PROJECT REPORT

ON
“A STUDY ON FINANCIAL PERFORMANCE OF RELIANCE
INDUSTRIES”
Submitted in partial fulfillment of requirements for the degree of
MASTER OF BUSINESS ADMINISTRATION

Submitted by
Kousar Jahan
M22MB014

Under the guidance of

Dr. P. Surender

(Associate Professor)

DEPARTMENT OF MANAGEMENT
(2022-2024)

KAKATIYA INSTITUTE OF TECHNOLOGY AND SCIENCE

HASANPARTHY (M), TELANGANA, 506015
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 ACKNOWLEDGEMENT

I, express my deep sense gratitude to Dr. P. Surender Associate Professor. Department Of

Management Kakatiya Institute of Technology & Science, Warangal for permitting me to
carry out this report and guiding me throughout this Endeavour, and also helping me to
complete the report.

I, also express my sincere thanks to Dr. V. Nivedita Reddy HEAD OF THE

DEPARTMENT, Kakatiya Institute of Technology & Science, Warangal.

My almost thanks also goes to the FACULTY MEMBERS of DEPARTMENT OF

MANAGEMENT for their co-operation and help for the completion of this report.

Finally, my thanks to one and all who contributed to my work directly or indirectly.

With Gratitude

Kousar Jahan

(M22MB014)

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 DECLARATION
I, KOUSAR JAHAN bearing Roll No: M22MB014. Hereby declare that the seminar report
entitled “A STUDY ON FINANCIAL PERFORMANCE OF RELIANCE
INDUSTRIES”A Study is submitted by me for the partial fulfillment for the award of the
degree of Master of Business Administration to the Department of Management, Kakatiya
Institute of Technology and Sciences- Warangal.

Place: Warangal. KOUSAR JHAN

Date: M22MB014

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CONTENTS

Chapter – 1
1.1 Introduction
1.2 Need of the Study
1.3 Scope of the Study
1.4 Objectives of the Study
1.5 Research Methodology
1.6 Limitations of the Study

Chapter – 2
2.1 Company Profile

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Chapter – 1

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vi
 1.1 Introduction

RelianceIndustriesLimited isanIndian multinational

conglomeratecompanyheadquarteredinthecityof Mumbai,India.Ithasdiversebusinessesincluding
energy, petrochemicals, naturalgas, retail, telecommunications, massmedia, and textiles.
Reliance is one of the most profitable companies in India, thelargest publicly traded company in
India by market capitalization, and the largestcompany in India as measured by revenue. It is also
the tenth largest employer inIndia with over 236,000 employees. RIL has a market capitalization
of US$243billionasofOctober2021.

Thecompanyisranked155thonthe FortuneGlobal500 listoftheworld'sbiggestcorporationsasof2021.

ReliancecontinuestobeIndia'slargestexporter, accounting for 8% of India's total merchandise
exports and access tomarketsinover100countries.
Relianceisresponsibleforalmost5%ofthegovernment of India's total revenues from customs and
excise duty. It is also thehighestincometaxpayerintheprivatesectorinIndia.
Thecompanyhasnegativefreecashflows.

Financialperformanceanalysisistheprocessofidentifyingthefinancialstrengths and weaknesses of

thefirm by properly establishing the
relationshipbetweentheitemsofbalancesheetandprofitandlossaccount.

There are many tools to find financial performance of the company, one of themost useful tools
is ratio and trend analysis. The financial analysis is done to findthe firm’s current position with
that of market situation. This analysis is used bycreditors,totheshareholdersboard.

1.2 Need of the study

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Reliance Industries Limited (RIL) is indeed a significant conglomerate in India. Its diverse presence in
industries like energy, petrochemicals, textiles, natural resources, retail, and telecommunications has made it
a prominent player in the Indian business landscape. It has achieved various milestones, such as being the
first Indian company to cross $100 billion market capitalization in 2007 and crossing the Rs 9 lakh crore
valuation mark in 2019, a historical achievement for an Indian private company. Furthermore, its global
ranking on the Fortune Global 500 list and recognition by Platts as one of the top global energy companies
highlight its international prominence. The acquisition of a larger stake in Indian Petrochemicals
Corporation Ltd. (IPCL) and the subsequent merger in 2008 are examples of its strategic expansion.

1.3 Scope of the Study

The study covers almost the entire area of financial operations covered by “Reliance Industries Limited”
the study has been conducted with the help of data obtained from audited financial records. The audited
financial records are the company annual reports pertaining to past 5 years from 2009-2010 to 2013-2014
and the audited financial records are obtained from the company’s annual report. The researcher tries to
measure the performance of the organization

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1.4 Objectivesofthestudy

1) To study the financial performance of Reliance Industries Limited.

2) To know the liquidity, profitability and growth position.
3) To study the tools used to analyze the financial position of RIL.

1.5 METHODOLOGY OF THE STUDY

The data which is selected mainly for the study is secondary. Generally, the source data
collection in this data is:
➢ Journals
➢ Research reports.
➢ Books.
➢ Company websites

1.6 Limitations of the study

The Study is restricted for the study of five years. The analysis is based on annual reports of the
company. Strong market position with diverse brand and profit follow. Strong free cash flow and
good returns on capital expenditure. Operational and expansion advantage in different business
verticals.Successful track record for integration.

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Chapter – 2

4
2.1 Company Profile

Company Overview
Reliance Industries Limited (RIL) is an Indian multinational conglomerate headquartered in
Mumbai, Maharashtra. It has businesses in energy, petrochemicals, natural gas, retail,
telecommunications, mass media, and textiles. Reliance is the largest public company in India by
market capitalization 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.

Formerly Reliance Commercial Corporation (1958–1966)

Reliance Textiles and Engineers (1966–1973)
Reliance Industries Limited (1973–present)[1]

Type Public

Traded as  BSE: 500325

 NSE: RELIANCE
 LSE: RIGD
 BSE SENSEX Constituent
 NSE NIFTY 50 Constituent

ISIN INE002A01018

Industry Conglomerate

Founded 1958 (65 years ago)

Founder Dhirubhai Ambani

Headquarters Mumbai, Maharashtra

,

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 India

Area served Worldwide

Key people Mukesh Ambani

(Chairman & Managing Director)

Products  Oil and Gas

 Chemicals
 Petrochemicals
 Oil refining
 Retail
 Telecommunications
 Media
₹974,864 crore (US$120 billion)[2] (2023)
Revenue

Operating income ₹94,801 crore (US$12 billion)[2] (2023)

Net income ₹73,670 crore (US$9.2 billion)[2] (2023)

₹1,713,506 crore (US$210 billion)[2] (2023)

Total assets
₹821,153 crore (US$100 billion)[2] (2023)
Total equity

Owner  Mukesh Ambani (50.39%)

Number of 342,982 (2022)

employees

Subsidiaries  Jio Platforms

 Reliance Retail
 Jio-bp
 Network18 Group
 Alok Industries
 Reliance Foundation
 Indiawin Sports
 Reliance Global Corporate Security
 Relicord
 Reliance Institute of Life Sciences
 Sikka Ports & Terminals Limited

Website www.ril.com

History
1966-1970
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Reliance Commercial Corporation, founded in 1966 by Dhirubhai Ambani, starts with a capital
of ₹15,000. It initially imports polyester yarn and trades in spices. In 1969, the company sets up
its first textile mill in Naroda, Gujarat, to manufacture polyester yarn.

1971-1980
Reliance Commercial Corporation expands its textile business and sets up new mills in Gujarat
and Maharashtra. In 1977, the company makes its initial public offering (IPO) on the Indian
stock market, raising ₹1.5 crore. The IPO is a huge success, and Reliance Commercial
Corporation becomes one of the most popular companies in India.

1981-1990
Reliance Commercial Corporation changes its name to Reliance Industries Limited (RIL) in
1985 to reflect its growing diversification into other industries. During this period, RIL enters the
petrochemicals business and sets up a number of petrochemical plants in Gujarat. The company
also expands its textile business and becomes the largest textile manufacturer in India.

1991-2000
RIL enters the oil and gas sector in 1991 and sets up India's largest oil refinery at Jamnagar,
Gujarat. The refinery is commissioned in 1999 and starts producing petroleum products such as
gasoline, diesel, and jet fuel. RIL also expands its petrochemicals business and becomes one of
the largest producers of petrochemicals in the world.

2001-2010
RIL enters the telecommunications sector in 2001 and launches its mobile phone service,
Reliance Jio Infocomm. Jio Infocomm revolutionizes the Indian telecom market by offering low-
cost mobile and broadband services. RIL also expands its retail business and becomes India's
largest retailer. In 2008, RIL acquires the US-based petrochemical company LyondellBasell.

2011-present
RIL continues to expand its businesses in oil and gas, petrochemicals, retail, and
telecommunications. The company also enters the media and entertainment sector and acquires a
number of media companies, including Network18 Media & Investments Limited and Viacom18
Media Private Limited.

Key Milestones
 1966: Reliance Commercial Corporation is founded by Dhirubhai Ambani.

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  1977: Reliance Commercial Corporation makes its IPO on the Indian stock market.

 1981: Reliance Commercial Corporation changes its name to Reliance Industries Limited
(RIL).

 1985: RIL enters the petrochemicals business.

 1991: RIL enters the oil and gas sector.

 2000: RIL launches its retail business, Reliance Retail.

 2001: RIL enters the telecommunications sector.

 2008: RIL acquires the US-based petrochemical company LyondellBasell.

 2010: Reliance Jio Infocomm launches its mobile phone service.

 2011: RIL enters the media and entertainment sector.

Shareholding
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 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$420 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).

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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.

Subsidiaries
Jio Platforms
Jio Platforms Limited is a technology company and a majority-owned subsidiary of Reliance
Industries Limited (RIL). As of October 2022, it holds a valuation of over $100 billion. The
company was established in October 2019 as part of a corporate restructuring that consolidated
all of RIL's digital initiatives and telecommunication assets into this new subsidiary. Jio
Platforms encompasses various digital business assets, including Reliance Jio Infocomm Ltd,
which manages mobile, broadband, and enterprise connectivity services, as well as various
digital assets such as Jio Apps, the technology infrastructure, and investments in other tech
entities like Haptic, Hathaway, and Den Networks. In 2020, Jio Platforms received strategic
investments, including a substantial investment from Facebook, resulting in a 9.99% equity
stake. Additional investments from entities like Silver Lake Partners, Intel, and Google followed.
In 2022, Mr. Akash Mukesh Ambani was named as the Chairman of Jio Platforms.

Reliance Retail
Reliance Retail is the retail arm of Reliance Industries. It is the largest retailer in India, with
various brands under its umbrella, including 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. The annual revenue for the fiscal year 2012–13 was ₹108 billion (US$1.4
billion), with an EBITDA of ₹780 million (US$9.8 million). Its market value exceeds $60
billion. In 2022, Mukesh Ambani handed over the position of Chairperson of Reliance Retail to
his daughter, Mrs. Isha Ambani Piramal, as part of a leadership transition.

Reliance Industrial Infrastructure

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Reliance Industrial Infrastructure Limited (RIIL) is an associate company of RIL with a focus on
industrial infrastructure. It was established in 1988 and is engaged in activities related to setting
up and operating industrial infrastructure, as well as providing services connected with computer
software and data processing.

Network 18
Network 18 is a mass media company with interests in television, digital platforms, publications,
mobile apps, and films. It also operates joint ventures, including Viacom 18 and History TV18.
Network 18 has expanded its media presence through acquisitions, including a partial part of
ETV Network, which has since been rebranded under the Colors TV brand.

Other
 Reliance Global Corporate Security is a private security company that provides security
services to Reliance Industries, staffed by former military and paramilitary personnel, law
enforcement experts, and intelligence specialists.

 Reliance Life Sciences focuses on opportunities in medical, plant, and industrial

biotechnology. It specializes in manufacturing, branding, and marketing products in
various sectors of the medical business industry, including bio-pharmaceuticals,
pharmaceuticals, and more.

 Embibe is an EdTech startup in Bengaluru, which received funding from RIL. Over three
years, RIL invested around $180 million in the startup, acquiring a significant stake.
Embibe also acquired equity shares in Bengaluru-based K12 startup Funtoot and the rival
platform OnlineTyari.
 Reliance Logistics offers transportation, distribution, warehousing, logistics, and supply
chain-related products and services. It is an asset-based company with its own fleet and
infrastructure, providing logistics services to both Reliance group companies and external
clients.

 Reliance Solar is the solar energy subsidiary of Reliance, focused on producing and
retailing solar energy systems for remote and rural areas. In 2022, it was announced that
Anant Ambani, the youngest son of Mukesh Ambani, would lead the new energy
business.

 Reliance Eros Productions LLP is a joint venture with Eros International, producing film
content in India.

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 Reliance Industrial Investments and Holdings Limited (RIIHL) is a wholly-owned
subsidiary of RIL that provides financial services, owns securities of various companies,
and offers investment services. RIIHL has made investments in logistics firm Grab A
Grub Services Private Limited and software company C-Square Info Solutions. It has
also sponsored the Tower Investment trust (InvITs) for the acquisition of 49% equity in
RJio's tower assets by Brookfield Infrastructure Partners.

 Reliance Strategic Business Ventures Limited (RSBVL) is a wholly-owned subsidiary of

RIL that has invested in robotics and AI firm Asteria Aerospace and NowFloats
Technologies. RSBVL also holds a stake in EIH Limited, the flagship company of The
Oberoi Group, and invested in SkyTran Inc.

 Reliance Sibur is a joint venture between Reliance Industries and Silbur involved in the
production of synthetic rubber.

 Relicord is a cord blood banking service owned by Reliance Life Sciences.

 Reliance Institute of Life Sciences (RILS) is an institution offering higher education in

various fields of life sciences and related technologies.

 Reliance Clinical Research Services (RCRS) is a contract research organization (CRO)

specializing in clinical research services, serving pharmaceutical, biotechnology, and
medical device companies.

 LYF is a 4G-enabled VoLTE device brand from Reliance Retail.

 Reliance Logistics is a single-window company providing transportation, distribution,

warehousing, logistics, and supply chain-related products and services.

 These businesses collectively contribute to the diverse portfolio of Reliance Industries

Limited, making it one of India's most prominent and influential conglomerates.

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Awards and Recognition:

 International Refiner of the Year in 2017 at Global Refining and Petrochemicals Congress.
 International Refiner of the Year in 2013 at the HART Energy's 27th World Refining & Fuel
Conference, marking the second time RIL received this award for its Jamnagar Refinery, the
first being in 2005.
 Ranked as the 7th most trusted brand in India in 2013 and 9th in 2014 by The Brand Trust
Report.
 Certified as a 'Responsible Care Company' by the American Chemistry Council in March
2012.
 Ranked 25th in the ICIS Top 100 Chemicals Companies list in 2012, based on sales.
 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.
 Selected as one of the world's 100 best managed companies for the year 2000 by
IndustryWeek magazine.
 Received the National Energy Conservation Award in the petrochemical sector from 1994 to
1997.

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