The Reliance Group, founded by Dhirubhai H. Ambani, is India's largest private-sector corporation, with businesses in the energy, petrochemicals, textiles, natural resources, retail, and telecommunications. Being the largest publicly traded company in India by market capitalization, Reliance Industries became the first $150 billion Indian Company after its market capitalization hit Rs. 11,43,667 crores on 19th June 2020. The company is ranked 106th on the Fortune Global 500 and is ranked 7th among the Top 250 Global Energy Companies by Platts as of 2018.
Mr. Dhirubhai Ambani was responsible for bringing about the equity cult in India in the late seventies. Regarded as an icon for enterprise in India, his ambition to make Reliance a global powerhouse began in the year 1966 when the company started as a small textile manufacturer unit. It was a 350 square ft room with one telephone, one table, and three chairs. Dhirubhai Ambani borrowed a heavy amount to start his business. He set up his first factory in Naroda, Ahmedabad. Gradually, with an increase in demand and rising aspirations, Dhirubhai started to expand operations by entering into different segments.
India.
Major Subsidiaries and Associates–
Reliance Industries forms the core business of the Reliance Group. Reliance purchases crude oil from overseas markets and then refines them in their refineries and produces petroleum products. Reliance also produces and markets petrochemical products like Olefins and Aromatics which is used to make detergent and plastic. Some of its major subsidiaries and associates are-
Reliance Retail is the retail business section of Reliance Industries. Brands like Reliance Fresh, Reliance Footprint, Reliance Time Out, Reliance Digital, Reliance Wellness, Reliance Trends, Reliance Super, Reliance Mart, Reliance iStore, Reliance Market (Cash and Carry), and Reliance Jewel go under the Reliance Retail Brand.
Reliance Life Science works around the medical, plant and industrial biotechnological opportunities. It is a diversified research-driven organization developing business opportunities in various fields including bio-therapeutics, pharmaceuticals, clinical research service, regenerative medicine and molecular medicine.
Reliance Logistics is a one-stop company selling transportation, distribution, warehousing, logistics and supply chain-related products, supported by in-house telematics and telemetry solutions. It provides logistics services to Reliance Group companies and outsiders.
Reliance Solar, the solar energy subsidiary of Reliance, was established to produce and sell solar energy systems primarily to remote and rural areas. It offers a range of products based on solar energy: solar lanterns, home lighting systems, street lighting systems, water purification systems, refrigeration systems and solar air conditioners.
Network 18, a broad communications organization. It has stakes in TV, digital platforms, distribution, portable applications, and movies. It additionally works two joint endeavors, in particular, Viacom 18 and History TV18 with Viacom and A+E Networks individually. It additionally has procured ETV Network and since renamed its channels under the Colors TV brand.
Reliance Industrial Infrastructure Limited (RIIL) is an associate company of RIL. RIL holds 45.43% of total shares of RIIL. Its main objective is to develop pipelines for the transportation of petroleum products across India.
Jio Platforms Limited, now a global technology powerhouse, was launched in 2016 for providing mobile network services to users. Now, with the support of giants like Google and Facebook, Ambani aims to transform the mobile networking system in India by availing digital platforms and 5G services to every corner of the nation.
Fun Facts about Reliance –
Reliance Industries is the biggest taxpayer in the history of the economy.
It has the highest ever quarterly net profit of Rs. 11,640 crores.
Reliance Jio has set a world record of growth in its customer base. It became the market leader in the segment with over 400 million customers in just 3 years.
It is the largest exporter of India with over 8% contribution to exports as per 2019.
Reliance accounts for almost 5% of the government of India's total revenues from customs and excise duty.
In financial year 2020, Reliance Industries Limited contributed over 1.15 trillion Indian rupees to India's national exchequer.
What Differentiates Reliance?
Diverse Portfolio of Companies -One of the major factors contributing to the success of Reliance is its presence in sectors that have seen promise in the upcoming years. Sectors like Retail Markets and Telecommunication have certainly observed a huge alteration as Reliance entered the markets and changed the business dynamics.
Market Leader - There are two sorts of companies: A market maker and a market taker. Reliance belongs to the former since its presence has already made it the leader in whichever segment it has entered.
Integrated Value Chain -The value chain of Reliance ensures smooth distribution across markets through supply chain efficiencies. It helps and provides Reliance on the power of direct control over its product quality and ensures its compliance with various standards.
Extensive Market Reach - Reliance continues to penetrate small markets by entering into the operations of small towns. This widens the scope of the market since all the companies cannot reach rural segments and thus helps it to gain some competitive advantage in the same.
Foreign/Global Investors -With the option of investments of Global Giants, Reliance has already raised a huge amount of money which will facilitate its operations and guarantee it foreign support. Recently, companies like Google, Facebook, Silver Lake Ltd., etc. joined hands by buying stakes in the company.
Largest Consumer Base - Reliance has the largest consumer base in the Indian subcontinent. With over 125 million customers in the Retail Segment and over 400 million for its Jio Platforms.
The Paradigm Shift - Telecom is the new Oil
Since its introduction in the year 2016, Reliance Jio has been expanding its customer base ever since. With a paradigm shift in its focus, Ambani has shifted his emphasis from Reliance Industries to the Jio Platforms, the global technology powerhouse.
Jio Telecom, a technology upstart, has emerged as a winner during this lockdown as the urge to transform India to a digitalised economy has increased by leaps and bounds. For Indian shoppers who prefer to buy groceries online, Reliance aims to launch JioMart, a grocery ordering service with the support of WhatsApp messaging. For Bollywood fans who would now prefer to avoid crowded theatres, it is introducing Jio Glass which will convert home-theatre systems into a much realistic experience.
Conclusion-
The Ambani Group of Companies has always been the focal point of Indian Business since it expanded its operations into various segments. Starting with huge loads of debt, and now being a net-debt free company technically shows us the big picture and efficient management of the company. Operating in different segments like financial services, construction, entertainment, power, health care, manufacturing, defense, aviation, and transportation services, and aiming to expand more to Healthcare and Education in the coming years highlights the strong fundamentals that guide the principles of the company.
With Reliance having the necessary resources at hand and the trust of the majority of its investors, it’s move to enter into different segments has actually been a hassle-free process and has made them grow rapidly. Mr. Ambani aims to make the company the go-to solution for every problem faced in the country. There will be just one app where you can buy groceries, play games, order medicines, watch movies, choose clothes, and do many other things. This will be a big initiative on part of Reliance and can help determine the future of the nation.
“Success is not final; failure is not fatal: It is the courage to continue that counts."
