Case Study

Reliance

Reliance Group would like to congratulate

Team India for there historic

win and Remind that…

5-Lurv

Reliance Facts

Power Play- Highlghts GROWTH STRATEGY

SWOT Analysis

Reliance ranks potentially amongst the world’s top 200

companies in terms of net profits

India’s only fully integrated energy company - Exploration &Production (E&P), Refining

& Marketing (R&M), petrochemicals,and textiles -

together with interests in Power and Infocomm

Reliance makes the largest contribution to the Indian

economy, as a single business house.

Reliance is by far the largest exporter in India with exports

of US$ 2.4 billion

Reliance Facts

Benefits for Organization Benefits for Citizens

Generation without license Consumer get choice of suppliers

Good opportunity since there is power deficit of around 1000,000 MW

Consumer witness free competition for first time in power sector

Ensuring supply of electricity to all areas

The Electricity Act 2003

Reliance Power

Reliance Power Limited is part of the Reliance Anil Dhirubhai Ambani Group

The company was incorporated in January 1995 as Bawana Power Private Limited and changed its name to Reliance Delhi Power Private Limited in February 1995. Later, it changed its name to Reliance EGen Private Limited in January 2004, to Reliance Energy Generation Limited in March 2004, and to Reliance Power Limited in July 2007

Was established to develop, construct and operate power projects in the domestic and international markets.

•Brief History

Financial Conservatism Global competitiveness Superior Project Execution State-of-the-art technology World scale, and world class Leadership in chosen areas of business Consistent overall shareholder value enhancement Highest standards for Health, Safety and Environment

• Corporate Philosophy

Reliance’s growth through

backward and forward integration

Low costs

Strong and rising

market shares

Good profits

Large-scale

capacity

Reliance’s growth through backward and

forward integration

Low costs

Strong and rising market shares

Good profits

Large-scale capacity

“It Plans to span over entire value chain in the power business”

Reliance Power growth strategy Generation of power Transmission of power Distribution of power Trading of power Bundling of services to maximize

customer satisfaction

Growth Strategies • Well Head To

Wall Socket

Since Reliance Petrochemicals grew(under Dhirubhai Ambani) using this strategy of backward and forward integration. It started with manufacturing of fibersMoved to polymers (which is used in production of fiber)and then went to petrochemicals refing and finally oil and gas exploration.

By making there presence in infocom value chain, Mukesh Ambani in the telecom Venture built 7 million customer base in just 10 months.

Since Reliance Petrochemicals grew(under Dhirubhai Ambani) using this strategy of backward and forward

integration. It started with manufacturing of fibersMoved to polymers (which is used in

production of fiber)and then went to petrochemicals refing and finally oil and gas exploration.

By making there presence in infocom value chain, Mukesh Ambani in the telecom Venture built 7

million customer base in just 10 months.

Ensuring Fuel Supply

Growth Strategies • Supporting Strategies

Secure access to coal reserves

Acquired 3 coal mines from Sugico Group, Indonesia with capacity to generate 10 GW in 2010

Investment of Rs.300 billion in AP by 2017

Focusing on Power Deficit Regions

Large reserves

Ensuring fuel supply

Reducing unit cost of fuel

Gas recovery project

Reduction of Cost of Power Generation

Large reserves

Ensuring fuel supply

Reducing unit cost of fuel

Gas recovery project

HR Strategy : Recruitment of intellectual Workforce

Customer Service and Offerings

New power bill

Customer care centers

24/7 Call-center

Complaint Management

Interactive Website

Enhance payment modes

Tariffs

Q.2) SWOT Analysis

•Strengths

Established and good Image

Reliance – Long term Investment

BSES – part of Reliance

Strategically Located Power Projects

Distribution-something new for Reliance.

  Reliance dynamic approach

with creating “total consumer experience” could complicate the process

Financing Dadri project - a big liability

•Weakness

  Good timing with the passing of

Electricity Act

Reaping returns of generating power

Abundance of intellectual capital in India

Nearly half the geographical area doesn’t have electricity-Distribution Opportunities

•Opportunities

   

Other players in the market, like Tata

Future plans depend on government policy

Dealing with state regulators who determine tariff rates

Remote possibility opportunities back firing.

•Threats

Strategy Statements

•Reliance is a convergent play between the manufacturing and services Business

Reliance is a convergent play between the manufacturing and services

•Reliance's superior operation financial performance reflects its global competitiveness prudent business strategies and ability to maintain profitability through business cycles

Thank you!!!

A combination of energy chain and information and communication business

A company at the crossroads of the only and the new economy

Reliance is committed in an endeavor to maximize overall shareholder value.