MIRA
INFORM REPORT
|
Report Date : |
05.12.2008 |
IDENTIFICATION
DETAILS
|
Name : |
RELIANCE
INDUSTRIES LIMITED |
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Registered
Office : |
3rd
Floor, Maker Chambers IV, 222, Nariman Point, Mumbai – 400 021, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2008 |
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Date of
Incorporation : |
08.05.1973 |
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Com. Reg. No. |
11-19786 |
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CIN No.: [Company
Identification No.] |
L17110MH1973PLC019786 |
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TAN No.: (Tax
Deduction & Collection Account No.) |
MUMRO9795C MUMR00462A |
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Legal Form : |
Public Limited
Liability Company. The company’s
shares are listed on the Stock Exchanges. |
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Line of
Business : |
Manufacturers and Marketers of Fabrics,
Polyester Filament Yarn, Polyester Staple Fibres, PTA, LAB, Ethylene Glycol,
PVC, PE, PP, Crude Oil, Gas, Norman Paraffin, Fibre Fill, Ethylene,
Propylene, Benzene, Xylene and Toluene. |
RATING &
COMMENTS
|
MIRA’s Rating
: |
Aaa |
RATING |
STATUS |
PROPOSED
CREDIT LINE |
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||
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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Maximum Credit
Limit : |
USD 3988310000 |
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Status : |
Excellent |
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Payment
Behaviour : |
Regular |
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Litigation : |
Exists |
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Comments : |
Subject is an old
and well-established company. The group’s activities span exploration and
production of oil and gas, refining and marketing, petrochemical (polyester,
polymers and intermediates), textiles, financial review and insurance, power,
telecom etc. In India, Reliance enjoys leading markets share for all its
major businesses. It has a market share of 51 percent in Polyester, 48
percent in Polymers and 78 percent in Fibre intermediates. Reliance has
emerged as India’s Most Admired Business House, for the third successive
year. Directors are well-experienced and respectable industrialists. Trade
relations are fair. The company can
be considered good for business dealings. |
LOCATIONS
|
Registered
Office : |
3rd
Floor, Maker Chambers IV, 222, Nariman Point, Mumbai – 400 021, Maharashtra,
India |
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Tel. No.: |
91-22-30325000/30327000/22785000 |
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Fax No.: |
91-22-30322268/22785111 |
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E-Mail : |
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Website : |
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Head Office : |
Undertaking Polymer Division, Fortune 2000, 5th Floor, C-3,
G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra,
India |
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Corporate
office : |
Reliance Center,
19, Walchand Hirachand Marg, Ballard Estate, Mumbai-400038, Maharashtra,
India |
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Tel No. : |
91-22-30327000 |
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Administrative
Office : |
Chitrakoot, 2nd
Floor, Shree Ram Mills Compound, Ganpatrao Kadam Marg, Worli, Mumbai – 400
013, Maharashtra, India |
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Tel. No.: |
91-22-24962780/24981163/24981167/24981667-90 |
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Factory : |
Gandhar Complex P. O. Dahej,
Bharuch - 392 130, Gujarat, India Hazira Complex Village Mora,
Bhatha P.O. Surat-Hazira Road, Surat 394 510, Gujarat, India Jamnagar Complex Village Meghpar
/ Padana, Taluk Lalpur, Dist. Jamnagar 361 280, Gujarat, India Nagothane Complex P. O.
Petrochemicals Township, Nagothane, Raigad - 402 125, Maharashtra, India Naroda Complex 103/106, Naroda
Industrial Estate, Naroda, Ahmedabad 382 320, Gujarat, India Patalganga
Complex B-4, Industrial
Area, Patalganga, Off Bombay-Pune Road, Near Panvel, Dist. Raigad 410 207,
Maharashtra, India Vadodara Complex P. O.
Petrochemicals, Vadodara - 391 346, Gujarat, India |
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Branch Office : |
Module 15/16, Fosbery Road, Offreay Road Station [East], Mumbai –
400033, Maharashtra, India |
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Tel No. : |
91-22-30413483 |
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Fax No. : |
91-22-30411077 |
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Refinery
Complex : |
Taluka Lalpur,
District Jamnagar, Gujarat State |
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Corporate
Communication: |
Maker Chambers
IV, 5th Floor, Nariman Point, Mumbai – 400021, Maharashtra, India |
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Tel No. : |
91-22-22785568 /
22785585 / 22785000 |
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Fax No. : |
91-22-22785185 |
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Email : |
DIRECTORS
|
Name : |
Mr. Mukesh D.
Ambani |
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Designation : |
Chairman and Managing Director |
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Date of
Appointment: |
31.07.2002 |
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Qualification: |
Chemical Engineer from Mumbai University and MBA from Stanford
University, U.S.A. |
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Other
Directorship: |
1) Reliance Europe Limited 2) Reliance Infocomm Limited 3) Reliance Communications Infrastructure Limited 4) Chairman of Indian Petrochemicals Corporation Limited 5) Member of Shareholder’s/Investors Grievance Committee of the
Board. |
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Name : |
Mr. Nikhil R.
Meswani |
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Designation : |
Executive Director |
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Appointment: |
Since 1990 |
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Qualification: |
Chemical Engineer |
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Name : |
Mr. Hital R.
Meswani |
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Designation : |
Executive Director |
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Name : |
Mr. H. S. Kohli |
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Designation : |
Executive Director |
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Date of
Appointment: |
01.04. 2000 |
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Experience: |
In implementing and operation of petrochemical complexes. |
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Name : |
Mr. Yogendra P.
Trivedi |
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Designation : |
Director |
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Date of
Appointment: |
16.04.1992 |
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Experience : |
In finance and taxation |
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Name : |
Mr. S.
Venkitaramanan |
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Designation : |
ICICI Nominee Director |
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Name : |
Mr. U. Mahesh Rao |
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Designation : |
GIC Nominee Director |
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Name : |
Mr. Ramiklal H.
Ambani |
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Designation : |
Director |
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Name : |
Mr. Mansingh L.
Bhakta |
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Designation : |
Director |
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|
Name : |
Dr. Dharam Vir
Kapur |
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Designation : |
Director |
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Name : |
Mr. Mahesh P.
Modi |
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Designation : |
Director |
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Name : |
Mr. Ashok Mishra |
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Designation : |
Independent Director |
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Name : |
Mr. Dipak C Jain |
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Designation : |
Additional Director |
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Name : |
Dr. Raghunath A. Mashelkar |
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Designation : |
Director |
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Date of
Appointment : |
09.06.2007 |
KEY EXECUTIVES
|
Name : |
Mr. Vinod M. Ambani |
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Designation : |
Company Secretary |
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Name : |
Mr. Rohit C. Shah |
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Designation : |
Company Secretary |
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Audit Committee
: |
Mr. Yogendra P.
Trivedi (Chairman) |
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|
Mr. S.
Venkitaramanan (Vice Chairman) |
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|
Mr. Mahesh P.
Modi |
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Corporate
Governance and Stakeholders' Interface Committee : |
Mr. Yogendra P.
Trivedi (Chairman) |
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|
Mr. Mahesh P.
Modi |
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|
Dr. Dharam Vir
Kapur |
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Employees Stock Compensation
Committee : |
Mr. Yogendra P.
Trivedi (Chairman) |
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|
Mr. Mukesh D.
Ambani |
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|
Mr. Mahesh P.
Modi |
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|
Prof. Dipak C.
Jain |
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Finance
Committee : |
Mr. Mukesh D.
Ambani (Chairman) |
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|
Mr. Nikhil R.
Meswani |
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|
Mr. Hital R.
Meswani |
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Health, Safety
and Environment
Committee : |
Mr. Hital R.
Meswani (Chairman) |
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|
Dr. Dharam Vir
Kapur |
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|
Mr. Hardev Singh
Kohli |
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Remuneration
Committee : |
Mr. Mansingh L.
Bhakta (Chairman) |
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|
Mr. Yogendra P.
Trivedi |
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|
Mr. S.
Venkitaramanan |
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|
Dr. Dharam Vir
Kapur |
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Shareholders'/Investors' Grievance
Committee : |
Mr. Mansingh L.
Bhakta (Chairman) |
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|
Mr. Yogendra P.
Trivedi |
|
|
Mr. Mukesh D.
Ambani |
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|
Mr. Nikhil R.
Meswani |
|
|
Mr. Hital R.
Meswani |
SHAREHOLDING
PATTERN
As on 30.09.2008
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Shareholding
of Promoter and Promoter Group |
|
|
|
Indian |
|
|
|
Individuals / Hindu Undivided Family |
10586013 |
0.76 |
|
Bodies Corporate |
536011997 |
38.45 |
|
Any other (specify) |
|
|
|
i. Petroleum Trust (through Trustees for
sole beneficiary-M/s Reliance Industrial Investments and Holdings Limited) |
104660154 |
7.51 |
|
Public
Shareholding3 |
|
|
|
Institutions |
|
|
|
Mutual Funds / UTI |
39147195 |
2.81 |
|
Financial Institutions / Banks |
1673094 |
0.12 |
|
Central Government / State Government(s) |
3375090 |
0.24 |
|
Insurance Companies |
90979721 |
6.53 |
|
Foreign Institutional Investors |
246714030 |
17.70 |
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Non-institutions
|
|
|
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Bodies Corporate |
70854734 |
5.08 |
|
Individuals |
|
|
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i. Individual shareholders holding nominal
share capital up to Rs. 0.100 million |
161233178 |
11.57 |
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ii. Individual shareholders holding
nominal share capital in excess of Rs.0.100 million |
18393988 |
1.32 |
|
Any other (specify) |
|
|
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i) NRIs/ OCBs |
11604544 |
0.83 |
|
ii) Clearing Member |
4674111 |
0.34 |
|
iii) Shares held by Subsidiary Companies
on which no voting rights are exercisable |
94191710 |
6.76 |
|
Shares held by Custodians and against
which depository receipts have been issued |
59687997 |
0.00 |
|
Total |
1453787556 |
100.00 |
BUSINESS DETAILS
|
Line of
Business : |
Manufacturers and Marketers of Fabrics,
Polyester Filament Yarn, Polyester Staple Fibres, PTA, LAB, Ethylene Glycol,
PVC, PE, PP, Crude Oil, Gas, Norman Paraffin, Fibre Fill, Ethylene,
Propylene, Benzene, Xylene and Toluene. |
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Products : |
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Brand Names : |
Recron Apparels, Home
textiles Industrial sewing
threads, Automotive Upholstery Recron Fibrefill Sleep Product: Pillows, Cushions, Toys, Quits, Mattresses Recron 3S
Construction
Industry (concrere/mortar), asbestos cement
(sheet and pipe), paper industry
(conventional and speciality), battery industry Recron Stretch Denims,
shirting, suiting, dress material, T- shirt,
sportswear, swimwear Recron Coutluk Shirting, Suiting, furnishing fabric, curtain and
bed sheet Recron Dyefast Knitted cardigan, decorative fabric and home furnishing Recron Superblack Apparel,
automotive, non-woven and interlling Recron Superdye Woven and knitted apparel, furnishing and home textile Fiber Intermediates Raw Material Relpet Packing-water,
soft drinks, beverages, confectionery Repol Packaging-Woven
sacks, TQ and BOPP films, Unipol containers Relene Packaging-woven
sanks, films Reclair Packaging-films,
squeeze bottles Reon Pipes and
fittings, profiles Relpipe Irrigation,
water supply, drainage, industrial effluents,
telecom cable ducts, gas distribution Relab Detergents Vimal Apparels,
fabrics Harmony Furnishing,
home textiles RueRel Apparels,
Fabrics Vimal V2 Apparels,
Fabrics Reance Suits, shirts
and trousers SlumbeRel Sleep products Refining Refinery of
domestic and Industrial Fuel Oil and Gas Refining, power, ertilizers and
petrochemicals |
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Exports : |
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County : |
·
U.S.A. ·
Canada ·
U.K. ·
Ireland ·
France ·
Germany ·
Spain ·
The
Netherlands ·
Italy,
Greece ·
Belgium ·
Hungary ·
Australia ·
New Zealand ·
Argentina ·
Mexico ·
Chile ·
Brazil ·
Colombia ·
Hong Kong ·
Singapore ·
China |
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
|
Refining of Crude
Oil |
Mill. MT |
N.A. |
33 |
|
Ethylene |
MT |
N.A. |
1,580,000 |
|
Propylene |
MT |
N.A. |
600,460 |
|
Benzene |
MT |
N.A. |
730,000 |
|
Toluene |
MT |
N.A. |
197,000 |
|
Xylene |
MT |
N.A. |
165,000 |
|
Hydro Cynic Acid ' |
MT |
3600 |
3,600 |
|
Ethane Propane
Mix |
MT |
N.A. |
450,000 |
|
Caustic Soda Lye
/ Flakes |
MT |
N.A. |
165,825 |
|
Chlorine |
MT |
N.A. |
105,000 |
|
Acrylonitrile |
MT |
N.A. |
30,000 |
|
Linear Alkyl
Benzene |
MT |
N.A. |
158,500 |
|
Butadiene and
Other C4s |
MT |
N.A. |
419,000 |
|
Other Chemicals |
MT |
N.A. |
656,150 |
|
Paraxylene |
MT |
N.A. |
1,904,600 |
|
Orthoxylene |
MT |
N.A. |
467,900 |
|
Toluole |
MT |
N.A. |
180,000 |
|
Poly Vinyl
Chloride |
MT |
N.A. |
625,000 |
|
High / Linear
Low Density Poly Ethylene |
MT |
N.A. |
1,055,000 |
|
High Density
Polyethylene Pipes |
MT |
N.A. |
80,000 |
|
Poly Butadiene
Rubber |
MT |
N.A. |
50,000 |
|
Polypropylene |
MT |
N.A. |
1,735,190 |
|
Mono Ethylene
Glycol |
MT |
N.A. |
733,400 |
|
Higher Ethylene
Glycol |
MT |
N.A. |
52,080 |
|
Ethylene Oxide |
MT |
N.A. |
91,000 |
|
Purified
Terephthalic Acid |
MT |
N.A. |
2,050,000 |
|
Polyester
Filament Yam / Polyester Chips |
MT |
N.A. |
807,200+ |
|
Polyester Staple
Fibre / Acrylic Fibre / Chips |
MT |
N.A. |
765,612 |
|
Poly Ethylene
Terephthalate |
MT |
N.A. |
290,000 |
|
Polyester Staple
Fibre Fill |
MT |
N.A. |
42,000 |
|
Man-made Fibre
Spun Yarn on worsted system |
Nos |
N.A. |
24,094 |
|
Man-made fibre
on cotton system (Spindles) |
Nos |
N.A. |
23,040 |
|
Man-made Fabrics
(Looms) |
Nos |
N.A. |
305 |
|
Knitting M/C |
Nos |
22 |
20 |
GENERAL
INFORMATION
|
No. of
Employees : |
12864 |
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Bankers : |
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Facilities : |
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Banking Relations : |
Good |
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Auditors : |
·
Chaturvedi
and Shah Chartered Accountants ·
Rajendra and
Company Chartered Accountants INTERNATIONAL
ACCOUNTANTS
·
Deloitte
Haskins and Sells Chartered Accountants |
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Associates : |
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Subsidiaries : |
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CAPITAL STRUCTURE
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2500000000 |
Equity Shares |
Rs. 10/- each |
Rs. 25000.000 Millions |
|
50000000 |
Preference Shares
|
Rs. 100/-each |
Rs. 5000.000 Millions |
|
|
Total |
|
Rs. 30000.000
Millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1453390000 |
Equity Shares |
Rs. 10/-each |
Rs. 14533.900 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
14533.900 |
13932.100 |
13931.700 |
|
2] Share Application Money |
0.000 |
601.400 |
0.000 |
|
3] Reserves & Surplus |
783128.100 |
625137.800 |
484110.900 |
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
NETWORTH
|
797662.000 |
639671.300 |
498042.600 |
|
|
|
|
|
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
66001.700 |
95691.200 |
76649.000 |
|
2] Unsecured Loans |
298795.100 |
182566.100 |
142007.100 |
|
TOTAL
BORROWING |
364796.800 |
278257.300 |
218656.100 |
|
DEFERRED TAX LIABILITY |
0.000 |
69820.200 |
0.000 |
|
|
|
|
|
TOTAL
|
1162458.800 |
987748.800 |
716698.700 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
618836.300 |
636604.600 |
557167.500 |
|
Capital work-in-progress |
230058.400 |
75281.300 |
69577.900 |
|
|
|
|
|
|
INVESTMENTS |
220636.000 |
162513.400 |
58461.800 |
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
142475.400 |
121365.100 |
101198.200 |
|
Sundry Debtors |
62275.800 |
37324.200 |
41636.200 |
|
Cash & Bank Balances |
42800.500 |
18353.500 |
21461.600 |
|
Other Current Assets |
0.000 |
30.700 |
0.000 |
|
Loans & Advances |
184412.000 |
122060.000 |
82665.500 |
|
Total Current Assets |
431963.700 |
299133.500 |
246961.500 |
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
Current
Liabilities |
309109.400 |
168655.300 |
176560.200 |
|
Provisions |
29926.200 |
17128.700 |
38909.800 |
Total Current Liabilities
|
339035.600 |
185784.000 |
215470.000 |
|
Net Current Assets |
90928.100 |
113349.500 |
31491.500 |
|
|
|
|
|
TOTAL
|
1162458.800 |
987748.800 |
716698.700 |
PROFIT &
LOSS ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
1392694.600 |
1116927.200 |
812113.300 |
|
|
Other Income |
66156.200 |
4782.800 |
6829.200 |
|
|
Total Income |
1458850.800 |
1121710.000 |
818942.500 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
230101.400 |
145204.700 |
107040.600 |
|
|
Provision for Taxation |
35518.500 |
25770.700 |
16347.200 |
|
|
Profit/(Loss) After Tax |
194582.900 |
119434.000 |
90693.400 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
NA |
585313.200 |
308196.000 |
|
|
Interest Earnings |
NA |
6.600 |
10.200 |
|
|
Other Earnings |
NA |
4.400 |
0.300 |
|
Total Earnings |
NA |
585324.200 |
308206.500 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
NA |
737113.500 |
529451.900 |
|
|
Stores & Spares |
NA |
15402.600 |
9279.600 |
|
|
Capital Goods |
NA |
10999.800 |
26811.500 |
|
Total Imports |
NA |
763515.900 |
565543.000 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Purchases |
0.0000 |
18212.800 |
25161.300 |
|
|
Raw Material Consumed |
963115.600 |
0.000 |
0.000 |
|
|
Power & Fuel |
20528.400 |
0.000 |
0.000 |
|
|
Manufacturing
and Other Expenses |
35020.100 |
898252.100 |
643961.100 |
|
|
Interest and
Finance Charges |
20499.500 |
11888.900 |
8770.400 |
|
|
Depreciation |
48471.400 |
48151.500 |
34009.100 |
|
|
Other Expenditure |
141114.400 |
0.000 |
0.000 |
|
Total Expenditure |
1228749.400 |
976505.300 |
711901.900 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2008 |
30.09.2008 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Sales
Turnover |
|
415790.000 |
447870.000 |
|
Other
Income |
|
2260.000 |
1510.000 |
|
Total
Income |
|
418050.000 |
449380.000 |
|
Total
Expenditure |
|
354580.000 |
383130.000 |
|
Operating
Profit |
|
63470.000 |
66250.000 |
|
Interest |
|
2940.000 |
4370.000 |
|
Gross
Profit |
|
60530.000 |
61880.000 |
|
Depreciation |
|
11510.000 |
12640.000 |
|
Tax |
|
5670.000 |
5770.000 |
|
Reported
PAT |
|
41100.000 |
41220.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt Equity Ratio |
0.46 |
0.47 |
0.49 |
|
Long Term Debt Equity Ratio |
0.34 |
0.34 |
0.38 |
|
Current Ratio |
0.96 |
0.90 |
1.03 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.39 |
1.34 |
1.34 |
|
Inventory |
10.56 |
10.64 |
10.17 |
|
Debtors |
27.97 |
29.98 |
22.03 |
|
Interest Cover Ratio |
17.86 |
13.21 |
13.20 |
|
Operating Profit Margin (%) |
17.29 |
17.34 |
16.81 |
|
Profit Before Interest and Tax Margin (%) |
13.81 |
13.27 |
12.99 |
|
Cash Profit Margin (%) |
14.50 |
14.16 |
13.99 |
|
Adjusted Net Profit Margin(%) |
11.02 |
10.09 |
10.18 |
|
Return On Capital Employed(%) |
18.81 |
20.12 |
18.76 |
|
Return On Net Worth(%) |
21.90 |
22.45 |
21.90 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
In the year 1966 the subject was founded by Shri Dhirubhai H.Ambani, it
was started as a small textile manufacturer unit. In May 8th, 1973 subject was
incorporated and conformed their name as subject in the year 1985. Over the
years, the company has transformed their business from manufacturing of
textiles products into a petrochemical major. Subject is the largest
private-sector enterprise in India in terms of revenues, profits, net worth,
assets and market capitalization. It's operations capture value addition at
every stage, from the production of crude oil and gas to polyester, polymer and
chemical products, and finally to the production of textiles. The company
operates mainly in India but has business activities and customers in more than
100 countries around the world. It has production facilities at three major
locations in India and a further four locations in Europe. It also has
exploration and production interests in India, Yemen and Oman.
The company has set up a texturising / twisting facilities in 1979,
subject has also set up plants for Polyester Staple Fiber (PSF) in 1986 and for
Linear Alkyl Benzene (LAB) and Purified Terephthalic Acid (PTA) in 1988.
Subject has setup a petrochemical facility to produce HDPE and PVC at Hazira,
Gujarat in technical collaboration with DuPont and BF Goodich respectively. 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. The company commissioned an 80,000 tonne bottle grade PET chip
plant at Hazira manufacturing complex. Reliance's PET chips has been accepted
internationally due to their high quality during the year 1997-98 and in the
same year Reliance Industries Planned to invest around Rs.50000 millions (US $
1,250 million) in building two world-scale plants at the site of the Jamnagar
refinery in Gujarat. In 1998-99, subject introduced packaged LPG in 15 kg
cylinders under the brand name Reliance Gas. In 1999-2000, subject commissioned
the world's largest 1.4 million tonnes per annum Paraxylene (PX) plant at its
new integrated petrochemicals complex at Jamnagar which was planned at 1997-98.
Reliance Petroleum Limited (RPL) was amalgamated with Subject in the year
2002-03.
The merger places Reliance in the reckoning for a place in the Fortune Global
500 list of the world's largest corporations. During the year the company has
also amalgamated Indian Petrochemicals Corporations Limited (IPCL), which leads
to compete from a stronger base in the global market. Reliance discovered
natural gas in the very first exploration well it drilled in the deep-water
exploration block KG-D6 in the Krishna-Godavari basin off Andhra Pradesh. In
2004-05, subject acquired the polyester major, Trevira GmbH, headquartered in
Frankfurt, Germany which has the capacity of 130,000 tonnes per annum of
polyester staple fibers, polyester filament yarns and polyester chips.
As of 2007 across the globe, subject is largest producer of polyester fiber and
yarn, 4th largest producer of Paraxylene (PX) and Purified Terephthalic Acid
(PTA), 6th largest producer of Mono Ethylene Glycol (MEG) and 7th largest
producer of Polypropylene (PP). Gujarat State Petronet Limited (GSPL) and
Subject have signed a gas transportation agreement to transport 11 million
standard cubic meters per day (MSCMD) of natural gas from Bhadbhut in Bharuch
to subject's refinery and petrochemical complex in Jamnagar. Similarly, Gujarat
State Petroleum Corporation Limited (GSPC) has signed a gas transportation
agreement with Reliance Gas Transmission and Infrastructure Limited (RGTIL) for
transportation of 3.5 MSCMD of natural gas from its largest K-G basin discovery
at Kakinada to Gujarat.
The Maharashtra state government has given the final nod to Subject to set up
two captive power plants in Maharashtra - each of 1100 MW capacity - to meet
the requirement of special economic zones, malls and other commercial setups
and company assured the state of gas supply to Mahgenco's Uran unit. Subject
plans to invest between Rs.250000 millions to Rs.300000 millions in a pipeline
grid that covers main gas transport trunk lines supplemented by spur lines
crisscrossing four major States initially, followed by a pan-India network and
it stretching about 10,000 km across the country. Reliance Industries is
entering the supply-deficient hospitality business and is in talks with big
international names such as Walt Disney, Ritz Carlton and Four Seasons for
managing some of their hotels, it is also looking to set up hotels with themes,
such as those run by Disney in the US. Having entered consumer retail and
special economic zones in the last two years, Reliance considers hospitality a
natural complement to its existing businesses.
The company has signed a letter of intent with NOVA Chemicals on May 2008, to
form 51:49 a joint venture in the area of building and construction. This
proposed new joint venture between subject and NOVA Chemicals would be a
technological partnership for deploying green building and construction
technologies to design, engineer, fabricate and build a range of
high-efficiency structures for the Indian sub-continent. Subject plans to
investment Rs.170000 millions in oil and gas exploration over the next few
years; The Company has already invested Rs.90000 millions in exploration so
far. Subject is also considering surrendering seven exploration blocks awarded
to it by the Government.
Trade Terms
·
Accurate Paper
Tube
·
Aditya Forge
Limited
·
Agencies
(India) Corporation
·
Aico Agencies
Private Limited
·
Aksh India
Limited
·
Ambica
Textiles
·
Anil
Industrial Components
·
Associated
Chemicals
·
Associated
Products
·
Bhandari
Industries
·
Billimoria
(India)
·
CEAG
Flameproof Control Gear Private Limited
·
Colloids India
·
Elite Printers
·
Fibro
Chemicals
·
Geecy
Engineering Private Limited
·
Harisidh Engineering
Works
·
IPSA Chemicals
Private Limited
·
Nec Containers
Private Limited
·
PITICO
Chemicals
·
Paper
Converters (Private) Limited
Operations
During the year, the
Company has scaled new heights and set several new benchmarks in terms of
sales, profits, networth and assets. This was a landmark year for the Company
as it delivered record financial and operating performance amidst challenging
and volatile market conditions.
Turnover for the
year was Rs. 1392690.000 Millions ($ 34.7 billion) against Rs. 1183540.000
Millions ($ 27.2 billion) in the previous year, reflecting a growth of 18%.
During the year, exports were higher by 25% at Rs. 834920.000 Millions
Profit after tax, including exceptional item, for the year was Rs. 194580.000
Millions ($ 4.9 billion) as against Rs.119430.000 Millions ($ 2.7 billion) for
the previous year, registering an increase of 63%. Profit after tax, excluding
exceptional item was Rs. 152610.000 Millions ($ 3.8 billion), representing an
increase of 28% and the Compounded Annual Growth Rate (CAGR) of 30% over the
past five years.
Exceptional item of Rs. 47330.000 Millions ($ 1.2 billion) represents
gains primarily arising out of transactions concerning shares of Reliance
Petroleum Limited, a subsidiary of the Company.
The Company is one of India's largest contributors to the national
exchequer primarily by way of payment of taxes and duties to various government
agencies. During the year, a total of Rs. 136960.000 Millions ($ 3.4 billion)
was paid in the form of various taxes and duties.
Additionally, some of the major events of
the year include the following:
During the year the Company's Oil and Gas Exploration and Production business
made significant offshore discoveries in the east and west coast of India.
Subject surpassed its previous record and had 9 discoveries. Three gas
discoveries were made in the Krishna basin in deep water (KG-D6-R1, KG-V-D3-A1
and B1). Two more gas discoveries were made in the Krishna basin in shallow
water (KG-III-05-P1 and J1). A deep water discovery was made in the Cauvery
basin (CY-D5-A1) yielding both oil and gas. An oil discovery was made in the
deep waters of the prolific Krishna basin (KG-D4-MD1). One gas discovery each
was made in the shallow waters of the Gujarat-Saurashtra basin (GS-01-B1) and
Mahanadi basin (NEC-25-J1). In order to assess their commerciality, appraisal
process is underway. The development plan for MA field (Dhirubhai-26) has been
approved by the Management Committee. The development plan for Sohagpur Coal
Bed Methane blocks (East and West) approved by the DGH.
During the year, the Company signed an agreement to acquire certain polyester
(capacity) assets of Hualon, Malaysia. It is a leading polyester producer in
Malaysia with a capacity of half a million tonnes per annum along with
downstream textile manufacturing capabilities spread over two locations in
Malaysia, namely Nilai and Malacca. This acquisition was the second
international acquisition in the polyester sector after the Company acquired
Trevira in Europe. This acquisition will help the Company consolidate its
position as the world's largest polyester manufacturer with an annual capacity
of 2.5 million tonnes, which represents an increase of 25% over its existing
capacity. With this acquisition, Reliance's global market share in polyester
fibre and yarn will exceed 7%.
In the Refining and Marketing business, the Company took over majority control
of Gulf Africa Petroleum Corporation (GAPCO) and started shipping products to
the East African markets. GAPCO owns and operates large storage terminal
facilities and a retail distribution network in countries like Tanzania, Uganda
and Kenya. It owns and operates large coastal storage terminals in Dar es
Salaam (Tanzania), Mombassa (Kenya), and Kampala (Uganda). It has other
wellspread depots in East and Central Africa and operates nearly 250 retail
outlets.
The Company also signed MoU with GAIL (India) Limited to explore opportunities
of setting up petrochemical plants in feedstock rich countries outside India.
Subsidiaries:
Ministry of Corporate Affairs, Government of India, vide order No.
47/108/2008-CL-III dated April 16, 2008 has granted approval that the
requirement to attach various documents in respect of subsidiary companies, as
set out in sub-section (1) of Section 212 of the Companies Act, 1956, shall not
apply to the Company. Accordingly, the Balance Sheet, Profit and Loss Account
and other documents of the subsidiary companies are not being attached with the
Balance Sheet of the Company. Financial information of the subsidiary
companies, as required by the said order, is disclosed in the Annual Report.
The Company will make available the Annual Accounts of the subsidiary companies
and the related detailed information to any member of the Company who may be
interested in obtaining the same. The annual accounts of the subsidiary
companies will also be kept open for inspection by any investor at the
Registered Office of the Company and that of the respective subsidiary
companies. The Consolidated Financial Statements presented by the Company
include financial results of its subsidiary companies.
Reliance Petroleum Limited (RPL), a listed subsidiary of the Company, has set a
rapid pace on all fronts in the implementation of a world-class, complex greenfield
refinery at Jamnagar in Gujarat. The project has made rapid strides during the
year and achieved overall progress of 90%. Based on the progress made so far,
RPL expects to complete the refinery project ahead of its initial schedule of
December, 2008. During the year, the Company sold 208.000 Millions equity
shares, representing 4.62% of the equity share capital of RPL out of its
holding of 75%. After this sale, the shareholding of the Company in RPL stands
at 70.38%. The sale of shares monetized only a small portion of the Company's
holding in RPL and helped to broadbase the shareholding of RPL, besides
unlocking value for the Company's shareholders.
Reliance Retail Limited (RRL), another subsidiary of the Company, launched its
first store in November 2006 through its convenience store format Reliance
Fresh'. Since then RRL has rapidly grown to operate 590 stores across 13 states
at the end of Financial Year 2007-08. RRL launched its first Reliance Digital'
store in April 2007 and its first and India's largest hypermarket Reliance
Mart' in Ahmedabad in August 2007. This year, RRL has also launched its first
few specialty stores for apparel (Reliance Trends), footwear (Reliance
Footprints), jewellery (Reliance Jewels), books, music and other lifestyle
products (Reliance Timeout), auto accessoriesand service format (Reliance
Autozone) and also an initiative in the health and wellness business through
Reliance Wellness'. In each of these store formats, RRL is offering a unique
set of products and services at a value price point that has not been available
so far to the Indian consumer. Overall, RRL is well positioned to rapidly
expand its existing network of 590 stores which operate in 57 cities.
Reliance Ventures Limited, a subsidiary of the Company in a joint venture with
Haryana State Industrial Investment Development Corporation (HSIIDC), is
promoting Reliance Haryana SEZ Limited (RHSEZ) to develop the two SEZs in
Haryana State. The proposed SEZs will function as an integrated package with
all the required infrastructure facilities to ensure sustainable development of
medium and large scale industries and service activities with sufficient
provision for future growth and expansion.
Group
Pursuant to an intimation from the Promoters, the names of the Promoters and
entities comprising group' as defined under the Monopolies and Restrictive
Trade Practices ('MRTP') Act, 1969 are disclosed in the Annual Report for the
purpose of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations,
1997.Directors' Responsibility Statement Pursuant to the requirement under
Section 217(2AA) of the Companies Act, 1956, with respect to Directors'
Responsibility Statement, it is hereby confirmed that:
(i) in the preparation of the annual accounts, the applicable accounting
standards read with requirements set out under Schedule VI to the Companies
Act, 1956, have been followed and there are no material departures from the
same;
(ii) the Directors have selected such accounting policies and applied them
consistently and made judgements and estimates that are reasonable and prudent
so as to give a true and fair view of the state of affairs of the Company as at
March 31, 2008 and of the profit of the Company for the year ended on that
date;
(iii) the Directors
have taken proper and sufficient care for the maintenance of adequate
accounting in accordance with the provisions of the Companies Act, 1956 for
safeguarding the assets of the Company and for preventing and detecting fraud
and other irregularities; and
(iv) The Directors have prepared the annual accounts of the Company on a going
concern' basis.
Conservation Of Energy
(a) Energy conservation measures taken: Some major energy conservation measures
carriedout during the year are listed below:
1) At Hazira Manufacturing Division's Captive Power Plant, energy saving has
been achieved by usage of HP fuel gas make-up substituting C4 at the rate of
1.2 Ton Per Hour (TPH).
2) At Jamnagar Manufacturing Division's Sulphur Complex, energy saving has been
achieved by adding Plate and Frame exchanger in place of existing rich / lean
amine shell and tube exchanger in ATU.
3) At Hazira Manufacturing Division, energy saving has been achieved by
reduction of C3 at the rate of 1.6 TPH dumping in fuel gas header and export
Cracker gas as per Naphtha quality.
4) At Hazira Manufacturing Division's Mono Ethylene Glycol - 2 Plant, reduction
in ethylene burning has been achieved by substituting steam due to high
selectivity catalyst.
5) Improvement in biogas recovery was done at Hazira Manufacturing Division.
Further, as a part of Clean Development Mechanism (CDM), a project on energy
efficiency through steam optimization (Cracker and Aromatics Plant steam
optimization measures) has been completed.
6) Methyl Acetate recovery; optimization of quench air conditions in all
products; stopping of pack preheaters in spinning by improving pack life and
optimizing pack inventory; and process changes in exchanger EA-402 were carried
out at Patalganga Manufacturing Division which resulted in significant energy
savings and revenues.
7) At Patalganga Manufacturing Division, reduction in specific heating oil
consumption in CP7 by trap design modification and process optimization was
achieved. Also, parallel reboiler to R/R column E- 1035N, activation of
economizer mode in inverters for spinning and CP equipments and stopping of
brine chillers resulted in savings of energy.
8) Under Energy
Saving Scheme-II, installation of E-1221 and D-1221 were carried out at Kurkumbh
Manufacturing Division.
9) Air Conditioning system optimization was completed at Silvassa Manufacturing
Division.
10) Energy saving by replacing HP steam with MP steam in stripper reboiler in
VGO Hydrotreater contributed to energy saving was achieved at Jamnagar
Manufacturing Division.
12) Reduction in power of compressed air system was achieved at Allahabad
Manufacturing Division.
13) Air washer system in AHU was completed at Silvassa Manufacturing Division.
14) Hydrocarbon recovery from CG Sour oil trap vent from atmosphere to first
stage suction drum was achieved at Dahej Manufacturing Division.
15) HRSG Burner modification No. 5 was carried out at Hazira Manufacturing
Division.
16) Optimized Loading of Spinneret in Pack Pre Heaters was done at Allahabad
Manufacturing Division.
17) Stopping of 6 nos. aerators in monsoon period was completed at Nagothane
Manufacturing Division.
18) At Dahej Manufacturing Division, saving in demineralized water was achieved
as a result of ethylene oxide recatalyzation, cleaning of Ethylene Oxide
Reactor by gas cooler and replacement of ion exchange resulted in increase of
cycle time.
Management Discussion and Analysis
Forward-looking Statements
This report contains forward-looking statements, which may be identified by
their use of words like plans', expects', will', anticipates', believes',
intends', projects', estimates' or other words of similar meaning. All
statements that address expectations or projections about the future, including,
but not limited to statements about the company's strategy for growth, product
development, market position, expenditures, and financial results, are
forward-looking statements. Forward-looking statements are based on certain
assumptions and expectations of future events. The company cannot guarantee
that these assumptions and expectations are accurate or will be realised. The
company's actual results, performance or achievements could thus differ
materially from those projected in any such forward-looking statements. The
company assumes no responsibility to publicly amend, modify or revise any
forward looking statements, on the basis of any subsequent developments,
information or events.
During the year,
Reliance signed an agreement to acquire certain polyester (capacity) assets of
Hualon, Malaysia. It is a leading polyester producer in Malaysia with a
capacity of half a million tonnes per annum along with downstream textile
manufacturing capabilities spread over two locations in Malaysia, namely Nilai
and Malacca. This acquisition was the second international acquisition in the
polyester sector after Reliance acquired Trevira. This will help Reliance
consolidate its position as the world's largest polyester manufacturer with an
annual capacity of 2.5 million tonnes, which represents an increase of 25% over
its existing capacity.
With this
acquisition, Reliance's global market share in polyester fibre and yarn will
exceed 7%.
In the Refining and Marketing business, Reliance took over majority control of
Gulf Africa Petroleum Corporation (GAPCO) and started shipping products to the
East African markets. GAPCO owns and operates large storage terminal facilities
and a retail distribution network in countries like Tanzania, Uganda and Kenya.
It owns and operates large coastal storage terminals in Dar es Salaam
(Tanzania), Mombassa (Kenya), and Kampala (Uganda). It has other well-spread
depots in East and Central Africa. It also markets through 250 outlets covering
retail and industrial segments.
Reliance also signed MoU with GAIL (India) Limited to explore opportunities of
setting up petrochemical plants in feedstock rich countries outside India.
Earlier, Reliance and GAIL had signed a MoU for co-operation in identified
areas in natural gas - pipeline transmission and marketing, coal bed methane
gas opportunities, city and local gas distribution, operations and maintenance
services, exploration and production and technology and knowledge
sharing.
Reliance Petroleum Limited (RPL) continued the second year of implementation of
its refinery project with an overall project progress of 90%. Based on the
progress made so far, RPL expects to complete the refinery project ahead of
schedule.
During the year, Reliance Retail Limited (RRL) continued its rollout of stores
across various verticals and formats. Reliance Retail today operates over 590
stores in 57 cities, spanning 13 states, with over 3.5 million square feet of
trading space.
During FY 2007-08, two international investment rating agencies, Moody's and
SandP, reaffirmed investment grade rating for the international debt of
Reliance.
Reliance's Hazira manufacturing division was awarded the 'Deming Quality
Control Award' for the Operations Business Unit (2007), making it the world's
first petrochemical company to win this award.
Reliance's Jamnagar refinery was adjudged the winner of 'Golden Peacock
National Training Award 2007'.
Reliance's Hazira manufacturing division was adjudged the winner of 'Golden
Peacock Innovation Award 2007'.
Reliance is amongst the 'World's 25 Most Innovative Companies'. The Company was
ranked 19th in the list compiled by Business Week in collaboration with Boston
Consulting Group.
Financial Review:
Reliance delivered superior financial performance during the year with
improvement across all major parameters.
Turnover achieved for the year ended 31st March 2008 was Rs. 1392690.000
Millions ($ 34.7 billion), reflecting a growth of 18% over the previous year.
Increase in revenue
was due to 12% increase in prices and a 6% growth in volumes. During the year,
exports were higher by 25% at Rs. 834920.000 Millions ($ 20.8 billion).
Consumption of raw materials increased by 17% from Rs. 768720.000 Millions to
Rs. 903040.000 Millions ($ 22.5 billion). This was mainly on account of higher
crude and naphtha prices. Traded goods purchase increased from Rs. 18210.000
Millions to Rs. 60080.000 Millions ($ 1.5 billion) primarily comprising
petroleum products for retail sales.
Employee cost was Rs. 21190.000 Millions ($ 528 million) for the year as
against Rs. 20940.000 Millions. The previous year's figure includes Rs.
3760.000 Millions towards expenditure incurred on Voluntary Retirement Scheme /
Special Separation Scheme announced for the employees of erstwhile IPCL Vadodara
unit.
Operating Profit before other income increased by 16% from Rs. 200460.000
Millions to Rs. 233060.000 Millions ($ 5.8 billion). Net operating margin for
the period was 17.5% as compared to 17.9% in the previous year.
Other income was
higher at Rs. 8950.000 Millions ($ 223 million) against Rs.4780.000 Millions
primarily on account of increase in interest income.
Interest costs were
lower by 9% at Rs. 10770.000 Millions ($ 269 million) primarily on account of
appreciation of the rupee vis-a-vis the US dollar.
During the year,
the rupee appreciated by 7.7% against the US dollar.
Moreover, 85% of
Reliance's debt is foreign currency denominated. During the year, Rs. 8850.000
Millions of interest was capitalized, as against Rs 5350.000 Millions in the
previous year. Gross interest cover was 12.3 compared to 11.9 for the previous
year.
Depreciation was marginally higher at Rs. 48470.000 Millions ($ 1.2 billion)
against Rs. 48150.000 Millions in the previous year. Exceptional item of Rs.
47330.000 Millions ($ 1.2 billion) represents gains primarily arising out of
transactions concerning RPL shares. The transactions were conducted through
stock exchanges and have helped to further broad base the shareholding pattern
of RPL. The sale of shares monetises only a fraction of Reliance's holding in
RPL at the same time increasing free float in the market. This has unlocked
value for Reliance shareholders. Reliance now holds 70.38% of RPL's
equity.
Profit after tax, including exceptional item, was Rs. 194580.000 Millions ($
4.9 billion) as against Rs. 119430.000 Millions for the previous year, an
increase of 63%. Profit after tax, excluding exceptional item was Rs.
152610.000 Millions ($ 3.8 billion), representing an increase of 28%.
Basic earning per share (EPS), including exceptional item, for the year was Rs.
133.9 ($ 3.3). Basic earning per share (EPS) excluding exceptional item, for
the year was Rs. 105.0 ($ 2.6) against Rs. 82.2 for the previous year.
The outstanding debt as on 31st March 2008 was Rs 364800.000 Millions ($ 9.1
billion) compared to Rs 278260.000 Millions as on 31st March 2007. Net gearing
as on 31st March 2008 was 22.3% as compared to 25.2% on 31st March 2007.
Reliance has domestic credit ratings of AAA from CRISIL and FITCH. Moody's and
SandP have reaffirmed investment grade ratings for international debt of
Reliance, as Baa2 and BBB respectively.
Business Review
Oil and Gas Exploration and Production (EandP)
Sector overview:
High commodity
prices and robust demand for oil and gas resulted in the EandP industry
experiencing a record year. IPE Brent prices averaged at $ 82.8 /bbl during FY
2007-08 as against an average of $ 64.2 /bbl in FY 2006-07.
Henry Hub natural
gas price averaged at $ 7.4 /MMBTU for FY 2007- 08. One of the major events in
the industry was crude oil prices crossing an all time high of $ 100 /bbl. The
energy demand was driven by secular global growth. Supply chain pressures also
led to price escalations. In another significant development, spot Liquefied
Natural Gas (LNG) prices breached its oil price parity in the Asian LNG
markets.
The International Energy Agency forecasts the global demand for oil to grow by
1.5% to 87.2 million BPD in 2008. The previous year 2007 saw an increase in
global oil demand to 86.0 million BPD, resulting in an increase of 1.3% over
2006.
High commodity prices and robust growth have ensured strong profitability and
cash flows for EandP companies. They have encouraged significant investments
across the global energy value chain, resulting in severe pressure in the
supply chain. The cost of exploration and development has increased sharply
with the cost of drilling rigs, seismic services, engineering, fabrication and
installation costs contributing to the increase. This trend is likely to
continue in the medium term.
Rising challenges in the E and P
sector
The capital expenditure in the EandP industry is estimated to be upwards of $
300 billion per annum. Operators are increasingly looking at opportunities in
the deep waters of the Gulf of Mexico, West Africa, Latin America and in the
Asia Pacific Region.
Deep water exploration is a fast emerging frontier for oil and gas as the era
of easy' oil seems to have come to an end. The overall cost inflation in
upstream projects in deepwater areas has increased by more than 100% since
2002. Cost of steel has increased by 100% since 2002 while in sub-sea and EPC
contracts price inflation is also around 100%. PIRA estimates that since 2002,
finding and development costs have increased from $ 8/ bbl to $ 15/ bbl in
2006, an increase of 90%. CERA estimates that capex inflation has risen from a
base of 100 to touch 198 in the third quarter of 2007.
Shortage of rigs is hampering exploration efforts worldwide. The high day rates
of operating the rigs are driven by demand/supply fundamentals and rise in the
cost of manpower, services and raw materials. Demand for 6th generation
drill-ships capable of drilling in harsher environments far exceeds the
availability. Consequently, contracting rigs is a big challenge for operators
and due to this shortage, rig utilisation rates are expected to remain high.
Shipyards constructing deepwater rigs are fully booked and the lead time for a
new build is between 3-4 years.
Recent oil and gas discoveries are in deep waters, oil sands, shales, arctic
and unconventional geographies. These discoveries are in much harsher terrains
and in new frontiers. In addition, availability of manpower, services and
equipment is limited. Evacuation and transportation logistics of resources are
also becoming more challenging. All these factors are resulting in project cost
escalation and delays.
About 88% of world's proven oil reserves of 1,148 billion barrels are under the
control of national oil companies (NOCs) with no equity participation by
international oil companies (IOCs) in them. IOCs in the western part of the
world now control less than 10% of the world's oil and gas resource base.
In spite of these challenges, profitability of EandP companies has been strong
in recent times, driven largely by record oil prices. During the past five
years, oil prices have increased from an average of $ 25 /bbl in 2002 to $ 72 /
bbl in 2007, an increase of 188%. More recently, oil prices have moved to as
high as $ 120 /bbl.
Henry Hub gas prices have also increased from $ 3.34 /MMBTU in 2002 to the
average price of $ 7.4 /MMBTU in 2007.
Development of a global natural gas
market continues:
Gas accounts for 34% of the
energy basket in the Former Soviet Union region and in Europe, 24% in USA, 15%
in Japan and 14% in Korea. The world average is 24%. In India, gas accounts for
just 8% of the energy basket constrained by limited availability of gas and
nascent transmission and distribution infrastructure.
The share of gas in the global energy mix is set to increase primarily driven
by the power sector, industrial sector, city gas distribution and gas-to-liquid
opportunities. Gas is preferred because of its cost competitiveness and
environmental advantages over other fossil fuels. Gas is also more convenient
to use vis-a-vis other fossil fuels.
Accelerating global demand, increasing import dependency, and the build-out of
LNG infrastructure are supporting price discovery. Industry expectations
suggest continued strength in global GDP over the long-term driven by
developing economies of Asia and the Middle East and a 40% increase in LNG
liquefaction capacity over the coming 3 years addressing 11% of global demand
by 2010.
Powerful trends are supporting demand growth and prices in both the developed
and developing nations. In 2007-08, Henry Hub Prices averaged $ 7.4 / MMBTU. In
Europe, the NBP prices averaged 40 pence per therm which is the equivalent of
around $ 8 /MMBTU. The Asian LNG prices were $ 9.5 /MMBTU based on average for
prices in Japan and Korea. Long term contracts signed by China for LNG are at
around $ 10 /MMBTU (FOB). These contracts are for 2-3 MMTPA and the first sale
is expected to commence in the year 2013-14.
In the developed world, natural gas is the only near-term generation option to
bridge the energy gap. A similar trend is clear in Asia and Australia.
In the developing
world, rapid economic growth is fueling energy demand in all its forms. Natural
gas has been a niche fuel, not easily available due to infrastructure
constraints and domestic productive capacity. However, the price of alternative
fuels (particularly crude products) is supporting a re-evaluation of energy
source, which in many cases favors natural gas.
While nuclear and renewable remain the long term 'green' solutions of
choice, natural gas will remain the primary near-term alternative to meet the
demand for growth in generation in developed and developing economies.
Natural Gas in India:
The landscape of the Indian
natural gas market is set to witness significant change. Natural gas currently
accounts for around 8% of the total energy mix in India as against the global
average of 24%. However, with increased availability and spurt in transmission
and distribution infrastructure, the share of natural gas in the energy mix is
set to rise.
For 2007-08, gas production is expected to be 88 MMSCMD and LNG
consumption is estimated at 33 MMSCMD.
The major demand centers, excepting the north-eastern market which is not
connected to the transmission network of the rest of India, have been
considered for making demand projections. The un-met demand for natural gas is
estimated to increase from about 113 MMSCMD (FY 2007-08) to 396 MMSCMD by the
year 2022. The following factors are expected to drive the increased
consumption of natural gas in India:
As Per Website Details
The company is India's largest private sector enterprise and is a major
player in the Indian petrochemicals sector. Its operations capture value
addition at every stage from producing crude oil and gas to polyester and
polymer products and are vertically integrated to the production of textiles.
Reliance has one of the largest marketing networks in Indian industry. All its
brands are market leaders
The originally envisaged capacity was substantially enhanced while
implementing the project and it commissioned its 27 mmtpa refinery (540000
ballers per day) within a very short period of less then 36 months at a project
cost of Rs.142500 millions (US $ 3.4 bn). The company is the world's largest
grassroots refinery and the seventh largest refinery in the world at any single
site. The refinery has been set up at 30%-50% lower per tone capital cost as
competed to other refineries recently set up in Asia, by leading international
oil companies, establishing new benchmark for capital productivity. It also has
a remarkable ability to use almost any kind of crude oil. The company's
products have been exported to a large number of destinations in the Far East,
Europe and the USA, including to Japan, Singapore, Indonesia, Malaysia,
Thailand, China, Greece and Italy. This reflects the fact that the company's
products meet the most stringent international environment and quality
specifications. In line with the governments oil sector policies, the company
is currently selling the five controlled products, namely, LPG, Gasoline,
Aviation Fuel, Kerosene and Diesel, to the public sector oil companies, IOC,
HPCL and BPCL to the extent required by the Government. The Oil Coordination Committee
determines the price realization for the company's controlled products, based
on the principle of import parity the company has already applied for marketing
rights for the controlled products, as it meets all the criteria specified in
this regard by the Government, as per the Gazette Notification of November
1997. As soon as the marketing of controlled products is decontrolled, the
company will make appropriate arrangements for the same. The company is also
making investments in pipeline projects, to facilitate distribution of
petroleum products across the country, in a seamless and cost-efficient manner.
The company holds a 13% stake in Petronet V.K. Limited, which owns the 113-km,
long Vadinar-Kandla pipeline. This pipeline links the company’s refinery to the
Kandla-Bhatinda pipeline, providing access to the high growth north and
north-west markets.
The setting up of the Central India pipeline project, which envisages
setting up a 1615-km pipeline to serve the landlocked markets in central India,
has been approved by the government. The company will hold a 26% stake in the
joint venture implementing this project. The company will also hold a 10% stake
in Petronet India Limited, the holding company set up for the creation of
pipeline infrastructure for evacuations of petroleum products all over India.
The
company has passed a resolution to sponsor a depository receipt Programme
enabling shareholders of the company (Reliance Industries) to partially
disinvest their equity shareholding in the company at an appropriate time in
the course of an international offering in one or more trances to strategic
investors, financial investors and any other investor in the form of depository
receipts and any other financial instruments subject to necessary approvals.
The company will focus on its high value-added product ranges of men's
wear, under the Vimal brand, and home textiles, under the Harmony brand. Other
textile products, including women's wear products, will be phased out, and the
polyester filament yarn processing business will be re-located.
The first phase of restructuring will lead to a reduction of over 4,600
people from the company's total workforce, at an estimated one-time outlay of
Rs.900.00 millions, in an amicable manner within a span of two weeks
It has increased its stake in equity share capital of BSES, an electric
utility company, through open offer to 27%. Further it has announced the
largest share buy back of Rs.1,1000 millions at a maximum price of Rs.303/- per
share. The company proposes to invest Rs.2,50,000 millions over the next 3 to 5
years in the telecom sector covering basic, cellular, long distance,
international, voice, data services by setting up a broadband network
throughout India.
Reliance Group
The
Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest
private sector enterprise, with businesses in the energy and materials value
chain. Group's annual revenues are in excess of US$ 34 billion. The flagship
company, Reliance Industries Limited, is a Fortune Global 500 company and is
the largest private sector company in India.
Backward
vertical integration has been the cornerstone of the evolution and growth of
Reliance. Starting with textiles in the late seventies, Reliance pursued a
strategy of backward vertical integration - in polyester, fibre intermediates,
plastics, petrochemicals, petroleum refining and oil and gas exploration and
production - to be fully integrated along the materials and energy value chain.
The
Group's activities span exploration and production of oil and gas, petroleum
refining and marketing, petrochemicals (polyester, fibre intermediates,
plastics and chemicals), textiles, retail and spacial economic zones.
Reliance
enjoys global leadership in its businesses, being the largest polyester yarn
and fibre producer in the world and among the top five to ten producers in the
world in major petrochemical products.
The
Group exports products in excess of US$ 20 billion to 108 countries in the
world. Major Group Companies are Reliance Industries Limited (including main
subsidiaries Reliance Petroleum Limited and Reliance Retail Limited) and
Reliance Industrial Infrastructure Limited.
Press
Clippings
Reliance Industries Limited Signs Production Sharing
Agreement for Deep Water Offshore Block in Oman
Muscat, Oman November 12 2007: Reliance Industries Limited
(RIL) is pleased to announce that it’s wholly owned subsidiary Reliance
Exploration and Production DMCC today signed a Production Sharing Agreement
(PSA) with the government of Oman for a offshore Block No 41 in Oman deep
water.
The Block measures over 20,000 sq km and water depth could
increase up to 3,000 meters. The new Block is adjacent to the earlier Block
allocated to RIL in 2005. RIL will integrate operations of both the adjoining
blocks to increase value for both the government of Oman and Reliance
Industries Limited.
Within a week, this is Reliance's third Block for which PSA
has been signed. The previous two were in the Kurdistan Region of Northern
Iraq.
RIL has been actively pursuing petroleum exploration
activities in the Middle East, particularly in Oman and Yemen, besides India,
Asia Pacific Region and South America.
Reliance Industries Limited
Reliance Industries Limited (RIL) is India’s largest private
sector company on all major financial parameters with turnover of Rs.1183540
Millions (US$ 27.23 billion), cash profit of Rs.176780 Millions (US$ 4.07
billion), net profit of Rs.119430 Millions (US$ 2.75 billion) and net worth of
Rs.639670 Millions (US$ 14.72 billion) as of March 31, 2007.
RIL is the first and only private sector company from India
to feature in the Fortune Global 500 list
of ‘World’s Largest Corporations’ and ranks amongst the world’s Top 200
companies in terms of profits. RIL is amongst the 25 fastest climbers ranked by
Fortune. RIL also features in the Forbes
Global list of world’s 400 best big companies and in FT Global 500 list of world’s largest
companies.
Reliance Industries Limited Awarded Oil and Gas
Contract In Kurdistan Region Of Iraq
Mumbai, November 8 2007: Reliance Industries Limited (RIL)
is pleased to announce that it has executed two Production Sharing Contracts
with the Kurdistan Regional Government (KRG) covering petroleum exploration
activities in the Rovi and Sarta Blocks in the Kurdistan Region of Iraq.
Under the terms of the contract, Reliance Exploration and
Production DMCC, a wholly owned subsidiary of RIL, will serve as the operator.
Mr. Atul Chandra, President of International Operations,
RIL, said, “They are pleased to reach agreement with the KRG on these two PSCs.
They hope and believe this will be an investment that will provide long-term
benefits to all the stakeholders.”
RIL established a local office in Erbil in 2006 and has
undertaken extensive geological work over the past year in the Kurdistan
region.
RIL has been actively pursuing petroleum exploration
activities in the Middle East, particularly in Oman and Yemen, besides India,
Asia Pacific Region and South America.
Another Gas Discovery in Krishna Basin
RIL Strikes Gas in KG-OSN-2001/1 Reinforcing Miocene
Potential
Mumbai, November 06, 2007: Reliance Industries Limited (RIL)
has met with yet another success in KG-OSN-2001/1 (KG-III-5) located in the
Krishna offshore basin in the east coast of India. The well (KGIII5-P1) is the
second gas discovery in the Miocene clastics reservoir in the Krishna basin.
This shallow water block, with an area of 1100 sq. kms, was awarded to RIL
under biding round of NELP-III. RIL holds 100% participating interest in this
block.
This well KGIII5-P1 was targeted with the objective of
consolidating the Miocene play fairways in the block as well as in Krishna
basin. The well was drilled at water depth of 151 m and was drilled to the
target depth of 3500 meters. The well encountered clastic reservoir with gross
hydrocarbon column of around 32 meters in Miocene section and 4 meters in
Pliocene section. The two pay zones were established through wire-line based
technology called Reservoir Characterisation Imager (RCI). This discovery
namely ‘Dhirubhai – 37’ has been notified to Government of India and
Directorate General of Hydrocarbons.
RIL is currently evaluating the commerciality of this
discovery.
IPCL Amalgamates with RIL
Mumbai, September 6, 2007: The certified copies of the
Orders of the Hon’ble High Court of Gujarat at Ahmedabad and the Hon’ble High
Court of Judicature at Bombay, sanctioning the Scheme of Amalgamation of Indian
Petrochemicals Corporation Limited (“IPCL”) with Reliance Industries Limited
(the “Company” / “RIL”) from
1st April, 2006 (“Appointed Date”), have been
filed with the respective Registrars of Companies yesterday.
With this, the Scheme became effective yesterday, i.e., 5th
September, 2007 and accordingly IPCL has been amalgamated with RIL.
The amalgamation of IPCL with the Company is in
line with global trends in the energy and chemicals sector, to achieve size,
scale, integration and greater financial strength and flexibility, in the
interests of maximizing the overall shareholder value.
Vacon Plc, Press Release, April 28, 2005.
Reliance Industries
chooses Vacon AC drives for polymerization lines. In close cooperation with its
Indian partner Hi-Rel Electronics Private Limited, Vacon will deliver 270 AC
drives to Reliance Industries Limited (RIL), the largest polyester yarn and
polyester staple fibre manufacturer in India with a dominant market position.
To further increase
the manufacturing capacity of polyester yarn (also known as Partially Oriented
Yarn, POY) and Polyester Staple Fibre (PSF), RIL is expanding their
polymerization line processes at the Hazira and Patalganga plants. The 270
Vacon AC drives will control a connected load in excess of 20 MW of the
continuous polymerization processes and utilities. At the Hazira plant, the
Vacon AC drives will control the continuous polymerization lines for polyester
yarn and polyester staple fibre, both lines with the production capacity of 600
tons a day. At their Patalganga plant, the Vacon AC drives will control the
continuous polymerization line for polyester yarn producing 250 tons a day.
Over the next two
years, RIL will be building an additional half a million tonnes per year of
polyester capacity by investing in a 240,000 tonnes per year polyester staple
fibre plant at Hazira, 216,000 tonnes per year polyester filament yarn plant at
Hazira, and 94,000 tonnes per year polyester filament yarn plant at Patalganga.
With the commissioning of these plants, Reliance Industries Limited will almost
double its current capacity and become the world’s largest producer of
polyester.
Speed control brings energy savings and improves reliability
In controlling the
speed of the motors according to need, Vacon AC drives bring several benefits.
In addition to energy savings, speed control improves process control and
decreased electromechanical stress for the electrical system. The extended
lifetime of the mechanics also means lower maintenance and repair costs.
In cooperation with
Hi-Rel Electronics, Vacon has developed redundant control systems for the most
critical drives. Redundancy is vital to the quality of the product as any trip
would result in substantial loss of first grade material and production volumes
resulting from time lost in restarting the whole process.
Vacon Group was
founded in 1993 for one purpose only: to create, develop and pro-vide AC drives
worldwide. Ambitious to meet the most demanding needs of clients seeking top
performance, easiness and reliability, Vacon offers AC drives in the power
range of 0.25 kW...3 MW. In 2004, the Group revenues totalled EUR 128.6
million.
Reliance Industries
Limited (RIL) is India’s largest private sector company on all major financial
parameters with turnover of Rs 56,2470.000 Millions (US$ 12.8 billion), net
profit of Rs 5,1600.000 Millions (US$
1.2 billion), net worth of Rs 34,4520.000 Millions (US$ 7.9 billion) and total
assets of Rs 71,1570.000 Millions (US$ 16.3 billion).
RIL is the first
and only private sector company from India to feature in the 2004 Fortune
Global 500 list of ‘World’s Largest Corporations’ and ranks amongst the world’s
Top 200 companies in terms of profits.
RIL emerged in the
world’s 10 most respected energy/chemicals companies and amongst the top 50
companies that create the most value for their shareholders in a global survey
and research conducted by PricewaterhouseCoopers and Financial Times in 2004.
RIL also features in the Forbes Global list of world’s 400 best big companies
and in FT Global 500 list of world’s largest companies.
RIL emerged as the
‘Best Managed Company’ in India in a study by Business Today and A.T. Kearney
in 2003. In 2004, the company emerged as ‘India’s biggest wealth creator’ in
the private sector over a 5-year period in a study by Business Today – Stern
Stewart and as India’s ‘Most Admired Company’ in a Business Barons – TNS Mode
Opinion Poll.
Incorporated in
1983, Hi-Rel Electronics Limited, is a leading solution provider in the fields
of Industrial Automation Solutions, Rotating Machine Controls, Soft Starters,
Power Controllers, Uninterruptible Power Supply and Power Conditioning
products. Hi-Rel endeavours to offer products and create solutions with clear
and compelling advantages and to help you achieve the full potential of the
machinery and processes. Hi-Rel Electronics has been a trusted partner of Vacon
for the last five years.
Kokilaben Ambani
Announces Amicable
Family Settlement
Mumbai, 1 8th June 2005: The Board of
Directors of Reliance Industries placed their deep appreciation of the sincere
and painstaking efforts taken by Smt. Kokilaben Ambani in working towards the
settlement that will further enhance the value of the Reliance group. The Board further expressed their gratitude
to Smt. Kokilaben Ambani for finding an amicable resolution in the overall
interests of the company and its shareholders which will pave the way for
preserving and taking forward the historic legacy of Shri Dhirubhai Ambani,
founder Chairman of the Company.
The press release
of Smt. Kokilaben Ambani is enclosed.
Reliance
Successfully Closes US$ 350 Million Multi Currency Term Loan
Facility Upsized From Mandated US$ 250 Million Following Overwhelming Response
June 10, 2005: Reliance Industries Limited's (RIL) US$350 Million Multi
Currency Term Loan Facility has closed successfully. Due to an overwhelming
response from the market, the final facility size was increased from the
initial size of US$250 million. The Facility comprises a USD, Euro and JPY
Tranche to cater to the diversified international investor base for RIL paper.
The proceeds of this transaction are intended for RIL's ongoing capital
expenditure programme.
The Mandated Lead Arrangers for the facility were: ABN AMRO Bank N.V.,
Bank of America N.A., The Bank of Tokyo-Mitsubishi, Limited, Calyon, DBS Bank
Limited, The Hongkong and Shanghai Banking Corporation Limited, HVB Corporates
and Markets and Mizuho Corporate Asia (HK) Limited.
The Facility was fully underwritten by the Mandated Lead Arrangers and
was extremely well received during the syndication stage with 26 financial
institutions joining the facility. In total, the facility consists of 34 banks
from 13 countries globally. The strong response to this facility clearly
demonstrates the confidence of the international banking community in RIL
paper. The success of the facility is all the more creditable considering the
fact that the pricing achieved was the finest so far for an offshore medium
term loan raised by RIL.
Reacting to the continued success of RIL's offering in the international
market, Alok Agarwal, President (Finance) of the Reliance group said, "The
interest and commitment shown by the international financing community is a
clear reflection of RIL's business strengths and the confidence it generates in
their global investor base. Their relationship banks have once again proved
themselves by bringing this transaction to such a commercially successful
close."
The success of this facility follows close on the heels of Reliance's
recently concluded multi-currency term loan facility in March of this year. It
may be remembered that the earlier US$350m transaction had also closed
successfully with a tremendous response from participating banks with a total
of 34 banks joining the transaction.
Reliance Industries wins Silver at the International Exposition of Innovation
and Quality Circles
Improvement of reliability in Spin Finish Application System for its polyester
staple fibre product
June 7, 2005: Reliance Industries Limited's Hazira complex was awarded
the 'silver' at the International Exposition of Innovation and Quality Circles
(IEIQC) competition 2005 held in Singapore. The subject of 'Pragati', the team
from Reliance, was 'Reliability Improvement in Spin Finish Application System'.
'Magdiwang' the team from Intel Technology Philippines won the gold while the
bronze was claimed by 'Syconrof' from PT. Semen Gresik (Persero) Tbk Indonesia.
Mr. Cedric Foo, Chairman of SPRING (Singapore Productivity and Innovation
Group) Singapore, the organisers of the competition, presented the awards.
This year eight teams from companies of South-East Asia participated in the
International Exposition of Innovation and Quality Circles competition. Out of
these three were from India; besides Reliance, there was Lucas-TVS Pondicherry
Division and PT Indofood Sukses Makmur Tbk bogasari flour mills.
The criteria
The competing teams were graded on a one thousand-point IQC judging criteria.
The broad headings under which they were marked are - project selection and
definition, analytical techniques, innovative actions and implementation, value
creation and results achieved, standardisation, review and continuous
improvement, and presentation.
The team members
Mr. Sanjay Agrawal, Mr. Nilesh Sheth, Mr. Vinay Ray, Mr. Piyush Desai and Mr.
Vipul Chotalia all from the polyester staple fibre plant of Reliance's Hazira
complex comprised the Reliance contingent 'Pragati' for the competition.
International Exposition of Innovation and Quality Circles
The first International Exposition of Quality Circles was organised in 1984 and
in 2001, the event was renamed International Exposition of Innovation and
Quality Circles with the aim to exchange ideas on the latest IQC concepts and
developments. The theme for 2005 was 'Innovation and Teaming for Enterprise
Competitiveness'.
Reliance
Industries awarded the 'Golden Jubilee Memorial Trust Excellence Award'
June 2, 2005: Reliance Industries Limited's
manufacturing division in Hazira, Surat has won the 'Golden Jubilee Memorial
Trust Excellence Award' from The Southern Gujarat Chamber of Commerce and
Industry for 'Corporate Excellence' in energy conservation, productivity and
exports in textiles and chemicals in the category of large industry.
The award was presented by Shri Shankarsinh Vaghela, Minister of Textiles, Government of India at the 65th Installation function of the office bearers of Southern Gujarat Chamber of Commerce and Industry in Surat. Reliance Hazira has won the award consecutively since the last three years.
Mumbai, 17th January
2008
Record Quarterly
Profit, Up 26% Y-O-Y
Turnover Exceeds
Rs. 1000000.000 Millions In Nine Months For The First Time
Expanding Global
Footprint Across All Businesses
Refinery And Oil
And Gas Development Projects In Advanced Stages Of Implementation
|
3Q FY08 |
2Q FY08 |
3Q FY07 |
% Change wrt 3QFY07 |
(In Rs. Millions) |
9M FY08 |
9M FY07 |
% Change |
|
|
|
|
|
|
|
|
|
|
358800.000 |
334020.000 |
297530.000 |
21% |
Turnover |
1005720.000 |
890780.000 |
13% |
|
60740.000 |
59490.000 |
53000.000 |
15% |
PBDIT |
178930.000 |
152310.000 |
17% |
|
80790.000 |
38370.000 |
30810.000 |
162% |
Net Profit |
155460.000 |
87870.000 |
77% |
|
38820.000 |
38370.000 |
30810.000 |
26% |
Net Profit |
113490.000 |
87870.000 |
29% |
|
267.000 |
264.000 |
212.000 |
- |
EPS |
781.000 |
605.000 |
- |
|
|
|
|
|
|
|
|
|
Reliance Industries Limited (RIL) today reported its financial performance for the nine months period ended 31st December, 2007. Highlights of the un-audited financial results as compared to the previous period are:
·
Turnover increases by 13% to Rs.1005720.000 Millions (US$ 25.5 billion).
·
Cash Profit increases by 51% to Rs.197140.000 Millions (US$ 5.0 billion)
·
Net Profit (including exceptional item) increases by 77% to
Rs.155460.000 Millions (US$ 4.0 billion)
·
Exceptional income of Rs.47330.000 Millions (US$ 1.2 billion)
·
Net Profit (excluding exceptional item) increases by 29% to
Rs.113490.000 Millions (US$ 2.9 billion)
·
Gross Refining Margin for 3Q FY 07-08 was at US$ 15.4 / bbl and for 9M
FY 07-08 was
US$ 14.9 /
bbl
Other Highlights
Reliance was awarded the “Deming Quality Control Award” for Operations
Business Unit (2007) making it the World’s first petrochemical company to win
this award
Reliance’s Jamnagar refinery adjudged winner of “Golden Peacock National
Training Award 2007”
Reliance’s Hazira Manufacturing division adjudged winner of “Golden
Peacock Innovation Award 2007”
Reliance expanded its International footprint in Exploration and
Production -
·
Executed two Production Sharing Contracts (PSC) in Kurdistan
·
Signed Production Sharing Agreement (PSA) for an offshore block in Oman
·
Signed two Production Sharing Agreements in Yemen
·
Signed Hydrocarbon Production and Exploitation Contracts for two
offshore blocks in
·
Columbia
RIL and GAIL signed an MoU to explore opportunities to set up
petrochemical plants outside of India. Earlier, RIL and GAIL had signed an MoU
for cooperation in identified areas in natural gas sector including gas
pipelines and city gas distribution.
Reliance has acquired a majority stake and management control of Gulf
Africa Petroleum Corporation (GAPCO), a petroleum downstream company in East
Africa.
Reliance has signed an agreement to acquire the assets of Hualon, a
leading polyester producer in Malaysia and commenced operations with the use of
the assets pending the transfer.
The textile brand VIMAL re-launched with new look and offerings
International investment rating agencies Moodys and S and P have
reaffirmed investment grade rating for international debt of RIL
Commenting on the results, Mukesh D. Ambani, CMD, Reliance Industries
Limited said:
“I am happy to report that Reliance continues
to surpass previous records in financial performance. The quality of their
manufacturing assets and their people is being recognized through the various
awards and recognition that they have been receiving in the recent past. The
new growth platforms around Oil and Gas, Organized Retailing and Agro-Retail
initiatives are gathering momentum and the initial response to these
initiatives have been very encouraging.
Each of these initiatives inherently
addresses India’s economic and social imperatives.”
Reliance Petroleum
Limited (Rpl)
RPL successfully completed the second year of implementation of its
refinery project with an overall project progress of 82%. Based on the progress
made so far, RPL expects to complete the refinery project ahead of its initial
schedule of December 2008.
During the quarter, project implementation gained further momentum and
led to the achievement of several significant milestones, including the
following:
·
Engineering activities are nearing completion.
·
Overall procurement progress exceeded 97%.
·
More than 75% of equipments and tagged items already received at site.
·
Deliveries of over dimensional cargos (ODC) and super ODCs are nearing
completion.
·
Over 40% of equipments have been erected; Project skyline changed
dramatically.
·
Overall construction progress crossed the 60% mark for the complex.
·
Structural and pipe fabrication activities progressing at an accelerated
pace.
·
Sufficient site infrastructure mobilised to sustain equipment
installation and fabrication activities on the fast track.
Over 2,400 equipments, including several super heavy equipments, have
already been installed at site. The underground piping works are mostly
complete. Nearly 80% of structural steel fabrication, 95% of tankage
fabrication and over 73% of pipe fabrication is completed. The construction
activities are at peak and sufficient site infrastructure is mobilised to
sustain construction on fast track in the coming quarters.
Reliance Retail
Limited (Rrl)
The third quarter of FY 2007-08 was an eventful quarter for Reliance
Retail. This quarter saw the launch of 6 new formats.
Additionally, RRL entered into an alliance with Apple for setting up a
chain of Apple Specialty Stores branded as Store. This is RRL’s first alliance
with an international brand. Ths first iStore was launched during the quarter
in Bangalore.
Reliance Fresh started the quarter with 329 stores and opened an
additional 112 stores to end the quarter with 441 stores in over 45 towns and
cities.
As on date there are 453 Reliance Fresh stores operational across India.
Reliance Digital launched 2 additional stores in Bangalore and Navi
Mumbai respectively bringing the total Reliance Digital stores to 3.
The new formats launched by RRL this quarter are Reliance Trends,
Reliance Footprint, Reliance Wellness, Reliance Time Out, Reliance Jewels and
Reliance Super.
In the months of October and November, Reliance Trends, a specialty
apparel store selling men’s women’s’ and children’s garments was launched at
Gurgaon and Delhi. The store carries the best of national and international
brands apart from in-house brands.
RRL also opened its chain of specialty wellness stores offering
pre-emptive, curative and beauty solutions under the brand name of Reliance
Wellness in the cities of Hyderabad and Bangalore.
RRL ended the quarter with 3 Reliance Wellness stores in Hyderabad and 1
in Bangalore.
The last quarter also saw the launch of 2 Reliance Footprints stores.
Reliance Footprints, a specialty footwear store offering over 25,000 pairs of
formal and sports wear in men, women and children’s footwear, was launched in
Hyderabad and Bangalore. The launch of another Footprint store in New Delhi in
January 2008 brings the total count of the footwear specialty stores to 3.
In December 2007, RRL launched another specialty format in Bangalore
offering its customers an extensive range of merchandise in Books, Music,
Stationery, Toys and Gifts under the brand name Reliance Time Out.
This quarter also saw Reliance’s foray into fine and branded jewellery
under the brand name of Reliance Jewels in Bangalore. Reliance Jewels is a
stand-alone fine jewellery format which has thousands of designs of exquisitely
crafted jewellery, a one stop shopping destination for fine jewellery.
RRL closed this quarter by opening its ninth format, Reliance Super, in
Amrtisar. Reliance Super is a smaller version of the hypermarket format,
offering over 10,000 products in various categories like Grocery, Home Care,
Apparel and Accessories, FMCG, Consumer Durables and IT, Automotive Accessories
and Lifestyle Products.
With the launch of the new formats, RRL now operates 9 different formats
across India. Including the Reliance Fresh stores the company now operates over
465 retail stores across India.
The Reliance One loyalty membership base continues to grow and has
crossed over 2 million loyal customers.
Media Release
Reliance
Industries Polypropylene plant in Jamnagar down for plant maintenance
Mumbai, October
27, 2008- With the objective of improving product swing capability and
increasing propylene yield, Reliance Industries Limited has taken a planned
shutdown of its Polypropylene plant at the Jamnagar refinery complex.
This opportunity
will also be utilized to carry out other routine maintenance and turnaround
activities. The shutdown is expected to last for approximately four weeks.
The rest of the
units at the refinery are continuing to operate at their normal throughputs and
product dispatches to customers will be unaffected through the duration of the
shutdown.
About Reliance
Industries Limited
Reliance
Industries Limited (RIL) is India’s largest private sector company on all major
financial parameters with a turnover of Rs.1392690 millions (US$ 34.7 billion),
cash profit of Rs.252050 millions (US$ 6.3 billion), net profit (excluding
exceptional income) of Rs.152610 millions (US$ 3.8 billion) and net worth of
Rs.814490 millions (US$ 20.3 billion) as of March 31, 2008.
RIL is the first
private sector company from India to feature in the Fortune Global 500 list of
‘World’s Largest Corporations’ and ranks 103rd amongst the world’s Top 200
companies in terms of profits. RIL is amongst the 30 fastest climbers ranked by
Fortune. RIL features in the Forbes Global list of the world’s 400 best big
companies and in the FT Global 500 list of the world’s largest companies. RIL
ranks amongst the ‘Worlds 25 Most Innovative Companies’ as per a list compiled
by the US financial publication-Business Week in collaboration with the Boston
Consulting Group.
Key Contacts:
For Reliance
Industries Limited
Mr. Paresh
Chaudhry
91-9967998765
paresh.chaudhry@ril.com
For NeUCom
Consulting
Mr. Clint Furtado
91-22 – 4220 0000
91-9004056572
OIL PRODUCTION
STARTED IN RECORD TIME
NET PROFIT OF US$
1.75 BILLION, INCREASE OF 10%
EXPORTS OF US$
12.4 BILLION, INCREASE OF 57%
CRUDE PROCESSED
16.34 MILLION TONNES
Reliance Industries Limited (RIL) today reported its financial
performance for the half year ended 30th September, 2008. Highlights of the
un-audited financial results as compared to the previous period are:
• Turnover
increased by 38% to Rs.891630 millions (US$ 19.0 billion)
• Exports
increased by 57% to Rs.581800 millions (US$ 12.4 billion)
• PBDIT increased
by 10% to Rs.129720 millions (US$ 2.8 billion)
• Cash Profit
increased by 9% to Rs.110970 millions (US$ 2.4 billion)
• Net Profit
increased by 10% to Rs.82320 millions (US$ 1.8 billion)
KEY BUSINESS
DRIVERS
• 36% growth in
revenue was due to increase in prices and a 2% growth was due to increase in
volumes. Exports were higher by 57% at Rs.581800 millions (US$ 12.4 billion).
• RIL share in
Tapti block production was 688 MMSCM of natural gas and 46,107 tonnes of
condensate, registering a growth of 84% and 106% respectively over the corresponding
period of the previous year.
• RIL share in
Panna-Mukta block production was 218 MMSCM of natural gas and 202,287 tonnes of
crude oil and, a decrease of 28% in each as compared to the corresponding
period of the previous year. The decrease in production at Panna-Mukta was due
to a shutdown in June 2008 in the PPA process platform. Partial production was
restored from first week of July 2008 and full pre-shutdown production restored
from 31st August 2008.
• The Jamnagar
refinery processed 16.34 million tonnes of crude, a utilization rate of 99% as
compared to 16.1 million tonnes of crude oil processed during the corresponding
period of the previous year. Average refinery utilization was at 83.8% in North
America, 83.1% in Europe and 83.5% in the Asia-Pacific region.
• Revenue for the
refining and marketing segment increased by 50% from Rs.459030 millions to
Rs.689800 millions (US$ 14.7 billion) mainly due to high product prices driven
by high crude oil prices. Increase in prices accounted for 43% of growth in
revenue while higher volumes accounted for 7%. Exports of refined products were
at US$ 10.3 billion. This accounted for 11.0 million tonnes of product volume
as compared to 10.8 million tonnes for the corresponding period of the previous
year.
• Production of
petrochemical products increased from 9.8 million tonnes to 10.0 million
tonnes, an increase of 2%.
• Consumption of
raw materials and purchase of traded goods increased by 59% from Rs.442840
millions to Rs.702320 millions (US$ 15.0 billion) mainly on account of higher
crude and naphtha prices and lower purchase of traded goods due to reduction in
retail marketing of transportation fuels.
• The capital
expenditure for the period was Rs.114010 millions (US$ 2.4 billion) primarily
in oil and gas business.
COMMENTING ON THE
RESULTS, MUKESH D. AMBANI, CMD, RELIANCE INDUSTRIES LIMITED SAID:
"It has been
an exciting quarter at Reliance Industries. We have started production of oil
from the KG basin and soon will emerge as key hydrocarbons major. At Reliance,
we are at the final leg of capital expenditure in our key businesses and will
see cash flows from these investments in the following quarters. Leading
economies across the globe are passing through some unprecedented times. Our
businesses are gearing to meet these emerging challenges."
KEY BUSINESS
UPDATE
CORPORATE
• On 3rd October
2008, RIL has allotted 12 crore equity shares of Rs. 10/- each, upon exercise
of the rights attached to warrants issued on 12th April 2007. Consequent to the
above allotment, the paid up equity capital of the company stands increased to
Rs.15737.900 millions comprising of 157,37,87,556 equity shares of Rs. 10/-
each fully paid up.
• RIL continues to
be amongst the 30 fastest climbers in the 2008 list of Global Fortune 500
Companies. RIL’s new rankings across various parameters were as follows:
o Rank 206 based
on Sales
o Rank 103 based
on Profits
• RIL has domestic
credit ratings of AAA from CRISIL and FITCH. Moody’s has reaffirmed Baa2
investment grade rating for RIL’s international debt while S and P maintained
its rating at BBB.
• RIL has been
adjudged winner of the prestigious “Golden Peacock Global Award for Excellence
in Corporate Governance 2008”.
OIL AND GAS
(EXPLORATION and PRODUCTION) BUSINESS
• Oil production commenced
from KG D6 basin on 17th September 2008 with an initial production of 5,000
barrels per day and current production of 10,000 barrels per day. The
production is significant due to following -
o First deepwater
production in India
o First FPSO based
development in India
o One of the
fastest green field deep water oil development projects in the world with
discovery to production in just over two years
• There were 2 gas
discoveries as follows:
o Discovery B1 in
Block KG – VD3
o One more
discovery (Discovery 42) in the KG - D6 Block
• A well drilled
in the block KG-D6 has resulted in a discovery (Dhirubhai 42) for the first
time in the Pleistocene submarine channel complex play which has a significant
area extent in the block particularly in the northern and eastern parts of the
block. The discovery was notified to the Government in July’08. RIL has filed
an appraisal program for the discovery to evaluate size of the discovery.
• Progress has
been made in the development of D1 and D3 fields, in the KG-D6 block, despite
adverse weather conditions, complex logistics, tight supply chain market and
global shortage of manpower.
INTERNATIONAL OIL
AND GAS (EXPLORATION and PRODUCTION) BUSINESS
• Reliance
expanded its International footprint in Exploration and Production:
o Executed two
Production Sharing Contracts in Kurdistan (Iraq)
o Acquired acreage
in Peru by farming in three on-land blocks, including a block in which Reliance
is the operator
o Reliance farmed
out 25% participating interest in block K located in East Timor to Oil India
Limited and Indian Oil Corporation Limited
o Acquired one
exploration block (Block 155) in Peru in partnership with Plus Petrol, CNPC and
Petro Peru
• The
International business comprises of 14 blocks with acreage of about 107,700
square kilometers – 3 in Peru, 3 in Yemen (1 producing and 2 exploratory), 2
each in Oman, Kurdistan and Colombia, 1 each in East Timor and Australia. The
average production at the Yemen Block 9 was 5,272 BOPD.
REFINING and
MARKETING BUSINESS
As an
international refiner, RIL’s refining margins were influenced by the divergent
margin scenario witnessed by the industry globally. RIL managed to sustain its
margins primarily on the back of efficient sourcing of crude oil, ability to
produce globally accepted products and flexibility in its crude bucket, product
slate and evacuation infrastructure. RIL incorporated wholly owned subsidiaries
in two key global markets viz. London and Singapore, in an effort to tap the
emerging opportunities in global markets of petroleum products.
PETROCHEMICALS
BUSINESS
The polymer
business witnessed stable production volumes of PP, PE and PVC at 1,654 KT. RIL
produced 916 KT of ethylene and 363 KT of propylene, a decrease of 2% each over
the corresponding period of the previous year.
Polyester
production volume (PFY, PSF and PET) remained stable at 774 KT. RIL has
maintained its focus on specialty products which account for 55% each of PSF
and PFY production. RIL’s polyester intermediates (PX, PTA and MEG) production
was stable at 2,354 KT during the period.
RELIANCE PETROLEUM
LIMITED (RPL)
Reliance Petroleum
Limited (“RPL”) achieved 97% overall progress with rapid advancement on all
implementation fronts of its complex petroleum refinery. Construction is
nearing completion and the focus has now shifted from mechanical completion to
start up. Several primary and secondary process systems and treatment units
have been completed and pre-commissioning and commissioning trials of static
and rotary equipments, electrical distribution and instrumentation systems are
underway.
RELIANCE RETAIL
LIMITED (RRL)
Reliance Retail
today operates a total of 816 stores pan India with over 3.8 million square
feet of trading space. During the quarter, Reliance Retail launched 2 new
formats: Reliance Living Homeware and Reliance Home Kitchens. Continuing with
the philosophy of growth through partnerships, in August RRL announced the
launch of an exclusive pan India franchise arrangement with ‘Hamleys’, maker of
the finest toys in the world. This month also witnessed Reliance Brands
announcing a joint venture with world famous Italian lifestyle brand Diesel.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER / HALF YEAR ENDED 30th SEPTEMBER 2008
(Rs. In Millions,
except per share data)
|
Sr. No |
Particulars |
Quarter Ended 30th Sept |
Half Year Ended 30th Sept |
Year Ended 31st March |
|||
|
|
|
2008 |
2007 |
2008 |
2007 |
2008 (Audited) |
|
|
1 |
Turnover Less: Excise
Duty / Service Tax Recovered |
461130 13260 |
334020 13590 |
891630 27970 |
646920 31250 |
1392690 58260 |
|
|
2 |
Net Turnover |
447870 |
320430 |
863660 |
615670 |
1334430 |
|
|
3 |
a) (Increase) /
decrease in stock in trade / work in progress b) Consumption
of raw materials c) Purchases d) Staff cost e) Depreciation f) Other
expenditure g) Total
Expenditure |
(15830) 349780 11370 5880 12640 31930 395770 |
(9200) 218720 24020 4710 11290 24370 273910 |
(41900) 685050 17270 12390 24150 64900 761860 |
(420) 410460 32380 9670 22540 49040 523670 |
18670 903040 60080 21190 48470 98390 1149840 |
|
|
4 |
Profit from
Operations before other income, interest and exceptional items |
52100 |
46520 |
101800 |
92000 |
184590 |
|
|
5 |
Other Income |
1510 |
1680 |
3770 |
3650 |
8950 |
|
|
6 |
Profit before interest and exceptional items |
53610 |
48200 |
105570 |
95650 |
193540 |
|
|
7 |
Interest and
Finance Charges |
4370 |
2570 |
7310 |
5520 |
10770 |
|
|
8 |
Exceptional Item
|
-- |
-- |
-- |
-- |
47330 |
|
|
9 |
Profit before
tax |
49240 |
45630 |
98260 |
90130 |
230100 |
|
|
10 |
Provision for
Current Tax [including
Fringe Benefit tax] |
5770 |
5270 |
11440 |
10440 |
26520 |
|
|
11 |
Provision for Deferred Tax |
2250 |
1990 |
4500 |
5020 |
9000 |
|
|
12 |
Net Profit after
tax |
41220 |
38370 |
82320 |
74670 |
194580 |
|
|
13 |
Net Profit after
tax [excluding
effect of exceptional item] |
41220 |
38370 |
82320 |
74670 |
152610 |
|
|
14 |
Paid up Equity
Share Capital, Equity Shares of Rs. 10/- each. |
14540 |
13940 |
14540 |
13940 |
14540 |
|
|
15 |
Equity Share
suspense (Representing 6,01,40,560 Shares of Rs 10 each allotted to the
shareholders of erstwhile IPCL on 13th October
2007) |
-- |
600 |
-- |
600 |
-- |
|
|
16 |
Reserves
excluding revaluation reserves (as per audited balance sheet) of previous
accounting year |
|
|
|
|
774420 |
|
|
17 |
Earnings per
share (of Rs. 10) Basic Diluted |
28.4 28.4 |
26.4 26.4 |
56.6 56.6 |
51.4 51.4 |
133.9 133.9 |
|
|
18 |
Earnings per
share (of Rs. 10) [excluding
exceptional item] Basic Diluted |
28.4 28.4 |
26.4 26.4 |
56.6 56.6 |
51.4 51.4 |
105.0 105.0 |
|
|
19 |
Public
shareholding [Excluding Equity Share Suspense and including Global
Depository Receipts (GDR’s)] - Number of
Shares (in millions) - Percentage of Shareholding (%) |
802.500 55.20 |
683.100 49.02 |
802.500 55.20 |
683.100 49.02 |
706.900 48.63 |
|
Notes:
1. The figures for
the corresponding periods have been restated, wherever necessary, to make them
comparable.
2. The Company had
revalued plant, equipment and buildings situated at Patalganga, Hazira, Naroda
and Jamnagar in earlier years. Consequent to the revaluation, there is an
additional charge for depreciation of Rs.7980 millions (US$ 170 million) for
the half year ended 30th September 2008 and an equivalent amount has been
withdrawn from Revaluation Reserve. This has no impact on the profit for the
period.
3. The Company has
continued to adjust the foreign currency exchange differences on amounts
borrowed for acquisition of fixed assets, to the carrying cost of fixed assets
in compliance with Schedule VI to the Companies Act, 1956 as per legal advice
received, which is at variance to the treatment prescribed in Accounting
Standard (AS 11) on “Effects of Changes in Foreign Exchange Rates” notified in
the Companies (Accounting Standards) Rules 2006. Had the treatment as per the
AS 11 been followed, the net profit after tax for the half year ended 30th
September 2008 would have been lower by Rs.11380 millions (US$ 242 million).
The net profit after tax for the six quarters from 1st April 2007 to 30th
September 2008 would have been lower by Rs.11080 millions (US$ 236 million) on
account of cumulative effect of the above treatment.
4. During the
quarter ended 30th September 2008, Reliance Chemicals Private Limited, Reliance
Polyolefins Private Limited, Reliance Energy and Project Development Private
Limited, Reliance Polymers (India) Private Limited, Reliance Universal
Enterprises Private Limited, Reliance Global Energy Services (Singapore) Pte
Limited, Reliance One Enterprises Private Limited and Reliance Aromatics and
Petrochemicals Private Limited have become subsidiaries of the Company.
5. Provision for
Current Tax for the half year ended 30 th September 2008 includes provision for
Fringe Benefit Tax of Rs.320 millions (US$ 6.8 million).
6. There were no
investors' complaints pending as on 1st July 2008. All the 2,020 complaints
received during the quarter ended 30th September 2008 were resolved and no
complaints were outstanding as on 30th September 2008.
7. The audit
committee reviewed the above results. The Board of Directors at its meeting
held on 23rd October 2008 approved the above results and its release.
8. The statutory
auditors of the Company have carried out a Limited Review of the results for
the half year ended 30th September 2008.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
The market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
The Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 49.79 |
|
UK Pound |
1 |
Rs. 73.37 |
|
Euro |
1 |
Rs. 63.08 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
10 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
10 |
|
--LEVERAGE |
1~10 |
10 |
|
--RESERVES |
1~10 |
10 |
|
--CREDIT LINES |
1~10 |
10 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
86 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, they have no basis upon which to
recommend credit dealings |
No Rating |
|