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Reliance Report

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RELIANCE

INDUSTRY LTD.
Strategic Management
RELIANCE INDUSTRY
LTD

The Reliance Group, founded by

Dhirubhai H. Ambani , is India's

largest private sector enterprise, with

businesses in the energy and

materials value chain.


Mission
Our motto “Growth is Life” aptly captures the
ever-evolving spirit of Reliance.

To be a partner in nation building and contribute

Vision towards India's economic growth

To attain global best practices and become a


world-class utility
1957-1965 R E L I A N C E C O M M E R C I A L C O R P O R A T I O N

Ambani began a business trading in spices in the late 1958s,

Intensification

Diversification

1966 RELIANCE TEXTILE ENGINEERS PVT. LTD.


1973 RELIANCE TEXTILE INDUSTRIES LIMITED

Company named Mynylon Ltd was incorporated in Karnataka to manufacture


synthetic blended yarns and fabrics, polyester filament yarn, polyester glass
shells.

1975 On 1st July, Reliance Textile Industries Ltd was amalgamated with
Mynylon Ltd.

Growth Strategyy
1966-1976 Integration: 1. Vertical- Backward, Forward.
2. Horizontal- Merger
Ambani took Reliance public after nationalized banks refused
1977
to finance him

Installed capacity of 38,368 spindles and 490 looms was


1979
amalgamated with the company.

Growth Strategy- Attracting Investors and keeping them engaged.


1977-1984
Continuing Backward integration
1985 RELIANCE INDUSTRIES LIMITED

ALL THE INDUSTRIAL LICENSES WERE TRANSFERRED TO


1987
RELIANCE PETROCHEMICALS, LTD.

THE HAZIRA PETROCHEMICAL PLANT WAS


1991-92
COMMISSIONED
1985-92 Growth Strategy:
1. Integration : Horizontal- Strategic Alliance
2.Diversification- Concentric

RELIANCE VENTURING INTO TELECOM INDUSTRY WITH


1995/1996 NYNEX, USA AND PROMOTED RELIANCE TELECOM
PRIVATE LIMITED IN INDIA.

Growth Strategy:
1995/1996 1. Diversification- Conglomerate Diversification.
2. Joint Venture

RIL WENT ONTO CONSTRUCT LARGEST REFINERY OF


1998-00 THE WORLD
Backward Integration since 1970's

Until the 1970s RIL was only


involved in manufacturing
synthetic yarn and textiles,
along with a dozen other main
players.
Acquisation & Merger (2000~03)

Acquisition positions Reliance, together with IPCL, to


compete from a stronger base in the global market,
where major petrochemical companies typically
follows a strategy of market consolidation.
Demerger 2005
Retrenchment- Divestment

Ambani's death sparked a feud for control which


ultimately lead to the split of the Reliance Group. The
Bombay High Court approved the de-merger for Reliance
Industries
RIL LAUNCHED OF ITS RETAIL STORE FORMAT
2006
UNDER THE BRAND NAME OF 'RELIANCE FRESH'

LAUNCHES RELIANCE DIGITAL, A CONSUMER


2007
ELECTRONICS RETAIL CHAIN
RELIANCE RETAIL OPENS ITS FASHION &
2008 LIFESTYLE STORE UNDER RELIANCE TRENDS AND
RELIANCE FOOTPRINT BRANDS

ANNOUNCES PARTNERSHIPS WITH ZEGNA,


2010
QUIKSILVER & STEVE MADDEN
LAUNCHES WHOLESALE CASH-N-CARRY STORE
2011
CHAIN - RELIANCE MARKET

ANNOUNCES PARTNERSHIPS WITH ICONIX, KENNETH


2012
COLE, THOMAS PINK AND BROOKS BROTHERS
2014 Launches Reliance Digital Express Mini

Launches www.ajio.com a curated fashion


2016 digital commerce platform

Reliance Retail crosses $5 billion revenue mark.


2017 Launched www.reliancetrends.com
Largest store expansion by an Indian Retailer
2018 in a year - Launched 3,736 Jio Points covering
over 3,700 cities in India.

Growth Strategy:
2013 - 2018 1. Intensification
2. Integration
2019 Reliance Retail makes its first international foray.

Launched JioMart, India’s largest Hyperlocal


2020
solution

Growth Strategy:
1. International Expansion.
2019 - 2020
2. Integration
PLATFORM

Jio Platforms Limited (Jio) is creating a massive digital


ecosystem for a billion Indians with domain expertise across
business verticals in the platform company.

VISION - Jio’s vision is to transform India with the


power of digital revolution.
HOW JIO CAME
INTO EXISTENCE
In June 2015, Jio
announced that it would
start its operations
throughout the country by
the end of 2015.

Strategy
Integration-acquisition
Conglomerate diversification
About Reliance Jio
Infocomm Ltd

Jio also known as Reliance Jio Infocomm limited is


the network and mobile operating company. It is the
holding company of Reliance, which does not
provide the services of 3g or 2g, but utilizes the
service of voice over the LTE to give voice services
across the network.

Growth Phases :
Market Penetration
Product Development
Market Development
ACQUIRED UNDISCLOSED STAKE IN AIRSPAN
2014
NETWORKS FOR US$5 MN.

JIO SIGNED A PACT WITH BSNL FOR INTRA-CIRCLE


2016
ROAMING

JIO ANNOUNCED A PARTNERSHIP WITH SAMSUNG TO WORK


2017
ON LTE – ADVANCED PRO AND 5G.
PARTNERS WITH CISCO SYSTEMS FOR 5G
2020
DEPLOYMENT.

GROWTH STRATEGY:
1. INTENSIFICATION- PRODUCT DEVELOPMENT, MARKET
2014-20 DEVELOPMENT.
2. INTEGRATION: HORIZONTAL - STRATEGIC ALLIANCE, ACQUISITION.
Jio, telecommunications and
broadband services.

RELIANCE JIO INFOCOMM LTD in


2022
2022

We think that right now Jio is applying the following


strategies

Pause/Proceed with Caution Strategy

OR

No Strategy
SBUs of JIO
JioFiber LYF smartphones
Strategy Strategy
EXPANSION EXPANSION
1. Diversification : Concentric 1. Diversification- Concentric diversification
diversification 2. Integration- Forward Integration for 4G SIM
with cheap 4G compatible phone

JioMart Jio Store


Strategy Strategy
EXPANSION EXPANSION
1. Integration : Forward & Backward. 1. Integration : Forward
2. Diversification : Concentric
diversification
JioSaavn
Strategy:
Expansion
1. Integration: Horizontal-Acquisition.
2. Intensification: Market Penetration- Almost every
Jio Telcom user have this app in their phone as
this app allows user to set his/her caller tune
and also to request for any song which isn't
available presently.
STAR QUESTION MARKS
Jio fiber 5G telecom service.

BCG MATRIX OF
Jiomart

JIO PLATORM CASH COWS DOG


Jio 4G telecom LYF Samrtphone
Service Many JioApps are
JioSaavn not used.
Jio Store
SWOT Analysis of Jio
Strengths Weaknesses

Most grounded Customer


Late Entry
Acquisition technique
Solid Parent Organization Activation Issues

Innovative Technology
Strong Customer Base
Market Share
SWOT Analysis of Jio
Opportunities Threats

Future Driven Technology Risk of Loss of Customers


Apps Removal of Free Service
Competitive Pricing Strategies The Loyal Customer Base
Expansion of Existing Player
Data for Billion People Criticism and Negative
Image
Strategic Framework of RELIANCE INDUSTRIES LTD.

01 Transformation

02 Taking RIL to a
global scale

03 Investing in new
businesses

04
Innovation
Value Creation

01 Shareholder Value 02 Employee Value

03 Customer Value 04 Societal Value


Five Enablers

Safety

Use of technology

Ethics

Efficiency in operations

Capital productivity
Ongoing battles of RIL with other brands
SWOT Analysis of RIL
Strengths Weaknesses

Wide geographic presence High cost of replacing existing experts


Market Leadership Position within the Reliance Industries
Diverse Revenue Model Niche markets and local monopolies
Strong Market Share used by Reliance Industries are fast
disappearing
Declining market share with an
increasing revenue
SWOT Analysis of RIL
Opportunities Threats

Local Collaboration Saturation in urban market and


Increasing Customer Base in lower stagnation in the rural markets
segments Growing technological expertise of
Opportunities in online space
local players in export market
Lowering of the cost of new product
launches through third party retail
partners and dedicated social network
RECENT ACQUISITIONS

April 2018 ACQUIRED 72.69% STAKE IN EMBIBE

ACQUIRED 87.6% STAKE IN FYND, TO STRENGTHEN THE GROUP’S


June 2018 'DIGITAL AND NEW COMMERCE INITIATIVES'.

RELIANCE ACQUIRED A 83% STAKE IN GRAB, TO SUPPORT RELIANCE


Feb 2019
GROUP’S DIGITAL COMMERCE INITIATIVES AND STRENGTHEN ITS
LOGISTICS SERVICES, CATERING TO BOTH B2B & B2C SEGMENTS
RECENT ACQUISITIONS
87% IN HAPTIK WHO IS ONE OF THE WORLD'S
LARGEST CONVERSATIONAL AI PLATFORMS THAT
LETS CUSTOMERS COORDINATE WITH VOICE
ASSISTANTS TO COMPLETE TASKS RELATED TO
ONLINE SHOPPING, TRAVEL BOOKINGS, FOOD
April 2019 DELIVERY, ETC.

89.3% IN REVERIE, WHO IS A VOICE SUITE (CALLED


GOPAL) IN 12 INDIAN LANGUAGES LIKE HINDI, TELUGU,
TAMIL, BENGALI, MARATHI, GUJARATI, INDIAN
ENGLISH, ETC.
RECENT ACQUISITIONS
ACQUIRED STAKE IN NETMEDS, URBAN LADDER,
2020
ZIVAME

RELIANCE RETAIL VENTURES ACQUIRED A 52% EQUITY STAKE IN


RITU KUMAR, HOME LIVING ALONG WITH INVESTMENT IN MANISH

2021 MALHOTRA’S EPONYMOUS BRAND.


IT ALSO ACQUIRED A 40.98% STAKE IN JUST DIAL.

RELIANCE RETAIL ACQUIRED A 25.8 PERCENT STAKE IN BENGALURU-


2022
BASED DUNZO. IT ALSO ENTERED INTO A PACT TO ACQUIRE
MANDARIN ORIENTAL, A PREMIUM LUXURY HOTEL IN NEW YORK,
”The one common unifying thread that runs
through everything we have ever done at
Reliance is the spirit of care and empathy.
This is what the true Reliance spirit was, is, and
will always be .”
~ Mukesh Ambani

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