Reliance Industries Limited · NSE:RELIANCE
Reliance Industries — Deutsche Bank Namaste India Conference 2005
23 slides from Reliance Industries's conference presentation, Feb 21, 2005
Slide 1: Towards Global Leadership
Towards Global Leadership Reliance Industries Limited Deutsche Bank – Namaste India Conference Mumbai February 21, 2005 Forward Looking Statements This presentation contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “beli
Slide 2: Coverage; India: A Dynamic Global Player
Coverage The TheIndia IndiaAdvantage Advantage The The Reliance Reliance Group Group Our Our Journey Journey Mantras Mantrasfor forSuccess Success The The Future Future Summary Summary 3 India: A Dynamic Global Player India has arrived on the global horizon as a dynamic player. It has distinct a
Slide 3: India: A Dynamic Global Player - Institutions, Technology
India: A Dynamic Global Player Advantage India: Institutions • India’s democratic stability is a strategic input in rapid growth. • India’s capital markets are fully integrated with global economy. • India has robust institutions spread over a wide range. - Legal System - Judicial Infrastructure -
Slide 4: Advantage India: People & Talent
India: A Dynamic Global Player Advantage India: A land of a billion opportunities. • Over the last hundred years, the world moved from a 1.6 trillion US dollar economy to a 30 trillion US dollar economy. • Over the next fifty years, the world will accelerate to a 60 trillion US dollar economy. • G
Slide 5: Advantage India: Consumer Revolution
Advantage India: Consumer Revolution India has the second largest consumer base in the world. 300-400 million young Indians will enter the workforce in the next 20 years. They will be fired with an irrepressible urge for a dramatic change in the quality of life. They will be the harbinger of
Slide 6: India's No. 1 Private Sector Group
India’s No. 1 Private Sector Group • Revenues US$ 23 billion • Cash flows US$ 2.8 billion • Net income US$ 1.4 billion • 95% of revenues – energy chain A US$ 23 billion enterprise created in 25 years 11 An Integrated Energy company, with Interests in Services Businesses … Energy Chain Oil & Gas Anch
Slide 7: Leading Market Shares in India
Leading Market Shares in India 120 100 100 90 % Domestic Market 80 67 69 60 51 40 23 17 20 10 10 0 0 MEG PTA PX POY/PSF Polymer RIL Nearest Competitor Leader in all its major businesses 13 ….with Global Ranks Amongst the 200 most Profitable Companies in the Fortune Global 500 List Global Rank Net Pr
Slide 8: Reliance: Contribution to Indian Economy
Reliance: Contribution to Indian Economy • The Group contributes ¾ revenues equivalent to 3.5% of India’s GDP ¾ 7% of exports and ¾ 10% of the Central Government’s indirect tax revenues ¾ 17% of the profits of the private sector • The Group constitutes ¾ 12% of the Bombay Stock Exchange Index ¾ 10%
Slide 9: Reliance – The High Growth Journey
Coverage The TheIndia IndiaAdvantage Advantage The The Reliance Reliance Group Group Our Our Journey Journey Mantras Mantrasfor forSuccess Success The The Future Future Summary Summary 17 Reliance – The High Growth Journey 1970s 1980s 1990s 2000s Refining Investments Textiles Polyester Plastics Prod
Slide 10: Milestones: Pre- and Post-liberalisation
Milestones……Pre-liberalisation PSF PX and MEG Production Production 80 Net Profit (US$ Million) PTA Production 65 60 PFY Production LAB 40 Production IPO 20 3 0 76-77 77-78 1979 1980 1981 1982 1983 1984 1985 1986 87-88 88-89 89-90 90-91 19 Milestones……. Post-liberalisation IPCL Infocomm Initiates ac
Slide 11: Rapid Growth Journey
Rapid Growth Journey FY 1978 FY 1991 FY 2004 CARG % US$ Mill US$ Mill US$ Mill 1991-2004 Sales 76 1,083 17,022 24 Cash Profit 5 155 2,104 22 Net Profit 3 65 1,180 25 Networth 11 595 7,881 22 Total Assets 38 1,400 16,277 21 Exports 7 29 3,424 44 Market Cap 11 942 17,185 25 Added Market cap of US$ 17
Slide 12: "Mantras" for Success
Coverage The TheIndia IndiaAdvantage Advantage The The Reliance Reliance Group Group Our Our Journey Journey Mantras Mantrasfor forSuccess Success The The Future Future Summary Summary 23 “Mantras” for Success • World scale, and world class projects • State-of-the-art technologies • Integration acro
Slide 13: World Scale and World Class Projects
World scale and World Class Projects Global Rank Polyester (fibre and yarn) 2 Paraxylene 3 PTA 5 Polypropylene 7 Refining 3rd largest refinery at single location Amongst the top ten Global players based on Capacity in major product categories 25 State-of-the-art Technologies Business Technology • Re
Slide 14: Global Competitiveness - Exports
Global Competitiveness - Exports • Reliance is the largest exporter in India with exports of US$5 billion • Share of exports increasing – now at 24% of turnover • Exporting to 97 countries Exports demonstrate the international quality of our products, and the ability to compete with global leaders 2
Slide 15: Corporate Governance
Corporate Governance • Governance Committee comprising 3 independent directors set-up • Will oversee/interface with stakeholders incl. investors, media and institutions • Review observance of corporate governance standards at all levels and suggest remedial measures, wherever necessary • Provide tim
Slide 16: Indian GDP Trend
Indian GDP Trend 55% 50% Services 45% 40% 35% Agriculture 30% Industry 25% 20% F1992 F1994 F1995 F1996 F1997 F2000 F2001 F2002 F1991 F1993 F1998 F1999 F2003 F2004 RBI, CSO Increasing contribution of Services & Manufacturing in Indian Economy 31 We Mirror India’s Growth • Manufacturing ¾ Oil and Gas
Slide 17: E & P – Exponential Growth Opportunity
E & P – Exponential Growth Opportunity (MMSCMD) • India’s gas demand will increase to 200 151 231 MMSCMD in the next 5 years 150 Deficit - 71 100 80 • Large demand-supply gap over the 50 0 next 5 years Supply Demand • Reliance investing USD 4 Bn in Exploration and development of gas fields • Gas dis
Slide 18: Polyester
Polyester Polyester – Dominant fiber in the world Opportunity - growth in non-apparel segment 80 Apparel Non Apparel 60 Cotton Polyester 120% 100% 7% 80% 40% 40 48% 60% 20 93% Polyester Cotton 40% 60% 52% 0 20% 0% 1960 1970 1980 1990 1995 2000 2005 2010 World China India • Manufacturing capacity shi
Slide 19: Power
Power Annual Per Capita Consumption (Kwh) • Power generation capacity : - India 105,000 MW 3000 2550 - China 320,000 MW 2000 • Current Annual addition in India is 975 at 4,000 MW 1000 400 • Required - additional capacity of 0 World Asia India 100,000 MW over next 10 years • A unique growth opportuni
Slide 20: Infocomm – Going Forward
India’s # 1 Mobile operator • Service available in 1,400+ towns • Service to be expanded to 5,700 towns and 400,000 • Pre-paid launched in Feb 2004 villages by end 2005. Wireless • PCO business launched in May 2004 • International roaming to • International roaming to GSM Networks in 172 CDMA networ
Slide 21: The New Growth Engines
The New Growth Engines • Substantial investments in Oil & Gas (USD 4 Bn) ¾ New exploration activities ¾ Development of gas fields • Creation of retail marketing network for transportation fuels (USD 1.5 Bn) • Increase in petrochemicals capacities (USD 2 Bn) • Investments in new opportunities (USD 2
Slide 22: Summary
Coverage The TheIndia IndiaAdvantage Advantage The The Reliance Reliance Group Group Our Our Journey Journey Mantras Mantrasfor forSuccess Success The The Future Future Summary Summary 43 Summary • Consistent overall shareholder value enhancement – CAGR of 18% over the last five years • Financial co
Slide 23: Summary
Summary • Reliance is a convergent play between the manufacturing and services businesses • A combination of the energy chain and the information and communication businesses • Reliance’s superior operational and financial performance reflects its global competitiveness, prudent business strategies,
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