International Strategies: Current
Scenario and Growth Options
Reliance Industries Limited
Submitted by:
Vivek Sinha
PFM 1342
Business Areas of RIL
Exploration and
Production of Oil and
Gas
Petroleum Refining and
Marketing
Petrochemicals
Textiles
Retail
RILs Petrochemical Business
FINANCIAL HIGHLIGHTS
Segment Revenue
US$ 4.2bn in Q1 2015, a 9.3% YoY growth
US$ 4.3bn in Q2 2015, a marginal YoY decline
Revenue for year 2012-13 US$ 68.4bn
Revenue from Petrochemicals US$ 16.2 bn
Revenue from exports US$ 44.1bn 14% of Indias
exports
Revenue from export of petrochemicals US$ 6.4bn
Products and Brands
Polymers
Polyester
Polyester
Intermediates
Repol
(Polypropylene)
Recron
Paraxylene
Reflex
Benzene
Relene
(Polyethylene)
Relpet
PTA
Reflex
Stylamer SBR
Butadiene
MEG
Reflex
Cisamer PBR
Caustic Soda
Reon (PVC)
Relpipe
Elastomers
Other
Petrochemicals
Linear Alkyl
Benzene
Notable Achievements
Domestic Leadership in Petrochemicals
World's Largest Producer of Polyester Fibre
and Yarn
Fifth largest producer of PP and PX in the
world
Ninth largest producer of PTA
India's largest and world's eighth largest
producer of MEG
India's largest manufacturer of Synthetic
Rubber
Business Environment Polymers
Volatile crude oil and naphtha price
environment
High Operating rates in US, stable in SE Asia
Healthy Global polymer demand
China up by 6%
India up by 12%
Overall margin improvement in PE and PVC,
stable margins in PP
Global Demand Trend 2012 vs 2017
Polyester and Fiber Intermediates
Weaker economic environment in the first half
of FY 2012-13 impacted textile consumption in
developed countries
Slower than expected demand growth;
inventory continues to remain high
Domestic demand grew at 5% in FY13 as
compared to 2% growth witnessed in FY12
Fibre Demand Projections
Chemicals
Benzene
Exports to US, Europe and Middle East
8% rise in exports
Butadiene
Global demand likely to grow but supply will be stable
Increase in domestic market
Polybutadiene Rubber
Global demand likely to grow due to global auto and tyre
sectors
Linear Alkyl Benzene
Major exports to SE Asia and Middle East with
competition from China
Imports From World
40
Trade Value in US$ Billion
35
30
25
Chemicals
20
Plastic or Rubber
15
10
5
0
2010
2011
2012
2013
Exports To World
40
Trade Value in US$ Billion
35
30
25
Chemicals
20
Plastics or Rubbers
15
10
5
0
2010
2011
2012
2013
Major Export Partners 2013
Trade Value in US$ Billion
7
6
5
4
3
2
1
0
Chemicals
Plastics or Rubber
United
States
6.5
0.93
China
Germany
Brazil
UAE
1.6
0.74
1.3
0.36
1
2.8
0.984
0.44
Trade Value in US$ Billion
Major Import Partners 2013
10
9
8
7
6
5
4
3
2
1
0
Korea
Republic
Chemicals
1.6
Plastics or Rubber
1.7
China
9.4
1.5
United
States
3.2
1.05
Germany
Thailand
1.74
0.84
4.5
0.976
Modes of Entry
Joint Ventures
With SIBUR(Russian Petrochemical Company) in 2012 to
manufacture rubber
With US firms Atlas Energy, Pioneer Natural Resources and
Carrizo Oil and Gas in 2010
Strategic Alliances
With BP in 2010 for exploration of its KG D6 basin
Mergers and Acquisitions
Acquired Polyester assets of Hualon, Malaysia in 2007
German specialty polyester manufacturer 'Trevira in 2004
Licensing
2001, RIL signs MOU with DuPont Polyester Technologies
to license revolutionary resin technology NG-3
Continued
Direct Exports to more than 100 countries
Contracts and Agreements
RIL and the Venezuelan state oil company, Petroleos
de Venezuela, SA (PDVSA) signed a 15 year heavy
crude oil supply contract and a Memorandum of
Understanding (MoU) with PDVSA to further
development of Venezuelan heavy oil fields in 2012.
Wholly owned assets
RIL selected for two offshore blocks (M17 and M18) in
Myanmar Offshore Block Bidding Round - 2013
Segment, Target Group and Positioning
Segment
Manufacturers of Cars, Tires, Textiles, Safety
Equipment, Bottles and PET Jars, Footwear
Packaging, Building and Construction, Geotextile,
Agrotextile
Target Group
Domestic and Global Markets. Growing domestic
market
Positioning
High quality of petrochemical products, domestic
leadership
KG D6 Controversy
KG D6 spread across 50,000 sq km in the Krishna River and
Godavari river basins near the coast of Andhra Pradesh
GoI opened up hydrocarbon exploration and production in
the country to private and foreign players in 1991
Small and medium sized blocks were opened up in this
round which was followed up by giving out bigger blocks in
1999 as per the New Exploration and Licensing Policy
(NELP)
Through NELP, Reliance bagged the rights to explore the D6
block
A PSC was signed between the government of India (GOI)
and undivided Reliance Industries and its minority partner
Niko Resources (10 per cent stake) for exploration and
production of oil and gas
Continued
Even before production could start from the KG
D6 wells, Reliance group was split vertically
between the two brothers, with the gas business
of Reliance Industries remaining with Mukesh
Ambani
KG D6 split by brothers even the rights being
vested with GoI under Article 297
Anil Ambani claimed rights as per agreement
No reaction from the then oil minister Veerappa
Moily and PM
RIL NTPC dispute and price of $2.54 per mmBtu
Exploration or Exploitation
Conclusion
Rising demand in domestic market as compared
to global market
Aims to be among global top 50 in 3 years;
investments worth Rs 1,80,000 crore lined up
across businesses
Demand higher than supply (installed capacity) in
domestic and international market
Petrochemical expansion to drive growth of
Reliance for next few years
Strong operating performance
References
http://www.dnaindia.com/money/report-petrochemical-expansionto-drive-growth-of-reliance-for-next-few-years-2003846
http://articles.economictimes.indiatimes.com/2014-0619/news/50711111_1_petrochemicals-business-reliance-industriesmukesh-ambani
http://www.business-standard.com/article/companies/10-thingsyou-should-know-about-the-reliance-kg-d6-gas-deal114021200357_1.html
http://www.ril.com/rportal1/DownloadLibUploads/1381761061234
_Q2FPR14102013.pdf
http://www.ril.com/html/aboutus/major_milestones.html
Thank You
