Reliance Industries facts for kids
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Formerly
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Reliance Commercial Corporation (1958–1966) Reliance Textiles and Engineers (1966–1973) Reliance Industries Limited (1973–present) |
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| Traded as | |
| ISIN | ISIN: [https://isin.toolforge.org/?language=en&isin=INE002A01018 INE002A01018] |
| Industry | Conglomerate |
| Founded | 1958 |
| Founder | Dhirubhai Ambani |
| Headquarters |
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India
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Area served
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Worldwide |
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Key people
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Mukesh Ambani (Chairman & Managing Director) |
| Products | |
| Revenue |  ₹1,000,122 crore (US$170 billion) (2024) |
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Operating income
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₹104,340 crore (US$18 billion) (2024) |
| ₹79,020 crore (US$13 billion) (2024) |
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| Total assets | ₹1,755,986 crore (US$300 billion) (2024) |
| Total equity | ₹925,788 crore (US$160 billion) (2024) |
| Owner |
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| Subsidiaries |
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Reliance Industries Limited is an Indian multinational conglomerate headquartered in Mumbai. Its businesses include energy, petrochemicals, natural gas, retail, entertainment, telecommunications, mass media, and textiles. Reliance is the largest public company in India by market capitalisation and revenue, and the 100th largest company worldwide. It is India's largest private tax payer and largest exporter, accounting for 7% of India's total merchandise exports. The company has relatively little free cash flow and high corporate debt.
The company has attracted controversy for reports of political corruption, cronyism, fraud, financial manipulation, and exploitation of its customers, Indian citizens, and natural resources. Its chairman, Mukesh Ambani, has been described as a plutocrat.
Contents
History
1958–1980
Reliance Commercial Corporation was set up in 1958 by Dushyant Corporation (DC Group of Company) as a small venture firm trading commodities, especially spices and polyester yarn. In 1965, the partnership ended and Dhirubhai continued the polyester business of the firm. 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. On 8 May 1973, it became Reliance Textiles Industries Limited. 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. The issue was over-subscribed by seven times. In 1979, a textiles company Sidhpur Mills was amalgamated with the company. In 1980, the company expanded its polyester yarn business by setting up a Polyester Filament Yarn Plant in Patalganga, Raigad, Maharashtra with financial and technical collaboration with E. I. du Pont de Nemours & Co., U.S.
1981–2000
In 1985, the name of the company was changed from Reliance Textiles Industries Ltd. to Reliance Industries Ltd. During 1985 to 1992, the company expanded its installed capacity for producing polyester yarn by over 145,000 tonnes per annum.
The Hazira petrochemical plant was commissioned in 1991–92.
In 1993, Reliance turned to the overseas capital markets for funds through a global depository issue of Reliance Petroleum. In 1996, it became the first private sector company in India to be rated by international credit rating agencies. S&P rated Reliance "BB+, stable outlook, constrained by the sovereign ceiling". Moody's rated "Baa3, Investment grade, constrained by the sovereign ceiling".
In 1995/96, the company entered the telecom industry through a joint venture with NYNEX, USA, and promoted Reliance Telecom Private Limited in India.
In 1998, Reliance took over Indian Petrochemicals Corporation Limited during privatization of public sector enterprises.
In 1998/99, RIL introduced packaged LPG in 15 kg cylinders under the brand name Reliance Gas.
The years 1998–2000 saw the construction of the integrated petrochemical complex at Jamnagar in Gujarat, the largest refinery in the world.
2001 onwards
In 2001, Reliance Industries Ltd. and Reliance Petroleum Ltd. became India's two largest companies in terms of all major financial parameters. In 2001–02, Reliance Petroleum was merged with Reliance Industries.
In 2002, Reliance announced India's biggest gas discovery (at the Krishna Godavari basin) in nearly three decades and one of the largest gas discoveries in the world during 2002. The in-place volume of natural gas was more than 7 trillion cubic feet, equivalent to about 120 crore (1.2 billion) barrels of crude oil. This was the first-ever discovery by an Indian private sector company.
In 2002–03, RIL purchased a majority stake in Indian Petrochemicals Corporation Ltd. (IPCL), India's second largest petrochemicals company, from the government of India, RIL took over IPCL's Vadodara Plants and renamed it as Vadodara Manufacturing Division (VMD). IPCL's Nagothane and Dahej manufacturing complexes came under RIL when IPCL was merged with RIL in 2008.
In 2005 and 2006, the company reorganised its business by demerging its investments in power generation and distribution, financial services and telecommunication services into four separate entities.
In 2006, Reliance entered the organised retail market in India with the launch of its retail store format under the brand name of 'Reliance Fresh'. By the end of 2008, Reliance Retail had close to 600 stores across 57 cities in India.
In November 2009, Reliance Industries issued 1:1 bonus shares to its shareholders.
In 2010, Reliance entered the broadband services market with acquisition of Infotel Broadband Services Limited, which was the only successful bidder for pan-India fourth-generation (4G) spectrum auction held by the government of India. In the same year, Reliance and BP announced a partnership in the oil and gas business. BP took a 30 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. Reliance also formed a 50:50 joint venture with BP for sourcing and marketing of gas in India.
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. Reliance also formed a 50:50 joint venture with BP for sourcing and marketing of gas in India.
In 2017, RIL set up a joint venture with Russian Company Sibur for setting up a Butyl rubber plant in Jamnagar, Gujarat, to be operational by 2018.
In August 2019, Reliance added Fynd primarily for its consumer businesses and mobile phone services in the e-commerce space.
In December 2022, Reliance Industries Market cap stood at Rs.17,59,017.23 crore.
In February 2024, Reliance Industries Ltd. and The BharatGPT group announced that it will launch large language model (LLM), Hanuman's AI system in March 2024. The model will work in 11 local languages in four major areas: health, governance, financial services and education.
In March 2024, Reliance Industries partnered with Disney to introduce Reliance-Disney OTT platform.
The number of shares of RIL are approx. 644.51 crore (6.44 billion). The promoter group, the Ambani family, holds 50.39% of the total shares whereas the remaining 49.61% shares are held by public shareholders, including FII and corporate bodies. Life Insurance Corporation of India, public section company, is the largest non-promoter investor in the company, with 6.49% shareholding.
In January 2012, the company announced a buyback program to buy a maximum of 12 crore (120 million) shares for ₹10,400 crore (US$1.5 billion). By the end of January 2013, the company had bought back 4.62 crore (46.2 million) shares for ₹3,366 crore (US$570 million).
Listing
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 London Stock Exchange. It has issued approx. 5.6 crore (56 million) GDRs wherein each GDR is equivalent to two equity shares of the company. Approximately 3.46% of its total shares are listed on Luxembourg Stock Exchange.
Its debt securities are listed at the Wholesale Debt Market (WDM) Segment of the National Stock Exchange of India Limited (NSE).
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. On 28 December 2017, RIL announced that it will be acquiring the wireless assets of Anil Ambani-led Reliance Communications for about ₹23,000 crores.
Operations
The company's petrochemical, refining, and oil and gas-related operations form the core of its business; other divisions of the company include cloth, retail, 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.
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 and manufacture equipment and components, including aircraft, engine, radars, avionics and accessories for military and civilian aircraft, helicopters, unmanned airborne vehicles, and aerostats.
As of March 2023, the company had 254 subsidiary companies and 15 associate companies.
Subsidiaries
Jio Platforms
Jio Platforms Limited, essentially a technology company, is a majority-owned subsidiary of RIL. It has a valuation of more than $100 billion on expert view as of October 2022.It is the result of a corporate restructuring announced in October 2019, resulting in all the digital initiatives and the telecommunication assets being housed under this new subsidiary. This new subsidiary holds all the digital business assets including Reliance Jio Infocomm Ltd, which in turn holds the Jio connectivity business - mobile, broadband and enterprise, and also the other digital assets (JIO Apps, Tech backbone and Investments in other tech entities like Haptic, Hathaway and Den Networks among others). In April 2020, RIL announced a strategic investment of ₹43,574 crore (US$7.4 billion) by Facebook into Jio Platforms. This investment translated into a 9.99% equity stake, on a fully diluted basis. Further in May 2020, RIL sold roughly 1.15% stake in Jio Platforms for ₹5,656 crore (US$960 million) to the American private equity investor, Silver Lake Partners. Intel became the 12th company to invest in Reliance Jio platforms after it invested ₹1,894.50 crore ($250 million), the total investments in Jio platforms is ₹117,588.45 crore so far. On 16 July 2020, Google announced that it will acquire a 7.7% stake in Jio Platforms for ₹33,737 crore. Mukesh Ambani has named his son, Akash Mukesh Ambani as the chairperson of Jio in 2022.
Reliance Retail
Reliance Retail is the retail business wing of the Reliance Industries. In March 2013, it had 1466 stores in India. It is the largest retailer in India. Many brands like Reliance Fresh, Reliance Footprint, Reliance Time Out, Reliance Digital, Reliance Wellness, Reliance Trends, Reliance Autozone, Reliance Super, Reliance Mart, Reliance iStore, Reliance Home Kitchens, Reliance Market (Cash n Carry) and Reliance Jewel come under the Reliance Retail brand. Its annual revenue for the financial year 2012–13 was ₹108 billion (US$1.8 billion) with an EBITDA of ₹780 million (US$13 million). Its market value is more than $60 billion. Mukesh Ambani stepped down from the position of chairperson of Reliance Retail and handed over the job to his daughter Isha Ambani Piramal. Ambani announced it during the 45th Reliance AGM, in 2022. As per reports, this act is a part of Ambani's leadership transition.
Reliance Industrial Infrastructure
Reliance Industrial Infrastructure Limited (RIIL) is an associate company of RIL. It was incorporated in September 1988 as Chembur Patalganga Pipelines Limited, with the main objective being to build and operate cross-country pipelines for transporting petroleum products. The company's name was subsequently changed to CPPL Limited in September 1992, and thereafter to its present name, Reliance Industrial Infrastructure Limited, in March 1994. RIIL is mainly engaged in the business of setting up and operating industrial infrastructure. The company is also engaged in related activities involving leasing and providing services connected with computer software and data processing.
Network 18
Between 2011 and 2014, Reliance acquired majority stake in Network18 Group. Though Network18, Reliance owns multiple news channels including CNN-News18 and News18 India.
Network 18 is a mass media company. It has interests in television, digital platforms, publication, mobile apps and films. It also operates two joint ventures, namely Viacom 18 and History TV18 with Viacom and A+E Networks respectively. It has also acquired a partial part of ETV Network and since renamed its channels under the Colors TV brand.
Other
- Reliance Global Corporate Security is a private security company which provides enterprise wide security to assets of Reliance Industries. It is composed of former member of the military and paramilitary forces, law enforcement agencies, intelligence services as well as technical experts from other industries.
- Reliance Life Sciences works around medical, plant and industrial biotechnology opportunities. It specialises in manufacturing, branding, and marketing Reliance Industries' products in bio-pharmaceuticals, pharmaceuticals, clinical research services, regenerative medicine, molecular medicine, novel therapeutics, biofuels, plant biotechnology, and industrial biotechnology sectors of the medical business industry.
- Embibe a Bengaluru-based EdTech start-up raised funding of ₹89.91 crores from RIL in February 2020. Over three years, Reliance Industries had invested around $180 million in the start-up. A part of it was towards acquiring a stake of 72.69% from Embibe's existing investors. In December 2019, Embibe, under the proprietary name (Individual Learning Private Limited), announced that it picked up equity shares in Bengaluru-based K12 startup Funtoot (eDreams Edusoft). The deal was capped at ₹71.64 crores in cash, which holds 90.5% of the equity share capital of Funtoot. In February 2020, it acquired the rival platform OnlineTyari.
- Reliance Logistics is a single-window company selling transportation, distribution, warehousing, logistics, and supply chain-related products. Reliance Logistics is an asset based company with its own fleet and infrastructure. It provides logistics services to Reliance group companies and outsiders.
- Reliance Solar, the solar energy subsidiary of Reliance, was established to produce and retail solar energy systems primarily to remote and rural areas. It offers a range of products based on solar energy: solar lanterns, home lighting systems, street lighting systems, water purification systems, refrigeration systems and solar air conditioners. In 2022 RIL AGM, Mukesh Ambani specified that his youngest son Anant Ambani will take over the new energy business.
- Reliance Eros Productions LLP, joint venture with Eros International to produce film content in India.
- Reliance Industrial Investments and Holdings Limited (RIIHL), a wholly-owned subsidiary of RIL which provides financial services. The Company owns securities of companies other than banks, as well as offers investment services. RIIHL bought majority stakes in two companies - logistics firm Grab A Grub Services Private Limited and software company C-Square Info Solutions - for over ₹146 crores in March 2019. RIIHL also sponsored the Tower Investment trust (InvITs) for the acquisition of 49% equity in RJio's tower assets for ₹25,215 crores by the Canadian asset management firm Brookfield Infrastructure Partners. On 22 April 2021, RIIHL acquired the entire issued share capital of Stoke Park Ltd, company that owns and manages sporting and leisure facilities in Stoke Poges, Buckinghamshire for £57 million.
- Reliance Strategic Business Ventures Limited (RSBVL), a wholly-owned subsidiary of RIL bought a 51.78% stake in robotics and AI firm Asteria Aerospace for ₹23.12 crore and an 85% stake in NowFloats Technologies for ₹141.63 crores in Dec 2019. It also holds 18.83% in EIH Limited, the flagship company of The Oberoi Group, one of the largest luxury hotel chains in India. In November 2019, RSBVL invested an undisclosed amount in SkyTran Inc. for 12.7%, increased it further to 26.3% by April 2020. In February 2021, RIL became the majority stakeholder with 54.46% with an additional investment of $26.76 million.
- Reliance Sibur is a joint venture between Reliance Industries and Silbur in the business of making synthetic rubber.
- Relicord is a cord blood banking service owned by Reliance Life Sciences. It was established in 2002. It has been inspected and accredited by AABB, and also has been accorded a licence by Food and Drug Administration (FDA), Government of India.
- Reliance Institute of Life Sciences (RILS), established by Dhirubhai Ambani Foundation, is an institution offering higher education in various fields of life sciences and related technologies.
- Reliance Clinical Research Services (RCRS), a contract research organisation (CRO) and wholly owned subsidiary of Reliance Life Sciences, specialises in the clinical research services industry. Its clients are primarily pharmaceutical, biotechnology and medical device companies.
- LYF, a 4G-enabled VoLTE device brand from Reliance Retail.
Former holdings
In March 2017, Reliance Industries Ltd (RIL) completed the sale process of its 76% equity stake in Mauritius-based oil retailer Gulf Africa Petroleum Corp (GAPCO) to Total Marketing & Services, a subsidiary of the French oil and gas firm Total SE.
The East West Pipeline has been acquired by India Infrastructure Trust, which is owned by Brookfield Asset Management for a consideration of ₹13,000 cr.
Awards and recognition
- International Refiner of the year in 2017 at Global Refining and Petrochemicals Congress 2017
- International Refiner of the Year in 2013 at the HART Energy's 27th World Refining & Fuel Conference. This is the second time that RIL has received this Award for its Jamnagar Refinery, the first being in 2005.
- The Brand Trust Report ranked Reliance Industries as the 7th most trusted brand in India in 2013 and 9th in 2014.
- RIL was certified as 'Responsible Care Company' by the American Chemistry Council in March 2012.
- RIL was ranked at 25th position across the world, on the basis of sales, in the ICIS Top 100 Chemicals Companies list in 2012.
- RIL was awarded the National Golden Peacock Award 2011 for its contribution in the field of corporate sustainability.
- In 2009, Boston Consulting Group (BCG) named Reliance Industries as the world's fifth biggest 'sustainable value creator' in a list of 25 top companies globally in terms of investor returns over a decade.
- The company was selected as one of the world's 100 best managed companies for the year 2000 by IndustryWeek magazine.
- From 1994 to 1997, the company won National Energy Conservation Award in the petrochemical sector.
See also
- List of companies of India
- Dhirubhai Ambani Green Energy Giga Complex
- Reliance Group
- Dhirubhai Ambani
