A Term Paper

For
Management of Principles and Applications
On
A Study on the Management of Reliance Industries
Limited

Submitted by:
Nimish Kapoor
Bcom(h) IIyr Section-2 Roll no 5070

Submitted to:
Dr. Meghna Malhotra
Assistant Professor
Department of Commerce
Hansraj College
University of Delhi
 ACKNOWLEDGEMENT

I would like to convey my gratitude to my teacher in-charge Dr Meghna Malhotra and the
head of the institution Dr Rama who gave me the wonderful opportunity to prepare this term
paper on The Management of Reliance Industries Limited.

Nimish Kapoor
 INDEX

SERIAL NO. TOPIC PAGE NO.

1 INTRODUCTION 4
2 HISTORY 4
3 PLANNING 5
4 ORGANISATION STRUCTURE 6
5 STAFFING 9
6 DIRECTING 10
7 LEADERSHIP SKILLS OF CEO 11
8 CONTROLLING 12
9 WHY IS RELIANCE SUCCESSFUL? 13
10 BIBLIOGRAPHY 14
 INTRODUCTION
Reliance Industries Limited (RIL) is an Indian multinational conglomerate
company headquartered in Mumbai, Maharashtra, India. Reliance owns businesses across
India engaged in energy, petrochemicals, textiles, natural resources, retail, and
telecommunications. Reliance is one of the most profitable companies in India, the
largest publicly traded company in India by market capitalization,[4] and the largest company
in India as measured by revenue after recently surpassing the government-controlled Indian
Oil Corporation. On 22 June 2020, Reliance Industries became the first Indian company to
exceed US$150 billion in market capitalization after its market capitalization hit
₹11,43,667 crore on the BSE.
The company is ranked 96th on the Fortune Global 500 list of the world's biggest
corporations as of 2020. It is ranked 8th among the Top 250 Global Energy Companies
by Platts as of 2016.

HISTORY

In the year 1966 the RIL was founded by Shri Dhirubhai H. Ambani it was started as a small
textile manufacturer unit. On May 8 1973 RIL was incorporated and conformed their name as
RIL in the year 1985. Over the years the company has transformed their business from
manufacturing of textiles products into a petrochemical major. The Hazira petrochemical
plant was commissioned in 1991-92. In the year 1995-96 the company entered the telecom
industry through a joint venture with NYNEX USA and promoted Reliance Telecom Private
Limited in India. Reliance became the first corporate in Asia to issue bonds in the U.S at the
year of 1996-97. In 1998-99 RIL introduced packaged LPG in 15 kg cylinders under the
brand name Reliance Gas. In 2000 Reliance commissioned the world's largest grassroots
refinery in Jamnagar in a record 36 months. In 2004-05 RIL acquired the polyester major
Trevira GmbH headquartered in Frankfurt Germany. In 2006 RIL entered the organised retail
segment through Reliance Retail with its first Reliance Fresh store in Hyderabad. In 2017
Reliance Retail crossed $5 billion revenue mark. In the year 2007 Indian Petrochemicals
Corporation Limited (IPCL) merged with the company. In February 2011 the company
entered into a strategic partnership with BP which comprises BP taking a 30% stake in 23 oil
and gas production sharing contracts that the company operates in India for a consideration of
USD 7.20 billion and the formation of a 50:50 joint venture between the two companies for
the sourcing and marketing of gas in India. In March 2011 the company and D E Shaw Group
agreed to establish a joint venture to build a leading financial services business in India. On
29 May 2014 RIL announced its entry into the digital space by way of acquisition of control
in Network 18 Media & Investments Limited (NW18) including its subsidiary TV18
Broadcast. RIL's wholly owned subsidiary Reliance Jio Infocomm announced the
commencement of telecom services with `Jio Welcome Offer' in September 2016. In a short
period of 170 days Jio crossed a milestone of 100 million customers on its all IP wireless
broadband network. On 17 November 2016 RIL and GE announced the signing of a global
partnership agreement in the Industrial IOT (IIOT) space to provide Industrial IOT solutions
to customers in oil & gas fertilizer power healthcare telecom and other industries.
 PLANNING
Planning is the process of thinking about required activities to achieve a goal. Reliance is
pursuing its strategy to grow, by leveraging its existing know-how and asset base and
investing in opportunities strategic to its existing businesses and those of the future. Reliance
initially focuses on activities and investment in India to take advantage of the large domestic
market, as it currently holds a leadership position in it. It builds competencies that can be
rolled out on a global scale. Reliance’s business creates value for its shareholders, employees,
customers and society, and each new opportunity it pursues must meet these criteria or it does
not invest in it.
 ORGANISATION STRUCTURE
MUKESH D AMBANI CHAIRMAN AND MANAGING DIRECTOR
NITA M AMBANI NON EXECUTIVE NON INDEPENDENT DIRECTOR
HITAL R MESWANI EXECUTIVE DIRECTOR
NIKHIL R MESWANI EXECUTIVE DIRECTOR
P.M.S PRASAD EXECUTIVE DIRECTOR
P.K KAPIL EXECUTIVE DIRECTOR
R.A MASHELKAR INDEPENDENT DIRECTOR
ADIL ZAINULBHAI INDEPENDENT DIRECTOR
DIPAK C JAIN INDEPENDENT DIRECTOR
YOGENDRA P TRIVEDI INDEPENDENT DIRECTOR
RAMINDER S GUJRAL INDEPENDENT DIRECTOR
SHUMEET BANERJI INDEPENDENT DIRECTOR
ARUNDHATI BHATTACHARYA INDEPENDENT DIRECTOR
K.V CHOWDARY NON EXECUTIVE DIRECTOR

Board Committees
The Board has appointed various committees to assist it in discharging its responsibilities.
The Board has adopted charters setting forth the roles and responsibilities of each of the
committees as well as qualifications for committee membership, procedures for committee
members' appointment and removal, committee structure and operations and reporting to the
Board. The Board may constitute new committees or dissolve any existing committee as it
deems necessary for the discharge of its responsibilities.

Audit Committee
The Audit Committee assists the Board in its responsibility for overseeing the quality and
integrity of the accounting, auditing and reporting practices of the Company and its
compliance with the legal and regulatory requirements.

Corporate Social Responsibility and Grievance Committee

Formulate and recommend to the Board, a Corporate Social Responsibility (CSR) Policy
indicating the activities to be undertaken by the Company as specified in Schedule VII to the
Companies Act, 2013; Recommend the amount of expenditure to be incurred on the CSR
activities; Approve Corporate Sustainability Reports and oversee the implementation of
sustainability activities; Monitor Company’s compliance with the Corporate Governance
Guidelines and applicable laws and regulations and make recommendations to the Board on
all such matters and on any corrective action to be taken, as the Committee may deem
appropriate; Oversee the implementation of polices contained in the Business Responsibility
Policy Manual and to make any changes / modifications, as may be required, from time to
time and to review and recommend the Business Responsibility Report (BRR) to the Board
for its approval;

Finance Committee
Review the Company’s financial policies, risk assessment and minimisation procedures,
strategies and capital structure, working capital and cash flow management, and make such
reports and recommendations to the Board with respect thereto, as it may deem advisable;
Review banking arrangements and cash management; Exercise all powers to borrow money
(otherwise than by issue of debentures) within limits approved by the Board, and take
necessary actions connected therewith, including refinancing for optimisation of borrowing
costs; Give guarantees / issue letters of comfort / providing securities within the limits
approved by the Board;

Health Safety and Environment Committee

Monitor and ensure the highest standards of environmental, health and safety norms; Ensure
compliance with applicable pollution and environmental laws at the Company’s works /
factories / locations by putting in place effective systems in this regard and review the same
periodically; Review as the Committee deems appropriate, the Company’s health, safety and
environment related policy and making recommendations as necessary; Review the
Company’s performance on health, safety and environment related matters and suggest
improvements as the Committee may deem necessary; Review procedures and controls being
followed at the Company’s various manufacturing facilities and plants for compliance with
relevant statutory provisions;

Human Resources Nomination and Remuneration Committee

Formulate the criteria for determining qualifications, positive attributes and independence of
a Director, and recommend to the Board a policy, relating to the remuneration of the
Directors, Key Managerial Personnel and other employees; Formulate the criteria for
evaluation of performance of Independent Directors and the Board of Directors; Devise a
policy on Board diversity; Identify persons who are qualified to become Directors and who
may be appointed in senior management in accordance with the criteria laid down and to
recommend to the Board their appointment and / or removal; Consider extension or continue
the term of appointment of the Independent Directors on the basis of the report of
performance evaluation of Independent Director

Stakeholder’s Relationship Committee

Oversee and review all matters connected with transfer of Company’s securities; Approve
issue of duplicate shares / debentures certificates; Oversee the performance of the Company’s
Registrars and Transfer Agents; Monitor implementation and compliance with the
Company’s Code of Conduct for Prohibition of Insider Trading; Consider, resolve and
monitor various aspects of interest of shareholders, debenture holders and other security
holders including the redressal of investors’ / shareholders’ / security holders’ grievances
related to transfer / transmission of securities, non-receipt of annual reports, non-receipt of
declared dividend, issue new / duplicate certificates, general meetings and so on. Review
measures taken for effective exercise of voting rights by shareholders.

Risk Management Committee

Frame Risk Management Plan and Policy; Oversee implementation / Monitoring of Risk
Management Plan and Policy; Validate the process of Risk Management; Validate the
procedure for Risk Minimisation; Periodically review and evaluate the Risk Management
Policy and Practices with respect to risk assessment and risk management processes;
Continually obtain reasonable assurance from management that all known and emerging risks
have been identified and mitigated or managed; Review of development and implementation
of a Risk Management Policy including identification therein of element of risk; Review of
cyber security and related risks; Carry out any other function as is mandated by the Board
from time to time and / or enforced by any statutory notification, amendment or modification
as may be applicable.
 STAFFING

Staffing refers to the process of finding the right employee for the right position. It consists of
estimating manpower requirements, recruitment, selection, placement and orientation,
training and development, performance appraisal, promotion and compensation.

Recruitment and Selection Process

The candidates who have got minimum 60% aggregate over all eight semester are eligible for
the recruitment of Reliance Company.
Selection procedure of Reliance Company consists of 3 processes. They are,
▪ Written test (Aptitude)
▪ Technical written test
▪ Technical and HR interview

1. Written test (Aptitude)

In written test the number of questions are 75 and time limit for those questions are 35
minutes. The questions are from several topics like ratio, simple logics, comparisons, analogy
etc. The cut off marks for this round is 60%.
2. Technical written test
In this round number of questions are 50 and time limit are 25 minutes. Technical questions
are from electronics, networking subject. One has to be strong in his/her subjects to clear this
round. For this round the cut off marks is 50%.
3. Technical and HR interview
After clearing both written test the final round is technical and HR interview. It will take 1
hour and based on National merit test. In this round some technical’s questions will be asked
and in HR round the questions will be asked about the company, projects, hobbies etc.
Candidates are required to produce original mark sheets/ certificates for verification during
Interviews.
 DIRECTING
Directing refers to a process or technique of instructing, guiding, inspiring, counselling,
overseeing and leading people towards the accomplishment of organizational goals. There are
4 main elements of directing:
1. Supervising- It means instructing, guiding and monitoring the subordinates to
ensure that they perform their jobs in accordance with the plans and
instructions
2. Leadership-the art of motivating a group of people to act toward achieving a
common goal. In a business setting, this can mean directing workers and
colleagues with a strategy to meet the company's needs.
3. Communication-the act of transmission of information
4. Motivation-the process of stimulating people to action to accomplish goals

There is no standard way of directing at reliance as the founder chairman, Dhirubhai Ambani
believed that the way of directing should vary from time to time
 LEADERSHIP SKILLS OF CEO
Mukesh Ambani follows a unique way of leadership, he doesn’t go for tradition or autocratic
style of leadership. He always follows his own approach which makes him a fascinating
leader. His leadership mantra is ‘Don’t just follow, set new standards’

He can spend hours watching leopards in a jungle—and he has adopted some tricks from the
sleek predator's trade. "It doesn't take any risk. Whenever it sees it can make a kill, it rapidly
makes the kill. It happens in a flash," he once told ET.

A formidable team helps him make such decisions and, more importantly, follow through to
steer the colossal, and complex, empire that he inherited from his legendary father Dhirubhai
Ambani to new heights. In that team are family and friends, old aides and new professionals,
business heads and 'environment managers'
He is a visionary type human. He can forecast the future easily. He knows which technique in
future will be viable in future for the betterment of the business. He can predict for how long
a company can sustain and what can be a company’s potentiality.

He always says to aim higher than necessary and learn from who know more than you. Mr
Ambani always has big dreams. He dreamt to beat Taiwan and Korea in the polyester
business as they were the dominant player at that time. When he was 30 years old his goal
was to become the highest produced of polyester and yarn and he did it.

His another quality is that he focuses more on doing rather than talking. He is not keen to
deliver opinions on important economic issues in different events like World Economic
Forum. He always likes to focus on his business and gets appreciation for the world’s largest
petroleum refinery at Jamnagar. Though he does not attend economic events still he is the
most talked people in the country.
 CONTROLLING
Controlling is a process of comparing the actual performance with the set standards of the
company to ensure that activities are performed according to the plans and if not then taking
corrective action.

The substantial authority of the company is usually Board of Directors. Nonetheless they
have provided much more independence to the specific units for different level to take
decisions at their particular level. There exists a good mixture of corporate level strategy
(taking RIL altogether which is set up by the BOD) as well as ideal business level and
operational strategies at each segment and business units to perform the corporate level
strategy. Every unit a part of RIL has its own structure, headed by the CEO or maybe the
President, although a more of the democratic design of leadership is observed.

Since they enhance innovation and value their human capital they showcase participative
environment at different levels of supervision to be able to help to make a better and
informed decision. Empowering employees in RIL is relevant. Even so the level of decisions
and intensity of danger is defined whereby decisions can be taken by particular level of
management.

RIL provides a comprehensive system of internal controls to safeguard the Company's assets
against loss from unauthorised use and be sure proper authorisation of financial deals. The
Company possesses an exhaustive budgetary control program to keep an eye on all costs
against accepted budgets by using an ongoing basis. The Company's accounting method is
based on consistent accounting standard that sets out accounting guidelines and significant
processes and deadlines on the company extensive basis.
 WHY IS RELIANCE SUCCESSFUL?
If there is one undeniable fact about the Reliance Industries' success story, it has to be
the company's ability to dream and deliver at scale. Reliance Industries Limited
(RIL) is India’s most profitable company, the top contributor to India’s gross domestic
product (GDP), exports and taxes as a single company. It owns India’s leading telecom
company Reliance Jio, the top brick and mortar retailer (Reliance Retail), India’s largest
producer of petrochemicals and polyester business, and is the number one company in
market capitalisation.

Another reason which has helped RIL to be successful is its unique marketing strategy.
Over the years, Reliance has been known for giving the consumers a try of its products for
free to establish into the market and then charge the consumers at a premium price. One such
example is that of the Reliance Jio, when jio was launched, people were given free data for
180 days under the ‘Jio Dhan Dhana Dhan’ Offer

Strong market position in various categories: RIL is the first Indian private sector company
to feature into the Fortune Global 500. With leading market position in many of its
businesses, Reliance is a business giant in India with strong positions in Textile, energy,
Retail etc. Reliance has also entered Telecom industry in India with Jio and is sweeping the
market.

Brand Name and financial position allow RIL to expand: Reliance is a strong brand
name and capital position which allows it to expand its businesses and also venture into newer
businesses.

The operational advantage in refining: RIL has the world’s largest oil refinery in Jamnagar
and is one of the world’s largest private owned refining companies. With the use of
latest technology, Reliance’s refinery in Jamnagar is operationally efficient which gives great
benefits for Reliance as it gets higher yields.

Expansion in the retail industry: Reliance Retail (RRL) is expanding throughout the country
with putting emphasis on backwards integration. With great improvements in the value
chain from procurement from farmers to selling to customers, Reliance has increased its
revenues substantially and was the largest Indian retailer in FY 2015.

Reliance Jio: Reliance Jio has set the telecom industry by a storm. Reliance has laid out a
superlative infrastructure for 4G wireless services throughout the nation which has provided it
with the immense competitive advantage. Jio has also helped Reliance enhance its brand
image and become a mass popular brand.

Strong dealer community: It has built a culture among distributor & dealers where the dealers
not only promote company’s products but also invest in training the sales team to explain to
the customer how he/she can extract the maximum benefits out of the products.
 BIBLIOGRAPHY

▪ https://www.business-standard.com/company/reliance-industr-
476/information/company-history (Accessed on 30/8/2020)
▪ https://www.goodreturns.in/company/reliance-industries/management-team.html
(Accessed on 30/8/2020)
▪ https://www.indiatvnews.com/business/news-reliance-jio-rs-87655-crore-investment-
in-6-weeks-timeline-mubadala-facebook-623564#:~ (Accessed on 31/8/2020)
▪ https://blog.oureducation.in/reliance-recruitment-and-selection-process (Accessed on
1/9/2020)
▪ https://studybay.com/blog/management-control-systems-at-reliance-industries-
limited-essay/ (Accessed on 1/9/2020)
▪ https://www.ukessays.com/essays/business/reliance-industries-limited.php (Accessed
on 1/9/2020)
▪ https://www.cnbctv18.com/business/the-rise-and-rise-of-ril-a-brief-history-of-the-
success-story-on-reliance-industries-6335571.htm (Accessed on 1/9/2020)
▪ https://www.marketing91.com/swot-analysis-reliance/ (Accessed on 2/9/2020)