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Later, the Indian government relaxed regulations allowing import of polyester

against export of nylon. Ambani expanded operations in this field and began
importing polyester. Reliance, with its high quality manufacturing facilities,
gained complete control over the domestic market.

In one of its forward integration moves, Reliance entered the retail distribution
of its fabrics and by 1980, it owned more than 20 retail stores and over 1000
franchised outlets.

In 1982, Reliance integrated backward again by entering the business of

manufacturing polyester filament yarn (PFY). Considering that one of his major
inputs was PFY, and that he could reduce the cost by reducing the inefficiencies
which he observed at many foreign plants, it is a great strategic move .

Heavy demand for nylon in India enabled Ambani to import nylon and generate
margins. There was deficiency in good quality fabrics for export. So in a
backward integration move, he set up manufacturing operations for nylon
fabrics in 1966 to gain from significant market gap.

Reliance presents an excellent example of vertical

backward integration.

 To complete the backward integration, Reliance entered into oil

and gas exploration business and was successful in discovering
natural gas reserves in Andhra Pradesh
In another move backwards it obtained a license for setting up
a 9 MT refnery. This refnery would meet its feedstock
requirements of the PTA and other plants. It also entered into
retail distribution of the refnerys range of products.
Between 1982 and 1989, it integrated backward by setting up
manufacturing facilities for input materials for LAB and PVC
In 1983, Reliance horizontally expanded into manufacturing
High density Poly ethylene (PE) and Polyvinyl chloride(PVC) .

Reliance further integrated backward into manufacture of fbre

intermediates PTA, LAB and MEG
Reliance horizontally expanded by setting up manufacturing facilities for
Polyester staple fibre(PSF)

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