomes first private company to post USD 1 billion quarterly net profit , July 19, 2014. Retrieved from http://indianexpress.com/article/business/companies/reliance-industries-q1-net-profit-up-13-7-per-cent-beats-estimates/

Press Trust of India (2015). RIL, ONGC on top-100 global list for education CSR spending , January 16, 2015. Retrieved from http://www.business-standard.com/article/pti-stories/ril-ongc-on-top-100-global-list-for-education-csr-spending-115011600866_1.html

PTI (2014). Reliance Industries Ltd spends over Rs 700 crore on CSR in FY’14 , May 20, 2014. Retrieved from http://articles.economictimes.indiatimes.com/2014-05-20/news/49974739_1_reliance-industries-ltd-csr-activities-reliance-foundation

Subramanian, N. S., & Mulgaonkar, S. (2013). ONGC, RIL top list of potential CSR leaders , January 2, 2013. Retrieved from http://www.business-standard.com/article/companies/ongc-ril-top-list-of-potential-csr-leaders-113010200201_1.html

Web Sources

www.karmayog.org

www.relianceadagroup.com

www.reliancefoundation.org

www.ril.com

www.marketing91.com

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Author information

Authors and affiliations.

IBS, Hyderabad, Hyderabad, Telangana, India

Sudeepta Pradhan

Department of Marketing (M263), The University of Western Australia, Perth, Australia

Sanjit Kumar Roy

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Corresponding author

Correspondence to Sudeepta Pradhan .

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Editors and affiliations.

Department of Marketing (M263), The University of Western Australia, Perth, West Australia, Australia

Department of Marketing and Advertising, Coventry University Business School, Coventry, United Kingdom

Dilip S. Mutum

Department of Marketing, East China University of Science and Technology, Shanghai, China

Bang Nguyen

Appendix 1: CSR Activities of RIL in Detail

CSR teams of RIL work vehemently to support the educational requirements of schools in the neighboring regions benefiting the underprivileged students of the society. RIL has a group of 9 schools that cater to 13,251 students all across India. Footnote 20 It also played a major role to support the Government’s initiative to educate the girl child, with projects like “Kanya Kelvani Footnote 21 ” (in Gujarat). A partnership with UNESCO/BBC was initiated to benefit schools with the latest training aids. Footnote 22

RIL built Community Medical Centers near its manufacturing divisions to provide inclusive health services to neighboring villages. It’s Project ‘Drishti’ was an unique initiative of RIL in association with the National Association of Blind, helped conduct over 9000 free corneal graft surgeries to the underprivileged segment of the society. RIL also partnered with the Government, NGOs and several agencies to combat TB, HIV/AIDS. The Jamnagar Manufacturing Division provides nutrition and medicines to HIV infected children through the ‘Project Balkalyan’. The Dhirubhai Ambani Hospital (Lodhivali, Maharashtra) plays a major role in improve the quality of life in its surrounding areas. It provides timely and specialized aid to accident victims of Mumbai-Pune highway and provides them with free lifesaving treatment. The Nagothane Manufacturing Division provides free out-patient treatment to nearby tribal people living in hill tops, and helped build roads to the hilltops making it motorable to the village Gangawane. The Early Intervention and Rehabilitation Center established by RIL to support mentally challenged children residing in the areas of Tallarevu Mandal and Yanam.

Safety Initiatives for Community

RIL’s Hazira Manufacturing Division institutionalized safety training, helping over 158,000 tanker/truck drivers. The Division collaborated with ‘Life Line Foundation Footnote 23 ’ adopting a 110 km stretch on the State Highway in Gujarat spanning from Sachin to Bharuch to provide care to victims of highway accidents.

Environment Initiatives for the Community

As a part of its cleanliness drive, a ‘zero garbage’ drive was commenced in Reliance Townships to popularize waste management in Surat and in villages surrounding the Hazira Manufacturing Division. To reduce plastic litter, RIL facilitated a direct sale of waste PET bottles to processing units. It partnered with the Gujarat Engineering Research Institute Footnote 24 to construct a 900 m long road using 5 % plastic waste. The CSR team used non-recyclable plastic waste to construct tar roads that reduced construction costs and improved the quality of the road, road life, and resulted in low road maintenance. RIL tried creating awareness among rural folks to use alternate energy and efficient energy usage. The Division declared a ‘Green Idea Award Scheme’ in the year 2010, to encourage innovation amongst students of Surat/RIL employees.

Community Development

The Reliance Rural Development Trust started 797 works in 760 villages of Gujarat to improve infrastructure under the Gokul Gram Yojana. Footnote 25 478 Anganwadi buildings, 58 concrete roads, 61 underground sumps were completed in the financial year 2010–2011. RIL developed street lights; constructed bus sheds, roads, solar street lights in villages; and provided free supply of blankets etc. Further, free drinking water was supplied to neighboring villages during periods of water shortage.

Livelihood Support Programs

Divisions like Hazira, Vadodra, Gadimoga offer training programs to various Self Help Groups to help rural women to be “self sustaining” and earn income to sustain their families. RIL offers courses in dress designing, health care, beauty, hospital attendant etc. The youth are offered courses in hand pump repairing, plumbing, driving, hardware repair, mobile repairing etc. Farmers were also provided training in horticulture cultivation and fruit saplings.

Improving Quality of Agricultural Produce

Several exhibitions were conducted for farmers to circulate advanced technologies for production; storage and distribution of agricultural products; and promotion of Leno bags amongst farmers. RIL also provided solutions for banana farmers, especially those engaged in exporting their products.

Heritage Conservation and Culture

RIL was passionately involved in development of religious places such as Dwarka, Sudama Setu (a bridge connecting both the two banks of river Gomati); Shardapeeth of Jagadguru Shankaracharyaji; the Dhirajdham at Nathdwara Temple. RIL distributed gifts to girls during the Navratri festival and was also associated in providing financial assistance to institutions organizing Navratri. Financial assistance was provided for festivals like Durga puja, Shivratri, Sardar Patel’s birth anniversary during the financial year 2010–2011.

Promoting Sports and Sportsmen

RIL is continuously involved in promoting and supporting sports and sportsmen and supports G1 Cricket Tournament, Reliance Inter-Cricket Tournament, Central Board of Cricket, Jamnagar District Football Association and Gujarat State Football Association etc.

Supporting Institutions

The Dahej Manufacturing Division of RIL financially supported the ‘Swajaldhara Scheme’, Footnote 26 and to educational institutions like: Consumer Education and Research Council (CERC), Centre for Environmental Planning and Technology (CEPT), MP Shah Medical College, Gramshree Trust etc.

Teaching Note

Topics: corporate, business and marketing strategy.

Case Synopsis —Business strategy of RIL focuses on sustainable development as a key factor of profitable growth. RIL uses a dialogue between the company and its stakeholders to implement its CSR strategy. It uses the concept of ‘ growth through innovation ’ as a differentiating factor that would help the firm with huge competitive advantage. It intends to make long term profits by implementing sustainable solutions, effective talent management, and innovation and R & D facilities. RIL implements its CSR activities directly as well as in partnership with experts in the area. In case of direct engagement the initiatives are conceptualized and executed through a team of RIL professionals directly. It enters into a partnership with organizations having the technical expertise and experience to perform activities in the core focus areas of operation, to improve outcomes. RIL is also intrinsically involved in stakeholder engagement as a part of its strategy.

Keywords : Business Strategy, CSR, Sustainable Development, Stakeholder engagement, India

Teaching objectives

The case intends to discuss concepts such as:

Marketing strategies;

Promotion strategies;

Stakeholder engagement and its advantages;

Level of program where the case is to be taught

The case can be effectively used to teach at postgraduate and executive level program.

Suggested assignment questions

What are the potential advantages of CSR?

Can CSR be effectively used as a strategy?

Given the wide range of industries RIL owns, should they go for a common strategy that ‘ fits all ’ or have a different strategy for every business unit separately?

Suggested readings

Societal marketing

Marketing Management by Kotler, Keller, Koushi, Jha

Suggested discussion questions with answers

What are the various marketing strategies of RIL?

Product concept strategies

The four distinct stages in product life cycle-marketing strategies

Market pioneering stage during the market pioneering stage,

Market growth stage during the market growth stage

Market maturity stage

Market decline stage

Product line decision

Channel of distribution/Place strategies

Types of channel of distribution

Pricing strategies

Skimming price

High price for product quality leadership

Marginal cost pricing marginal pricing

Perceived value pricing

Value pricing

Pricing according to the customer ability to pay

Product mix pricing

Competition oriented pricing

Tender pricing product line pricing

Competition pricing

Penetration pricing

Tools of promotional mix

Advertising

Sales promotion

Public relations

Can CSR act as a source of competitive advantage and sustainable growth?

Yes through proper stakeholder dialogue and by addressing key stakeholder needs. NOTE: Students can be asked to discuss and debate on the pros and cons of CSR to get a holistic view.

Can CSR act as a point of differentiation and an effective marketing strategy?

CSR can act as a differentiating factor for customers who tend to believe that they are socially active when they purchase from such firms. Therefore, CSR related advertisements should be effectively designed to appeal such customers.

Is stakeholder engagement an effective promotion strategy?

Potential uses of the case

The case intends to clarify the benefits of implementing CSR by a company, and how CSR has strategic impacts in sustainable growth of the company.

Suggested teaching approach

Interactive

Proposed Session Plan

For a session of 90 min:

Initial 10 min can be used to discuss the business of RIL and its history

10 min—The Indian economy

20 min—Discussion on CSR

15 min—Advantages of CSR and is it a source of competitive advantage?

10 min—Sustainable development through CSR

10 min—CSR as a Strategy?

10 min—Strategies of RIL and their effectiveness

5 min—Suggestions for RIL

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About this chapter

Pradhan, S., Roy, S.K. (2017). Case Study 14: Reliance Indian Limited (RIL): Growth Through Innovation?. In: Roy, S., Mutum, D., Nguyen, B. (eds) Services Marketing Cases in Emerging Markets. Springer, Cham. https://doi.org/10.1007/978-3-319-32970-3_17

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Case Study: Reliance Industries Limited

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Water conservation by industry - A case study of Reliance Industries Limited (Dahej)

The various initiatives taken up include utilising backwash water for developing Jatropha plantations, recovering waste water, ground water recharging, utilisation of waste steam and reducing steam consumption, increasing cycle of concentration in all cooling towers and more.

These efforts resulted in a 17.5% reduction in specific water consumption and a 20.8% reduction in specific waste water discharge.

This work won the CII-GBC National Award (Within the Fence Category) for Excellence in Water Management in 2008.

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Reliance Industries earns spot on TIME's World's Most Influential Companies 2024 list

This marks the second time reliance industries has been honoured by time, with jio platforms previously featured in the inaugural 2021 list. reliance stands out as the only indian company to be included twice, highlighting its significant contributions to the global business landscape..

Reliance Industries Limited (RIL) has been named one of the World's Most Influential Companies by TIME magazine, making its second appearance in the TIME 100 list. The recognition places Reliance in the ‘Titans’ category, highlighting its transformative impact on various sectors in India and beyond.

In its latest listing, TIME hailed Reliance as “India’s Juggernaut,” highlighting its evolution from a textile and polyester company founded 58 years ago by Dhirubhai Ambani into India’s most valuable company with a market capitalisation exceeding $200 billion.

“Today the sprawling conglomerate — which has aligned its growth with Indian Prime Minister Narendra Modi ’s vision for a ‘self-reliant’ India — is the country’s most valuable company, with a market capitalization of more than $200 billion,” the publication said.

Under the  leadership of Chairman Mukesh Ambani , Reliance Industries has made waves in several sectors, making world-class products and services accessible to millions. Key initiatives include:

• Jio Platforms: Revolutionised India’s digital landscape by providing the most affordable mobile data tariffs globally, fostering unprecedented digital inclusion.
• Refining Complex: Established the world’s largest single-location refining complex.
• Reliance Retail: Ranked among the top 100 global retailers, with over 1.06 billion footfalls across 18,800+ stores in FY2024, 67% of which are in small towns and villages.
• New Energy and Materials: Investments of $10 billion in developing a comprehensive ecosystem for new energy and new materials in India, aiming for a sustainable future.
• Net Zero Ambition: Set an ambitious goal to achieve net zero carbon emissions by 2035.
• Reliance Foundation: Led by Founder Chairperson Nita M. Ambani, the foundation has impacted over 76 million lives across more than 55,550 villages and urban locations in India.

In addition to Reliance, two other Indian companies were recognised in the TIME 100 list. The Tata Group was also featured in the ‘Titans’ category, while the Serum Institute of India was honoured in the ‘Pioneers’ category.

This year’s TIME 100 Most Influential Companies list, the fourth annual edition, celebrates businesses that are making an extraordinary impact globally, it said. The selection process involved nominations from various sectors, input from TIME’s global network of contributors, correspondents, and outside experts, and evaluations based on impact, innovation, ambition, and success, it added.

The full TIME 100 Companies list will be featured in the June 10, 2024, issue of TIME, available on newsstands starting Friday, May 31.

Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

Reliance Industries recognized as one of world's most influential companies by TIME

M umbai (Maharashtra) [India], May 30 (ANI): Reliance Industries Limited (RIL) has been named one of TIME 's 100 World's Most Influential Companies of 2024. This marks the second time the conglomerate has received this honour, previously being recognized in the inaugural list in 2021 for its subsidiary, Jio Platforms.

According to a press release, Reliance now holds the unique distinction of being the only Indian company to have been included twice in this elite list.

Reliance Industries has been categorized under the 'Titans' section in the latest edition of TIME 's influential companies list.

TIME lauded the company, describing it as ' India's Juggernaut .' The publication highlighted the company's origins, tracing back to its foundation as a textile and polyester enterprise 58 years ago by Dhirubhai Ambani, and its evolution into India's most valuable company with a market capitalization exceeding USD 200 billion.

The company's alignment with Prime Minister Narendra Modi's vision for a " self-reliant " India was also noted.

Under the visionary leadership of Chairman Mukesh Ambani, Reliance Industries has been a pioneering force in various sectors, driving innovation and inclusivity.

Jio Platforms has revolutionized India's digital landscape, making mobile data affordable and accessible, thus driving unprecedented digital inclusion.

The establishment of the world's largest single-location refining complex, positioned Reliance as a global leader in refining capabilities.

Reliance Retail, now among the top 100 global retailers, registered 1.06 billion footfalls in FY2024 across its 18,800+ stores, with 67 per cent located in small towns and villages.

A substantial USD 10 billion investment is being directed towards building an extensive ecosystem for New Energy and New Materials in India, aiming for a sustainable future.

The company has set an ambitious target to achieve net zero carbon emissions by 2035 and is implementing various strategies to reach this goal.

Under the guidance of Founder Chairperson Nita M Ambani, Reliance Foundation has positively impacted over 76 million lives across 55,550 villages and urban areas in India.

Reliance Industries ' recognition by TIME underscores its contributions to India's economy and its broader influence on global markets.

The inclusion in the TIME 100 list aligns with its ethos of innovation, ambition, and success.

Alongside Reliance, two other Indian companies made it to the TIME 100 Most Influential Companies list of 2024.

The Tata Group, also listed under the 'Titans' category, and the Serum Institute, recognized under the 'Pioneers' category, reflect the growing global influence of Indian enterprises.

This year's list, the fourth edition, emphasizes companies making extraordinary impacts worldwide. The selection process involved nominations across sectors, with evaluations based on impact, innovation, ambition, and success, conducted by TIME editors in consultation with global contributors and experts. (ANI)