Project HRM
Project HRM
A PROJECT
ON
TRAINING AND DEVELOPMENT, SUCCESSION
PLANNING, HEALTH AND SAFETY ASPECTS AND
RECENT TRENDS OF RELIANCE INDUSTRIES LIMITED
In the subject HUMAN RESOURCE MANAGEMENT
SUBMITTED TO
UNIVERSITY OF MUMBAI
FOR SEMESTER-II OF
MASTER OF COMMERCE
BY
KISHORE SUSHIL AGARWAL
DIVISION B, ROLL NO- 201
UNDER THE GUIDANCE OF
DR.MALLIKA
ACADEMIC YEAR 2013-14
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
EVALUATION CERTIFICATE
This is to certify that the undersigned have assessed and evaluated the project on TRAINING AND
DEVELOPMENT, SUCCESSION PLANNING, HEALTH AND SAFETY ASPECTS AND RECENT TRENDS OF
RELIANCE INDUSTRIES LIMITED in the subject Human Resource Management submitted by Kishore Sushil
Agarwal, student of M Com Part-1.
This project is original to the best of our knowledge and has been accepted for Internal Assessment.
Dr.Mallika
Internal Examiner
Prof. V. Manikandan
External Examiner
PREFACE
I/C. Principal
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
I am pleased to write a Project Book on the subject called TRAINING AND DEVELOPMENT,
SUCCESSION PLANNING, HEALTH AND SAFETY ASPECTS AND RECENT TRENDS OF RELIANCE
INDUSTRIES LIMITED . This
semester studies under the guidelines of University of Mumbai. As I am well known about the
fact that writing a project book is obviously a challenging task under any certain circumstances,
henceforth I have tried my level best to pull up certain realistic details with regards to some
valuable statistics & also included good number of research based examples, which is definitely
going to be a better scope for them to grab the subject matter much more easily & efficiently. I
hope that the readers will find these useful for different purposes.
I hereby would like to thank one and all, from the bottom of my heart, those who have helped
me & constantly motivated me for writing this Project Book. I also thank each & every resources
from where I collected all the information & certain numbers of innovative idea to end up
writing this one.
ACKNOWLEDGEMENT
The satisfaction and euphoria that accompany the successful completion of any task is
incomplete without the mention of people who made it possible.
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Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
So I take this as a great opportunity to pen down a few lines about the people to whom my
acknowledgement is due.
It is with the deepest sense of gratitude that I wish to place on record my sincere thanks to my
project guide Dr.Mallika providing me inspiration, encouragement, guidance, help and valuable
suggestions throughout the project.
I extend my gratitude towards the Principal V. Manikandan for his timely suggestion and
guidance throughout Semester II of M.Com Part I.
I hereby would like to thank one and all, from the bottom of my heart, those who have helped
me & constantly motivated me for writing this Project Book.
INDEX
Sr.
Particulars
No.
Pg.
No.
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
1.
6-10
2.
11-20
3.
21-37
4.
38-43
5.
44-44
6.
Conclusion
45-48
7.
References
49-50
CHAPTER 1:
INTRODUCTION TO
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
RELIANCE INDUSTRIES
LIMITED
1.1 Introduction
Reliance Industries Limited (RIL) is an Indian conglomerate holding company headquartered in
Mumbai, Maharashtra, India. The company operates in five major segments: exploration and
production, refining and marketing, petrochemicals, retail and telecommunications
RIL is the third largest publicly traded company in India by market capitalization and is the
second largest company in India by revenue after Indian Oil Corporation. The company is
ranked 107th on Fortune Global 500 list of the world's biggest corporations for the year 2013. It
contributes to approx. 14% of total exports of India.
1.2 History
The company was co-founded by Dhirubhai Ambani and his cousin Champaklal Damani in
1960s as Reliance Commercial Corporation. In 1965, the partnership was ended and Dhirubhai
continued the polyester business of the firm. In 1975, company expanded its business into
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
textiles, with "Vimal" becoming its major brand in later years. The company made an initial
public offer (IPO) in 1977.
In the years 2005 and 2006, the company reorganized its business by demerging its investments
in power generation and distribution, financial services and telecommunication services into four
separate entities.
1.3 Shareholding
The numbers of shareholders in RIL are approx. 3 million. The promoter group, Ambani family,
holds approx. 45.34% of the total shares whereas the remaining 54.66% shares are held by
public shareholders, including FII and bodies corporate.
1.4 Listing
The Company's equity shares are listed on the National Stock Exchange of India Limited (NSE)
and the BSE Limited (BSE). The Global Depository Receipts (GDRs) issued by the Company
are listed on Luxembourg Stock Exchange (LSE). It has issued approx. 56 million GDRs
wherein each GDR is equivalent to 2 equity shares of the company. Approx. 3.46% of its total
shares are listed on Luxembourg Stock Exchange.
1.5 Products
The company's petrochemicals, refining, and oil and gas-related operations form the core of its
business; other divisions of the company include cloth, retail business and special economic
zone (SEZ) development. Its subsidiary Reliance Retail has entered into the fresh foods market
as Reliance Fresh.
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
RIL is to invest US$1 billion over the next few years in its new aerospace division which will
design, develop, manufacture, equipment and components, including airframe, engine, radars,
avionics and accessories for military and civilian aircraft, helicopters, unmanned airborne
vehicles and aerostats.
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
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. It has been promoted by Mr. Satyapal Jain and his
associates. RIL holds 45.43% of total shares of RIIL. 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.
The company set up a 200-millimetre diameter twin pipeline system that connects the Bharat
Petroleum refinery at Mahul, Maharashtra, to Reliance's petrochemical complex at Patalaganga,
Maharashtra. The pipeline carries petroleum products including naphtha and kerosene. It has
commissioned facilities like the supervisory control and data acquisition system and the cathodic
protection system, a jackwell at River Tapi, and a raw water pipeline system at Hazira. The
infrastructure company constructed a 71,000 kilo-litre petrochemical product storage and
distribution terminal at the Jawaharlal Nehru Port Trust (JNPT) Area in Maharashtra.
Reliance Retail Reliance Retail is the retail business wing of the Reliance Industries. 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 INR10800 crore (US$1.8 billion).
Environmental record Reliance Industries is the world's largest polyester producer and as a result
one of the largest producers of polyester waste in the world. In order to deal with large quantities
of waste, they operate the largest polyester recycling centre that uses the polyester waste as a
filling and stuffing. Their idea resulting in an award in 'Team Excellence'.
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
c) The Brand Trust Report, 2011 has ranked Reliance industries as the 6th most trusted brand in
India.
d) 'Responsible Care Company' awarded by the American Chemistry Council, India in March, 2012
e) RIL has been ranked at 20th position across the world, on the basis of sales, in the ICIS Top 100
Chemicals Companies list.
f) RIL has been ranked No. 1 in India on the basis of average market capitalization, No. 1 in total
assets and No. 2 on the basis of total income in 2012, by Business World magazine. In the same
report, RIL ranked 2nd among the top 100 gainers in India.
CHAPTER 2: TRAINING
AND DEVELOPMENT OF
RELIANCE INDUSTRIES
LIMITED
2.1 Introduction:
10
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
Training involves an expert working with learners to transfer to them certain areas of knowledge
or skills to improve in their current jobs (McNamara, 2008). Development is a broad, ongoing
multi-faceted set of activities (training activities among them) to bring someone or an
organization up to another threshold of performance, often to perform some job or new role in
the future (McNamara, 2008). According to Asare-Bediako (2002) employees must be trained,
and where possible developed to meet their own career needs and the need of the organization.
Training is job or task-oriented. It aims at enabling individuals to perform better on the jobs they
are currently doing. Development on the other hand, is career oriented rather than job-oriented.
It aims at preparing people for higher responsibilities in the future (Asare-Bediako, 2002).
Organizations must therefore have the responsibility to develop and implement training and
development systems and programmes that best help them to achieve their objectives. Noe et al.
(2000) viewed training generally as a planed effort by a company to facilitate employees
learning of the job-related competencies. These competencies include knowledge, skill, or
behaviors that are critical for successful job performance. Whilst some human resource
professionals consider training and development an after recruitment programme, Asare-Bediako
(2002) believes that it must be incorporated into orientation programmes for newly recruited
staff. According to him, the training and development (T&D) unit should explain to new
employees what training and development means and what programmes and facilities are
available to employees. At this stage, training and development explains internal training
programmes available and how they could participate. T&D should emphasize the area of
corporate culture. As the unit changed with facilitating change and maintaining the
organizations culture, training and development should reinforce the importance of training and
development through continuous efforts such as frequent reminders, meeting, etc.
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
and
interviewing
&
selection.
Six Sigma deployments in FY-11 was focused on improving process capability & reliability
issues as per the needs of individual manufacturing sites. A total of 85 projects were executed
12
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
leading to financial benefit of Rs. 26 Crore for the year 2010-11.As a part of Six Sigma
deployment process, 9 Reliance Certified Black Belts Wave 1 (RCBB-1) are working across
manufacturing divisions and have, in turn, developed 305 Six Sigma Green Belts in 2009-11.
Total project execution by this team led by RCBB-1 for a span of two years is 157 leading to
financial benefit of Rs. 69 crore. Currently, 19 BMGI/ASQ certified Black belts are working in
different sites. Based on the effective deployment of Six Sigma methodology by first wave, new
batch for Reliance Certified Black Belt Wave 2 (RCBB-2) has been launched in January,
2011 for which 11 employees have been selected from manufacturing divisions.
In all 354 Black Belts & Green Belts are associated with Six Sigma projects at different sites.
For the success of various Six Sigma projects, 1892 team members and supervisory personnel
are providing active support. As a part of standardization of training & development of people
with validation of their skill level, web based examination module has been developed for
certification of Six Sigma Green Belts. In FY-11, eight employees have been certified as
Reliance Certified Green Belt (RCGB).
2.3.2 HR Transformation
RIL is focused on building what would be the best "To Be" Organisation over the next 18 to 24
months. In order to achieve this objective, RIL focused on following initiatives: People:
Energising and engaging the existing work force, building a pipeline for the future and creating
an exciting work place.HR Processes: To ensure that RIL continues to have the world's best
practice and processes, existing processes are being reengineered and new processes are being
introduced. Policies: The focus in FY-11 was to make the policies employee friendly keeping in
view employee specific needs. The HR policies are being reviewed and benchmarked with world
class organisations.HR Shared Service Centre: The Centre was established last year to ensure
efficient and effective delivery of HR services to RIL employees.
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
FY-11, saw a significant change in the Company's compensation & banding management
process. On the variable pay front, efforts are afoot to move towards an accountability and
responsibility driven variable pay programmes designed uniquely for various levels.
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
instructional methods, materials, equipment and media, manuals, and facilities integrated in to a
training plan designed to achieve the training objectives. These outputs of the development
phase serve as inputs to the implementation phase.
Implementation Phase: All the aspects of the training program come together during the
implementation phase; however, it is a mistake to assume that everything will happen as
planned. Therefore, it is useful to conduct a dry run, and even a pilot of the programme.
Evaluation phase: Although we discuss this phase of the model last, it actually begins during
the development phase. Recall that evaluation objectives are an output of the design phase.
These outputs become inputs to the evaluation phase. Another input is organizational constraints.
Time, money and staff all affect how training is evaluated. Two types of evaluation are useful.
First, process evaluation determines how well a particular process achieved its objectives. In
other words did the trainer follow the exact training process suggested? , Outcome evaluation is
the evaluation is the evaluation conducted at the end of training to determine the effects of
training on the trainee, the job, and the organization. This type of evaluation uses the training
objective as standards. Outcome evaluation can also be used to improve enough information for
program improvement, but in combination with process evaluation data.
15
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
Job Instruction training: Many jobs consist of a logical sequence of steps and are
best taught step by step. This step-by-step process is called Job instruction training
(JIT). To begin, list all necessary steps in the job, each in its proper sequence.
Alongside each step also list a corresponding Key point (if any) the steps show
what is to be done, and the key points show how its to be done and why. JIT is
listing each jobs basic tasks, along with key points, in order to provide step by step
training for employees.
Lectures: Lecturing has several advantages. A good lecture is well organized and
begins with an introduction that lays out the purpose of the lecture and the order in
which topics will be covered. If it is an oral lecture, the introduction should cover
any rules about interrupting the lecture for questions and any opportunity should
cover any rules about interrupting the lecture for questions and any opportunity for
clarification. The main body of the lecture the topic content follows the introduction.
These parts of the topic by the content of the preceding topics. The lecture should
conclude with a summary of the main learning points or conclusions. Lecture
requires trainees to be fairly inactive, which after 20 minutes or so begins to reduce
the amount being learned. A shorter version of a lecture, the lecturette, is often
used to counter this problem. It has the same characteristics as the lecture but
usually lasts less than 20 minutes if done orally. In print, the lecturette would be a
shorter amount of printed text to read.
Programmed Learning: Whether the medium is a textbook, computer, or the
internet, programmed learning or programmed instruction is a step by step self
learning method that consists of three parts:
1. Presenting questions, facts, or problems to the learner
2. Allowing the person to respond
3. Providing feedback on the accuracy of answers
Generally, it presents facts and follows up questions. The learner can then respond,
and subsequent frames provide feedback on the accuracy of his or her answers.
Programmed learnings main advantage is that it reduces training time. It also
facilitates learning; because it lets trainees learn at their own pace, provide
immediate feedback and from the learners point of view reduces the risk of error.
In short programmed learning is a systematic method for teaching job skills
involving presenting questions or facts , allowing the person to respond , and giving
the learner immediate feedback on the accuracy of his or her answers.
Audiovisual Tools: Audiovisual-based training techniques like films, Power points,
video conferencing, audiotapes, and videotapes can be very effective and are
widely used. Audiovisuals are more expensive than conventional lectures but offer
some advantages.
1. When there is a need to illustrate how to follow a certain sequence over time,
such as when teaching fax machine repair. The stop-action, instant replay, and fastor slow motion capabilities of audiovisuals can be useful.
2. When there is a need to expose trainees to events not easily demonstrable in live
lectures, such as a visual tour of a factory or open heart surgery.
16
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
3. When you need organization wide training and it is too costly to move the
trainers from place to place.
Simulated Training: Training employees on special off the job equipment, as in
airplane pilot training, so training costs and hazards can be reduced. It is
occasionally called vestibule training is a method in which trainees learn on the
actual or simulated equipment they will use on the actual or simulated equipment
they will use on the job , but are actually trained off the job. It is a necessity when it
is too costly or dangerous to train employees on the job. Putting new assembly line
workers right to work could slow the production , for instance , and when safety is a
concern as with pilots simulated training may be the only practical alternative.
Simulated training may take place in a separate room with the same equipment the
trainees will use on the job. However, it often involves the uses of equipment
simulators.
Computer based training: It is a term most often used in private industry or
government for training employees using computer assisted instruction. It is a
general term referring to training provided in part or whole through the use of a
computer.
CBT offers the following advantage:
17
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
2.9.3 Outside seminars: Many companies and universities offer web based and traditional
management development seminars and conferences.
2.9.4 Role playing: A training technique in which trainees act out parts in a realistic
management situations. Role playing is to create a realistic situation and then have the trainees
assumed the parts or roles of specific persons in that situation.
2.9.5 Behaviour modelling : A training technique in which trainees are first shown good
management techniques in a film , are asked to play roles in a simulated situation , and are then
given feedback and praise by their supervisor. These modelling involves 1) showing trainees the
right (model) way of doing something 2) letting trainees practice that way and then 3)giving
feedback on the trainees on the trainees performance. The basic behaviour modelling procedure
is a) Modelling b)Role playing c) Social reinforcement d) Transfer of training.
2.9.6 Corporate universities and In-house development centres: Many firms, particularly
larger ones, establish in house development centres. A company based method for exposing
prospective managers to realistic exercises to develop improved management skills.
19
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
CHAPTER 3:
SUCCESSION PLANNING
AT RELIANCE
INDUSTRIES LIMITED
3.1 Introduction:
The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private
sector enterprise, with businesses in the energy and materials value chain. Group's annual
revenues are in excess of US$ 66 billion. The flagship company, Reliance Industries Limited, is
a Fortune Global 500 company and is the largest private sector company in India.
Backward vertical integration has been the cornerstone of the evolution and growth of Reliance.
Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical
integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil
and gas exploration and production - to be fully integrated along the materials and energy value
chain.
The Group's activities span exploration and production of oil and gas, petroleum refining and
marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles, retail,
infotel and special economic zones.
20
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre
producer in the world and among the top five to ten producers in the world in major
petrochemical products.
Major Group Companies are Reliance Industries Limited, including its subsidiaries and Reliance
Industrial Infrastructure Limited. Let us have a look at the succession planning at Reliance
Industries Limited.
The split that followed the failed succession plan for Reliance Industries Limited is one of the most
significant and publicized narrative in the Indian corporate sector. The long family feud that followed
the death of the founding patriarch Dhirubhai Ambani highlights the critical role of succession
planning in large family businesses. Succession planning becomes extremely critical in the emerging
markets where the legal and institutional arrangements regulating the corporate entities and the
corporate governance practices are still being developed. The absence of a solid succession plan
observed in the case of Reliance Industries is not uncommon among large business houses in India.
However, given its size (market capitalization of over Rs. 1.2 Lakh Crores) the Reliance saga has
implications beyond just souring of personal relationships among family members. Given the fact
that it is one of the largest and most successful exchange traded conglomerates, the economic
implications in terms of corporate value erosion and shareholder wealth destruction are immense.
The uncertain environment since the death of Dhirubhai in 2002 has had negative implication for
firms stock performance. In addition, the recently unveiled plan of de-merger and split of the empire
among the two brothers most likely is not the best way to spin-off business units from a
conglomerate. There may be value erosion due to lost diversification benefits, synergies, economies
of scale and scope, and complementarities. This case deals with the implications of the dispute for
corporate value and continuation of efficient business practices. It also concerns the regulatory
environment and how to ensure effective corporate governance mechanisms to ensure that various
stakeholder interests are protected.
21
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
This was a violation of the very agreement that had seemingly solved one of the biggest family feuds
in history. From the time the feud between the brothers became public in November 2004 until the
July 2005 settlement, a lot hung in the balance for Reliance Industries Limited (RIL), for the
markets, and even for the government of India itself.
All this came to a highly public truce, which was announced in a settlement by Kokilaben Ambani,
the late Dhirubhai Ambanis wife. She suggested that the split would be healed by having her two
sons go their separate ways. More than this, the splitting up of responsibilities was seen as a sensible
division, beneficial to stockholders and outside investors alike. It was seen that the legacy of
Dhirubhai Ambani continues to flourish: More wealth for more shareholders.
Ending the feud was very significant, since it offered the possibility to improve the companies
profitability. It also signaled the potential that they will get cracking and get back to efforts to build
and improve Indias energy and communications infrastructure. Since the RIL empire is so important
to Indias economy, any such settlement offers good news not only for shareholders of Reliance, but
also for their customers and the economy at large.
As the news about complaints by the younger brother Anil came out, Ayan Mukerjee quickly saw the
problems coming up. This was just the latest round of the battle that was emerging beginning with
the two sides each accusing each other of violating the non-compete agreement reached in 2005,
when they had been decreed to go their separate ways.
The ADA group of Anil Ambani now accused the Mukesh Ambani group of delaying Reliance
Energys large power projects in Uttar Pradesh. Meanwhile Reliance Industries and the Reliance
Communication
Gautam Thapar, Managing Director, as quoted by the Hindu Business Line, Nov 26, 2004
group had pointed out numerous ADA violations of the 2005 pact. The ADA then accused the
Mukesh Ambani group of manipulating the media (not that they required much prompting) in a
campaign of misinformation. Meantime, the spokesperson of Reliance Industry, Flagship Company
of Mukeshs group, noted that if Anils group felt there were violations of the agreement, they could
ask their mother, Kokilaben, the architect of the Deal, to step in and settle things.
22
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
AJ studied the large packets of information concerning Reliance Industries Ltd. He began by
considering the major categories:
The Past:
RIL was founded by Dhirajlal Hirachand Ambani and incorporated on May 8, 1973 as Mynylon
Limited in the State of Karnataka. In 1977, its headquarters were moved to the State of Maharashtra
and the company acquired the name Reliance Textile Industries Limited. Later, in 1985, the
company was renamed to Reliance Industries Limited (RIL). At that time RIL manufactured
synthetic blended yarns and fabrics, polyester filament, yarn polyester, staple fiber chemicals and
allied products, color TV glass shells, and color TV picture tubes. In November 1977, the promoters
offered for sale equity shares of the company in order to get the company listed on the stock
Exchange at Mumbai.
The Growth:
Since its initial public offering in 1977 RIL had grown rapidly at about 28% annual growth rate in
sales and about 32% growth rate in net profits. Following a backwards integration strategy into the
production of petrochemicals and the refining of crude oil, RIL has grown into diverse operations
that extend over the exploration and production of oil and gas, the manufacture of petroleum
products, polyester products, polyester intermediates, plastics, polymer intermediates, chemicals and
synthetic textiles and fabrics. Presently, RILs main production facilities are located at Naroda,
Patalganga, Hazira, and Jamnagar.
In 2005, RIL became Indias largest private sector conglomerate enterprise with a total gross
turnover of Rs.731,640 million (US$ 16.72 billion) and a net worth of Rs. 404,030 million (US$ 9.24
billion).
In 2005, it reported a net profit of Rs. 75,720 million (US$ 1.73 billion). In terms of revenue
composition, RIL obtained 62% of its total revenue from its petroleum refining and marketing
operations, 35% from its petrochemicals business and 3% from its other product groups. While
generating about 65% of its revenues in domestic markets, the company exported its products to over
a hundred countries, including the United States and China along with numerous European
countries.3
The Present:
RIL has two major business segments, namely,
1. Petroleum refining and marketing
2. Petrochemicals
Combined, the two segments contribute approximately 97% of revenues and about 90% of the EBIT.
Currently, the market cap of the company is estimated at Rs 90,000 crore or US$ 20 billion. Its
annual profits of over $1billion are higher than that of each of the Bayer, Sony, Bank of China and
McDonalds.
With approximately 3.5 million shareholders, it is claimed that one of every four investors in India is
a Reliance shareholder. Its revenues are equivalent to 3.5% of Indias GDP, with exports of more
than $2.5 billion, which is 5% of the countrys GDP. The $22.6 billion conglomerate accounts for
about 6% of Indias market capitalization and forms about 11% of the Bombay Stock Exchanges
Sensex index.
Since 1998, when the exploration of oil and natural gas in India was opened for private participation,
RIL has been a significant player with 2008 being the target year for the start of commercial
operations. Just before the split, RIL entered the high potential telecommunications and electricity
sectors that were, till recently, in public domain.
Appendix A provides a timeline, while Appendix B gives a detailed description of RILs key
businesses.
23
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
This message was conveyed to the RIL employees through an E-mail that suggested that Mukesh
was the final authority on all matters concerning Reliance.
Reliance: The battle for the Kamadhenu, Raghuvir Srinivasan, Hindu Business Line, Dec.
2004
How will the Ambani war play out?, T N Ninan, November 29, 2004, Business standards,
http://ia.rediff.com/money/2004/nov/29spec.htm
The fact that there were disputes between Mukesh and Anil, first became public on November
17, 2004, when Mukesh admitted to a television reporter "There are other issues like ownership
issues which are in the private domain."
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
Although, the Ambani family controlled over 45 per cent of the shares in Reliance Industries, the
individual family members held minimal holdings. In reality, approximately 34 per cent of RIL
shares were not technically promoter family holdings but the stake maintained through a
complex web of around 400 investment companies that were characterized officially as 'persons
acting in concert- a strange brew unique to India. Given that the directors of these companies
were RIL employees were expected to vote per the instructions of the head of the company and
that was Mukesh at that time.
In effect, then, Mukesh held voting power over 41.5% of the shares, a very large proportion by
any count. Further, 6 per cent of shares held in the form of GDRs also provided Mukesh with
additional voting control. Given his personal ownership stake of around even 3%, Mukesh
would have a majority control.
Above all the RIL board and the management had endorsed Mukesh as the next head of the RIL
conglomerate.
How will the Ambani war play out?, T N Ninan, November 29, 2004, Business standards,
http://ia.rediff.com/money/2004/nov/29spec.htm
Salil Tripathi, Just Another Family Business: The Far Eastern Economic Review: January 22
2005.
Manjit Kriplani, This Is Not Your Grandfather's India, Business Week, January 10, 2005
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
Reliance Industries, which had nominated them in the first place. In short, starting with few
chips in his hand, Anil had created enough room for himself to play his hand.6
Market uncertainty about RIL caused shareholders value losses. One estimate suggests that,
With three million investors, a family feud in Reliance concerns more than the Ambanis.
Indeed, when the fraternal dispute became public in November, Reliance lost nearly half a
billion dollars in market capitalization.7
From an international investor perspective, Standard and Poor's cautioned that the credit quality
of RIL might "weaken" if RIL has to part with significant cash as part of the settlement between
the two brothers.
However, in a commentary for the Business Week magazine, Kripalani suggested that Reliance
feud had no influences on stock market. According to Kripalani, even as the fraternal strife
continues, it has revealed something profound about India. Just two years ago trouble at such an
important company would have sent the broad market into a tailspin: Reliance, after all, was a
core holding for foreigners seeking an India play. Today, Bombay's financial community is
paying about as much attention to Reliance as it might a Bollywood hit: It's fun to watch, but it
barely moves the market. Since November, Reliance Industries shares have stalled, while the
benchmark Sensitive Index has shot up 15%, to a record 6,500. Clearly, India has gone beyond
Reliance..8
The Ambani feud also had its influence felt in political circles. The Communist Party of India
(CPI) leader, Gurudas Dasgupta, requested that the federal government intervene to resolve the
conflict as it had ramifications beyond the Ambani family. It was pointed out that the uncertainty
that had already impacted the stock market and small investors, may eventually negatively
impact the inflow of foreign direct investment.
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
For investors the deal means that given that RIL and IPCL will remain with Mukesh, the synergy
and complementarities have not been lost. On the other hand, separation of non-related
businesses of communication, finance, and energy from RIL and IPCL, will actually unlock
value for the shareholders. When announced, the deal was considered fair in both the camps as
while Mukesh got the cash-cows, Anil seemed to be pleased with high growth opportunities in
his businesses.
Appendix C breaks down the deal in terms of who got what assets.
In addition to the separation of control of various entities carved out from RIL, the two brothers
also agreed upon a non-compete clause for the next five years.
Per the deal terms the following exclusions were put in place:
ANIL:
Petroleum, Petroleum retail, Petrochemical
MUKESH:
Media & entertainment with some exceptions
Airport infrastructure except those that may be incidental to any RIL group businesses
Distribution of city gas in Mumbai and Delhi
The markets reacted favorably to the news of the settlement. The Sensex index of the Mumbai
Stock Exchange rose more than 1 percent. While the shares of RIL rose by almost 5 percent, to
close at 630
rupees, the companies being transferred to Anil Ambani, however, gained significantly more. For
example, while Reliance Energy rose 11%, and Reliance Capital gained nearly 25%.
International investors also expressed satisfaction over the resolution of the dispute. For
example, Smith Barney suggested, The announcement of the broad contours of the settlement
of the family dispute removes a key overhang.
Yet there were many things left out of the agreement. For one thing, even though the deal offered
some clarity as to the public traded companies making up Dhirubhai Ambanis Reliance empire,
it was not clear as to how the host of privately held companies in this group were to be divided
between the two brothers. Other family assets were to go to the sisters and the mother yet these
were not specified clearly.
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
unresolved issues that could jeopardize the settlement unless SEBI intervened to create an order
and remove uncertainty for al the stakeholders. These included:
1. Transfer of carved-out corporate entities from the RIL to the ADAG through listing at the
stock exchanges.
2. Inter-business transactions among the various entities carved out of RIL but now under two
separate control groups, covered under agreements including:
Gas Sales Agreement:
ADA Group seeks to have the first right of refusal on 40% of gas from the entire future reserves
of RIL, including new discoveries. While the RIL led by Mukesh willing to only give this right
for reserves/contracts finalized till June 2005.
Non-Competition Agreement:
ADA Group seeks exclusivity over businesses like airports and airports infrastructure, while
Mukeshs group seeks to have right to operate in these segments if they are incidental to
operations of RIL
Trademark Management Agreement:
The agreement specifically allows both sides to use the Reliance name and the logo. Further, it
stipulates that for the non-reserved businesses the side that commences the business first will
have the right on the trademark.
3. Unresolved transfers of some smaller but critical assets like Dhirubhai Institute of Information
and Communication Technology, Mudra Institute of Communications-Ahmedabad (Mica), and
Vimal textiles etc.
4. Investigation of grievances filed by Anil Ambani about some governance practices at the RIL
RILs failure to observe good corporate governance principles, lack of transparency, improper
exchange of securities, and unfair treatment of RIL shareholders had also become a significant
issue for investors.
AJ recalled that at the time of the deal, serious charges of corporate malfeasance had been made
against RIL. The government, SEBI, and local regulators had each been presented with
information that could indicate investors interests had been stepped on or not even considered. It
was also becoming evident that these actions had been supported by public banks and other
financial institutions, which had propped up the Ambani group of companies without much
knowledge of its complete investment and shareholding patterns.
However, it seems that the larger issues of corporate practices and investor protection have been
relegated. For example, while on the one hand, the deal broker, Mr. K.V. Kamath, responded
favorably to the announcement of the deal, saying It shows the maturity of the brothers to carry
on the legacy of their father, on the other hand he had a cryptic no comment to all other
questions.
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Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
As the younger Ambani had suggested when launching his new holding company, Anil
Dhirubhai Ambani Enterprises, it is for the regulatory authorities to decide whether there were
violations that had occurred in the making of the deal. He was counting on the fact that
transparency and corporate governance have always been a gray area in the Indian corporate
world, and that Indian regulatory authorities have always been reluctant to get involved in such
disputes.
Meantime, SEBI Chairman M. Damodaran had told the media in reaction to the furious disputes
and corresponding share price fluctuations, I dont comment on individual companies. He
noted that SEBI will take appropriate action in the interests of shareholders, should these
charges of insider trading and sweetheart deals prove true.
But none of these investigations had progressed. In the rosy glow following the announcement
of the RIL restructuring, few questions had been raised about the details of valuation, share
swaps, or other issues related to the de-merger. Therefore, the media had viewed the settlement
as good for the parties involved, yet bad in terms of the interests of stockholders and the country.
Yet most of the financial publications had greeted news of the settlement as equally welcome as
the coming of the long awaited monsoon in Mumbai. They saw the upswing in the market of
Reliance groups listed companies corresponding to a general run up in the Indian market. The
share appreciation of the largest single retail base in the investing public contributed to the
wonderful wealth effect in India, commented upon with such favor by international
publications.
When AJ stepped into his current position, he saw that there were several indications that
investigations had ignored facts or stepped lightly at the time.
The reaction of many functionaries in SEBI and other government ministries had been one of
anguish. The look of relief on all their faces when the RIL settlement was announced was highly
visible. It seemed that almost everyone, in government, as well as the business community, was
grateful that the two brothers had indeed patched things over, and with the help of their mother,
kept the legacy of their great father alive.
At the same time, there was a sense of unease among AJ and other young Turks in the regulatory
entities. They had hoped that the Indian governments role would be more active in its pursuit of
crony capitalism and move beyond its position of being a neutral referee in big business
disputes. Although, the government realizes that strong corporate governance mechanism are
critical for development of capital markets and for attracting global capital, the efforts are geared
more toward the crafting of laws and less towards the actual implementation. In fact, the
amended clause 49, mirrors the Sarbanes-Oxley requirements: More independent directors on
boards and committees; establishment of a code of conduct for directors; more effective audit
committee; certification by the chief executive officer and chief financial officer of the
accounting controls.
However, as of now, per various World Bank and IFC observations, corporate and markets
regulatory structure in India is fragmented - given the multi-agency system of controls with
jurisdictional gaps and overlaps existing simultaneously. Although there is a set of laws and
regulation in place, as is the institutional mechanism, enforcement of the rules is a challenge.
Further, with the strong political clout of big businesses, legal penalties do not act as strong
deterrents. Given the nature of government owned financial institutions, and the absence of any
29
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
well-defined corporate governance policies, there is significant lack of incentives and capacity to
monitor management on the part of these institutional owners.
A majority of the largest Indian companies are an amalgam of family owned and publicly listed
companies. This non-separation of majority ownership and management and absence of strict
board supervision leads to inadequate protection of minority shareholders. Given the near
monopoly influence of the promoter family in decision making, the composition and functioning
of boards lacks any effective monitoring of the corporate management. Above all, there is
significant lack of transparency with respect to family owners investment and cross-holdings
within the businesses.
As he gathered up his things and prepared to go out to dinner, AJ saw a tell tale text message
from his SEBI superiors. Undoubtedly, some international investors and the local media wanted
answers. What would be the governments reaction to the unraveling of the deal? What could
they do? What kinds of remedies could they put in place?
A resolution of this new episode of the Ambani battle would be very tough it would certainly
require all his corporate analysis and financial skills.
If SEBI stepped in to protect the interests of Reliance shareholders, it would require an objective
re-valuation of the assets of its public companies and their subsidiaries. It would also involve an
investigation of whether the group of companies had followed recently established corporate
governance and disclosure rules of clause 49. Specifically, for SEBI the Reliance episode calls
for action. While the regulatory agencies had been treating this settlement as an "ownership
issue" between the brothers that has been solved amicably, they will now need to investigate this
issue with respect to:
1. Role and composition of corporate boards
2. Transparency and information disclosure.
3. Promoters' cross-holdings and web of investment companies.
4. Related-party transactions detrimental to shareholders
AJ realized he would have to begin thinking about these and other fundamental questions that
the SEBI would have to address - in order to keep the situation from deteriorating further, and
also for insuring orderly future succession in such large family businesses.
Issues and Questions for discussion:
What critical factors have led to such complex dynamics of unresolved disputes? What does this
mean for family and closely held businesses in India and other emerging markets?
What have been the implications of the dispute for corporate value and continuation of efficient
business practices?
What type of corporate governance mechanisms -board, institutional owners, and debt holders-exist and how effective they have been in protecting the interests of the estimated 3 million
minority shareholders? Given the lack of legal recourse available to non-family shareholders,
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Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
what type of institutional provisions should have been in place to ensure fairness or at least, full
discussion of the succession plan - or the split in the absence of such a plan?
What are the risk implications of such a split/succession for various stakeholders? Specifically,
what precautions and control mechanism would global partners and investors in joint ventures
like to see put into place to safeguard their interests?
What are the lessons for ensuring efficient handling of a succession in family dominated
businesses? How to ensure smoother transition in the post-split period? In particular, what role
should Finance Ministrys Department of Economic Affairs and the Securities and Exchange
Board of India (SEBI) play in avoiding similar conflict situations in the future?
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
exploration block each in Yemen and Oman. RIL has a large deep water program with two thirds
of its acreage in deep waters. In 2002, RIL discovered natural gas in the first exploration well it
drilled in the deep-water exploration block (KG-D6) in the Krishna-Godavari basin off Andhra
Pradesh coast on the East coast of India. This was identified as being amongst the biggest gas
discoveries in the world in 2002 by American Association of Petroleum Geologists (AAPG).
RIL has explored 20% of the KG-D6 acreage so far.
Production
RIL has a 30% participating interest in an unincorporated joint venture with British Gas and Oil
and Natural Gas Corporation Limited (ONGC), for the proven Panna-Mukta and Tapti oil and
gas fields. The Panna-Mukta fields produced 1.3 million tones of crude oil and 47.15 billion
cubic feet (1,335 MMSCM) of gas during the year ended March 31, 2005.
Petrochemicals
According to CMAI and PCI, RIL is amongst top ten producers of petrochemicals globally. Its
petrochemical product sales accounted for 35% of its consolidated net revenues for the year
ended March 31, 2005.
Polymers/Plastics
RIL, together with IPCL, is the leader in polymer markets in India. It produces polymers like
polypropylene, polyethylene and polyvinyl chloride. It also produces a range of specialty
polymers including ethylene vinyl acetate and ultra high molecular weight polyethylene, which
find applications in niche markets. RIL, together with IPCL, is the eighth largest polypropylene
producer with a 3.5% share of global markets.
Polyester and Polyester Intermediaries
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Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
RIL is an integrated producer of polyester fiber and yarns and has 38% share of the PFY markets
and 69% of the PSF markets in India. (Source: CrisInfac). The acquisition of Trevira Holding
GmbH, a producer of branded polyester in Germany, during 2004 further strengthened its
positioning in the global polyester market. RIL is the third largest producer of paraxylene in the
world, sixth largest producer of purified terepththalic acid and fifth largest producer of mono
ethylene glycol in the world [Source: PCI].
Cracker Products
RIL operates a multifeed cracker at its Hazira petrochemicals complex. It produces ethylene and
propylene, which are used for the manufacture of polypropylene, polyethylene, polyvinyl
chloride and mono ethylene glycol.
9
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Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
K V Kamath: ICICI Bank has been a business resource to Reliance since the 1970s. So its not
surprising the ICICI Bank CEO Kundapur Vaman Kamath is a close friend to the Ambanis. The
final agreement was based on his 40:30:30 split. Kamath has been avoiding the public since the
feud became public. Here it shows that he is acting as a friend, not a business partner.
Tina Ambani: Anils wife, was a Teen Beauty queen and later became a movie actress. After
marriage however, she quit acting. She is not very instrumental in the Reliance businesses.
Nita Ambani: The more business-minded of the two daughter-in-laws, she is involved with
many charity projects and is said to be very influential in the setting up of Reliance Infocomm.
Anand Jain: Anand is known to many as Mukeshs eyes and ears. The loyal friend was thought
of as Dhirubhais third son. Jain was a low-key operator whom Anil made a subject in the
media by saying the he was trying to divide the family. At first, he was only in charge of
property buying, but grew to a member of the Board of Directors in IPCL.
Amitabh Jhunjhunwala- Amitabh began his dealings with Reliance about 25 years ago as a tax
consultant. By 1995, the Ambanis brought him to Reliance Capital. He structured the Reliance
Petroleum and Reliance Industries merger. By 2001, he became a member of the Reliance
Energy board, and soon became the Treasurer for Reliance Industries Ltd. When the feud started,
he sided with Anil.
34
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
CHAPTER 4: HEALTH
AND SAFETY ASPECTS OF
35
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
RELIANCE INDIA
LIMITED
4.1 INTRODUCTION TO HEALTH AND SAFETY ASPECTS OF
RIL:
4.1.1. Health
RIL focuses on achieving excellence in occupational and personal health of its employees across
locations. The Company has state-of-the-art Occupational Health Centres (OHC) at its
manufacturing divisions and major offices. These OHCs are equipped with state-of-the-art
diagnostic and therapeutic equipment and are manned by qualified occupational health
specialists.
RIL's medical and occupational health departments are also in the forefront to prevent lifestyle
diseases such as heart problems, hypertension, diabetes and communicable diseases such as
malaria, tuberculosis and HIV / AIDS through a series of regular health awareness sessions,
daily health tips and personal counseling. Health promotional activities are also extended to
employees' family members staying at Company townships.
RIL has full-fledged modern hospitals at its major townships at Jamnagar, Vadodara, Nagothane
and Patalganga, which cater to curative health services to employees and their family members.
In FY 2010-11, new facilities were added to the hospitals including a state-ofthe- art, special
burns treatment unit, at the Dhirubhai Ambani Hospital in Jamnagar.
Started eight years ago as a pilot project at few manufacturing divisions, Change Agents for
Safety, Health and workplace Environment (CASHe) has grown and become a movement
encompassing the entire enterprise with thousands of improvement projects. The programme has
been instrumental in creating a culture of implementing health, safety and environment
improving projects at workplace on a priority basis. This programme has also helped the
Company improve its performance on the occupational health and safety front.
4.1.2. Safety
In FY 2010-11, RIL's HSE Management System (HSE-MS) has been further strengthened with
new initiatives. The HSE-MS have been institutionalised to establish Company-wide safety
management objectives, guiding principles and processes.
36
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
RIL continues to pursue world class operational excellence through the HSE Management
System initiative, in strategic partnership with M/s DuPont Sustainable Solutions. In FY 201011, RIL implemented the operational discipline framework of 11 characteristics to embed
operational discipline in the organization in 6 major manufacturing sites. RIL's manufacturing
divisions undertook a rigorous self-assessment of operational discipline and they are in the
process of implementing improvement measures with total employee involvement.
Process Safety Management (PSM) has been further strengthened in FY 2010-11, through
strategic initiatives for sustenance. One of the focuses was to conduct self assurance studies for
the safety of the community through Process Hazard Analysis (PHA) and Quantitative Risk
Assessment (QRA) in plants prioritized on risk basis. Implementation of recommendations
emerging from such studies has resulted in evolving inherent safer measures in operations of
such plants.
RIL's Central HSE audit programme is a critical component of the HSE governance process,
which has been specifically designed to ensure that stakeholder expectations, HSE Policy and
HSE Management Standards are being effectively implemented across the Group. The HSE
Audit Protocol is based on the HSE Management Standards and systems and performance
management principles. The process provides assurance to the Group and the Board that the
HSE Management Standards are being implemented and it identifies best practices that can be
shared across RIL Group.
The Company has further reinforced its ties with global institutions such as the Centre for
Chemical Process Safety, the American Institute of Chemical Engineers, American Chemical
Council and the British Safety Council, which gives access to industry best practices.
RIL's HSE systems are aligned with recognised management systems and global best practices.
Most manufacturing divisions have been certified to ISO 14001:2004 certification of
Environmental Management Systems and OHSAS 18001:2007 certification of Safety
Management Systems.
At the E&P operations, RIL has adopted the HSE Management System and uses Safety Case
approach for the onshore and offshore facilities to demonstrate high levels of safety integrated
into the design and operations through several risk and hazard assessment studies. RIL has
established emergency management systems and is checking and improving the efficacy of the
same through periodic mock drills at various facilities of the entire KGD6 assets, drilling and
CBM operations.
RIL's KG-D6 asset comprising of Onshore Terminal, Supply Bases and Off-shore facilities were
certified with ISO-9001:2008; ISO 14001:2004 and OHSAS 18001:2007 by M/s DNV in April
2010. The Company has also labeled the same as 'Integrated Management System' for the KGD6 Asset. Additionally, M/s DNV successfully completed the first 'Surveillance Audit' of RIL's
KG-D6 asset in August 2010.
For Coal Bed Methane and Onshore Drilling operations without any Lost Time Incidents, both
internal and regulatory audits (through Oil Industry Safety Directorate) were conducted to ensure
that all statutory requirements are met in the operations.
RIL's stress on enhancing HSE performance through launching of HSE management Systems of
international Standards continued with further launching of 18 HSE standards and 41 associated
37
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
HSE procedures, which will be implemented across the Company's E&P operations. RIL has a
well planned safety training programme for employees and also contract employees.
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
HSE Audit Protocol is based on the HSE Management Standards and systems and
performance management principles. The process provides assurance to the Group
and the Board that the HSE Management Standards are being implemented and it also
identifies best practices that can be shared across our Group.
Our Companys HSE systems are aligned with recognised management systems and
global best practices. Most of our manufacturing divisions have been ISO 14001:2004
certified for Environmental Management Systems and OHSAS 18001:2007 certified
for Safety Management Systems. At the E&P operations, we have adopted the HSE
Management System and use the Safety Case approach for the onshore and offshore
facilities, to demonstrate high levels of safety integrated into the design and operations
through several risk and hazard assessment studies. We have established emergency
management systems and regularly check and improve its efficacy through periodic
mock drills at various facilities across the entire KG-D6 assets, as well as drilling and
CBM operations. Our Companys KG-D6 assets, comprising the Onshore Terminal,
Supply Bases and Off-shore facilities, were certified with ISO-9001:2008; ISO
24 Sustainability Report 2010-11
14001:2004 and OHSAS 18001:2007 certification by M/s DNV in April 2010. Our
Company has also labelled the same as Integrated Management System for the KGD6
Asset.
For Coal Bed Methane and Onshore Drilling operations, both internal and regulatory
audits (through Oil Industry Safety Directorate) were conducted to ensure that all
statutory requirements were met in the operations.
4.2.3 ENVIRONMENT
In their pursuit of excellence in environmental management towards sustainable
business development, Reliance Company continues to be committed to develop and
implement Environmental Management System (EMS) throughout the Group to measure,
control and reduce the environmental impact. In this context, during FY
2010-11, Gadimoga and Jamnagar SEZ manufacturing divisions have instituted ISO
14001:2004. With this, the international environmental accreditation- based
management system covers Companys all manufacturing divisions. The management
framework is further strengthened with defined structures, roles and responsibilities,
group standards, audits and training.
Our Company is fully compliant with various environmental protection and health
and safety laws and regulations. Prior to the implementation of new projects, the
potential environmental impacts are always assessed. The environment impact
assessment and risk analysis are performed for all new and major expansion projects
and necessary measures are incorporated to mitigate adverse environmental impacts at
the planning stage of the project.
In Reliance Companys improvement efforts, audits play an important role. The Company
has developed three-tier audit systems. Trained and qualified internal auditors
perform internally or first party environmental audits of their environment
management system at regular intervals. In FY 2010-11, they developed an environment
second party audit protocol for the Companys Environmental Standards. The high
level environmental audit by the external agency or third party is performed for all
manufacturing divisions which include annual audit by Gujarat Pollution Control
Board (GPCB) recognised auditors in the State of Gujarat and ISO-14001:2004, audits
39
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
Allahabad Manufacturing Division received a rating of 90% for its environmental initiatives
from British Safety Council in 2010.
Barabanki Manufacturing Division received '5 Star Rating on BSC Environment' from British
Safety Council in 2010.
Dahej Manufacturing Division received 'Greentech Environment Excellence Award 2010 - Gold'
for its excellence in environment practices from Greentech Foundation in 2010.
Dahej Manufacturing Division received the 'National Award for the Prevention of Pollution in
Petrochemicals Sector' for its excellence in environment practices from the Ministry of
Environment & Forests, Government of India, in 2010.
Dahej Manufacturing Division received "Our Cup of Joy India's Best Practices on Water
Confederation of Indian Industry (CII) October 2010" Award for the Best practice of water
conservation of "Utilizing Cooling Tower Blow Down water for Irrigation Purpose".
Hazira Manufacturing Division received the DuPont Safety Award for outstanding initiatives
towards workplace safety enhancements and accident prevention in 2010, thus making RIL the
first Indian / Asian company to win this award.
Hazira Manufacturing Division received the British Safety Council's (BSC), Five Star
Environment Award for its "beyond compliance" initiatives, best environmental practices,
innovations and resource conservation efforts in 2010.
Hazira Manufacturing Division won the UK Energy Institute's Safety Award for 'Road Safety
TRUST Programme' in 2010, making RIL the first Indian / Asian company to win this award.
Hazira Manufacturing Division won the FGI Award for Excellence in Environmental Pollution
Abatement and Preservation in 2010.
Hazira Manufacturing Division won CII's Best Environmental Practice Award under "Most
Innovative Project" and "Innovative Project" category in January 2011.
Hoshiarpur Manufacturing Division, for four consecutive years in a row won the 'State Safety
Award' from Punjab Industrial Safety Council & Chief Inspector of Factories, Punjab in 2011.
Jamnagar Manufacturing Division Domestic Tariff Area (DTA) Refinery received the 'Golden
Peacock Award for Occupational Health & Safety' for pace setting performance in OH and
Safety in 2010.
Jamnagar Manufacturing Division DTA Refinery received 'Safety Innovation Award' from Safety
& Quality Forum of Institute of Engineers (India).
Jamnagar Manufacturing Division DTA Refinery won the "Greentech Platinum Award (2010)"
Safety Category, in Petroleum Refinery Sector for its outstanding Achievement in Safety
Management.
Jamnagar Manufacturing Division has been granted by The National Accreditation Board for
Laboratories (NABL), Ministry of Science & Technology; Government of India, "NABL
accreditation" based on ISO 15189: 2007 for the DAOH & FWC Medical Laboratory.
Jamnagar Manufacturing Division Special Economic Zone (SEZ) Refinery received '5 Star
Award for Health & Safety' from British Safety Council for sustained performance in Health &
Safety in 2010.
Jamnagar Manufacturing Division SEZ Refinery has won the prestigious 'Greentech
Environment Excellence Award 2010' in Gold Category in Petroleum Refinery Sector for its best
practices in Environment Management.
40
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
Jamnagar Manufacturing Division SEZ Refinery has been selected as the winner of the "10th
Annual Greentech Safety Award 2011", in Platinum Category in the Petroleum Refinery Sector.
Nagothane Manufacturing Division received the "Vana Shree Award" from the State
Government of Maharashtra in 2010.
Nagpur Manufacturing Division received the 'Sword of Honour' from the British Safety Council
in 2010.
Vadodara Manufacturing Division received the CII Environmental Best Practice Award in 2011.
CHAPTER 5:
RECENT TRENDS
IN RIL
RIL is a Trading Company based in Mumbai and dealing all over India and abroad. They have
been Trading in Metal Scrap Since 1980 and have over the years developed an expertise in
Purchasing, Selling Various types of Metal Scrap and are also Suppliers to various foundries and
steel plant.
Reliance Industries Limited are a quality driven company committed to total performance since
1980. They are a professionally managed company started by a team of dynamic young
entrepreneurs.
They are in business of exporting, importing, and local domestic Trading of all kinds of Ferrous
and non Ferrous Metal Scrap / Products used in various Core industries
41
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
Products
Aluminum Scrap
Chromium Scrap
Ferro Moly
Ferro Silicon
Ferro Vanadium
Magnesium Scrap
CHAPTER 6:
CONCLUSION
42
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
We believe that the safety of each employee is the responsibility of the individual as well as of
the whole community of employees
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
Milestones
Starting as a small textile company, Reliance has in its journney crossed several milestones to
become a Fortune 500 company in less than 3 decades.
Reliance continues to cross newer & bigger milestones in its quest for what is known as "Growth
is Life".
45
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
46
Training and Development, Succession Planning, Health and Safety Aspects And Recent Trends of Reliance Industries Limited
47