RELIANCE INDUSTRIES ADVISOR ZAROORI HAI

RELIANCE
INDUSTRIES

By:

 Sajal, Mehak, Ayesha, Moin, Mihir, Prabhat

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RELIANCE INDUSTRIES ADVISOR ZAROORI HAI

Index

1. Introduction 3

2. History 3

3. Fundamental Analysis 6

4. Technical Analysis 8

5. Future Projections 10

INTRODUCTION
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Reliance Industries Limited (RIL) is an Indian multinational conglomerate, headquartered in Mumbai. RIL's diverse
businesses include energy, petrochemicals, natural gas, retail, telecommunications, mass media, and textiles. Reliance is
one of the most profitable companies in India, the largest publicly traded company in India by market capitalization, and
the largest company in India as measured by revenue after recently surpassing the government-controlled Indian Oil
Corporation. It is also the eighth largest employer in India with nearly 195,000 employees. On 10 September 2020,
Reliance Industries became the first Indian company to cross $200 billion in market capitalization.

The company is ranked 96th on the Fortune Global 500 list of the world's biggest corporations as of 2020. It is ranked
8th among the Top 250 Global Energy Companies by Platts as of 2016. Reliance continues to be India's largest exporter,
accounting for 8% of India's total merchandise exports with a value of ₹1,47,755 crore and access to markets in 108
countries.[10] Reliance is responsible for almost 5% of the government of India's total revenues from customs and excise
duty. It is also the highest income tax payer in the private sector in India.

HISTORY

Reliance Commercial Corporation was founded by Dhirubhai Ambani in 1966 as a polyester firm. It got renamed as
Reliance Industries on 8 May 1973. Reliance later entered financial services, petroleum refining, power sector. By 2002
Reliance had grown into a U$15 billion conglomerate. After the death of Dhirubhai Ambani on 6 July 2002, Reliance was
headed by his two sons. The Reliance ADA Group was formed in 2006 after the two brothers Mukesh Ambani and Anil
Ambani, split Reliance Industries in December 2005. 1 Anil Ambani got the responsibility of Reliance Info com, Reliance
Energy and Reliance Capital. Reliance Group entered the power sector through Reliance Power, and the entertainment
sector by acquiring Adlabs. In October 2010, Reliance power placed world's largest order worth $8.29 billion to Shanghai
Electric Group to supply power equipment based on Supercritical steam generator technology. 2 On 28 October 2017, the
group launched construction of a defense production unit in Mihan-SEZ region. 3 The unit will be part of a joint venture
between Reliance Group, led by Anil Ambani, and its JV partner French major Dassault Aviation. The production at
Mihan-SEZ will begin with components for the Rafale warplanes and Falcon business jet produced by Dassault. It is
expected to fully assemble both the aircraft in the Nagpur unit in the coming years. 4

Business Model of Reliance Industry

Reliance Industry runs several businesses and every business has its own business & revenue model. Here we will discuss
the business model and revenue model of its major business.

Refining Business

Reliance’s core business is refining business. Reliance buys crude oil from overseas markets and then refine them in their
refineries and produce petroleum products.

After the Refining, Reliance sells these petroleum products in the Indian and overseas market. Reliance mostly exports
its petroleum products to other countries. Most of the revenue of Reliance Industry comes from Refined Petroleum
products.

Petrochemicals

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RELIANCE INDUSTRIES ADVISOR ZAROORI HAI
Reliance’s second major business is Petrochemicals and the second major source of its revenue is petrochemical. So,
Reliance produces and markets petrochemical products like Olefins and Aromatics which is used to make detergent and
plastic.

Reliance Retail

Meanwhile, Reliance Retail is another core business of the reliance industry. Also, it is the first Indian retail company
whose revenue is more than 100000 crore. reliance owns a retail chain under the brand name of Reliance fresh where
they sell Reliance and other company’s products.

How much Reliance Industry Earns

Reliance is one of the most profitable companies in India. As per the Quarter 4 result of the financial year 2019-2020,
Reliance Industry made a net profit of 6575 crores. According to Forbes Reliance Industry made a profit of 36075 crores
in the year 2019 which is the second-highest in India after Indian Oil Corporation. As per the Source, Mr. Mukesh
Ambani earns ₹57,69,230.77 per day.

Network 18 Group

Network 18 Group is an Indian media and entertainment company founded by Raghav Bahlin 1993. Reliance Industry
bought Network 18 Group in 2012 to integrate it with his Jio brand. Network 18 groups own very popular websites such
as in.com, IBNlive.com, Moneycontrol.com, Firstpost.com, Cricketnext, Homeshop18, bookmyshow.com and Forbes
India. It had 20 channels in 15 Indian languages.

Companies Acquired By Reliance Industry

Reliance is a very prominent company that has acquired several companies to grow its pre-existing business. Reliance
had acquired a company for vertical and horizontal integration. Here is the list of top companies acquired by Reliance
Industry

Acquiree Name Price

Asteria Aerospace 231.2 M
NowFloats 1.4 B
Tesseract Inc. 102.5 M
Fynd $42.3 M
Hamleys PLC 68 M
C-Square Info Solution –
Grab $25 M
SankhyaSutra Labs –
Reverie Language Technologies 1.9 B
EasyGov –

Investment by Reliance Industry

Organization Name Money Raised

Alok Industries $33.9 M
Embibe 900 M
JioSaavn 1.4 B
New Emerging World of Journalism $1.7 M
Loktra –
VAKT Holdings Limited $5M
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JioSaavn 140 M
Genesis Colors –
Embibe $180 M
Eros International
RELIANCE INDUSTRIES ADVISOR ZAROORI HAI

 Reliance had also made 14 strategic management. Here is the list of top 10 companies in which they had
invested.

Product and Services

Mobile broadband

The company launched its 4G broadband services throughout India in September 2016. It was slated to release in
December 2015 after some reports said that the company was waiting to receive final permits from the government. JIO
offers fourth-generation (4G) data and voice services, along with peripheral services like instant messaging and
streaming movies and music.

JIO Fiber

In August 2018, JIO began to test a new triple play fiber to the home service known tentatively as JIO Giga Fiber,
including broadband internet with speeds ranging from 100 to 1000 Mbps, as well as television and landline telephone
services.

In August 2019, it was announced that the service would officially launch on 5 September 2019 as JIO Fiber, in honour of
the company's third anniversary. JIO also announced plans to offer streaming of films still in theatres ("First Day First
Show") to eligible JIO Fiber subscribers.

In the year 2015, the company has a network of more than 250,000 km (160,000 mi) of fiber optic cables in the country,
over which it will be partnering with local cable operators to get broader connectivity for its broadband services.

JIO Business

In March 2021, the company has launched connectivity solutions for businesses bundled with services provided by JIO
Platforms, Reliance Retail and Office 365.

JIO APPS
In May 2016, JIO launched a bundle of multimedia apps on Google Play as part of its upcoming 4G services. While the
apps are available to download for everyone, a user will require a JIO SIM card to use them. Additionally, most of the
apps are in the beta phase. Notable apps include:

 JIO Pages – a web browser for Android devices

 JIO Chat – instant messaging app
 JIO Cinema – online HD video library
 JIO Cloud – cloud-based backup too
 JIO Health – health services app
 JIO News – e-reader for news
 JIO Meet – video-conferencing platform
 JIO Money – online payments/wallet app

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RELIANCE INDUSTRIES ADVISOR ZAROORI HAI
 JIO SAAVAN – for online and offline music streaming in English and Indian languages
 JIO Security – security app
 JIO TV – TV Channels streaming service
 JIO Voice – VOLTE phone simulator
 My JIO – manage JIO account and digital services associated with it

Controversies
Issue with incumbents
In September 2016, the Telecom Regulatory Authority of India (TRAI) summoned JIO and the country's existing telecom
operators like AIRTEL, Vodafone, and Idea Cellular to meet and discuss an issue regarding the interconnection between
the operators. This was a result after JIO complained to TRAI and Department of Telecom (DOT) about other operators
not honoring their commercial agreements to let JIO use their network resources. The company further added that the
operators are trying to sabotage its entry into the telecom scene. However, DOT dismissed the request and directed
TRAI to help settle the dispute amicably. Moreover, the Cellular Operators Association of India (COAI) requested TRAI to
include all the operators in the discussion instead of the three.

The incumbent operators had previously approached the country's PMO to reiterate their stance they "are in no way
obliged or in any position to entertain JIO's requests for interconnection points as they do not have either the network
or the financial resources to terminate the latter's humongous volumes of potentially asymmetric voice traffic."
Responding to this, Mukesh Ambani, owner of JIO, said, "All operators have publicly said last week that they will provide
this (interconnect and MNP). So, we are waiting. These are all great companies. They have their own reputations to
protect. I am confident they won't violate the law." Commenting about number portability, he added, "The number
belongs to the consumer. No operator can cause trouble if they want to change operators." However, on 12 September
2016, Idea Cellular agreed to allow JIO to use 196 of its interconnection access points.

Subscriber data breach

On 10 July 2017, JIO's customer data was allegedly leaked on the website magicapk.com. The website was suspended
shortly after the news of the breach broke out.

Farmers' boycott
During the 2020–2021 Indian Farmers' Protest, farmers across multiple states in northern part of India boycotted and
vandalized JIO's towers owing to allegations of Reliance Industries’ support to controversial farm laws of India. JIO
blamed its competitors AIRTEL and Vodafone for spreading rumors of "Reliance being an undue beneficiary in the farm
bills", an allegation both the companies denied. The company saw a loss of around 25 lakhs (2.5 million) subscribers in
Punjab and Haryana between November and December 2020.

Bird deaths
In January 2021, several social media posts started circulating linking bird deaths to JIO's 5G network trials. The claims
were found to be Fake as 5G trials were not yet permitted. The cause of the death of the birds is determined as due to
the outbreak of bird flew.

FUNDAMENTAL ANALYSIS
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RELIANCE INDUSTRIES ADVISOR ZAROORI HAI
Swot Analysis:

Strengths

 Company with high TTM EPS Growth

 Bullish Engulfing Pattern (Bullish Reversal)
 Growth in Quarterly Net Profit with increasing Profit Margin (YoY)
 Company with Low Debt
 Increasing Revenue every quarter for the past 3 quarters
 Increasing profits every quarter for the past 2 quarters
 Book Value per share Improving for last 2 years
 Company with Zero Promoter Pledge
 FII / FPI or Institutions increasing their shareholding

Weaknesses

 MFs decreased their shareholding last quarter

 Inefficient use of shareholder funds - ROE declining in the last 2 years
 Declining Net Cash Flow: Companies not able to generate net cash

Opportunities

 Brokers upgraded recommendation or target price in the past three months

 Positive Breakout First Resistance ( LTP > R1)

Threats

 Recent Broker Downgrades in Reco or Target Price

MC Technicals

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Q. Is RELIANCE good for long term investment?

As on 02-Jul-2021, the Fundamentals of RELIANCE are Strong and hence it is good for long term investment! See
Financial Performance of RELIANCE INDUSTRIES. Please look at the other parameters such as Valuation, Price
Momentum, News & Corporate Governance and/or consult an Investment Advisor before taking an investment
decision!

Q. Is RELIANCE Undervalued or Overvalued?

As on 02-Jul-2021, RELIANCE is Over Valued and hence NOT a good buying opportunity according to Share Valuation
currently!

Q. Is RELIANCE trading at a Premium or Discount?

As on 02-Jul-2021, RELIANCE is trading at a Premium of 114% based on the Median Intrinsic Value!

Q. Is it right time to buy RELIANCE shares?

As on 02-Jul-2021, RELIANCE is Over Valued and hence NOT a good buying opportunity according to Share Valuation
currently!

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RELIANCE INDUSTRIES ADVISOR ZAROORI HAI

TECHNICAL ANALYSIS

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1. Jio
 Jio Emergency Data Loan Facility Launched, Offers Up to 5GB of High-Speed Internet Access on Pay-Later Basis
 Google cloud can earn more than 1 billion form Jio against Amazon AWS and Microsoft Azure.
 Aim is to build modern AI transformation platform to power its digital ambition
 Last year, Alphabet Inc-owned Google earmarked $10 billion for investments in India and began by putting in $4.5
billion in Jio Platforms for a 7.73% stake.
 Partnership, which is not only for 5G collaboration but also to transition legacy Reliance businesses like Retail and
JioMart to the Cloud, also includes developing apps with Edge Computing,
 “Google Cloud, which continues to be a “far third” however, has signed marquee clients such as Deutsche Bank,
Ford, and Nokia to enhance its reputation.
 In an interview with ET, Google Cloud CEO Thomas Kurien said that the only way to get the company on the road to
profitability was to scale, and partnerships like the one with Reliance will help achieve that.
 Reliance Jio 5G Network Offers 1Gbps Speeds in Testing, JioFiber Now in 3 million Homes: Chairman Mukesh Ambani

1. Reliance commercial corporate

 Reliance Infra in talks to sell Rs 1,400 cr worth of road assets to Cube Highways. The Anil Ambani-led infrastructure
company is scouting for investors for its road assets as part of the strategy to divest assets, raise money and pare
debt.
 Reliance Home Finance lenders staring at nearly 80% haircut. Creditors are choosing between Hong Kong-based
distressed asset specialist Ares SSG and locally listed NBFC Authum Investment and Infrastructure.
 Reliance Infrastructure sells Santacruz headquarters to YES Bank to repay debt. Last year in July, Yes Bank took over
the possession of the Santacruz building, which till last year served as the company’s headquarter, and two other
smaller properties owned by the company after it failed to repay dues of Rs 2,892 crore.

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2. Reliance Vimal textile

 Vimal (Vimal), Mukesh Ambani-promoted Reliance Industries’ (Reliance) textile division has embarked on a journey
to regain ground in a space that it had ardently competed in, with Raymond decades back.
 Vimal Had kicked off its latest campaign by Scarecrow Communications in August last year, with a “No Tie Day” in
nine cities
 Only Vimal’s flagship range, Unformal’s contribution to Reliance’s textile revenues is 10 to 15 per cent and is
expected to increase to 30 to 40 per cent in the coming years. Reliance is looking at 22 per cent growth in textile
revenues this year.
 Reliance Industries Ltd is looking at over 2-fold increase in sales to Rs 1,800 crore from its textiles brand Vimal in the
next three years and positioning it as a youth-oriented affordable fashion label.
 Company will invest Rs 350 crore in a phased-manner in the next three years to increase its textile production
capacity to 25 million meters a year from 20 million meters per year at present

3. Radisys Corporation
 Radisys Reach Smart Home delivers a flexible, scalable solution that positions service providers to be competitive in
the market while leveraging the growing innovation of an open device ecosystem.
 Radisys and COMSovereign Partner to Advance Strategic 5G Edge Compute Technology Companies to leverage core
software technologies including advanced multi-access edge computing (MEC) platforms to accelerate 5G
networking

4. Reliance export

Reliance Power has started the export of power equipment from its Samalkot project in Andhra Pradesh to its
Bangladesh project, a move that will help the company pare debt of nearly Rs 1,500 crore.

Reliance Power has sold the Module 1 of the gas-based power equipment, which has a capacity of 750 MW, to the
Bangladesh project.

According to the senior company official, the sale of these equipment from the Samalkot to Bangladesh project will bring
down Reliance Power’s US-EXIM debt by nearly Rs 1,500 crore.

4. Reliance retail
 Reliance Retail is on a “Hyper Growth Trajectory”, says Mukesh Ambani. “Reliance Retail continues to be amongst
the fastest growing retailers in the world,” Ambani said while addressing the 44 th annual general meeting of Reliance
Industries. “This past year was the true test for our business.
 Reliance Retail has not only protected jobs, but also created over 65,000 new jobs: Mukesh Ambani. In the March
quarter, Reliance Retail made up as much as 10 per cent of the company’s total revenue. This, according to industry
watchers, is a sign of the huge potential of the business.

5. IPL team
 IPL 2021 to be completely managed by Reliance? IMG divests 50% stake in Indian arm
 Mumbai IPL team owners Reliance Industries (RIL) have agreed to buy out IMG Worldwide from the sports
management joint venture IMG-Reliance (IMG-R).


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RELIANCE INDUSTRIES ADVISOR ZAROORI HAI
6. India super league
 Reliance AGM 2021 | ISL was first and biggest sporting event held in India during pandemic: Nita Ambani
 Nita Ambani said even though COVID relief was RIL’s top priority this year, “we ensured that we continued
all our other developmental work as well”.
 June 24 said that Indian Super League (ISL) 7 was the biggest sporting event held in the country amid the
COVID-19 pandemic.
 Ambani said at the RIL AGM 2021: “Our football league ISL became the first, the longest, and the biggest
sporting event to be held entirely in India with complete safety protocols, during the pandemic. It took
more than 1,600 people in 18 different bio-bubbles across 14 different locations in Goa, to pull off season
seven very successfully.”

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