Reliance Industries SWOT and Financial Analysis

PRESENTED BY-
PALLAVI SINGH
PRERNA DWIVEDI
SONI SHARMA
SHASHWAT SRIVASTAVA
VIVEK KUMAR MISHRA
RELIANCE INDUSTRY LTD.
1

CONTENT
• INTRODUCTION
• RELIANCE JIO
• VISION MISSION VALUES
• MARKETING MIX
• PORTER’S FIVE FORCE MODEL
• COMPARATIVE BALANCE SHEET
• KEY PERFORMANCE INDICATOR
• SWOT ANALYSIS
• CORPORATE SOCIAL RESPONSIBILITY
• CONCLUSION
• RECOMMENDATION
RELIANCE INDUSTRY LTD. 2

Shri DHIRUBHAI AMBANI
 Brought about the equity cult in
India in late seventies.
 Regarded as an icon for
enterprise in India.
 He epitomized the spirit ‘dare
to dream learn to excel.
3
INTRODUCTION
Industry Conglomerate
Founded 1966; 51 years ago
Founder Dhirubhai Ambani
Headquarters Mumbai, Maharashtra, Indi
a
Key people Mukesh Ambani
(Chairman and MD)
Products Petroleum
Natural gas
Petrochemicals
Textiles
Retail
Telecommunications
Media
Number of
employees
24,930 (2016)

MUKESH AMBANI ANIL AMBANI
Head of the company’s
Petroleum
Petrochemical
Textile operations
Regrouped the companies
Telecommunication
Energy
Capital finance
 and other operations into a new
company
4

RELIACE JIO
 Reliance Jio Infocomm Limited is a lte mobile operator in india.
 Headquatered at navi mumbai , maharastra
LAUNCH OF RELIANCE JIO
 BETA LAUNCH
COMMECIAL LAUNCH
PRODUCT AND SERVICES
4G Broadband
LYF Smartphones
Jionet WiFi
Jio apps
Affordable 4G Phones
JioFi

PROS AND CONS OF JIO
PROS
shift from scrounging for data and data-scarcity to potentially an era of data
abundance
elimination of national roaming
Slightly cheaper rates
CONS
Reliance Jio is merely the potentially overstated
It sticks to deplorable practices
Loss-leader strategy - consequences for competition and consumer protection

•Through sustainable measures, create value for the nation.
•Enhance quality of life across the entire socio-economic
spectrum.
•Help India to become a global leader in the domains where it
operates.
VISSION
•Create value for all stakeholders.
•Grow through innovation.
•Lead in good governance practices.
•Use sustainability to drive product development.
•Enhance operational efficiencies.
•Ensure energy security of the nation.
•Foster rural prosperity.
MISSION
VALUES
7
Care Citizenship
Fairness Honesty
Integrity Respect
Responsibility Safety

MARKETING
MIX
PRODUCT
PLACE
PRICE
PROMOTION

MARKETING MIX OF RIL
• PRODUCT- The company is present in numerous sectors like logistics,
textiles, retail, natural resources, science and technology, health care,
energy, communications, construction and petrochemicals.
 Retail sector includes Reliance [Fresh, Digital, Footprint, Trends, Mart,
Home Kitchens, Wellness, Market, Jewel etc..]
 Reliance Life Sciences
 Reliance Solar
 Reliance Jio Info communication
 Reliance Industrial Infrastructure Ltd.
9

• PLACE
Reliance Industries has nearly 123 subsidiaries and
10 associate firms.
In the retail sector, it is the largest retailer with
nearly 1466 outlets in India.
 All the outlets are located at prime locations with
trained and efficient staff to garner maximum
consumers.
RIL already have a wide network in place for every
facet like channel , intermediary or distribution and
their sound mechanism has taken them to such
unimaginable heights.
10

• PRICE- pricing policy of Reliance Industries is
different for different sectors.
 The policy for sectors such as retail, telecommunications and
health care that are in direct contact with the consumers is
mainly penetration pricing.
 Petrochemicals is dependent on the global market, which is
flexible thus, various market conditions along with the costing
and promotional expenses determine the pricing policies of the
company.
 In some sectors like Reliance Fresh showrooms, it has dropped
the services of intermediaries and bought the items directly
from its source.
11

• PROMOTION
Reliance has eagerly utilized the available
advertising tools so that the best marketing
strategies could be implemented.
Their promotional campaigns are clean, well
made, trendy with an emotional touch and up to
the mark to attract the consumers.
announces discounts and schemes for its
consumers.
Except for the retail sector, hardly any
advertising is seen from Reliance.
12

PORTER’S FIVE FORCE MODEL

RIVALRY
Moderate High Switching
Cost growth
Low exit barriers
High Switching Costs
Buyer Power
High Bargaining Power
Threat of substitutes
High (price Sensitive
market)
High switching cost
Barriers to entry
High initial cost
Government Regulation
Supplier Power
High competition
Concentration of suppliers

COMPARATIVE BALANCE SHEET

2016 2015
CURRENT ASSET
90,564.00 1,16,152.00
Less: CURRENT LIABILTY
1,25,022.00 91,301.00
WORKING CAPITAL -34,458.00 24,851.00
•It shows that there is not sufficient fund to meet day to day
business.
•In this case the working capital is decreased by 239% than the
first year.
•It shows that the current financial position is not good at all.
CURRENT FINANCIAL POSITION
ANALYSIS OF BALANCE SHEET

ANALYSIS OF BALANCE SHEET
LONG TERM FINANCIAL POSITION
FOR 2016:
TOTAL ASSETS TO DEBT RATIO= TOTAL ASSETS ÷ DEBT
= 457720 ÷ 240184
= 4.95:1
• It shows that use of lower debts in financing the
assets which means higher security to lenders.
• This also means that fixed asset has been
financed by raising shareholders fund partly by
reserves partly by current assets.

SWOT ANALYSIS
STRENGHT
WEAKNESS
OPPURTUNIT
IES
THREATS
22
•Strong brand name
•India’s one of the biggest players
•Dominant foothold in the market
•Focus on research and development
•Backward vertical integration
•Decline in net working capital
•Legal issues
•KG D6 gas controversy
•Accusations of being favored by government
•Operational issues
•Renewed Interest in Unconventional Energy Sources
• Indian Retail Industry: Growth Prospects
•Positive Outlook of Petrochemical Industry
•Intense Competition
•Stringent Regulations
• Weak Oil Market

EDUCATION COMMUNITY HEALTH CARE
ENVIRONMENT INITIATIVES ACKNOWLEDGING AND SUPPORTING
TALENTS
CORPORRATE SOCIAL RESPONSIBILITY
23
•Project – Kanyakelvani, jagruti
•Dhirubhai Ambani Prostaham
Scheme
•Mumbai Indians education for all
initiative
•Project – Dhrishti, Balkayan, Hope
•PHC – Primary Healthcare System
•Reliance Rural Development Trust
•Zero Garbage Campaign
•Solar micro wind Combined
System
•Green idea award scheme
•Real Heroes
•Reliance Dhirubhai Ambani
Undergraduate Scholarship
•Reliance Foundation

CONCLUSION
• Reliance is the 3rd most profitable company in
India having strong financial position . It is the 2nd
largest company in India in terms of revenue.
• Reliance Industries although a big brand is
exposed to several threats . They are facing
intense competition from a number of
competitors and still they are the king of their
market .
24

RECOMMENDATION
In a nutshell we can say that despite of facing
several problems RIL has established itself as
one of the largest conglomerate. It has more
pros as compared to that of the cons. So what
we can recommend to RIL from our survey is
just :-
• Make flexible working hours.
• Employee oriented - Retain its employee.
• And keep going.
25

REFERENCES
• http://www.marketing91.com/marketing-mix-of-reliance-
industries-reliance-industries-marketing-mix/
• https://en.wikipedia.org/wiki/Reliance_Industries
• http://www.moneycontrol.com/india/stockpricequote/refiner
ies/relianceindustries/RI
• http://www.businesstoday.in/magazine/cover-story/bt-500-
india-most-valuable-companies-2015-reliance-industries-
rank-2/story/224957.html
• ECONOMIC TIMES
• QUESTIONNAIRE
• INTERVIEWS
26

Reliance Industries SWOT and Financial Analysis

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (20)

Semelhante a Reliance Industries SWOT and Financial Analysis

Semelhante a Reliance Industries SWOT and Financial Analysis (20)

Último

Último (20)

Reliance Industries SWOT and Financial Analysis