Mukesh Ambani – Profile

October 25th, 2010 - by admin
Mukesh Ambani - CMD, Reliance Industries Ltd.

Mukesh Ambani - CMD, Reliance Industries Ltd.

Mukesh Dhirubhai Ambani – business tycoon, industry icon, respected leader… Many are the adjectives that can be associated with the Chairman and Managing Director of Reliance Industries Limited, India’s largest private sector company.

Born on April 19, 1957 in Yemen, Mukesh Ambani is the elder son of the legendary Dhirubhai Ambani. He grew up with 3 siblings, Anil, Dipti and Nina. The passion of their father was balanced by the softness and love of their mother, Kokilaben and the prudence and practicality of Mukesh Ambani’s wife, Nita. In subsequent years, daughter, Isha, and sons, Anant and Akash, were beloved additions to their home.

Mukesh Ambani did his schooling from Abaay Morischa School, Mumbai and went on to earn a Bachelor of Chemical Engineering degree from UDCT, Mumbai. His choice of education reflected his father’s philosophy of investing in businesses of the future.

To prove to the world that Mukesh Ambani could do whatever he put his mind to, he applied and got accepted by some of the top universities when he applied for their Master of Business Administration course. Eventually, he chose Stanford University as his alma mater, but his growing entrepreneurial instinct urged him to drop out and help his father with his polyester plant.

Even while pursuing the challenging chemical engineering course, Mukesh Ambani was actively involved in his father’s company. As soon as he joined the company formally in 1981, he became one of the main impetuses for the company’s gargantuan progress.

Reliance’s backward integration from textiles into polyester fibers and further into petrochemicals was Mukesh Ambani’s brainchild. Reliance’s Jamnagar Refinery in Gujarat, which is now the world’s largest grassroots petroleum refinery, was directed under his watchful gaze. He was the force behind the creation of 51 new, world-class manufacturing facilities encompassing diverse technologies that increased its annual manufacturing capacity from less than a mission tons to over thirteen million tons. Currently, the refinery has a manufacturing capacity of 60,000 barrels per day.

Dhirubhai’s dream project, Reliance Infocomm, which is looked after by brother, Anil Ambani, after the company split in 2005, was also entrusted to Mukesh Ambani in its earlier stages.

Mukesh Ambani’s next strategy is to take a giant leap into the retail with stores across the country.

Mukesh Ambani’s popularity clearly shone forth in 2007, when he was selected as Businessman of the Year by a public poll conducted by NDTC. In the same year, he was presented the United States-India Business Council (USIBC) Leadership Award for Global Vision in Washington D.C., USA as well as the Chitralekha Person of the Year Award by the Chief Minister of Gujarat, Shri Narendra Modi. The same year also saw him recorded as India’s first trillionaire.

Rewinding his life, Mukesh Ambani was chosen as Economic Times Business Leader of the Year in 2006 and ranked 42nd among the World’s Most Respected Business Leaders and 2nd among the four Indian CEOs featured in a survey conducted by Pricewaterhouse Coopers and published in the Financial Times, London in 2004.

He was also conferred with the World Communication Award for the Most Influential Person in Telecommunications by Total Telecom and chosen Telecom Man of the Year by Voice and Data magazine in 2004. He ranked 13 in Fortune Magazine’s Asia’s Power 25 list of the Most Powerful People in Business and topped the Power List published by India Today for the second consecutive year.

In spite of managing the country’s biggest private sector company, Reliance Industries Ltd., Mukesh Ambani’s sight is currently on the Indian market alone. His vision is clear – he wants to expand rapidly within the country and change the lives of its people for the better. However, his focus extends beyond merely size increase to value generation and upscaling.

Mukesh Ambani is regarded as the ‘modern day philanthropist’, whose paragon actions have inspired and cultured a socially sound community today. As the saying goes, ‘A man’s true wealth here-after is derived by the good he does in this world’; Mukesh Ambani has persistently held social welfare through corporate social responsibility (CSR) and charitable deeds in high esteem. He believes in industrious innovations that transform society; and that unless a business has a larger purpose that serves the millions readily, sustainable growth is impracticable.
The Reliance Foundation, spearheaded by Mukesh Ambani and his wife Nita Ambani, is one of India’s largest corporate run social organization that addresses social development imperatives of India; namely quality, formal and vocational education, affordable high-quality health care, meaningful rural development and urban renewal, and protection and promotion of India’s priceless heritage of arts and culture.


Mukesh Ambani run Reliance Industries Limited has been accorded with the second position in the list of world’s 10 biggest ’sustainable value creators’. By generating the largest shareholder value in terms of market capitalization, Mukesh Ambani and Reliance Industries Limited, both, are held as the finest corporate entities of the world today.

Mukesh Ambani has for long regarded ‘value-addition’ process as primal to any business establishment. He affirms that unless a business admits value; in regards to its products, services, work force, shareholders and end users, a business’s worth is futile. With the influx of this belief into tangible action at RIL, Mukesh Ambani’s conviction has been proven true as Reliance climbs high on prosperity charts, becoming India’s most trusted and value-rich brands today.

Mukesh Ambani dons a cap with many feathers, but he carries them with grace and panache. At 53 years, his sheer energy is enough to take one’s breath away. Having achieved so much, Mukesh Ambani remains hungry for more. So, he continues to create, continues to build and continues to shine brightly on India’s business horizon.

The Reliance Digital store at Moments Mall Kirti Nagar, in the city of Delhi is all set to welcome actor Imraan Khan, Katrina Kaif and Ali Abbas Zafar today(5th September 5, 2011) at 5:00 PM. The actors and their team will visit the store for the promotion of their latest flick Mere Brother ki Dulhan. The cast is expected to interact with the crowd and media at the promotion event.

This Reliance Digital Store is the latest addition to the electronics chain. The store was launched on 3rd September. As a part of special launch festivities, Reliance Digital has put in place exclusive launch offers which range from price-offs and discounts to exchange offers. As a part of the ‘Mismatch Exchange’ scheme, customers can bring in their old refrigerators, washing machines and television sets in exchange for any of the latest electronic product from the store. Reliance Digital is also offering a special purchase scheme where customers can take home any product of their choice at an easy EMI of just Rs. 51. And every purchase will be backed by Reliance Digital’s customer support team at ‘Reliance resQ’, available 365 days a year.

About Reliance Digital:
Reliance Digital is a one stop shop with cutting edge technology for the entire range of household electronics, appliances, computers, gaming and telecom products. Reliance Digital Stores house over 150 international and national brands and over 4000 products. The range at Reliance Digital spans, Audio and Video products (TV’s, DVD players, Car Audio players), Electronic Musical Instruments and Digital Cameras, Gaming Consoles, Computers and Peripherals, Mobile and Fixed line instruments, Durables like, Air Conditioners, Refrigerators, Water Purifiers, Kitchen and Home Appliances.

Reliance Jio Infocomm Limited (RJIL), a telecom venture of Reliance Industries Limited (RIL), has been allotted prominent signalling point (SP) codes by the Department of Telecommunication (DoT). These codes will help the company to launch National Long Distance (NLD) and International Long Distance (ILD) services.

As per an internal DoT note, these codes have been allotted to Reliance Jio in Mumbai, Delhi, Kolkata and Karnataka for both NLD as well as ILD operations. The note also stated, if Reliance Jio failed to use the SP codes in six months, then the Government will be liable to withdraw the codes and re-allocate them to some other company.

The benefits of SP codes to Reliance Jio

The signalling function will enable exchange of information over long distance telecom networks. SP codes are nodes that facilitate actual routing of information between two points. SP codes will let NLD networks connect with local networks.They will also enable ILD operators to inter-connect with other overseas network.

This development will take Reliance Jio a step closer to the launch of its telecom services.

Subsidiaries of Reliance Jio

Reliance Jio is awaiting for DoT to give a nod for the company to merge its two subsidiaries, Infotel Telecom and Rancore Technologies, with itself. The development will thus be beneficial to Reliance Jio, at this time. Currently, Reliance Jio holds a unified licence;Infotel holds licence for both NLD and ILD services while Rancore is an R&D unit. Reliance Jio is seeking to offer NLD and ILD services under a single permit.

Infotel Telecom is a part of a global consortium building the huge Bay of Bengal Gateway (BBG) sub-sea cable system. The 8,000 km submarine cable system will enhance global connectivity between South Asia, Southeast Asia and West Asia. It will link India with other Asian countries such as Malaysia, Singapore, Oman, UAE and Sri Lanka through the landing stations, Chennai and Mumbai. It will also have interconnections to plug on the sub-sea links across Africa, Europe and the Far East.

Reliance Jio Infocomm

Mumbai based Reliance Jio is headed by the renowned industrialist, Mukesh Ambani. The company has acquired permits to offer high speed 4G data and voice services across the country. It is gearing up to launch its 4G wireless services in 2015 through airwaves in the 2.3 GHz band.

In February this year, Reliance Jio had bagged 1800 MHz bandwidth in 14 circles with which it will offer voice services, too. The company holds 2300 MHz spectrum in 22 circles as well. Last year in October, the company had obtained a unified permit. It had to pay a sum of Rs. 1,658 crores which is the requisite amount internet service providers holding wireless broadband airwaves pay for offering voice services.In the past, telcos had to secure distinct permits for offering voice, data and other added services.

Reliance offers Discounts on Petrol and Diesel

December 19th, 2014 - by admin

Reliance Industries Limited (RIL) is offering discounts to its customers at its retail outlets for fuel. The decision came within two months of diesel prices being market-linked.


The retailers and dealers have said that RIL is offering a discount of Rs. 5 for petrol worth Rs. 300 and Rs. 10 for diesel worth Rs. 1000. An RIL executive has confirmed that for diesel worth Rs. 12,000, the discount extends upto Rs. 225. A senior RIL executive has confirmed this development.

Bulk buyers and transporters who facilitate transporting of fuel to remote locations will find these discounts attractive and beneficial.

These discounts will widen the customers’ base for the dealers. An RIL dealer from Gujarat said, “Post deregulation, our business has picked up pace, but we need to provide discounts for attracting more customers.”

RIL’s re-opening of outlets

In May 2008, RIL had shut its fuel pumps due to losses. It was selling fuel at rates much higher than the subsidised prices of state-owned oil companies.

RIL has 1,400 outlets and operates 300 outlets. RIL has re-opened a few of its outlets post the diesel de-regulation on October 18th.RIL dealers said that, “Some have agreed to re-open their outlets, while others are still demanding an increase in dealer commission.”

A few of RIL dealers who are demanding higher commission from the company have refused to re-open their outlets.

An RIL dealer informed, “Some dealers are claiming losses for non-operation of their retail outlets since four years. They do not plan to re-open the outlets till they are reimbursed. However, others have softened their stand and plan to begin operations at their outlets.”

A few company-owned pumps have already begun selling fuel. Around 150 dealer-owned, dealer-operated; or company-owned, dealer-operated outlets are expected to re-open soon.

At company-owned, dealer-operated outlets, RIL looks at the cost on account of services.

What the dealers say?

Dealers saythey have invested between Rs. 2 crores and Rs. 4 crores in each outlet. The cost of land is between Rs. 1.5 crores and Rs. 3 crores, depending on the location. Further, they additionally have to shell out Rs. 30 lakhs to Rs. 1 crore for maintaining services at the outlets.

According to dealers, RIL has communicated to them that it will revise their commissions after the retail outlets are re-opened. Dealers are looking out for a bank cash credit facility, under which RIL would provide loans to the dealers at reduced rate of interest than market rates.

“Earlier, this cash credit facility was in place which has now been discontinued. We are demanding that RIL begin this facility again so that we can spruce up our outlets. Till a few years ago, banks provided us with cash credit for their products which they were to repay in 15 days or less,” said a dealer.

RIL has one of the largest networks with state-of-the-art infrastructure, among private players. Dealers also informed that Essar Oil has no plans to offer discounts in the near future.

ISL receives an Overwhelming Response

December 15th, 2014 - by admin

After receiving a heart-warming response for the first edition of Hero India Super League (ISL), Nita Ambani, the Founder and Chairperson of Football Sports Development Limited,aims to make Indian football the winner. Reliance Foundation has progressed towards this with launching the soul of ISL – the grassroots programme.

ISL grassroots development programme

Nita Ambani along with Superstar, Salman Khan, recently launched the ISL grassroots development programme on 7th December, 2014. The programme is launched to train young footballers in the country to nourish their talents and teach them best practices in football. It aims to reach the mark of one million youngsters in the first year and give a platform to the youngsters to boost football across the nation. Ambani said, “We have launched the grass roots programme last Sunday. We aim that with the beginning of the next season, we reach out to half a million children.”

The programme is designed to train the youngsters and select the best ones for the next step. The most talented kids from the age group of 10 to 13 years will be given the Reliance Foundation’s Young Champ scholarship, which, apart from football expenses, will also cover their education fees. These footballers will then be given further training, which will help them to join the league of top footballers. “Reliance Foundation will help select the top talent and support them with full-time Residential Scholarships for their education and for the football development,” she added. This will help to shape the next generation of Indian footballers.

Ambani’s views on seeing the response for ISL

Nita Ambani expressed her joy on witnessing overwhelming response for ISL. Ahead of the Atletico de Kolkata (ATK) and FC Goa’s first leg semi-final at the Salt Lake Stadium at Kolkata, she said, “It’s just so wonderful to see the response that ISL has received, and football has received more than anything else. Fans have come out for our support in huge numbers. Not only in stadiums but also in the social media, they are lending their heart-felt support for the game. It’s been really heart-warming. I had come here during the gala opening, and now I have come back for the semi-final.”

Nita Ambani wishes to take ISL on the top. She wants to ensure that ISL grows from strength to strength in coming years. She said,”This is just the beginning. We want to better ourselves year after year and see that football wins in the end.”

Her residential city, Mumbai being all set to host the summit clash of the first edition on October 20, Nita Ambani said that they do not want to leave any stone unturned to make it all the more successful.”This being the first year, every day has been a learning process for us. We want to see that the final is conducted in an efficient way so that both the teams can play in a best possible way,” she further added.

Reliance Retail posted a net profit of Rs. 175.52 crores for the financial year, 2014. Reliance Retail, initiated in 2006, has around 1700 outlets in India. This is the first year in which the company has posted profits.

Reliance Retail has multiple brands like Reliance Fresh, Reliance Footprint, Reliance Trends and Reliance Digital under it. These brands operate their retail outlets in 146 cities.

The Chairman of Reliance Industries, MukeshAmbani had shown optimism in retaining the retail business investment, in June, this year. He had confidence that Reliance Retail has a lot of potential to bring profit to its parent company. He had great expectations from the retail market. In the annualgeneral meeting, he had told the shareholders that, “In the coming years, retail will emerge as a major growth engine for our consumer business.”

Reliance Retail’s performance in the recent years

In 2010-11, Reliance Retail had gross revenue of Rs. 6,144.17 crores and net loss of Rs. 530.64 crores. In 2011-12, the gross revenue grew to Rs. 7,670.3 crores while the loss decreased to Rs. 448.68 crores. In 2012-13, the gross revenue grew to Rs. 10,820.9 crores and loss further reduced to Rs. 211.93 crores. With the tremendous change in the scenario, 2013-14 became the luckiest year for Reliance Retail. With gross revenue of Rs. 14,438.8 crores, Reliance Retailmade a whooping profit of Rs. 175.52 crores.

Position of other big operators

Very few big organised retailers have earned a profit. Reliance Retail is one of them. Big names like Aditya Birla Retail, Spencer’s Retail and Star Bazaar, are still struggling with losses. In the financial year of 2014, Aditya Birla Retail suffered loss of Rs. 596 crores. The company witnessed a loss of Rs. 13 crores more than their previous year’s loss of Rs 583 crores. On the other hand, R. P. Goenka (RPG) group owned, Spencer’s retail posted a net loss of Rs. 165.8 crores. They have managed to reduce their losses from the previous year but are yet to make a profit.

About Reliance Retail

Reliance Retail Limited, a subsidiary of Reliance Industries Limited, was started in 2006. The company’s retail outlets provide grocery, clothing, footwear, electronics, lifestyle and home decor products and farm implements and inputs. It was started with an aim to give growth opportunities to farmers, vendor partners, small shopkeepers and consumers. Some of the brands under Reliance Retail are:

Reliance Fresh:Reliance fresh sells fruits, vegetables, dairy products, packaged foods, drinks and other FMCG products. It operates in more than 93 cities with more than 700 stores and 13 million customers.

Reliance Digital: Reliance digital sells electronic goods. It has around 150 global and local brands with more than 4000 products of big names like Sony, LG, Nokia, Samsung, Panasonic, etc.

Reliance Trends: Reliance trends, started in October 2007, gives fashionable apparels for men, women and children. It operates in 52 cities with 83 outlets and incorporates more than 100 brands.

Reliance Footprint:Reliance Footprint began as a single outlet in 2007,in Bangalore and now has 200 outlets in more than 96 cities. It sells accessories, luggage and big brands footwear for men, women and kids.

India’s largest private sector company, Reliance Industries Limited (RIL) and China’s giant player, Shandong Ruyi Science and Technology Group Co. Ltd. (Ruyi) have joined hands to expand the textile business. As per the deal, Reliance Industries will convert its existing textile business into a joint venture. Reliance will own the majority of 51% stakes and divest the remaining 49% stakes to the Chinese firm. It will receive cash consideration for the same.

The new venture is expected to build Reliance’s existing textile business and create a wide distribution network in India and Ruyi’s state of the art technology and its global reach. It plans to introduce some of the popular global brands of Ruyi. The joint Venture will also benefit from the existing strong brands – Reliance’s Vimal and Ruyi’s Georgia Gullini.

Reliance’s existing textile business

Textile is the business with which Reliance’s foundation was laid. Dhirubhai Ambani started off with textiles. From textile, Reliance Industries have come a long way to manufacture polyester, petrochemicals, refining crude products and producing oil and gas.

The textile brand name, Vimal is named after Dhirubhai’s brother Ramniklal Ambani’s son. The brand with its tagline, ‘Only Vimal’ became a household name since 1970s. It has a prominent presence in the Indian textile market especially in the worstedand synthetic suiting fabric segments. Bollywood stars and cricketers endorsed the brand.

In the recent years, the textile business has seen a decline because of innumerable competitors that came up. With the assistance of Ruyi and its experience in the textiles market, Reliance aims to take the brand further.

The Chinese firm, Ruyi

Ruyi is a $3-billion textile company with a global presence in regions like America, Europe, Japan, Australia, New Zealand and China. It consists of popular brands ‘Taylor & Lodge’, ‘Harris Tweed’, ‘Royal Ruyi China’, ‘Nogara Italy’ and ‘Indios Italy’. In India, Ruyi operates in the worsted suiting segment of the market under the brand name, ‘Georgia Gullini.’

What the companies say about the Joint Venture

Both the companies have high expectations from the joint venture. They aim to extend their brands in the global market.

Nikhil R. Meswani, Executive Director of Reliance Industries Ltd., said, “Our joint venture with Ruyi Group will help Reliance reposition its textile business on a high growth path.Our partner, Ruyi is deeply committed and has a wide global reach in the textile business. This will enable the joint venture to harness the growth potential of the Indian market and emerge as a global textile player.”

Qiu Yafu, Chairman of Shandong Ruyi Group, said, “China and India are strengthening their economic ties. With closer economic relations between the two and Shandong Ruyi Group’s expanding global presence in the textile sector, we see our joint venture with Reliance as a significant event for the group. To enter the Indian market with Reliance we truly believe in the bright future of this joint venture business.”

Reliance Industries (RIL) will sign an agreement with the Russian petrochemical company, SIBUR to set up a butyl rubber manufacturing plant in Gujarat. The deal will be signed during the upcoming visit of the Russian President, Vladimir Putin, to India. He is scheduled to land in the country tomorrow.
Evgeny Griva, the CEO of SIBUR Petrochemical India, said, “For the petrochemicals sector, bilateral cooperation between Russia and India will be very beneficial. India’s petrochemical industry is already fast growing, but there is increased scope for further growth as oil and gas processing companies look at monetising by-products of oil and gas production. This is exemplified by SIBUR and Reliance’s construction of a butyl rubber manufacturing plant in Jamnagar. The model in this will be of strategic cooperation wherein Reliance’s oil refinery will provide the raw materials for production and SIBUR will give the technology.”

Reliance’s Vadodara Plant
Reliance Industries has a manufacturing plant in Vadodara, Gujarat. It has 15 downstream plants for the manufacture of polymers, fibres and other chemicals. It has a polybutadiene rubber (PBR) plant I set up in 1979 and plant II started in 1996. These plants produce 80,000 tonnes of PBR every year.
India’s PBR demand is around 160,000 tonnes, every year. Of this, only half is met by the only PBR plant in the country. With the new deal, the Mukesh Ambani firm wants to reach a target of producing 120,000 tonnes of PBR in the same state and lessen the burden of imports. The demand of PBR in India is also predicted to grow at a rate of 6.4% every year.
Reliance Industries and SIBUR

Reliance Industries is India’s largest private sector company and SIBUR is the largest gas processing industry in Russia and a leader in petrochemicals business. The two companies had earlier signed a Memorandum of Understanding (MoU) in 2010 and formed a joint venture in February, 2012 aimed to produce 100,000 tonnes of butyl rubber at Jamnagar. The construction of the same began in February, 2013. The joint venture is known as Reliance SIBUR Elastomers Private Limited (RSEPL). Reliance owns 74.9% of the joint venture while SIBUR owns the remaining 25.1%.
India’s scenario

India ranks fourth among the largest consumers of elastomers, which is a type of polymer. The largest consumer is China, followed by the United States of America and then Japan. The demand of elastomers has remained more or less constant in America. But it is growing rapidly in developing countries like India and China. After thorough research, the market analysts have said that in India, the demand for synthetic rubber has increased more than double over the last few years.

Due to the growing demand, India is witnessing innumerable tenders for new petrochemical processing technology. This is held by major public sector units like ONGC (Oil and Natural Gas Corporation Limited) and GAIL (Gas Authority of India Limited). Griva added, “Demand for products is growing as the industry is developing, and India will soon need to increase its imports.”

Reliance Industries is all set to join hands with Russia’s petrochemical company SIBUR to set up a rubber plant in Gujarat and meet India’s growing PRB demands.

Nita Ambani, the Founder and Chairperson of Football Sports Development Limited (FDSL), launched the Indian Super League (ISL) grassroots football movement at Dhirubhai Ambani International School, Mumbai.

Aim of the Programme

The programme is launched to train young footballers in the country to nourish their talents and teach them best practices. It aims to reach the mark of one million youngsters in the first year. The programme is set to give a platform to the youngsters and boost football across the nation.

About the Programme

Through this programme, children will be introduced to the game of football and various different techniques related to the game. The first phase will begin in early 2015. Through its in-school and maidan initiatives, the programme aims to reach 500,000 children.ISL will also distribute 100,000 footballs with a larger focus on villages and small towns.

Once the youngsters are trained, the best ones will be selected for the next step. The most talented kids from the age group of 10 to 13 years will be given the Reliance Foundation’s Young Champ scholarship, which,apart from football expenses, will also cover their education fees.These footballers will then be given further training, which will help them to join the league of top footballers.

Many organisations have come together to make this programme sustainable. These include FDSL, 8 clubs of ISL, Reliance Foundation and three NGOs – Magic Bus in Mumbai, Delhi, Raigad and Bangalore; Slum Soccer in Nagpur, Thane and Navi Mumbai; and Yuwa in Jharkhand.

Founder’s Vision

Nita Ambani feels that education and sports equally play prime roles in the development of a child. These children can only then develop the nation. She said, “Sports is essential for the holistic development of young kids. It channelizes their energy in the right direction, builds their character and fosters their physical, social and emotional health.”

Emphasising on the importance of football,she added, “Football is a life skill. It is wonderful to see India becoming a multi-sport nation. The ISL grassroots training and scouting camps will train and outfit India’s young footballing talent. Reliance Foundation will further help select the top talent and support them with full-time Residential Scholarships.”

The Launch

On launching the grassroots programme, Nita Ambani said, “As we are approaching the business-end of the league, we are launching the soul of ISL- the grassroots program.”

Salman Khan, Bollywood superstar and Founder of Being Human, was also present at the launch. He endorsed her vision of grassroots football and said, “This grassroots programme is an important step for the development of the beautiful game of football. I am happy to be a part of this programme. Mrs. Ambani wants to develop India as a footballing nation. This programme will surely help to meet her aspirations and shape the next generation of Indian footballers.”

Reliance Industries ltd. (RIL) has signed a memorandum of understanding (MoU) with Mexico’ state-owned oil company Petroleos Mexicanos (PEMEX). Reliance industries stated the facts in a press release titled, ‘Reliance signs MoU with Petroleos Mexicanos (PEMEX)’ dated 5th December, 2014 which was given to Bombay stock exchange (BSE).

PEMEX CEO, Emilio Lozoya and Reliance Executive Director, PMS Prasad signed the deal.

The particulars of the pact

Under this pact, Reliance Industries will co-operate with the Mexican company for assessment of potential upstream oil and gas business opportunities in Mexico.

Reliance Industries want to expand their growth in the international markets to create a competitive edge for themselves. The company is hopeful of leveraging its organizational skills and create value for exploration and production for a longer period of time.

The release states, “RIL’s cooperation with PEMEX is in line with its growth strategy to explore opportunities and to expand its international asset base in regimes having internationally attractive competitive terms.”

The two companies will exchange their experiences and technologies with each other in the hydrocarbon sector. They will explore the added opportunities in varied streams of the hydrocarbons chain together. The streams range from exploration, to production, to refining and processing. Reliance will provide technical support for refining value maximisation.

PEMEX and Reliance industries, both controlled by Mukesh Ambani, will also devise environmental strategies to enable sustainable activities. They will promote social responsibility through their schemes.

The two companies will share their skills and information in the relevant areas of oil and gas industry. This includes deep-water oil and gas exploration and production.

Reliance Industries have been a pioneer in deepwater development and gave the best practises in the East Coast of India. Through the MoU, Reliance will share its proficiency. Along with this, it will also share its knowledge and experience in shale gas in United States of America.

The signing of the deal will further strengthen the long standing relationship between Reliance and PEMEX.

Mexico’s energy aspirations

Mexico, world’s tenth largest oil crude producer, is reforming its energy sector. It wants to attain $50 billion investment by 2018 to stem long-sliding crude production. It is gearing itself to open up its oil sector with the first bidding round in the coming year.

This is why PEMEX has been signing a lot of cooperation pacts. It is seeking more cooperation with India. It has said that it predicts India and China to bethe future growth markets for crude. Therefore, it had also signed a similar deal with the overseas arm of India’s state-run company, Oil and Natural Gas Corp.

Impact of the deal on market

The share prices of Reliance Industries went up by 0.56 percent. At 11:51 a.m., Reliance Industries’ shares were priced at Rs. 963.90 which is an increase of Rs.5.35. At 10:48 a.m., Nifty was also up by 0.12 percent.

The Chairman of Reliance Industries Ltd (RIL), Mukesh Ambani, has shown faith in India’s economy and said that the country will soon overpower China and become the world’s fastest growing economy in a couple of years.

At an event organised by Brown University in New Delhi,he said that he has known the Indian economy over 3 decades, but this year has been the most remarkable amongst all. This year has set the base for the country to reach the mark of the world’s fastest growing economy.He expressed his views by saying, “2014 has been a wonderful year for India. I have been in the business world and observing it since 30-35 years. The citizens of India have now spoken after 30 years. They have elected a majority government now in 2014, which will prove to be a boon for the country’s economy. The new government has brought a lot of confidence with itself.”

He further added, “The growth rate of India will be boosted only if there is internal stability. With 2014 being a landmark year, India will surely become the fastest growing economy over the globe in 2016-2017 and 2017-2018.”He is hopeful of a brighter future forthe Indian economy and enthused the audience into looking forward to this.

Decreasing Oil Prices

Oil prices in the first half of 2014 have been around USD 110/barrel. They have been consistently dropping since July, and have been below USD 100/barrel since the last 3 months.

Mr. Ambani said that the recent fall in global oil prices has come as a gift to India. “The oil prices had shot up from USD 20/barrel to USD 140/barrel between the period of 2004 and 2014. I have always wondered why they had increased so much. Now,the rates have reached USD 73/ barrel. This is truly a blessing for us. The horizon of USD 60/barrel to USD 70/barrel will the best for our country which imports 85 percent of its energy requirements. If this continues for 2 more years, then Indian economy will have no looking back,” he said.

He believes that if technology and manpower is used in the right direction then productivity will automatically increase. These factors will help India’s economy to grow further.

Beneficial impact on Reliance Industries Limited

Reliance Industries’ Jamnagar manufacturing division has a petroleum refinery and associated petrochemical plants. It is spread across 7,400 acres of land. It refines different kinds of crude oil, including sour crude, sweet crude and hybrid. It also manufactures various grades of fuel.

The fall in the prices of crude oil will reduce the overall cost of refining for the company and thus will prove to be very beneficial for the company.

The Reliance Foundation’s Jr. NBA program, initiated last year, has reached 7.5 lakhsyoungsters across 1,000 schools in India. This program is aimed to transform the landscape of basketball in India.

The Jr.NBA program

The Jr. NBA program runs across the globe to give basketball training to students and teachers of various schools. It is a comprehensive school-based youth program. It follows a pattern of three-phase player development. It trains students of classes 4-10 through weekly elite training camps. A boy and a girl from each school and each group (under 10, under 13 and under 16) are selected on the basis of their progress. 80 students in each city then attend regional elite camps and later 120 youngsters from the country are selected for the national elite camp.

The ‘Train the Trainer’ program under this, offers basketball training to coaches and P.E. teachers.Participating schools get basketball equipments like basketballs, whistles, coaching guides, nets, air pumps, etc.

In India, it was launched in 2013 in 3 cities and later expanded to 8 cities with the support of Reliance Foundation. The Foundation envisions the sport to become a means to promote health and fitness and inculcate strong values like discipline, teamwork, focus and sportsmanshipin youth.


The Jr. NBA program has witnessed remarkable progress in its very first year. NBA Commissioner, Adam Silver,expressed his delight and thanked Reliance Foundation for its support. Hesaid, “Our goal is to give the children of India, the opportunity to play, learn and enjoy the game of basketball.”The Jr.NBA program aims to train 1 million youth and 2,000 coaches of India by 2016.

The Chairperson of Reliance Foundation, Nita M. Ambani,also expressed her joy over the success of this program. She said, “Reliance Foundation has always dedicated itself in developing various sports at the grassroots level. Through Jr. NBA program, we want to give the students an opportunity to grow and explore the fun and skills of basketball.”

The owner of the NBA team, Sacramento King, Vivek Ranadive also shared his views on the program by saying, “Looking at the progress of the Jr. NBA program, it is certain that an Indian boy or girl will soon play in NBA or WNBA respectively.”