Reliance Industries Limited (RIL)
Reliance Industries Limited (RIL) is a multinational company in India, headquartered in Mumbai City, Maharashtra.
RIL’s covers various industries such as petrochemicals, energy, natural gas, textiles, retail, telecommunications, and mass media.
Reliance Industries is one of the most profitable companies in India. RIL’s is the largest publicly traded company in India through market capitalization.
Reliance has recently become the highest-earning company, surpassing the government-company Indian Oil Corporation.
Reliance Industries employs more than 195,000 people. It is the 8th largest employer in India.
In September 2020, the market capitalization of Reliance Industries crossed $ 200 billion. Reliance is the first company in India to cross the $ 200 billion market capitalization.
The reason for the market capitalization to cross $ 200 billion was that in September 2020, Reliance allotted a certain percentage of its stake to multinational companies such as Facebook, Google, and Saudi Aramco.
Reliance Industries is the largest exporter in India. This accounts for more than 8% of India’s total exports. Reliance exports its products to 110 countries around the world.
The amount paid by Reliance Industries through customs duty and excise duty has earned the Government of India more than 5%. Reliance Industries is the highest income tax payer company in the private sector in India.
History Reliance Industries Limited (RIL)
Reliance Industries was founded by Dhirubhai Ambani and Champaklal Damani in 1960 on a five-year contract. At the time of its establishment, the name of the company was Reliance Commercial Corporation.
Champaklal Damani released the partnership from Reliance after completing his 5-year contract. Then Dhirubhai Ambani decided to continue the company and started a polyester business.
In 1966, Reliance established Reliance Textile Engineers Pvt. Ltd. in Mumbai, Maharashtra and in the same year, set up a synthetic textile mill in Gujarat.
In 1985, Reliance Textile Engineers Pvt. Ltd. renamed to Reliance Industries Ltd.
From 1985 to 1992, Reliance made polyester yarn. Its annual production capacity was 145000 tons.
At one time, India used to import textiles but due to Reliance’s yarn production, India stopped importing textiles and became self-sufficient in textiles.
Reliance started petrochemicals and natural gas plants after textile production. Reliance set up a petrochemicals plant in Hazira area of Surat in 1991-92.
In 1993, Reliance started mass production of petroleum. Reliance turned to the foreign capital market as it needed money for more production.
In 1995-96, Reliance formed Reliance Telecom Pvt. Ltd. to start the telecom industry in partnership with NYNEX Company of USA.
In 1998-99, Reliance launched 15 kg LPG gas cylinders under the Reliance Gas brand name.
In 2001, Reliance Industries Ltd. and Reliance Petroleum Ltd. became the two largest companies in India in terms of financial dimensions.
In 2001–02, Reliance Petroleum and Reliance Industries were merged. After the merger, Reliance Industries Ltd. became the largest private company in India.
In 2002, Reliance Industries Ltd. also explored petroleum gas in the Krishna Godavari basin. The discovery was India’s largest petroleum gas discovery.
In 2002-03, Reliance bought a large stake in the Indian government-owned Indian Petrochemicals Corporation Limited (IPCL).
When IPCL merged with Reliance in 2008, Reliance took over IPCL’s Nagothane and Dahej manufacturing complexes.
In 2005-06, Reliance formed 4 different companies to develop electricity generation, distribution, financial services, and telecommunications.
In 2006, Reliance launched a retail store called “Reliance Retail” and entered the organized retail market of India. As of 2008, Reliance Retail had more than 600 stores in 57 cities across India.
In 2010, Reliance partnered with Bharat Petroleum Corporation Limited for the oil and gas business.
In 2016, Reliance Jio launched a 4G network. Today, Reliance Jio is India’s largest telecommunications company.
In 2017 partnered with Russian company Sibur and started its Butyl rubber plant at Jamnagar in Gujarat.
Shareholding of Reliance Industries Limited
Chairman and MD: Mukesh Ambani
The number of shares of Reliance Industries Ltd. is about 644.51 crore Out of which 50.62% shares are held by Ambani family (promoter group) while the remaining 49.38% shares are held by public shareholders.
Public shareholders also include Foreign Institutional Investors (FIIs) and corporate bodies.
Life Insurance Corporation (LIC) is the largest non-promoter investor in Reliance with 7.98% investment.
The equity shares of Reliance Industries are listed on the NSE and BSE while the global depository receipts issued by the company are listed on the Luxembourg Stock Exchange.
Operation of Reliance Industries limited
In July 2016, Reliance announced that it would invest $ 1 billion in its new aerospace division over the next few years.
Reliance Industries will manufacture aircraft, engines, radars, accessories, and drones for the Indian Army.
There are also subsidiaries of Reliance Industries Limited.
E.g., Reliance Jio,
Reliance Industrial Infrastructure Limited (RIIL),
Reliance Eros Productions LLP,
Reliance Industrial Investments and Holdings Limited (RIIHL),
Reliance Strategic Business Ventures Limited (RSBVL).
Employees of Reliance Industries limited
Reliance Industries Limited had a total number of employees 187729 as on 31st March 2018. Out of which 29533 were permanent employees and 158196 were temporary employees.
Controversies of Reliance Industries limited
In 1986, Dhirubhai suffered a brain stroke which left his son Mukesh Ambani and Anil Ambani in charge of running the company.
Dhirubhai died in 2002. Dhirubhai did not make a will before his death. So there was a quarrel between Mukesh Ambani and Anil Ambani.
In 2005, to settle a dispute between the brothers over control of the Reliance Empire, Mother Kokilaben decided to split the RIL group’s business into two parts.
Reliance Group split in October 2005, Mukesh Ambani taking over Reliance Industries and IPCL. Younger brother Anil Ambani taking over telecom, power, entertainment, and financial services.
Anil Ambani was also in charge of Reliance Communications, Reliance Infrastructure, Reliance Capital, Reliance Natural Resources and Reliance Power.
Reliance Industries is currently owned by Mukesh Dhirubhai Ambani. Mukesh Ambani is the Chairman and MD of Reliance Industries Limited.
Reliance Industries Limited is the largest private company in India. RIL serves more than 108 countries around the world.