Reliance Industrial Report)

RELIANCE INDUSTRIAL LIMITED (PETRO CHEMICAL)

Reliance Industrial Limited

(PETRO CHEMICALS)

ABOUT THE COMPANY:-

1991, Reliance industries set up a new subsidiary, Reliance Refineries Private Ltd. Thesubsidiary later changed its name to Reliance Petroleum Limited, and in 1993 launcheda public offering, which at that time was India's largest ever IPO.

FIG:- Reliance Industries Limited

Reliance continued to pioneer financing channels in India. In 1993, for example, thecompany became the first Indian company to raise capital on the foreign market,through a Global Depositary Receipt (GDR) issue in Luxembourg. The companycompleted a second successful GDR issue in 1994. The company used the new capitalin part to expand its petrochemicals wing, building the world's largest multi-feedcracker at the Hazira site. The company also added production plants for monoethyleneglycol, polyethylene, and purified terephthalic acid. The new units launched productionin 1998. Reliance's opportunity for entry into petroleum refining came in 1997, when the Indianoil industry reached a state of near collapse. Unable to fund further explorationoperations, and lacking the capital to expand its existing production, the governmentwas forced to liberalize the sector. In that year, Reliance announced a plan to build oneof the world's largest and most modern petroleum refining complexes in Jamnagar,Gujarat, at a cost of some $6 billion. The government agreed to the plan, and grantedthe company the right to import petroleum directly, rather than going through IndianOil, which helped Reliance greatly drive down operating costs.

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Constructed in record time, the Jamnagar site was commissioned in 1999. The site'sproduction capacity was double that of any other Indian refinery and ranked among thetop five in the world. The addition of the new facility also placed Reliance at the toprank of the country's private-sector companies. In 2002, Reliance Petroleum wasmerged into Reliance Industries, which then became one of the country's top threecompanies, including state-owned entities.

Breaking Up in 2006:Dhirubhai Ambani died in 2002, and the Ambani brothers took over as heads of thecompany. In that year, the company increased its dominance of the country'spetrochemicals sector through its acquisition of main private-sector rival IndianPetrochemicals Corporation. Also in 2002, Reliance launched a diversification effort

targeting the telecommunications sector, especially the fast-growing cellular phone

market. Reliance set up its own phone service, Reliance Infocomm, in that year.Yet the petroleum industry remained the company's major growth focus. In 1999, the

Indian government auctioned off 25 blocks for exploration; bids were given in the formof royalty percentage offers. Reliance won 12 of the blocks and promptly set in placeits own team of exploration experts, backed by oilfield services from Halliburton andSchlumberger. Reliance's investment quickly paid off with the discovery of natural gasreserves estimated at some 14 trillion cubic feet, the largest natural gas field discoveredin India in decades, in the Krishna-Godavari Basin in the Bay of Bengal. In 2004, thecompany struck again, locating a new gas field in the Bay of Bengal, off the OrissaCoast.

Buoyed by its successful exploration efforts, Reliance unveiled an ambitious expansionprogram for the second half of the 2000s. The company's plans included a $6 billionextension of the Jamnagar site, doubling it in size and making it the world's largest anscomplex refinery by 2009. The company also announced that it intended to spend $10billion on further oil exploration efforts, targeting the international market. In this way,the company hoped to increase its production tenfold by the end of the century. At theother end of the petroleum market, the company launched a $1.5 billion expansion ofits Reliance gas station chain, with the goal of 6,000 stations. The company alsoexpanded internationally, becoming the world's leading manufacturer of polyester yarnwith the acquisition of Germany's Trevira. In addition, the company boosted itstelecommunications wing, acquiring U.K.-based FLAG Telecom, an operator of a50,000-kilometer underwater fiber-optic cable network

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COMPANY SPECIFIC:-

VISION:-

Reliance Industries Limited (RIL) was set up by the farsighted businessman Dhirubhai Ambani (1932-2002) more than three decades ago. RIL has emerged as India's largest private-sector enterprise and carved out a distinct place for itself in global Fortune 500 companies. Reliance's business success and competitive position reflect the leadership provided by its founder, who said, "Growth has no limit at Reliance. I keep revising my vision. Only when you dream it do you get it."

The leadership system defined by Ambani is based on value creation, particularly for the customers and shareholders. Now, Shri Mukesh Ambani, chairman and managing director, is steering the company, building on the founder's vision.

The Hazira manufacturing unit's management team, headed by Shri H. S. Kohli, executive director, is focused on fulfilling the needs of its various stakeholders through excellence in systems, processes, technology, and people and toward fulfillment of the corporate vision: "To become a globally competitive enterprise, driven by the market, creating and maintaining a lead over competition through quality products and establishing itself to be the preferred supplier of its customers."

With vertical integration of its chain from refinery to textiles, Reliance has a unique fully integrated structure, producing fabrics from crude oil. Its existing and emerging businesses in exploration and production, refining and marketing, petrochemicals, textiles, and retailing have given Reliance a unique leadership position in India and the world.

Reliance has the distinction of being among the top 10 global producers in all of its major petrochemical product lines. The company's vision is "to grow on a sustainable basis and be the largest and most innovative, profitable, and admired polyester producer in the world."

MISSION:-

To attain global best practices and become a world-class ,Starting in 1991, he directed Reliance Industries in its efforts to raise ..... PARC is today a state of the art technology center in the Indian petrochemical industry. ..

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HISTORY/MILESTONE :-

Major Milestones

2009

RIL joins the league of global deepwater oil and gas operators - RIL commenced production of hydrocarbons in its KGD6 block in the Krishna Godavari basin with the production of sweet crude of 420 API. The production of oil in KG-D6 was commissioned in just over two years of its discovery, making it the world’s fastest green-field deepwater oil development project.

With the commissioning of the new refinery in its Special Economic Zone (SEZ), Jamnagar has now become the petroleum hub of the world. With 1.24 Million Barrels Per Day (MBPD) of nominal crude processing capacity, it is the single largest refining complex in the world.

RPL merger with RIL: Value creation through scale and synergies - The merger of Reliance Petroleum Limited (RPL) with Reliance Industries Limited (RIL) has enabled seamless integration of operational scale and financial synergies that existed between the two Companies. Assets and liabilities of RPL have been transferred to RIL with effect from 1st April 2008, as per the approval granted by the Hon. High Courts of Mumbai and Gujarat. Shareholders of RPL received 1 share of RIL in lieu of every 16 shares of RPL held by them, as per the scheme of merger. Accordingly, 6.92 crore new equity shares of RIL have been allotted to the shareholders of RPL.

2008

During the year, Reliance signed an agreement to acquire certain polyester (capacity) assets of Hualon, Malaysia.

In the Refining & Marketing business, Reliance took over majority control of Gulf Africa Petroleum Corporation (GAPCO) and started shipping products to the East African markets.

Reliance also signed MoU with GAIL (India) Limited to explore opportunities of setting up petrochemical plants in feedstock rich countries outside India.

Reliance Petroleum Limited (RPL) continued the second year of implementation of its refinery project with an overall project progress of 90%.

During the year, Reliance Retail Limited (RRL) continued its rollout of stores across

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2007

Value creation through integration - A landmark merger of Indian Petrochemicals Corporation Limited (IPCL) with Reliance Industries Ltd. (RIL) has been completed.

Reliance Retail entered the organised retail market in India with the launch of its convenience store format under the brand name of ‘Reliance Fresh’.

The world’s largest polyester expansion project commissioned during the year. We brought a Polyester capacity of 550 KTA on stream at globally competitive costs in a record time of eighteen months. With this expansion, our polyester capacity has been augmented to 2 million tonnes per year. Subsequently, Reliance now have 4% of global polyester capacity and 6% of global production.

During the year, we expanded our polypropylene (PP) capacity by 280 KTA at Jamnagar that increased the combined capacity to 1,710 KTA. With this expansion, we now have 3.5% of global PP capacity and 3.6% of global PP production.

2006

RIL commences the setting up of a new export-oriented refinery through its subsidiary, Reliance Petroleum Limited (RPL). The refinery will have a total atmospheric distillation capacity of approximately 580,000 barrels per stream day with a Nelson Complexity of 14.0 and an integrated polypropylene plant with a capacity of 0.9 Million TPA. The capital cost of the RPL project is estimated at Rs 27,000 crore (approximately US$ 6 billion). RPL completes its US$ 1.2 billion Initial Public Offering of equity shares which received an overwhelming response across different classes of investors.

Reliance's debt ratings from S&P and Moody's pierce India's sovereign ratings.

Reliance becomes India's first private sector enterprise to cross US$2 billion profit mark.

2005

The Mumbai High Court, shareholders and creditors approve demerger proposal

2004

Reliance Industries Limited (RIL) emerged as the 'Petrochemicals Company of the Year' at the prestigious sixth annual Platts Global Energy Awards ceremony in New York, USA

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The Board of Directors of Reliance Industries Limited approved the buyback of its fully paid up equity shares of Rs.10 each, at a price not exceeding Rs 570 per share, payable in cash, up to an aggregate amount not exceeding Rs 2,999 crore. This amount represents the limit of 10% of the total paid up equity share capital and free reserves of the Company as on March 31, 2004.

The European Commission approved the acquisition of the German specialty polyester manufacturer 'Trevira' by Reliance.

Reliance Industries emerged as the first and only private sector company from India to feature in the 2004 Fortune Global 500 list of World's Largest Corporations.

Reliance announced it had struck gas off the Orissa Coast in the Bay of Bengal.

RIL became the first private sector company in India to record a net profit of US dollar of over 1 billion.

Reliance Associate, Sunbright, signed a Memorandum of Understanding (MoU) with National Organic Chemicals Industries Limited (NOCIL) to take over its Petrochemicals and Plastics Products Divisions.

2003

Reliance announces Strategic Alliance with Bongaigaon Refinery & Petrochemicals Ltd. (BRPL) to restart PSF manufacturing at BRPL.

Reliance Infocomm acquires FLAG Telecom, a multinational telecom company providing bandwidth through its undersea cable network comprising of over 50,000 kms of undersea fiber optic cable that spans four continents and connects the key regions of Asia, Europe, Middle East and the USA.

State-of-the-art Research and Technology Centre is inaugurated at Reliance's Patalganga complex to develop differentiated polyester products.

Reliance strikes oil in an onshore block in Yemen, where it has an equity oil position.

Reliance's refinery at Jamnagar was ranked best in Shell Benchmarking for the third consecutive year in 'Energy and Loss' performance from amongst 50 refineries worldwide.

Reliance dedicates 23rd January as Shareholder's Day on the occasion of 25 years of the company going public - A story of Relationship and Trust.

BSES, one of the premier utility companies of the country, engaged in the generation, transmission and distribution of electricity becomes part of the Reliance Group and Mr. Anil D Ambani is appointed its Chairman.

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2002

Reliance Infocomm to launch various telecom services on 28th December - beginning with Gujarat, the Infocomm revolution will cover thousands of villages and hundreds of cities across the country. Reliance Infocomm will become a major catalyst for changing the face of India and improving the quality of life of Indians.

Reliance announced India's biggest gas discovery in nearly three decades and one of the largest gas discoveries in the world during 2002. The in place volume of natural gas is in excess of 7 trillion cubic feet, equivalent to about 1.2 billion barrels of crude oil. This is the first ever discovery by an Indian private sector company.

Reliance acquired control of Indian Petrochemicals Corporation Limited (IPCL) - India's second largest petrochemicals company.

Reliance signed MOU with DuPont Polyester Technologies to license the revolutionary resin technology NG-3 from DuPont. Reliance announced its plan for the expansion of PET capacity by 220,000 tonnes per year.

The merger of Reliance Petroleum Limited with Reliance Industries Limited was announced - largest ever merger in India - Reliance Industries became the largest private sector company in India on all major financial parameters including sales, profits, net worth, assets, and exports.

2001

Reliance Industries Ltd. and Reliance Petroleum Ltd. became India's two largest companies in terms of all major financial parameters

Dhirubhai Ambani was conferred The Economic Times Award for Corporate Excellence for Lifetime Achievement

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SBU’S (STRATEGIC BUSINESS UNIT) :-

Business-level strategy is – applicable in those organizations, which have different businesses-and each business is treated as strategic business unit (SBU).

The fundamental concept in SBU is to identify the discrete independent product/market segments served by an organization. Since each product/market segment has a distinct environment, a SBU is created for each such segment. For example, Reliance Industries Limited operates in textile fabrics, yarns, fibers, and a variety of petrochemical products. For each product group, the nature of market in terms of customers, competition, and marketing channel differs.

There-fore, it requires different strategies for its different product groups. Thus, where SBU concept is applied, each SBU sets its own strategies to make the best use of its resources (its strategic advantages) given the environment it faces. At such a level, strategy is a comprehensive plan providing objectives for SBUs, allocation of re-sources among functional areas and coordination between them for making optimal contribution to the achievement of corporate-level objectives. Such strategies operate within the overall strategies of the organization.

The corporate strategy sets the long-term objectives of the firm and the broad constraints and policies within which a SBU operates. The corporate level will help the SBU define its scope of operations and also limit or enhance the SBUs operations by the resources the corporate level assigns to it. There is a difference between corporate-level and business-level strategies.

Reliance Industries Limited (“RIL”), the largest private sector company by marketcapitalisation in India with assets of over Rs. 806 billion (approximately US$ 18 billion) as of March 31, 2005.

RIL is the only private sector company from India to feature in the Fortune Global 500. We will be 80% owned subsidiary of RIL after the Issue.

We have not yet commenced business operations. We have developed plans to construct a refinery with a complexity of 14.0, as measured using the Nelson Complexity Index. The refinery will have a total atmospheric distillation capacity of approximately 580 kilo barrels per stream day (“KBPSD”).

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The polypropylene plant will have a capacity to produce 0.9 million metric tonnes per annum (“MMTPA”). The Project was initially contemplated to be set up by RIL which subsequently decided to implement the Project through us.

The capital cost of the Project is estimated at Rs. 270 billion (approximately US$ 6 billion). We propose to fund the Project through debt of Rs. 157.5 billion (approximately US$ 3.5 billion) and equity of Rs. 112.5 billion (approximately US$ 2.5 billion), including proceeds from the Issue. Any additional equity raised in excess of Rs. 112.5 billion will be used as additional contingency for the Project.

We have agreed to a preliminary term sheet with certain banks and financial institutions to provide a syndicated term loan facility for approximately Rs. 67.5 billion (US$ 1.5 billion).

We intend to seek additional financing through export credit agencies for approximately Rs. 45 billion to Rs. 67.5 billion (US$ 1 billion to US$ 1.5 billion).

We anticipate raising further debt funding of approximately Rs. 22.5 billion to Rs. 33.75 billion ( US$ 500 million to US$ 750 million) in accordance with the funding requirements for the Project, as they arise.

Our intention is to complete construction and commission the refinery and the polypropylene plant in, or around, December 2008. We have entered into agreements with Bechtel France S.A.S (“Bechtel”) to license the technology for the major process units of the refinery and polypropylene plant. Bechtel will also provide engineering, project management and other construction services for the Project.

RIL has proven expertise in building and operating a large refinery and petrochemicals complex. Its existing refinery, currently the third largest refinery in the world by atmospheric distillation capacity, was built in 36 months and commenced commercial production during 2000. This refinery has operated at near 100% utilization during its five years of operations, consistently outperforming the average utilisation rate of refineries in the Asia Pacific region, the European Union and North America as reported by PEL Market Services, Biannual

Refining Report, July 2005. With a Nelson Complexity Index of 11.3, the existing refinery has achieved Gross Refining Margins (“GRMs”) that are consistently higher by US$ 2 to US$ 3.2 per barrel than the benchmark

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Singapore Dubai Crack Margins as reported by Reuters (“Singapore Margins”) during this period. In 2005, RILwas named the “International Refiner of the Year” by the Hart Energy Publishing LP. It was ranked number one in “Energy Performance” amongst large complex refineries in the Asia Pacific Region in the Solomon

Benchmarking Survey, by Solomon Associates of USA in 2003.Our proposed refinery and polypropylene plant will be located in a Special Economic Zone (the “SEZ”) and will receive certain tax benefits and concessions under SEZ regulations, subject to certain conditions.

MANAGEMENT TEAMS

NAME DESIGNATIONMr. Mukesh D. Ambani Chairman

Mr. Hital R. Meswani Director

Mr. Manoj Modi Director

Mr. P. M. S. Prasad Director

Mr. Atul S. Dayal Director

Mr. Y.P. Trivedi Director

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Mr. M.P. Modi Director

Mr. Bobby Parikh Independent Director

Brief Profile of the Directors

Mr. Mukesh D. Ambani:

Mr. Ambani is the non-Executive Chairman of the Company. He holds a Bachelor’sdegree in chemical engineering from the University of Bombay and pursued a Masters in BusinessAdministration from Stanford University, USA. He is also the Chairman and Managing Director of RIL, where

he joined in 1981 and initiated its backward integration from textiles to polyester fibres and further to petrochemicals. In the process, he played a key role in the creation of large petrochemicals complexes of RIL, including the refinery at Jamnagar. He had set up an information and communications technology initiative inthe form of Reliance Infocomm Limited.

He was ranked 42nd among the 'World's Most Respected Business Leaders' in a survey conducted byPricewaterhouse Coopers and published in Financial Times in November 2004 and 13th in Asia's Power 25 list of 'The Most Powerful People in Business' published by Fortune magazine, August 2004. He was conferred the'Asia Society Leadership Award' by the Asia Society, Washington D.C., in May 2004.

Mr. Hital R. Meswani:

Mr. Meswani graduated with honours in the management and technology programme from the University of Pennsylvania. Mr. Meswani received a B.S. degree in Chemical Engineering and B.S.Economics (equivalent to B.B.A.) from Wharton Business School, both from University of Pennsylvania. He joined RIL in 1990.

He has been on the Board of RIL as an Executive Director since August 4, 1995, with overall responsibility for the petroleum division and all manufacturing and project activities, including Jamnagar, Patalganga and Hazira complexes. He is a Director of Reliance Industrial Investments and Holdings Limited.

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Mr. Manoj Modi:

Mr. Modi has been associated with RIL for over 20 years. He is a chemical engineer and was a member of the key management team that worked on the planning and construction of RIL’s existing refinery.

Mr. P.M.S. Prasad:

Mr. Prasad holds a bachelors degree in engineering and has been with RIL for 25 years. He has held various positions in the fibres, petrochemicals and petroleum businesses of RIL. He currently heads the upstream and refining business, which comprises of exploration and production, refining and supply and aromatics. He was the project head of the Jamnagar refinery and petrochemicals complex of RIL.

Mr. Y.P. Trivedi:

Mr. Trivedi has been a director on the Board of RIL since April 16, 1992. He is practising asa senior advocate in the Supreme Court of India. He has held several senior positions in various economic,professional, political, commercial, educational, medical, sports and social fields.

He previously has been a director on the board of Central Bank of India, Dena Bank and a number of other companies. He is also the past President of Indian Merchants' Chamber and is presently on the Managing Committee of ASSOCHAM and International Chamber of Commerce.

Mr. M.P. Modi:

Mr. Modi has been a director on the Board of RIL since March 28, 2001 and has held highpositions in Government of India as Chairman of Telecom Commission, Secretary, Ministry of Coal, SpecialSecretary, Insurance and Joint Secretary, Ministry of Petroleum, Chemicals and Fertilisers.

He has considerable management experience, particularly in the fields of energy, insurance, petrochemicals and telecom. At present he is Director on the Boards of the following companies: ICICI Prudential Life Insurance Company Ltd., and Mangalore Refinery & Petrochemicals Ltd.

Mr. Atul S. Dayal:

Mr. Dayal holds a bachelor’s degree in science and an LLB. He is a solicitor and has beenin practice since 1974. From April 1998, he has been practicing as a sole proprietor of A S Dayal and Associates focussing on the areas of corporate law, indirect taxation and international commercial contracts.

Mr. Bobby Parikh:

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Mr Parikh is a graduate of the Bombay University and a Chartered Accountant. Mr Parikh joined Arthur Andersen in 1984 and specialised in the area of tax and business advisory services. was made a partner in 1995 and assumed responsibility as the Country Managing Partner for Andersen in 1998. In 2002, Mr Parikh became the Chief Executive Officer of Ernst & Young in India and held that position until 2003. In 2004, Mr Parikh joined others to form BMR & Associates, a professional services firm focused on providing taxand regulatory services.Borrowing Powers of the Directors of the Comp

Products & services

We pride ourselves on being "your local BP people” as our core business is in Regional Australia. We strive each and every day to be, your local BP people, and to remain the face of BP in Regional Australia. We stock the full range of both BP and Castrol products, giving you even greater choice and flexibility, as well as the peace of mind that comes from a proven brand.

Reliance Petroleum offers a vast array of products including bulk fuels and lubricants to spray oils and solvents to dispensing equipment and convenience goods.

Our partnership with BP and Castrol completes our total offer to our customers offering premium fuel and lubricant products. We distribute fuel to 600 service stations across Australia. We own and operate over 200 of these, the remainder being independently-owned and selling fuel under the BP banner.

Reliance Petroleum offers a complete spectrum of services in the commercial and retail markets especially bulk fuel and lubricant purchases for farms, mines, transport fleets, construction sites, and service stations.

PRODUCTS

. RPL intends to sell bulk of diesel to Europe, given the dieselisation

there and shortage of diesel, gasoline exports would primarily target

USA & Asia.

RPL also intends to enter into a long term contract with RPL for

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the provision of sales and marketing services for its refined petroleum

products in order to leverage on its experience in this area.

Product % of Total Production

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Gasolin

e

Jet / K

erosen

e

Petcoke

Polypro

pyle

Sulphur

Disel

Fuel

& losse

s

TOTA

L

0

10

20

30

40

50

60

70

80

90

100

SHOWING PRODUCT % OF TOTAL PRODUCTION

% of TOTAL PRODUCTION

Product % of Total Production

Gasoline 31

Jet / Kerosene 5

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Petcoke 9

Polypropyle 3

Sulphur 2

Disel 42

Fuel & losses 8

Total 100

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SERVICES

Reliance Card

In an increasingly fast moving world, it’s good to know you’re travelling with a reliable partner to help keep your business on track. The Reliance Card is specially tailored to your needs no matter where you are, in the office, or on the road.

More locations

With over 1600 sites including the Reliance Petroleum network and the nationwide BP network, you’ll always have access to a reputable brand and guaranteed quality fuels.

Less Paperwork

With single tax invoices and itemised charges on statements and reports, you’ ll know exactly how to optimise the running of your vehicles.

More than just fuel

Your card. Your choice. You can link a variety of product options directly to your card. In fact, you can use it in any of our diners and for other in-store purchases. It really doesn’t stop at just fuel.

And even less paperwork with RelianceNow.

Service Stations

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We aim to deliver the highest quality convenience store offer to all of our customers. Our 2go shops offer an exclusive range of convenience products as well as food and car wash in selected sites. Reliance Petroleum operates over 200 BP service stations primarily throughout regional Australia . Find a Reliance Petroleum operated service station near you.We are committed to great customer service and our friendly, local staff are always ready to help assist you in choosing the products that are right for you. You will experience a consistently good service experience no matter where you deal with us.

Our stores vary across our extensive network from Travel Centres to small compact convenience stores and we offer a wide assortment of convenience goods such as fresh milk & bread, grocery items, dairy lines, magazines, newspapers, tobacco products and a great range of drinks including flavoured milk and juices, confectionery, chips & ice creams and fresh, affordable, food and coffee to go. Our stores also carry bagged ice all year round.

On-site Refuelling

Reliance On-Site is the refuelling service that comes to you and delivers fuel directly into your equipment – when and where you need it. It eliminates the need for you to store bulk fuel on site and all the problems with self-fuelling your own vehicles and machinery.

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Reliance On-Site has a fleet of specially designed vehicles that can manoeuvre into difficult places on site to deliver small amounts of fuel to you as economically as possible, for filling vehicles, mobile plant and equipment, earth moving equipment and back-up generators.

We understand the costs associated with downtime, when equipment is waiting to be refuelled – so you can rely on us to be reliable and responsive, delivering fuel to your site promptly to meet your requirements.

Your equipment can be refuelled after-hours or when not being used, eliminating downtime and resulting in increased productivity.

With Reliance On-Site, you can eliminate the costs of storing costly bulk fuel, because you only pay for the fuel you use.

Reliance On-Site makes administration and control easy – at each delivery, our operator uses a hand-held computer to clearly identify each piece of equipment and the amount of fuel delivered.

Lubricant Solutions

Reliance Petroleum distributes the full range of BP and Castrol lubricants and greases from our network of regionally-based depots and delivery fleet. Our lubricant specialists can help you choose the right product for your vehicle or equipment and offer problem solving, product rationalisation information, cost reduction analysis and lubricant surveys.

We offer the full range of BP and Castrol lubricants and greases including:

Engine Oils Gear/Transmission Oils Hydraulic Oils Agricultural lubricants Mining Lubricants Greases

Our wide range of specialty products include:

Cleaners and Detergents

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Solvents Cutting oils (neat and soluble) Spray oils and animal health products Rulvapron Spray Adjuvant [link to brochure] NONOX Adblue NONOX Adblue FAQ

You can find out more about the products we sell from the product catalogues and guides below:

BP's On line Product Catalogue Macnaught's online Product Catalogue

You can also download product Material Safety Data Sheets (MSDS) and Technical Data Sheets (TDS) from the BP, Castrol and NoNox Adblue websites.

Material Safety Data Sheets BP Material Safety Data Sheets Castrol Technical Data Sheets BP Technical Data Sheets Castrol

Storage and dispensing options including:

Self bundled double skinned tanks & Conventional lubricant storage tanks Pumping and greasing equipment Metering devices

We are able to meet the demands of your bulk and packaged lubricant requirements through our network of regionally based terminals, depots and fleet of delivery vehicles.

All vehicles are operated by our experienced drivers and distribution staff who have an extensive local knowledge and understanding of handling lubricants, whether bulk or in drums. Alternatively, customers are welcome to choose the convenience of picking up their lubricant products from any of our local depot locations.We offer the convenience of a single account to cover all of your lubricant and fuel needs. A Reliance Petroleum account offers simple, easy to read invoices and statements, a dedicated 1300 account enquiry hotline and the convenience of online account management through RelianceNow. Sign up now

Bulk Fuel

Reliance Petroleum has a network of locally based bulk fuel depots and a large fleet of delivery vehicles to meet all of your bulk fuel needs.

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http://www.tds.castrol.com.au/

http://www.bp.com/iframe.do?categoryId=9009452&contentId=7017788

http://www.msds.castrol.com.au/

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Our delivery fleet is operated by our experienced transport staff and distribution team who have an extensive regional knowledge and understanding. We offer specialised delivery suited to your needs and a convenient FREECALL number to place all of your orders 1800 333 275.

Storage Equipment

We provide a range of options to meet your fuel storage needs. A variety of storage options are available ranging from farm tanks and trailer tanks to large bulk fuel installations. There are strict regulations and controls around bulk fuel storage. By dealing through Reliance Petroleum you can be assured that all equipment is fully compliant and backed up by expert advice.

Dispensing Equipment

We provide a wide range of fuel dispensing equipment to meet your needs. Ranging from simple hand operated dispensing equipment to computerised industrial dispensing systems, you can select the best option for your business.

24 Hour Refuelling Network

You can use our extensive gofuel network (outside purchase terminals) 24/7. Our gofuel network consists of over 60 self-service refuelling facilities for your on-road needs. The network provides extensive coverage and has easy heavy transport access in remote locations at all hours. You can use your Reliance Card, BP Plus card or normal finance card.

Easy account management

We offer the convenience of a single account to cover all of your lubricant and fuel needs. All Reliance Petroleum paperwork is designed to allow you to spend more time on your business and less time on dealing with your accounts. A Reliance Petroleum account offers simple, easy to read invoices and statements, a dedicated 1300 account enquiry hotline and the convenience of online account

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MERGER & ACCUTION

The proposal to merge Indian Petrochemicals Corporation Ltd (IPCL) with Reliance Industries, now that it has been announced, appears a natural and obvious move, given that both operate in the same industry. More so, if you consider the Reliance track record of merging group companies with the flagship.

The Reliance Industries that we know today is an amalgam of Reliance Petrochemicals Ltd (which implemented a part of the Hazira complex), Reliance Polyethylene Ltd, Reliance Polypropylene Ltd (these two were floated to implement another part of the Hazira complex) and Reliance Petroleum Ltd (the original entity that was floated to implement the Jamnagar refinery).

Yet, the proposal seems to have caught the market by surprise for two reasons. First, the Reliance Industries and IPCL Chairman, Mr Mukesh Ambani, while speaking at the IPCL AGM barely 20 months ago in June 2005, had ruled out any move to merge the two companies.

Second, the IPCL-Reliance merger is unlike any of the other instances quoted above in that it is not something that will bring in significant synergies more than what has already been achieved by the two in their independent avatars.

EXPANSION

In October 2005 plans were put in action to build a new refinery at the Jamnagar siteadjacent to the existing refinery, which is costing $6bn. Part of the finance, $500m, hasbeen guaranteed by the US Export-Import bank (Ex-Im Bank). The Ex-Im Bank guarantee is necessary to aid the refinery developer /owner Reliance Petroleum Ltd(RPL) to acquire the required US equipment, technology and services to build the newfacility. The new refinery will be the world's sixth largest and most complex. The tworefineries will now comprise the largest refining complex in the world.Bechtel Corporation in Houston, Texas has provided design, procurement, projectmanagement and other services. Other US suppliers include: Black & VeatchInternational Co., Kansas City, Mo, for sulphur recovery and gas treatment units; DowGlobal Technologies, Inc.,

Midland, Mich, for licensing and services for thepolypropylene plant process; Foster Wheeler Corp., Clinton, NJ, for fired heaters forthe refinery's coker; and UOP LLC, Des Plaines, Ill, for the catalytic converter reactorsection and PSA (pressure swing absorption) packages. Citibank NA, NY, is theguaranteed lender on the transaction.

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In October 2008 the project was declared 97% complete with a projected on-streamdate of December 2008. The second refinery will have a capacity of 580,000 barrels perday, along with a 600MW power plant and enhanced port facilities.

The $34.5-billion Reliance Industries, India’s largest private sector company, Friday announced that it will consider a proposal next week to merge another group company into itself to bring in operational efficiency.The Mukesh Ambani-controlled Reliance Industries and its oil refining and export-oriented subsidiary Reliance Petroleum, have both informed the stock exchanges of their boards’ agenda to consider the merger.

“The board of directors of the company will consider and recommend the amalgamation on March 2,” the identical statutory filings by the two companies with the stock exchanges said.

The deal is expected to also lead to Reliance Industries acquiring the 5-percent stake that US oil major Chevron holds in the company’s subsidiary, a company official said. “The merger is being considered for achieving operational efficiency.”

The Reliance group, which also has interests in oil exploration, petrochemicals, life sciences and retail trade, says its petroleum complex at the port town of Jamnagar in Gujarat is the largest grassroots refinery in the world.

The merger was announced after the close of trading hours on Indian bourses, where the Reliance Industries scrip fell 1.97 percent to Rs.1,265.05, while that of Reliance Petroleum also dropped 1.23 percent to Rs.76.20.

Reliance Industries holds a 70.38-percent stake in Reliance Petroleum, while Chevron holds another 5 percent. The rest is widely held, including those by financial institutions and the public.

The promoters of Reliance Industries, which was founded by legendary industrialist, the late Dhuirubhai Ambani, hold a 49.03 percent stake in the company as on Dec 31.

Reliance eyes joint venture with US’ Atlas Energy

Mumbai: Indian energy major Reliance Industries is seeking a joint venture with Atlas Energy to develop the US firm’s Marcellus Shale gas operations, a source with direct knowledge of the matter said.

Independent oil and gas company Atlas is looking for a partner for its operations in the booming Marcellus Shale in the eastern United States, which could bring in $1 billion or more for the firm.

Reliance, India’s largest listed firm, is eyeing a deal in the wake of two recent failures in trying to gain a foothold outside India, as it attempts to break into new markets and expand its various businesses including refining, oil and gas exploration and petrochemicals.

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The Marcellus Shale, which spans parts of Pennsylvania, West Virginia and New York, could hold enough natural gas to satisfy US demand for a decade, according to some geologists.

Analysts have said Reliance, controlled by the world’s fourth-richest man Mukesh Ambani, should seek oil and gas assets overseas as these can feed the company’s massive refining complex in western India.

The company has raised $2 billion by selling stock in recent months, a warchest it could put to use for its ambitious overseas plans.

STRATEGIC ALLIANCE

RPL also benefits from a strategic alliance with Chevron India Holdings Pte Limited,Singapore, a wholly owned subsidiary ofChevron Corporation USA (Chevron), which currently holds a 5% equity stake in the Company.

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http://www.askbiography.com/bio/Chevron_Corp.html

http://www.askbiography.com/bio/Singapore.html


CSR Initiatives(corporate social responsibility) :-

CSR Activities

The Dhirubhai Ambani Foundation every year recognizes meritorious students at district level through rewards and scholarship schemes through "Dhirubhai Ambani SSC - Merit Reward Scheme" and Dhirubhai Ambani UndergraduateScholarship Scheme"

The 'Dhirubhai Ambani SSC Merit Reward Scheme' for class X and 'Dhirubhai Ambani Undergraduate Scholarship Scheme' for class XII, were instituted in 1996 for the first three meritorious students from each of the district of Maharashtra, Gujarat and later in Goa. The schemes were extended in 1998 to the first meritorious student amongst the Physically Challenged category.

The Foundation has reached out to a total number of 4763 meritorious students, including 472 Physically Challenged, from 64 districts of the states of Maharashtra, Gujarat, Goa and the Union Territory of Daman, Diu, Dadra Nagar Haveli in the last 10 years. During 2005 the SSC Merit Rewards were received by 264 meritorious students while 307 received the Scholarships. They represent each of the 64 districts of the state of Maharashtra, Gujarat, Goa and the Union Territory of Daman, Diu, Dadra Nagar Haveli and include 71 Physically Challenged and the first ten in the merit order list of CBSE for each of the state and three from Goa.

The SSC Merit Reward consists of Rs 3,000/- in cash, a good quality bicycle which reflects the desire of the Patron Trustee to motivate meritorious students from Rural India. The Physically Challenged meritorious student is rewarded with Rs 6,000/-. The Undergraduate Scholarship for Meritorious HSC students, payable each year till graduation ranges between Rs 9,500/- and Rs 31,500/- p.a. depending up on the stream chosen by the Scholar. A certificate of Merit from the trustees is given ceremoniously to each of the meritorious student.

These schemes have been well appreciated by the students and parents as they are purely merit based; encourage education of a girl child and offer equal opportunity to Physically Challenged Meritorious students.

'Reliance Kargil Scholarship Scheme' The Scheme to support educational needs of the children of defence personnel who sacrificed their lives or were disabled during Kargil war, instituted with the generous contribution from Reliance employees. During the year 87 children received financial support for their education from standard IV to XII under the scheme.

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"Dhirubhai Ambani Scholars Scheme" for meritorious children of Reliance share holders. The Scheme was announced in 2003 as a one time measure to commemorate the silver jubilee of the company's listing on the Bombay Stock Exchange. In the first year 900 meritorious children of the shareholders received the Scholarships. These Scholars are eligible to get the scholarships annually till they complete their undergraduate studies, provided they secure minimum of 60 per cent marks in each of their annual University Examination. A total of 772 scholars, having secured the stipulated marks/ grade at the first year university examination continued to receive the Scholarship for the second year for their education leading to Degree / Diploma course. Of these 540 scholars who are pursuing degree courses in Engineering, Medicine and allied subjects while the rest 232 have chosen courses in commerce, arts and law faculties.

Healthcare InitiativeSir Hurkisondas Nurrotumdas Hospital and Research Centre RIL extends extensive financial support and professional expertise to Sir Hurkisondas Nurrotumdas Hospital and Research Centre (HNHRC), a charitable hospital offering free and subsidized services to a good proportion of the patients availing of its various diagnostic and treatment facilities. During the year 9,966 patients received treatment as indoor patients. At the Outdoors, 38,454 patients availed of the services at P.T. Clinic, the popular Diagnostic Centre of the Hospital, where registration is entirely free to all. The Hospital continues its age old tradition of rendering every service in the Casualty free. An average annual growth rate of around 10 per cent is witnessed in the outdoor patient population during the past few years. The Hospital is equipped with state-of-the-art operation theatres optimally used for specialized surgeries.

Free Health Screening Camps continue to be organized. Among the important events during the year were a check-up scheme at concessional rate offered at the Hospital throughout the monsoon season, a health screening programme conducted during August-September 2005, and a diabetic foot camp conducted in December 2005.

The Free Health Check up on every 1st and 3rd Sundays for the benefit of senior citizens, and the Free Check-up on every 2nd and 4th Sundays for the Elders and/ or the Physically challenged are being continued. Such programmes have gone a long way in educating the community on prevention of diseases, and on promotion of healthy lifestyles.

Continuing Medical Education Programmes are organized in collaboration with the 'C' Ward Association of Family Physicians. One such programme organized in November 2005 was attended by a large number of Family Physicians as also members of the public. The Hospital also contributes to Education by offering facilities to Medical students to pursue DNB and CPS courses as well as conducting Diploma in Nursing Program. Resident doctors showed good performance at the various DNB Examinations conducted by the National Board. The Hospital received sanction of four new seats for DNB in Family Medicine. Resident doctors also brought in 100 per cent results for three consecutive terms at the CPS Examinations, while the Nursing students continue their tradition of producing 100 per cent results. Sir Hurkisondas Nurrotumdas Medical Research Society, Mumbai.

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The Reliance group supports the scientific research activities of Sir Hurkisondas Nurrotumdas Medical Research Society (HNMRS). The Society commenced scientific research activities since 1974 -75 and has completed 120 research projects. The scientists from the society presented 161 papers at the National and International Conferences. Topics of national health priorities constitute a major share of the research projects undertaken here.

The researchers are motivated to move out of the four walls of the hospital to carry out epidemiological studies and community based surveys. Population in the neighbourhood of Sir H.N.Hospital, children in the nearby schools, and susceptible sections of the population were screened from time to time by teams of medical / paramedical professionals, as part of various research projects.

These studies helped in assessing the prevalence of health disorders which might have escaped detection in the absence of such professional interventions. Community based studies related to the early detection of Type 2 diabetes revealed increased prevalence of insulin resistance, a well-known cardiovascular risk factor among urban Indians in Mumbai. A similar survey carried out on a rural population in the Sindhudurg District revealed comparatively less prevalence of diabetes but the presence of a different combination of risk factors.

Dhirubhai Ambani Hospital, Lodhivali, Dist. Ragiad Dhirubhai Ambani Hospital attaches a very high importance to improve the quality of life in surrounding communities. It extends prompt and specialised services to the Mumbai-Pune highway accident victims. Trauma patients are provided free life saving treatment. Besides taking care of hospitalization requirements, the hospital provides poor patients and senior citizens subsidized treatment - both in the outpatient and in-patient departments. The hospital provided timely support to neighbouring community during the recent floods in Maharashtra. The flood relief work was carried out through Red Cross society. Two medical centers - Dhirubhai Ambani Hospital, Lodhivali and IPCL, Nagothane were working for the flood affected people in Raigad district. The other flood affected districts were also covered for supply of flood relief kits.

A total of two camps were organized during the year - Eye Camp and Ante- Natal Check-up Camp. 79 operations were conducted during the eye camp. A seminar was conducted for Raigad district doctors on "Obesity management' through a Specialist to educate them on the latest treatment methodologies.

A Cancer and AIDS prevention program was conducted at neighbouring industry for their employees by doctors of Dhirubhai Ambani hospital Community Development

At Jamnagar RIL's Jamnagar Complex continues to serve the urban and village community during the year 2005-06. These activities were in the area of health, education, cultural support, creating/augmenting village infrastructure, fodder to cowsheds in villages, supply of drinking water, distribution of sweets to village children in primary schools, gifts to garba girls in the

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villages, support to sports and academic events, seminars etc. Supply of fodder to more than 1,100 cow on a regular basis throughout the year in eight villages itself has an annual budget of Rs 26 lakhs for several years. RIL, Jamnagar organized multi-diagnostic camp at village Moti Khavdi where in more than 1,000 village patients took advantage of expert medical diagnosis and free medicines. A mobile medical van for surrounding villages is a regular medical assistance provided to surrounding villages.

The centre has seen and registered over 11,500 patients of which 330 are under antiretroviral treatment for AIDS, 200 under DOT therapy for Tuberculosis, 1125 treated for sexually transmitted diseases. Approximately 800 HIV positive patients are under constant medical surveillance and monitoring. The centre has provided awareness programs for all the contract and regular labour working at its location, truck drivers visiting its warehouses, and children in all the neighbouring schools. RIL HIV and TB control centre awarded a commendation certificate at the 2005 Awards for Business Excellence by the Global Coalition on AIDS / HIV on the September 28, 2005 in Washington DC. The project has been ranked amongst the 20 best projects at ICC-UNDP-IBLF World Business Awards 2006 in support of the Millennium Development Goals. The RNTCP (Government of India) has acknowledged the efforts and results of sputum conversion rates of the centre in its Annual national report published from New Delhi.

RIL is playing a key role in nation building by providing an opportunity to the college students across the country to visit our plants for an industrial exposure, so that they can relate their theoretical inputs with industrial practice. 350 students visited our manufacturing facilities in the year 2005-06. RIL also provides opportunities to Engineering college students to undergo in-plant training / projects as part of their academic curriculum, thus enabling them to appreciate application of theoretical knowledge and get an exposure to industrial practices. Several students underwent in-plant training in FY 2005-06.

Special Support - Prevention of Fire and Loss of LifeRIL has always played an active role in protecting lives, environment and property of the neighbouring community. This is done through active support of the Fire and Safety departments for various incidents outside Patalganga such as controlling fire in Warehouse Corporation on Mumbai-Pune highway, assistance in controlling Phenol leakage from a tanker near Pen, District Raigad, Maharashtra; providing support for controlling fire at M/s Ooms Polymer Modified Bitumen Pvt. Ltd. Panvel, Navi Mumbai and containing the fire in MSEB transformer near Apta, District Raigad, Maharashtra. Support was also provided for controlling a Naphtha leak at Kamothe village off Mumbai-Pune highway.

The data given below has been added after March 31st 2008 , and thus not included as part of Karmayog CSR Ratings 2007.

Health, Safety and Environment

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Health, Safety and Environment (HSE) is a high priority issue at Reliance. The aim is to provide comprehensive health services covering preventive, promotive, curative and community health care services.

Further, the management’s vision to put safety of personnel above all, is evident from the policy statement, “Safety of persons overrides all production targets”. This vision drives the company to continuously look for ways to break new barriers in safety management for the benefit of all.

To establish a direction towards attaining world-class environmental management, the Company has identified key performance indicators such as material consumption, energy efficiency, GHG emission, air quality, ozone depleting substances, water consumption, waste water discharge, hazardous and non-hazardous waste generation and disposal.

Health

Reliance’s state-of-the-art Occupational Health Centres (OHC) at its manufacturing divisions offer health care services to its employees. These centres are equipped with diagnostic and therapeutic equipment and are manned by qualified occupational health specialists. The programmes conducted by medical centres, include preventive health care through pre-employment and also periodic medical examinations of all employees. The results are computerized and analysed so as to provide targeted interventions at the individual and group levels. The medical departments also carry out informative lecture sessions, exhibitions and diagnostic camps. Curative treatments are a part and parcel of the services provided. The employees are also supported for hospitalization by regular liaisoning and provision of financial support, where required.

CASHe

Reliance’s preventive health care, provided through workplace improvements is carried out under the CASHe Programme. Started in 2003, it has grown to encompass the entire enterprise. The programme has been instrumental in creating a culture of implementing health, safety and environment projects on a priority basis. This programme has also helped the Company to improve its performance on the occupational health and safety front, besides being recognized in international forums, like the International Commission on Occupational Health Congress, held in Italy.

Occupational Health Centres (OHC)

The Company’s occupational health centers are also in the forefront in organizing preventive educational programmes for noncommunicable diseases, such as: heart problems, hypertension, diabetes and other lifestyle diseases, along with informative sessions for communicable diseases, such as: malaria, tuberculosis and HIV / AIDS. The Company ndeavours to move towards the concept of wellness as it recognizes that a healthy worker is a productive worker.

Safety

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Having reached high levels of safety management within the country, the management has, in the last few years, been steadily taking strategic steps to take the Company to world class levels. This year, under the guidance of the HSE Committee of Directors, Reliance entered into a strategic partnership with DuPont Safety Resources. The engagement is focused on behavioral as well as process safety aspects and aims at ringing in excellence in safety management.

In addition to personnel safety, process safety is also a top priority for the Company. World class documented standards, emphasis on line management responsibility, an improved and standardized process for safety observations are helping the manufacturing sites achieve higher employee participation in the safety management process. In line with the Company’s vision to always tie-up with the best in the world, Reliance has tied-up with the Centre for Chemical Process Safety, of the American Institute of Chemicals Engineers (AIChE) of USA.

The focus on construction safety has further increased with standardized safety management practices being established at all construction areas from Jamnagar to Kakinada. Construction of office buildings is also being monitored strongly from a safety point of view. This emphasis has led to the Company achieving a low lost time incident rate even at construction projects.

With business needs increasing, the Company is also focusing on transportation and distribution safety. This focus shall not only help establish international systems for the existing businesses, but also prepare for the upcoming businesses such as Retail.

The Centre for HSE Excellence is accordingly getting further strengthened with the necessary skill sets and competencies. The Centre is helping Reliance to implement and practice world class standards as well as standardize the processes and establish the “Reliance Way” of Safety Management.

Environment

In its pursuit of excellence in sustainable development, Reliance further integrated its safety and environment performance in the overall business plan and strategy. A management system approach, consisting of gap analysis, planning, implementation, and review has percolated to all business plans through ISO 14001:2004 at all manufacturing locations.

Through its annual environment plan and business targets, the Company identifies projects and takes action to achieve these targets with the ultimate goal of becoming water positive, carbon neutral, with maximum possible recycling and reuse of hazardous and other wastes. A management framework with defined structures, roles and responsibilities, group guidelines, audits and training has been instituted to implement the journey towards world-class excellence in environment. The Company initiated reporting environmental efforts to the world through Global Reporting Initiative following G-3: 2006 guidelines. Reliance’s second Sustainability Report for FY 2005-06, “My Reliance. My Life” received the highest possible accreditation: GRI Checked A+. The Company has also undertaken an exercise to establish world class corporate environmental standards with the help of DuPont experts.

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Reliance is statutory compliant in the area of environment. As a policy, environment impact assessment and qualitative risk analysis are performed for all new and major expansion projects and incorporate all necessary measures to mitigate environmental impacts due to project implementation. All the hardware - such as effluent treatment plants, air emission abatement units and waste disposal facilities, were maintained and improved further. The above efforts have resulted in a significant improvement in water consumption, water recycle and reuse, CO2 and other air emissions, ozone depleting substances consumption and hazardous waste generation.

This year, Reliance’s exploration and production (E&P) division,involved in exploratory drilling in various off-shore blocks off the coast of State of Andhra Pradesh, has moved into development phase for the KG-D6 project. Regulatory environment monitoring programs have been instituted from the beginning of construction phase to ensure a fool-proof compliance tracking and reporting mechanism.

Climate change and Energy conservation: During 2007-08, Reliance registered two Clean Development Mechanism (CDM) projects, one each from Patalganga and Allahabad, with UNFCCC for CO2 reduction. More than 100,000 Certified Emission Reduction (CER) from two of the registered projects have been verified and issued by United Nations Framework Convention on Climate Change (UNFCCC). The Company is exploring all possibilities to take the benefit of CDM credits through various projects. Reliance also became member of Carbon Capture and Sequestration Association, London, for active participation in worldwide activities related to Carbon Capture and Storage (CCS).

To decrease the Company’s carbon footprint, activities have been initiated in the area of bio-diesel through non-edible route of Jatropha seeds. Extensive distribution of Jatropha saplings and cultivation in the wasteland has been targeted and a pilot plant of 20 Ton Per day (TPD) bio-diesels is ready for commissioning. Reliance is also exploring the possibility of bio-ethanol using second generation raw material.

Fresh water consumption and effluent discharge: Reliance as a responsible corporate has accorded top priority to water conservation and reuse to preserve fresh water, one of the precious natural resources. Jamnagar Manufacturing Division is not dependent on fresh water resource and continues to generate fresh water from sea. A study was undertaken by nternationally renowned consultant M/S ENSR, USA to improve the effluent treatment plant’s (ETP) operation at Jamnagar Manufacturing Division. Their recommendations are being implemented. New facilities have been created for township and labour camps at the Jamnagar Manufacturing Division and also at the Nagpur Manufacturing Division for the treatment of domestic sewage and its reuse and recycle.

Waste reduction and utilization: Reliance’s Manufacturing Divisions at Vadodara and Hazira have achieved significant reduction in hazardous waste generation through process improvement, recycling and reuse efforts, employing Six Sigma methodology. Efforts on plastic waste recycling, through Indian Center for Plastics in the Environment (ICPE), and PET bottle waste recycling, have been very well documented, and continue to reduce load on municipal waste. These efforts also generate employment for the weaker sections of society.

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The Company has taken a roactive measure for the safe disposal of electronic waste, fluorescent tube lights, empty paint containers, spray cans, etc. Silvassa Manufacturing Division has established EWaste disposal through E-Parisara, MoEF approved recycling agency, while the Manufacturing Divisions at Jamnagar and Hazira have instituted tube light and empty paint container crusher with recovery and safe disposal of toxics. These practices are being implemented at others sites as well.

Training and Audits: During the year, Reliance has accorded highest priority to the training, awareness and learning mechanism at all levels. During the year, various internal and advanced training programs and inter-site meets were conducted involving experts.Learning on specific environmental issues through participation in national and international conferences, workshop and courses, has been encouraged at Reliance. Effective networking and collaboration with national and international agencies such as universities, research institutes, regulatory bodies, industrial and professional association has helped to assimilate and implement the world class best practices in HSE management.

Environment audit is one of the important tools on which special emphasis is given and the Company currently has more than 75 “Trained Lead Auditors” for ISO 4001:2004. Various audits conducted during the year include third party statutory audits in the state of Gujarat and ISO audits; group environment audit; independent assurance of Reliance’s Sustainability Reports by Ernst & Young; Audit by Japanese Union of Scientists & Engineers at Hazira and Nexant team at Jamnagar. Action plans are made to liquidate all audit observations.

Community Environment Initiatives: Various environment programs, such as tree plantation, water conservation & harvesting and energy saving initiatives were conducted by all sites within the complex and in the nearby community. All sites, as part of the ‘World Environment Day’ celebrations created awareness on Global Warming and melting of ice. This year, manufacturing Divisions at Vadodara and Dahej gave special emphasis to schools and initiated Green School project using the framework developed by Centre for Science and Environment (CSE), New Delhi.

To enhance bio-diversity in the vicinity of the on-shore facility at Kakinada, Reliance undertook an extensive mangrove plantation exercise and also forestation for restoration of degraded mangrove areas in Coringa mangrove forest in association with MS Swaminathan Foundation. Reliance has also sponsored study of coastal wetlands of Godavari Delta to Environment Centre- a reputed NGO of Andhra Pradesh.

Social Responsibility and Community Development

Social welfare and community development is at the core of Reliance’s Corporate Social Responsibility (CSR) philosophy and continues to be a top priority for the Company. It revolves around the Company’s deeply-held belief in the principle of symbiotic relationship with the local communities, recognizing that business ultimately has a purpose - to serve human needs. Close and continuous interaction with the people and communities in and around the manufacturing divisions has been the key focus while striving to bring around qualitative changes and supporting the underprivileged.

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Reliance’s contributions to the community are in the area of health, education, infrastructure development (drinking water, improving village infrastructure, construction of schools etc.), environment (effluent treatment, tree plantation, treatment of hazardous waste), relief and assistance in the event of a natural disaster, and miscellaneous activities such as contribution to other social development organizations etc. The Company’s CSR teams at all manufacturing divisions interact with the neighbouring community on regular basis. The Company takes pride in the fact that its CSR representatives are known by their first names in the regions that it operates.

Education

‘Teach them young’ is the very motto of Reliance as the Company believes that the quality of inputs received by an individual at an early age contributes to his or her growth as a apable human being. To ensure high quality of teaching, Reliance has made significant efforts towards value enhancement of teachers through professional and institutionalized raining. Dahej Manufacturing Division conducted educational and excursion tours of students and teachers from the primary schools of neighbouring villages, and also organized ‘Balmela’ and Science and Mathematics Fair.

To provide training in the field of effective techniques and modern methods of teaching to high school teachers in the Hazira area, the Company organized training of teachers in various subjects.

Reliance has launched the “Sky is the limit” programme at Hazira, to address the problem of school drop-outs in the local community.

The Company also provides opportunities to engineering and management institute students to undergo in-plant training/projects as part of their academic curriculum, thus enabling them to appreciate application of theoretical knowledge and get an exposure to the industrial practices.

Efforts were made to enhance employability/skill development of local youths. This was done by giving opportunities to them to work in the Company’s operating plants, which in turn improve their job prospects.

Executive Development Programs for officers of neighbouring industries were organized in coordination with PRIA (Patalganga Rasayani Industries Association).

The Company’s major manufacturing locations provide good quality education to the children of all employees and also cater to the needs of surrounding villages. Jamnaben Hirachand Ambani School, Kokilaben Dhirubhai Ambani Vidya Mandir, and Jamnaben Hirachand Ambani Saraswati Vidya Mandir are schools near the Company’s manufacturing locations at Patalganga, Hazira and Jamanagar respectively. A modern educational infrastructure coupled with extra-curricular activities and recreational facilities distinguish all these schools.

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To encourage school children from neighbouring villages, Nagothane Manufacturing Division based CSR cell – MGCC Area Development Research Foundation (MADER) Trust took following initiatives:

• Felicitated meritorious students from neighbouring villages and tribal hamlets. Each student received a set of note books, stationary items and a school bag.

Health

Health Awareness Programs, covering diverse topics such as noise pollution, hazards substance abuse, prevention of HIV/AIDS and First Aid were conducted for students of schools at the neighbouring towns and villages of Patalganga. Barabanki Manufacturing Division provides medical service and awareness programs on health, hygiene, cleanliness and sanitation in neighboring villages.

Hoshiarpur Manufacturing Division too conducts monthly checkup camps at neighbouring villages. Free medicines and spectacles were also provided. Round the clock free ambulance service has been provided to roadside accident victims.

Hazira Rehabilitation Centre for the Physically Challenged has been set up in partnership with Disabled Welfare Trust of India for capacity building of physically challenged children from the weaker sections of society.

Initiatives to Combat HIV / AIDS and TB

The Company provides Community Medical Centres near most of its manufacturing divisions. These centres cater to the Governmental health care programmes like maternal and child health, TB, malaria, HIV / AIDS etc., besides providing curative treatment. These Centres have been well received and go a long way in providing the medical relief for the community. The Company has implemented HIV / AIDS and DOTS programme at Hazira and Jamnagar, and is in the process of replicating the same at the other manufacturing divisions. This initiative is a publicprivate partnership between the Government, NGOs and Reliance. This comprehensive project extends from creating awareness to providing treatment, care and support. Reliance’s initiative to combat HIV / AIDS has been recognized by UNAID, World Bank and other national and international institutions.

Adoption of Public Health Centre (PHC)

Reliance has adopted a Primary Health Centre (PHC) from the State Government of Gujarat and converted it into a model primary health centre. The PHC located at Dahej in Bharuch District, Gujarat, has attained the status of the best PHC in the District in a short-span of 6 months and has established itself as a centre of excellence.

Highway Rescue Intervention

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To provide emergency and trauma care to victims of highway accidents, Hazira has tied-up with an NGO to run the project on the State Highway in Gujarat starting from Sachin to Bharuch, and the State Highway via Hazira - Olpad - Hansot - Ankleshwar. The project will benefit thousands of commuters who use this highway on a daily basis.

Traffic Police personnel are the first government agency to respond to an emergency involving a chemical tanker or a truck. With the increase in the number of accidents on roads and the unending addition of new chemicals, it is important that these personnel understand the hazards and the basic steps to be taken to safeguard themselves and the general public from the hazards of chemicals. The Company’s initiative of training traffic police personnel by its Kurkumbh Manufacturing Division in handling road transport emergencies involving chemicals will go a long way in serving the objective of community well-being.

Dhirubhai Ambani Hospital, Lodhivali

Reliance also operates the Dhirubhai Ambani Hospital, Lodhivali and renders quality medical services to the rural population and highway accident victims.

Moti Khavdi Medical Centre

As part of corporate social responsibility services, a community medical centre was established in Moti Khavdi, a village near Jamnagar Manufacturing Division, during the pre-commissioning stage of the refinery in November 1995. This Community Medical Centre provides comprehensive medical services free of cost and round the clock. About 1.2 lakh villagers of nearby areas like Moti Khavdi, Nani Khavdi, Padana, Meghpar, Gagva, Jogvad, Baid, Kanalus, Sikka, Sarmat, Vasai and Amra benefit from the same.

Community Medical Services at SEZ, Jamnagar

A massive workforce from all parts of India are working at the mega construction activities in the SEZ at Jamnagar. The Company has given shelter in several colonies. Each labour colony has a separate medical centre. Each medical centre is manned round the clock by doctors, nurses and ambulances.

Thalassaemia detection camp and Parental counseling

The tribal areas in regions near Surat, Gujarat, are highly endemic to the prevalence of a thalassaemic trait, which is a genetic disorder. The Company launched a thalassaemia detection camp in association with the Indian Red Cross in the local high school. Children from the nearby school were tested for the disorder. The opportunity was also used for detecting aneamia and sickle cell aneamia. A post-test counseling session was organized for the parents of these children.

Project “Cancer-Aid” for Cancer patients

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In partnership with the Lions Cancer Detection centre, the Company provides monetary assistance for purchase of medicines to cancer patients.

Mobile Dispensaries

Reliance also operates free medical diagnostic and therapeutic services at neighbouring villages of several of its manufacturing locations.

Blood Donation Drives

The Company’s employees organize and participate in blood donation campaigns every year across its manufacturing divisions and offices.

Public Health Care

Sir Hurkisondas Nurrotumdas Hospital and Research Centre (HNHRC)

Dhirubhai Ambani Foundation (DAF), with financial and technical services support from the Reliance Group, joined in 1997 the Management of HNHRC, a charitable hospital offering tertiary health care facilities to all strata of society and providing free and subsidized services to the poor and indigent patients availing of various diagnostic and treatment facilities.

Thousands of patients have received treatment indoors in the various wards and specialized care areas and at OPD services at P.T. Clinic, the popular Diagnostic Centre of the Hospital. The Hospital continues its age-old tradition of rendering free service to all in the casualty ward. More than 4,000 surgeries were performed during the year, of which a major portion was special and supramajor surgeries.

The Hospital carried out several Cadaver Transplants in the recent past. Further, the eye Donation drive initiated by the hospital witnessed an increased response. Some of the important outreach programmes conducted during the year included a Senior Citizen Health Screening Program in association with Rotary Club, and a medical back-up for the Special Olympics event organized by the Lions Club - International. Twice a month, the hospital continues to conduct free health check-up for senior citizens and physically challenged in Mumbai. These programmes have gone a long way in educating the community on prevention of diseases, and promoting a healthy lifestyle.

Surgery, Cardiovascular Surgery and Cosmetology. A chain of blood banks would be established at various centers under a new initiative by the DAF. Educational and research activities at the hospital shall receive significant boost by way of advanced acilities and better funding. The project, when completed, would be a landmark healthcare facility in this city.

Sir Hurkisondas Nurrotumdas Medical Research Society (HNMRS)

DAF, through the Reliance Group, supports the scientific research activities of HNMRS. The Society has been carrying out scientific research activities since 1974 -75 and has completed

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more than 130 research projects. The scientists from HNRMS have presented over 180 papers at various national and international conferences. More than 130 papers have been published in peer reviewed scientific journals, about half of them being highly rated as prestigious international journals. Topics of national health priority constitute a major share of the research projects undertaken.

The researchers are motivated to expand their research avenues to carry out epidemiological studies and community-based surveys. As part of such studies, children from nearby schools and susceptible population from neighbourhood communities are regularly screened by medical / paramedical professionals. Those in need of medical care are offered special attention and treatment at the institution free of cost.

Drishti

Project Drishti, a nation-wide corneal grafting drive to bring light into the lives of visually challenged from the underprivileged segment of society, has restored the gift of sight to over 5,500 Indians. A unique joint initiative of Reliance Industries Limited and National Association of Blind (NAB), Project Drishti has undertaken over 5,500 keroptoplasty surgeries in less than 4 years since it was started - all free of cost. It is now the largest corneal grafting surgery project enabled by a single corporate entity in India.

Drishti Painting Competition

As a part of corporate initiative to propagate awareness of Project Drishti, Drishti painting competition is organized for school children at several manufacturing divisions and offices of the Company.

Community Development

Jamnagar Manufacturing Division continues to extend a helping hand to surrounding villages and the community at large. Activities during the year focussed on improving village infrastructure, supply of drinking water, education support etc.

Three MoUs were finalized with the State Government of Gujarat for development of Dwarka during the year. They are to (i) develop the temple square in front of the famous Dwarkadheesh temple (ii) construct ‘Sudama Setu’-a bridge to connect both the banks of Gomati river behind Dwarkadheesh’s temple and (iii) develop ‘Panch-kui’ area on the sea-shore where five wells, believed to be dug by Pandavas, still give fresh potable water right on the seashore.

To maintain and support village cows in surrounding villages, two more brand new cow-sheds for Kanalus and Kanachikari were constructed and handed over to the respective villages. These cows and cow-sheds (“Gaushala”) receive regular fodder supply from the Company’s Jamnagar Manufacturing Division.

Construction of a public lavatory, water tank and avedo (common drinking water facility for villagers) was done at Nani Khavdi during the year under report. Drinking water through water

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tankers was supplied during a crisis period in Sikka, Nani Khavdi, Meghpar and Padana. At Kanachikari, Drinking water pipelines were laid during the year.

A new primary school building at Navagam was constructed and repairing of some village schools was taken up. Participation and distribution of sweets in village schools during the Independence Day and the Republic Day; support to Government of Gujarat’s drive for girls’ education; distribution of gifts to girls of villages during Navratri festival; supporting Navratri celebrations in Jamnagar were some of the salient aspects of Jamnagar Manufacturing Division’s Community Welfare Cell as part of routine and regular activities.

Reliance Rural Development Trust (RRDT)

The work to improve the rural infrastructure under the Government of Gujarat’s rural development plans was continued with full energy by RRDT. During the year under report, the RRDT created 760 facilities in the rural areas at a cost of Rs. 24.07 crore. The facilities included 247 concrete roads, 465 anganwadis, 38 drinking water facilities, 1 panchayat office, 2 community halls, 5 check-dams and 2 other amenities in the rural areas of the State of Gujarat. RRDT has turned out to be an exemplary corporate NGO steadily and silently implementing government’s developmental plans for rural areas of Gujarat. It is a unique synergy between a corporate giant like Reliance Industries Limited and the Government of Gujarat, formed to carry out rural development projects in private public partnership.

Dahej Manufacturing Division has been playing a pivotal role in the development of the society. Social initiatives undertaken by Dahej Manufacturing Division are concentrated towards promotion of education, health awareness and medical facilities, infrastructure development and supply of safe drinking to the villages.

Some of the initiatives undertaken by the Company’s E&P Division near KG-D6 include 1) gainful employment for local communities, 2) vocational training for the youth, 3) employment for members of Gadimoga panchayat, 4) financial assistance for community activities, 5) sponsoring of cultural and sports events, 6) financial relief to affected communities, 7) compensation to local fishermen, 8) academic and financial assistance and educational support through distribution of books, 9) improvement of village school infrastructure and 10) medical help to local communities.

After successfully implementing zero garbage concept at Nagothane Manufacturing Division, the Company’s CSR cell took the initiative to propagate the concept of solid waste (dry and wet waste) management in the neighbouring villages so as to help villagers in keeping their village environment neat, clean and garbage-free.

Empowerment of Women and Youth

Reliance has conducted many training programmes, which would help the rural women and youth to be self sustaining and generate income for themselves and support their families.

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The training programmes conducted at Vadodara for the rural women and youth of surrounding villages of Vadodara Manufacturing Division during the current year are: 1) Women Empowerment, 2) Dress making & Designing, 3) Beauty Culture & Healthcare, 4) Hospital attendant (Helpers for Hospital & Nursing Homes), 5) Plumbing & Hand Pump repairing raining, 6) Computer Hardware,7) Motor Vehicle Driving, 8) Mobile Repairing and 9) Doormat making. Several persons participated and benefited from the above training programmes.

Skill Up-gradation

Reliance runs special training programs to equip the young people of neighboring villages with life and work skills necessary for sustaining livelihood. Nagothane Manufacturing Division conducted training in fashion designing courses for the ladies to upgrade the skills of those women who are already trained in basic tailoring. This division also conducted computer education courses and nursing assistant training courses. The trainees also received hands on training at the local hospitals and primary health centres at Nagothane. The Company also trains the youth in vehicle driving courses and also helps them in getting a driver’s license so that they can earn a livelihood by starting their own business as motor drivers.

The Company’s Polymer business division organised technical training programmes at 50 Industrial Training Institutes (ITIs) all over India to enhance skills of artisans for new and advanced technique of plumbing with PPR pipes. The Company also offers plumbing kits, free of cost, to various plumbers as well as to ITIs to promote this new energy efficient application in the building industry. PPR pipes are faster to install than metal pipes. This results in improving daily productivity of plumbers thereby increasing in their earnings. This initiative covered many plumbers across the country.

Eco-friendly Initiatives

In addition to the above initiatives, the Company also focusses on the development of the eco-system and improvement of the green belt across its manufacturing and E&P sites.

Transforming lives at the bottom of the Pyramid

Reliance constantly aims at creating and living up to rising expectations among its valued stakeholders. The Company cares for providing clean and green environment on a sustainable basis. It recycles used bottles to produce value added products. When most of the environmental concerns are subsidised, Reliance has found a solution for being environmental friendly on a sustainable basis. In the case of recycling bottles, Reliance is indirectly providing livelihood to around 200,000 individuals. This business has transformed lives of those at the bottom of the pyramid.

Packaging solution to farmers (Leno bags)

Reliance organised extensive awareness programmes on improved packaging solutions for potato and other vegetables for farmers all over India. This included demonstration on use of Leno bags, which are more durable, functionally more efficient and cheaper than traditional materials.

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This programme helped the farmers reduce the cost of packaging of potato. These bags also helped farmers to reduce wastage while keeping in cold storage. The Company’s efforts helped the farmers to improve their earnings. The programme covered more than 10,000 farmers across India.

Polyethylene (PE) Biogas Domes for Renewable Energy Source

Biogas technology for rural development has been a focus area for Government of India. Ministry of New and Renewable Energy (MNRE) promotes family-type biogas plants under the National Project on Biogas Development (NPBD). The project was launched in 1981-82 with the objective of producing clean and alternate renewable energy for cooking and lighting, enriched organic manure for agricultural usage, improving sanitation and hygiene and reducing drudgery of women. The two cubic metre “Deenabhandu” model is the most popular family type fixed dome biogas plant developed with conventional brick and cement. Many of these plants get defunct due to dome cracks leading to gas leakages. The Company has developed a 100 per cent leak-proof Rotomolded PE Dome, which gives end-users a unique combination of properties like good strength, stiffness, light weight, seamless construction, ease of installation and very little maintenance. The PE-based dome has been developed by Reliance and has been approved by the Ministry of New and Renewale Energy, Government of India.

Sports for the Physically Challenged

Reliance has joined hands with the organising team of Special Olympics Gujarat (Bharat) for the physically challenged children of Gujarat. Several hundred children participated in the events that were organised at the Reliance Sports Complex, Vadodara.

Real Indian Heroes

On the occasion of Shri Dhirubhai Ambani’s 75th birthday, 60 years of Indian Independence and 30 years of Reliance, the Company took up a unique initiative to salute the Real Indian Heroes of Independent India. Partnering with the TV Channel, CNN-IBN, a series of programmes to felicitate the unsung heroes of India was launched. CNN-IBN identified 24 Real Heroes, which included six each from the four zones of India. In recognition for their outstanding contribution to society, Reliance felicitated each of these 24 Real Heroes to further encourage their contributions.

Dhirubhai Ambani Foundation (DAF)

Dhirubhai Ambani Foundation (DAF) was established in 1995 by Shri Dhirubhai Ambani, the Patron Trustee of the Foundation. A public charitable trust registered under the Bombay Public Trusts Act, 1950, DAF has for its objectives a broad spectrum of worthy causes ranging from health and environment, to promotion of social and economic welfare, and rural development. However, its main thrust has been on education and public healthcare.

DAF systematically pursues philanthropic activities to promote national welfare and social good. Reliance lends valuable support to DAF in terms of financial contribution and wherever

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necessary, infrastructural support. Reliance also draws on the DAF expertise in evolving and coordinating the Corporate Social Responsibility Initiatives and other group companies also help DAF initiatives wherever possible. Thus, DAF initiatives reinforce Reliance’s commitment to social responsibility.

Education: Rewards and Scholarships

DAF SSC Merit Reward and Undergraduate Scholarship Schemes: The Foundation’s much acclaimed SSC Merit Reward and Undergraduate Scholarship Schemes continued to encourage and assist meritorious students at the district level to pursue higher education in different vocations to enhance the Human Resource potential of the country. Now in their twelvth year, both the schemes are currently applicable in the states of Maharashtra, Gujarat, Goa and the Union Territory of Daman, Diu and Dadra Nagar Haveli.

The first three in overall merit and one physically challenged student securing the highest marks in each of the 64 districts at the annual SSC and HSC examinations of the respective state Boards, as well as the first ten CBSE students from Maharashtra and Gujarat and 2 from Goa, in the merit list of CBSE New Delhi, are eligible for the Rewards and Scholarships.

Reaching out to other states:

To offer equal opportunities to the physically challenged meritorious students from the rest of the country, the Foundation has extended the Rewards and Scholarship Schemes to the first five physically challenged students from all the States and Union Territories of India that provide the list of such meritorious students. Accordingly, in 2007-08, physically challenged meritorious students from Rajasthan received SSC Merit Rewards and Undergraduate Scholarships at a function held in Jaipur, whereas at a function held in Hyderabad, 20 Physically Challenged meritorious students from the state of Andhra Pradesh received the Rewards and Undergraduate Scholarships for the years 2006-07 and 2007-08.

Reliance Kargil scholarships scheme

Children of martyrs / disabled soldiers of the Kargil war received financial support under this Scheme for their education from Std. V to XII. The unique feature of the Scheme is that the corpus was created with contributions from Reliance Group employees, with the Management responding by making equal contribution.

“Dhiruhbai Ambani Scholars’ scheme” for Meritorious Children of Reliance Shareholders

The Scheme was announced in 2003 as a one-time measure to commemorate the silver jubilee of the company’s listing on the Bombay Stock Exchange. In the first year, 900 meritorious children of the shareholders received the scholarships. Of these, in 2007 - 08 which is the 4th year of the Scheme, a total of 101 scholars continued to receive the scholarship for their education, leading to Degree / Diploma course, the rest having completed their education.

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Reliance School of Life Sciences (RSLS) Reliance School of Life Sciences is a centre of excellence established by the DAF in 2007. It is dedicated to providing graduate, post graduate, doctoral research and continuing education programmes in various domains of life sciences and related technologies. RSLS currently operates from a state of the art campus at Navi Mumbai. The first Diploma Programme in Clinical Research and Biopharmaceutical Manufacturing commenced from July 2007.

Dhirubhai Ambani International School

In just five years, Dhirubhai Ambani International School has emerged as a centre of excellence, with outstanding achievements and all-round development of its students, as outlined in the Annual Report 2006 - 2007. An LKG-12 school, it prepares students for the ICSE, the IGCSE and the IB Diploma Examinations and is a member of the Cambridge International Primary Program (CIPP).

The first three batches of the school’s IB Diploma candidates are pursuing their undergraduate studies at leading universities worldwide, and this year some are completing their degrees in the UK and India! The fourth batch, the Class of 2008 (88 candidates), has also earned outstanding university placement offers, as reflected in the accompanying list as per Annexure-A. Several of these universities have also offered scholarships to our students.

A range of achievements in broader areas, in addition to those already reported on before, indicates the increasing balance and depth of learning experiences at the school.

The CAS (Creativity, Action and Service) program, part of the IB Diploma program, serves as a key opportunity for our students to engage with a variety of social causes. Our students work with a number of NGOs - Advitya, Akanksha, CCDT, Magic Bus, Muktangan, Pratham, Pukar, and Amnesty. Indo-French Schools, a joint service project between our school, L’Ermitage School, Paris and The Franco-Indian school of Bombay, teach English to children in a slum in Malad (Mumbai). It also has conducted eye check-ups for children there. The ‘Across the Road’ service project recently launched by the school serves children in the slum areas adjacent to the school and supports them in their educational and developmental needs.

In December 2007, the school celebrated its Annual Day as ‘The Great Indian Mela’ - a musical event to celebrate India’s 60 years of Independence, as well as a fete that raised considerable funds for the NGOs that our students support and work with. The two evening performances were enjoyed by 6,500 people from the school community.

In keeping with its philosophy of constantly endeavoring to provide opportunities for the overall development of children, this year the school is launching The Dhirubhai Ambani International School Study & Activity Center at Matheran. Set in a lush green 18-acre campus, with sports, recreation and study facilities, it serves as a base for outdoor pursuits for our children and aculty, and for engaging with neighboring villages in their development. DAIS students have annual exchange trips with L’Ermitage, and also CAS exchange trips with a school in Mauritius.

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Key Strength

1. Promoter's (RIL) superior project execution skills in constructing a complete refinery.

2. Large and complex refinery capable of using heavier and sourer, low cost crude to produce high quality premium

petroleum products. RPL's refinery is designed to process a wide range of crude, giving it better flexibility

compared to other Indian refineries, including RIL's existing refinery. This will enable RPL to earn highest

operating margins in India and perhaps in Asia.

3. Strategic location with proximity to crude oil sources and target export market.

4. Fiscal incentives i.e. excise, custom duty, income-tax etc. by virtue of being located in a SEZ.

5. Capitalise on forecast demand-supply imbalances in global petroleum products, since, most of the new refining

capacities, mainly in Middle East, are expected to come into existence beyond 2010

Strengths:

Consolidation: The Indian petrochemicals industry has witnessed consolidation over the last few years and nearly 85% of the polymer capacity in the domestic market is with the top three participants (Reliance, IPCL and Haldia Petrochemicals (HPL)). Of the three companies mentioned, IPCL forms a part of the Reliance stable while GAIL is set to pick up stake in HPL.

Such high concentration is likely to benefit these players, as this would help reduce duplication of production.

Synergies: Most of the petrochemical players have integrated facilities, thereby reducing external dependence to a large extent. To put things in perspective, Reliance Industries uses naphtha from its own Jamnagar refinery as a feedstock for the petrochemicals production. IPCL uses Reliance's vast and widespread marketing network to reach out to global consumers. On the other hand, GAIL utilizes natural gas for its petrochemicals capacity.

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Rich natural gas is evacuated into the pipelines and after separation of the hydrocarbons such as ethane, propane and butane, the lean gas is transmitted to consumers such as power and fertilizer industry. Further, petrochemicals business being a high value add, would add further to the profitability of these integrated companies.

Weaknesses:

Low bargaining power vis-à-vis the suppliers: Input costs form nearly 50% to 60% of the raw material costs. Further, gas prices are regulated but in short supply, while naphtha is an expensive source of feedstock. Refineries realize the import parity prices on naphtha produced and in case of high feedstock prices, petrochemical players have little bargaining power against the suppliers. These players are therefore vulnerable to raw material prices.

Low Bargaining power vis-à-vis customers: In case of increase in input costs, the companies might not be able to pass on the rise to the consumers as the prices of products is highly influenced by factors such as international prices and supply

Opportunities:

Low per capita consumption: Currently, domestic per capita polymer consumption is

nearly 4 kgs while the global average is nearly 20 kgs. This underlines the fact that there

is immense scope of capacity expansion in the country as the market to be tapped is huge.

Further, spending on R&D activities is around 2% of sales as compared to an

international average of 18%. This leaves enough room for product development. Also,

currently, India has a chemicals trade deficit of about US$ 1.5 bn a year, which leaves

enough investment opportunities in the industry.

Increased economic activity:The government has set aside nearly Rs 400 bn for

infrastructure projects such as roadways, airports and convention centers and also

towards rural housing augur well for the petrochemicals industry as this is likely to

increase demand for various products (high density polyethylene, low density

polyethylene among others) for the purpose of road development, packaging, cables and

wiring. Also sustained growth in the auto sector is likely to keep the demand for

petrochemical products high. As per our estimates, the auto sector is likely to grow at

nearly 12% over the next few years.

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Threats:

Customs duties: Historically, the domestic industry has been protected from overseas

competition by high import duties imposed by the government. However, of late, Import

duty on polymers has been steadily reduced and is currently at 20%.

As part of its commitment to various multilateral and bilateral trade agreements, the

government is likely to reduce duties going forward and this is likely to reduce the

cushion enjoyed by the domestic players as against the landed cost of imported products.

Growing competition: The domestic industry is likely to witness immense competition

going forward with IOCFurther,

The above analysis is just to provide a view of the sector and by no way advocates any

opportunities to invest in the petrochemicals sector. Taking a cue from their global counterparts,

Indian majors such as IOC and ONGC are entering into this value add business in a huge way

and this is likely to change the entire business dynamics of the companies, not only in India but

Asia as Asia is fast becoming the largest petrochemicals manufacturing hub. Going forward,

investors need to be aware of this reality and make informed investment decisions in the energy

sector.

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Recommendation/Suggestions:

TO increase the investments in polymer production

the fact is that domestic per capita polymer consumption is nearly 4 kgs while the global average is nearly 20 kgs. This underlines the fact that there is immense scope of capacity expansion in the country as the market to be tapped is huge.

TO increase the production of high density polyethylene, low density polyethylene among others)

The government has set aside nearly Rs 400 bn for infrastructure projects such as roadways, airports and convention centers and also towards rural housing augur well for the petrochemicals industry as this is likely to increase demand for various products for the purpose of road development, packaging, cables and wiring.

TO increase the quality of the product to sustain with the counterpart ONGC

As IOC and ONGC are entering into this value add business in a huge way and this is likely to change the entire business dynamics of the companies, not only in India but Asia as Asia is fast becoming the largest petrochemicals manufacturing hub.

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http://www.ril.com/rportal1/DownloadLibUploads/1139816145812_RIL_at_ML_Jaipur_Fe

http://www.valuenotes.com/lkp/lkp_Reliance%20Petro_13apr06.pdf?ArtCd=81216&Cat=C

http://www.sebi.gov.in/dp/relpetroleum.pdf

http://www.referenceforbusiness.com/history2/78/Reliance-Industries-Ltd.html

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Reliance Industrial Report)

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Transcript of Reliance Industrial Report)