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Another feather in Reliance’s crown

Reliance Industries Limited

Reliance Industries with 2.3 lakh employees, is ranked 20th and is ranked above Rolex, Dassault Group, Huawei, Bosch, Mercedes Benz and Pfizer among others…reports Asian Lite News

Reliance Industries has been ranked highest amongst Indian companies in the list of Forbes World’s Best Employers for 2022.

RIL is ranked 20th in the world and the highest among Indian companies ahead of HDFC Bank at 137.

Samsung was at the top spot in the ranking of World’s Best Employers followed by Microsoft, IBM, Alphabet, Apple, Delta Airlines, Costco, Adobe, Southwest Airlines and Dell Technologies in the top ten,

Reliance Industries with 2.3 lakh employees, is ranked 20th and is ranked above Rolex, Dassault Group, Huawei, Bosch, Mercedes Benz and Pfizer among others.

Among the Indian companies, Reliance Industries is followed by HDFC Bank at 137 rank, Bajaj at 173, Aditya Birla Group at 240, Hero Motocorp at 333, Larsen & Toubro at 354, ICICI Bank at 365, HCL Technologies at 455, State Bank of India at 499, Adani Enterprises at 547 and Infosys is ranked at 668.

Forbes has compiled the sixth annual World’s Best Employers in partnership with market research company Statista. To compile this ranking, Statista surveyed 150,000 full-time and part-time workers from 57 countries working for multinational companies and institutions to determine which ones excel in corporate impact and image, talent development, gender equality and social responsibility.

Participants were asked to rate their willingness to recommend their employers to friends and family and to evaluate other employers in their respective industries that stood out either positively or negatively. This year’s list comprises 800 companies that received the highest scores.

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Business

Reliance to restructure group EPC resources

The focused EPC undertaking will aggregate and synergise engineering capabilities and expertise of the group…reports Asian Lite News

The Board of Reliance Industries Ltd (RIL) approved a scheme of arrangement under which the EPC and infrastructure undertaking of Reliance Projects and Property Management Services Ltd (RPPMSL), a wholly-owned subsidiary of RIL, is proposed to be demerged into RIL.

This demerger, together with the existing EPC team in RIL, creates a focused EPC undertaking in RIL to cater to the needs of the group.

Current EPC resources of RIL group are spread across different operating entities. RIL has a strong team of 4,000 engineers with proven expertise across engineering, procurement, project management, and construction. RPPMSL also has a team of 20,000 professionals.

The focused EPC undertaking will aggregate and synergise engineering capabilities and expertise of the group.

The EPC undertaking will play a pivotal role in implementing RIL’s large projects across O2C, New Energy and 5G roll-out. The implementation of these mega projects will require significant mobilisation of global technology and EPC resources. Increasing infrastructure spend across geographies in oil and gas, chemicals, telecom and renewable energy sectors is expected to drive significant demand for EPC resources.

The new EPC undertaking will facilitate internationalisation by setting up EPC Centres of Excellence at strategic offshore locations. It will align with existing subsidiaries of RIL in US and Dubai, and also incorporate new subsidiaries in Singapore and the UK. These subsidiaries will enable faster mobilisation of high-quality talent and EPC resources in an increasingly constrained global EPC environment.

The realigned EPC resources will further strengthen RIL’s EPC delivery capabilities by tapping global resources and supply chains. It will also enhance productivity as working across time-zones will reduce costs and schedules while ensuring high quality output.

This being a merger of a division of a wholly-owned subsidiary into a parent, (i) no shares are being issued by RIL and hence there is no change in the shareholding pattern of RIL; (ii) no cash consideration is being paid under the scheme; (iii) it is a related party transaction and at arm’s length. The turnover of RIL & the EPC and infrastructure undertaking of RPPMSL for the financial year ending March 31, 2022 is Rs 445,375 crore and Rs 43,071 crore, respectively.

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Business

Reliance gears up for FMCG war

In its AGM held on August 29, 2022, Reliance Retail announced its foray into the FMCG business, by developing and delivering high quality products at affordable pricing…reports Asian Lite News

Reliance Retail (RR) has begun appointing super-stockists to distribute its private label products in multiple FMCG categories, Kotak Securities said in a report.

Reliance Retail already has a wide range of private labels across several entry-level food and non-food FMCG categories and will likely acquire more brands. “We believe own FMCG sales can add a margin layer to the overall Jiomart business”, the report said.

In its AGM held on August 29, 2022, Reliance Retail announced its foray into the FMCG business, by developing and delivering high quality products at affordable pricing.

“We think this move is logical given RR already has a private label portfolio of food (pulses, packaged foods and beverages) and non-food FMCG (home, hygiene and personal care) brands that it has developed over a course of time to serve its widespread own store footprint of 1,713 stores (Fresh + Smart stores as of March 31, 2022,” Kotak Securities said.

Jiomart has stepped up merchant partnerships and has onboarded 2 mn merchants. With Jiomart having built up significant reach, we believe Reliance Retail will use this network to retail its own products as well. It has started with entry-level products across food and non-food FMCG categories. Its strategy seems to be to price its own products a notch lower than the corresponding FMCG brand in order to drive shelf space gain.

The company is experimenting with both traditional distribution and e-B2B models hand-in-hand to aggressively capture kiranas of all sizes and capture shelf space.

Among Reliance Retail’s new commerce businesses, the B2B model is well understood though the B2C model is undergoing iterations. As we understand, both these businesses are low-margin today due to structural reasons and high competitive intensity. FMCG business can add a margin layer over these existing businesses, making RR’s investment in B2B more worthwhile. Assuming RR begins distributing its products to 100,000 kiranas initially, it can garner FMCG sales to the tune of Rs2-5 bn within 1-2 years of launch, the report said.

Reliance Retail already has a large private label portfolio across categories. These brands have been hitherto available on RIL’s own sales channels (own stores, websites, etc.) but should now be available at third-party kiranas and stores as well.

RIL’s FY2022 Annual Report mentions that RR had 15 per cent share of own brands in hand wash and hygiene category (under Puric brand) in its stores/websites.

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Business

RIL forays into FMCG market

Morgan Stanley said in a report that RIL has private label brands across F&B, HPC and BPC segments that are currently sold via its own retail channels….reports Asian Lite News

Reliance Industries Limited has announced its plan to move into the $100 billion FMCG market in FY2023, providing high-quality products at affordable prices.

Morgan Stanley said in a report that RIL has private label brands across F&B, HPC and BPC segments that are currently sold via its own retail channels.

“We believe the company will have to invest in brand building and marketing to transform this business from private label to full-fledged FMCG operations. Growth in the FMCG category is a function of both volume and market share gains,” Morgan Stanley said.

Margin profiles for FMCG businesses are superior to that of grocery retailers with gross margins of 40-60 per cent and EBITDA margin of 15-25 per cent versus 15 per cent and 9 per cent, respectively, for DMart.

Over the last two years, the company has grown its merchant partner base to over two million partners and it is on course to partner with 10 million merchants across the country.

RIL’s retail business has a turnover of $27 billion in the total $787 billion retail market. As per the company, it had a base of more than 200 million registered customers, 520 million walk-ins and 4.5 billion visits on the digital platforms in FY2022.

RIL has a total store network of more than 15,000 across categories with an operational area of 42 million sq ft, spread across 7,000 cities, with two-thirds of the store network in Tier II and below towns.

Of the new stores launched in F2021-22, 75 per cent were in Tier II and below towns, and Reliance Retail operates over two-third of its network in these markets.

RIL’s digital commerce platforms continued its growth with nearly 0.6 million orders being delivered every day, Morgan Stanley said.

Isha Ambani has taken over the leadership role for the retail business, supported by a management team of senior leaders.

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Business India News

Reliance maintains top rank in Fortune’s Global 500 list

India has nine companies in the Fortune’s Global 500 list — five from the public sector, and four from the private sector…reports Asian Lite News

Reliance Industries maintained its highest ranking among Indian private sector companies in the latest Global 500 list published by Fortune for 2022.

Reliance Industries improved its rank by 51 places to 104 from its previous year’s rank of 155.

India has nine companies in the Fortune’s Global 500 list — five from the public sector, and four from the private sector.

Only the debutant Life Insurance Corporation of India — a public sector company, which came out with an IPO earlier this year — was ranked higher than Reliance at 98 among Indian corporates.

It is the 19th year that RIL has been a part of the Fortune 500 list – much longer than the other private sector companies in India.

The Fortune Global 500 list ranks companies by total revenues for their respective fiscal years ended on or before March 31.

Reliance Industries closed FY22 with record high consolidated revenues of Rs 7.92 lakh crore, up 47 per cent, and EBITDA of Rs 1.25 lakh crore, up 28.8 per cent Y-o-Y, with each of the O2C, retail and digital services businesses posting all-time high revenues.

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Sport Sports

RIL and AFI announce partnership to enable holistic growth of athletics

Being AFI’s principal partner, the Reliance brand will appear across the national team’s jerseys and training kits at key national and international competitions as well as training camps…reports Asian Lite News

Reliance Industries Limited (RIL) and the Athletics Federation of India (AFI) have announced a long-term partnership to enable the holistic growth of athletics in the country.

Reliance Foundation has been a dedicated partner to AFI over the years and this tie-up is set to deepen the engagement between the two organisations.

The partnership, according to a Reliance Industries media statement, aims to discover and nurture Indian athletes from across the country and provide them with world-class facilities, coaching and sports science and medicine support by leveraging the Reliance Foundation ecosystem, including the Odisha Reliance Foundation Athletics High-Performance Centre and Sir H.N. Reliance Foundation Hospital.

In line with the larger vision of the organisation, this partnership will focus especially on girl athletes and aim to bridge the gender divide and enable them to achieve their dreams.

Being AFI’s principal partner, the Reliance brand will appear across the national team’s jerseys and training kits at key national and international competitions as well as training camps.

Nita M. Ambani, Member, International Olympics Committee, and Director, Reliance Industries Ltd, said: “We are delighted to expand Reliance Foundation’s partnership with the Athletics Federation of India. Athletics is one of the most popular disciplines in global sport, and this association aims to accelerate the growth of Indian athletics by providing opportunities and world-class facilities to our young talent, with a special focus on girls.”

She added: “With access to the right infrastructure, training, and support, I’m sure we will see many more of our young athletes on victory stands around the world! This partnership is also an important step towards our dream of strengthening the Olympic Movement in India.”

An IOC member since 2016, Nita M. Ambani has enabled valuable international exposure to India’s efforts to transform sports and engage with the Olympic Movement. She led the India delegation that won the bid to host the 140th IOC session in Mumbai in 2024.

Adille Sumariwalla, President, Athletics Federation of India, said: “We are very thankful to Mrs Nita Ambani and Reliance Industries, with whom AFI has been working closely over the last few years, for their support as Principal Partner.”

He noted: “We have seen our athletics contingent grow at international events, and with a committed partner in Reliance Industries, we are very sure that, soon, we will see an increase in participation and international success across multiple disciplines.”

Sumariwalla concluded by saying that “the partnership will focus on holistic development, building a strong talent pool and creating potential medal winners who will make India proud in the years to come”.

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Business

Mukesh Ambani steps down from Reliance Jio

The company also said the Board “noted the resignation of Mukesh Ambani as Director of the company effective from close of working hours on June 27″…reports Asian Lite News

Mukesh Ambani has resigned as a Director in Reliance Jio Infocomm Limited with the company’s Board on Tuesday approving his elder son Akash Ambani’s appointment as the Chairman.

In regulatory filing, Reliance Jio, the telecom arm of the Reliance group, said the Board of Directors at its meeting held on Monday “approved the appointment of Akash Ambani, Non-executive Director, as the Chairman of the Board of Directors of the company”.

The company also said the Board “noted the resignation of Mukesh Ambani as Director of the company effective from close of working hours on June 27”.

The Board also approved the appointment of Pankaj Mohan Pawar as the Managing Director for a period of five years commencing from June 27, subject to shareholders’ approval.

The company also said the Board approved the appointment of Raminder Singh Gujral and K.V. Chowdary as Additional Directors, designated as Independent Directors, for a period of five years commencing from June 27, subject to shareholders’ approval.

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Business

Reliance bets big on toy industry

Plastic Legno SPA is owned by the Sunino group that boasts of more than 25 years of toy production experience in Europe….reports Asian Lite News

Reliance Brands and Plastic Legno SPA have signed a joint venture arrangement through which the former will acquire a 40 per cent stake in the latter’s toy manufacturing business in India.

This investment by Reliance Brands serves a dual purpose — bringing in vertical integration for its toy business, and helping diversify the supply chain with a long-term strategic interest in building toy manufacturing in India.

Plastic Legno SPA is owned by the Sunino group that boasts of more than 25 years of toy production experience in Europe. The group started its India business in 2009 out of a need to develop a strong production hub that would cater to global markets, but more importantly, to the fast-evolving and growing Indian market.

“It is imperative for RBL to build design to shelf capability for a strategic advantage over the competition and to be an accelerator in building a robust toy manufacturing ecosystem in India not only for domestic consumption but also for global markets,” a Reliance Brands spokesperson said.

Reliance Brands has a strong visibility in the toy industry with its portfolio of Hamleys, the British toy retailer and homegrown toy brand Rowan, making it one of the leading toy distributors. Hamleys currently has a global footprint across 15 countries with 213 doors and is India’s largest chain of toy stores.

In 2019, Reliance Brands marked its first international foray by acquiring the British toy retailer Hamleys.

“We have important development plans to implement, always in the spirit of creating a cultural background in this specific sector in India. We are ready for the challenges of the future, but when there is a group like RBL alongside, we are sure that together we can do a great development” said Paolo Sunino, Co-owner, Sunino Group.

In the past five years, Reliance Brands has also invested in building and operating homegrown Indian designer brands.

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Reliance’s story has no final chapter

Reliance's story has no final chapter

Speaking at the Reliance Family Day event, Ambani shared imperatives or must-dos that all at Reliance must embrace and make a way of life…reports Asian Lite News

Reliance Industries Ltd (RIL) Chairman and Managing Director Mukesh Ambani has predicted that India will become one of the top three economies in the world and Reliance will become one of the strongest and most reputed Indian multinational companies in the world.

Speaking at the Reliance Family Day event, Ambani shared imperatives or must-dos that all at Reliance must embrace and make it a way of life.

Reliance’s story has no final chapter


“We must never become complacent of what we have achieved in the past. Companies that become laid-back because of their previous achievements become footnotes in a history book.

“I would like the story of Reliance to be told in that book which has no final chapter and one which is continually updated with records of bolder initiatives and more glittering successes and where successive generations create even greater societal value and contribute to India’s growth,” Ambani said.

“This is the only way for today’s and tomorrow’s leaders to earn the right to call themselves the true inheritors of the legacy of Dhirubhai Ambani,” he added.

“We must continuously revisit, iterate, re-iterate and communicate the common philosophy of ‘WE CARE’ that guides and inspires Reliance,” Ambani said on the second imperative.

“This common purpose creates a shared identity for every old and new member of Reliance Family. It strengthens their sense of belonging and their feeling of pride in working for one of the world’s great companies,” he added.

Ambani added that Covid has taught some important lessons.

“The first lesson is health first. Covid has made all of us more health conscious and fitness conscious. Health is true wealth.

“We have now begun to realise it more acutely than ever before,” he added.

The second lesson is safety first, he said. “The pandemic has taught us that the safety of each and every one is inseparably linked to safety of all. In other words, no one is fully safe in this world unless all of us are fully vaccinated with vaccines that work,” Ambani said.

The third lesson, Ambani said is family first. “At Reliance, our families are the greatest sources of our strength for each and every one of us.

“During the pandemic, work from home has enabled all of us to spend more quality time with our children, spouse and parents.

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“In future, technology will offer even more exciting ways of Hybrid and Virtual Work,” Ambani said.

“Which means, we can work more efficiently and also devote more time to our families and friends. We can also invest greater amounts of time for cultivating our interests and for enjoying intimacy with nature. This will provide us an opportunity to create an even better work-life balance by focusing on things that matter the most,” he added.

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Debenture holders approve Reliance Commercial Finance resolution

Debenture holders approve Reliance Commercial Finance resolution

Non-banking finance company Authum Investment and Infrastructure’s resolution plan has been voted with an overwhelming majority of over 99 per cent by the debenture holders of Reliance Commercial Finance Ltd…reports Asian Lite News

The plan, initially approved by the ICA lenders on July 15, 2021 – more than 5 months back, was subject to approval by non-ICA lenders. The delay is on account of the confusion caused by the market regulator’s recent circular on voting by debenture holders.

The SEBI circular is a cause of significant concern according to various debenture holders, as it impedes on their basic contractual rights as defined in the debenture trust deeds.

Debenture holders approve Reliance Commercial Finance resolution

In addition to the provisions of the circular being impractical and unimplementable, such a circular when applied retrospectively has far larger adverse implications on ongoing debt resolutions.

Lenders are relieved that finally the plan has been put to vote and has been approved with overwhelming majority. Early implementation of the plan will now ensure significant recoveries to the lenders.

RCF Resolution Plan has already been approved by the lenders on July 15, 2021.

Authum Infrastructure and Investment’s bid of Rs 1,585 crore was declared the winning bid by lenders with an overwhelming majority of over 80 per cent voting.

Authum is a domestic NBFC with around 15 years of presence and over Rs 2400 crore net worth, as on June 30, 2021.

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Lenders’ recovery is high as Rs 1,240 crore of cash has already been distributed and the company has additional cash and cash equivalent of over Rs 250 crore as on June 30, which will be distributed along with plan proceeds.

The total debt of RCF is Rs 9,000 crore.