Management Business Overview Analysis and description of all major business segments of Reliance covering brands, Discussion and strategic advantages and competitive strengths. The discussion structure covers the market environment the business operates in and how Reliance’s business model and operational Analysis excellence helped achieve a strong performance. Retail Digital Services Media and Entertainment
Economic Context and Liquidity and Capital Operational Highlights Resources 42 122
Financial Performance Risk and Governance PG 50 PG 68 PG 82 and Review 124 52 Strategic Advantages and 70 Strategic Advantages and 84 Strategic Advantages and 46 Competitive Strengths Competitive Strengths Competitive Strengths Awards and Recognition 52 Performance Summary 70 Performance Summary 84 Performance Summary Business Overview 133 53 Operating Framework 71 Operating Framework 85 Operating Framework 54 Highlights FY 2020-21 72 Highlights FY 2020-21 86 Highlights FY 2020-21 50 56 Industry Overview 74 Industry Overview 88 Industry Overview 57 Performance Update 76 Performance Update 90 Performance Update 58 Business Performance 77 Business Performance 91 Business Performance 67 Outlook 81 Outlook 93 Outlook
Oil to Chemicals Oil and Gas E&P
PG 94 PG 112
96 Strategic Advantages and 114 Strategic Advantages and Forward-looking Statement Competitive Strengths Competitive Strengths The report contains forward-looking statements, identified by words like ‘plans’, ‘expects’, ‘will’, ‘anticipates’, ‘believes’, 96 Performance Summary 114 Performance Summary ‘intends’, ‘projects’, ‘estimates’ and so on. All statements that address expectations or projections about the future, but not 97 Operating Framework 115 Highlights FY 2020-21 limited to the Company’s strategy for growth, product development, market position, expenditures, and financial results, are 98 Highlights FY 2020-21 117 Industry Overview forward-looking statements. Since these are based on certain assumptions and expectations of future events, the Company 100 Industry Overview 118 Performance Update cannot guarantee that these are accurate or will be realised. The Company’s actual results, performance or achievements 103 Performance Update 118 Business Performance could thus differ from those projected in any forward-looking statements. The Company assumes no responsibility to 104 Business Performance 121 Outlook publicly amend, modify or revise any such statements on the basis of subsequent developments, information or events. 109 Outlook The Company disclaims any obligation to update these forward-looking statements, except as may be required by law. CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis OVERVIEW REVIEW STATEMENTS Economic Context and Operational Highlights
Overview
Global The global economy contracted by roll out. The US fiscal stimulus has March 2021 and rail traffic also weak 3.3% in CY 2020, as all major economies further improved global oil demand at -28% y-o-y. Among other industrial barring China slipped into recession outlook. Global demand is expected indicators, electricity demand growth is with COVID-induced lockdowns. to grow 5.9 mb/d y-o-y in 2021 to now positive and GST collections have Advanced Economies’ (AE) decline average ~96.4 mb/d. remained robust at above `1 trillion of 4.7% was steeper than Emerging mark. Digital adoption saw acceleration The global economy is expected to see Markets (EM) decline of 2.2%. Within during the crisis, particularly in the a rebound in 2021 with the International the AE complex, the decline in Euro Area usage of digital payments. UPI Monetary Fund (IMF) expecting 6% (-6.6%) was much sharper than that in payments grew more than 100% y-o-y growth, with US stimulus and vaccine the US (-3.5%). Within the EMs, China’s in 2021 as monthly transaction volumes optimism leading to further opening up GDP grew 2.3%. Despite the steep crossed `4 trillion or nearly 25% of GDP of the economies. The growth recovery global decline in CY 2020, global on that run rate. is likely to be led by the US and China GDP decline was lower than initially – the US is estimated to grow 6.4% in The external sector exhibited resilience feared primarily due to unprecedented 2021 and China by 8.4%. Governments as current account turned surplus for monetary policy support from global and Central Banks are expected to the first time since 2004, on weaker central banks and fiscal stimulus from maintain supportive policies until domestic demand, falling oil prices and governments. Global fiscal stimulus the recovery is firmly underway. The strength in India’s services exports. reached ~US$18.6 trillion by March strength of recovery will depend on FDI and equity FII flows were strong, 2021 (23% of GDP) while monetary vaccine roll-out. driving India’s forex reserves to an all- stimulus by global central banks time high of ~US$580 billion by the end reached US$16.6 trillion (21% of GDP). India of FY 2020-21, against ~US$475 billion Global trade volume (goods and The Indian economy is estimated to by the end of FY 2019-20. Highlights and Key Events services) contracted by 9.6% in CY 2020 decline by 8% in FY 2020-21, the first The Reserve Bank of India (RBI), and the after a modest 1% increase in CY 2019. year of contraction since 1980. India’s central and state governments provided Global trade also started recovering economic decline was sharper than critical support to the economy during in 4Q FY 2021 as merchandise trade other key economies due to strict and During FY 2020-21, Reliance forged the crisis. The RBI maintained loose Jio Platforms and Reliance Retail, raised CAPITAL RAISED volume turned positive on y-o-y basis early lockdowns to control the spread defining strategic partnerships with monetary policy, cutting repo rates `152,056 crore and `47,265 crore from November 2020. Global trade is of COVID-19. However, growth has leading technology firms and marquee by 115 bps during early CY 2020. To respectively, from marquee global forecast to grow 8% in CY 2021 with continued to recover and was back investors across businesses. Through crore keep funding markets easy, the RBI investors including Facebook, Google, `2,60,074 merchandise volumes recovering faster in positive territory (+0.4%) in 3Q FY the Rights Issue and asset monetisation, maintained liquidity surplus through Silver Lake, Vista Equity Partners, than services volumes. 2021 after a decline of 24.4% and 7.3% Reliance executed the largest ever various monetary measures. General Atlantic, KKR, Mubadala, ADIA, Oil prices averaged US$43/bbl in 2020 respectively in 1Q FY 2021 and 2Q FY capital raise in India of `2,60,074 crore. India’s oil demand was down 9.1% TPG, L Catterton, PIF, Intel Capital and vs US$64/bbl in 2019 as COVID-19 led 2021. India saw a V-shaped recovery The fund raises along with capital y-o-y due to the unprecedented Qualcomm Ventures. to an unprecedented erosion in as most consumption and industrial commitments exceeded Net Debt indicators were back in positive growth demand shock during 1H FY 2021. levels, helping Reliance achieve a Net global oil demand. Global demand bp invested `7,629 crore for a 49% territory in the September-December While gasoline and diesel consumption Debt Free Balance sheet ahead of the averaged ~90.5 mb/d in 2020 (down stake in the fuel retailing business. quarter after being in deep negative in declined 6.8% y-o-y and 12% y-o-y stated timeline of March 2021. 9.5 mb/d y-o-y). Large production cuts The arrangement between RIL and bp the June quarter. Auto sales rebounded respectively, LPG registered positive by OPEC+ 9.7 mb/d in May-July and will build on RIL’s current fuel retailing from August 2020 onwards and both growth (+4.8% y-o-y) due to stay- 7.7 mb/d thereafter helped with a price network of 1,400 sites across India. two-wheeler and passenger vehicle at-home restrictions. With airlines RIL successfully completed floor in the face of the unprecedented The joint venture will aim to be a leader sales growth has been positive since remaining shut for most of the year, India’s largest ever Rights Issue demand shock. Global crude oil prices in mobility and low-carbon solutions, then. Travel indicators have remained and yet to resume full-scale operations, of `53,124 crore (oversubscribed have recovered in 2021 as economies bringing cleaner and affordable options weak – air traffic still at -37% y-o-y in jet fuel (ATF) consumption was by 1.59 times) - the world’s begin reopening amidst vaccine for Indian consumers with digital and down 53.7% y-o-y. largest by a Non-Financing technology being key enablers. Institution in the last ten years
42 Reliance Industries Limited Integrated Annual Report 2020-21 43 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Economic context and operational highlights OVERVIEW REVIEW STATEMENTS
Highlights and Key Events
Retail Digital Services Oil to Chemicals During the course of the year, the In Digital Services, Reliance Jio became Reliance has initiated the proceedings of Retail business omni-enabled its the first operator outside China to carving out its O2C businesses store network, strengthened digital achieve 400 million subscribers in into a separate subsidiary and the commerce platforms across the a single country market. Reliance process is expected to be completed in business and built capacities for Jio continues to revolutionise CY 2021. O2C reorganisation creates home deliveries. digitalisation in India with data an independent, global-scale growth consumption in excess of engine for RIL, with a strong cash flow Alongside, the business expanded its 5 Exabyte per month on its network. generation potential while facilitating partnerships with merchants across value creation through strategic the country under its inclusive New Strategic initiatives along with Facebook partnerships and attracting a dedicated Commerce model. By the end of and Google will enhance consumer pool of investor capital. the year, the digital commerce and service offerings and facilitate greater merchant partnerships business digital inclusion in India. Reliance is Through the COVID-19 crisis, Reliance accounted for about 10% of revenues, working with Microsoft to enhance operated its O2C facilities at near significantly stepped up from near zero adoption of leading technologies like 100% by shifting products to export in the preceding year. Reliance Retail data analytics, Artificial Intelligence (AI), markets to sustain operating rates. invested behind a range of acquisitions cognitive services, blockchain, Internet Scale economics along with strong to strengthen its capabilities in of Things (IoT), and edge computing Oil and Gas E&P Reliance Jio successfully acquired the competitive cost positions across the supply chain, technology, and among small and medium enterprises. Apart from ensuring the safety and right to use spectrum in all 22 circles the chain helped Reliance sustain During the year, Reliance successfully product portfolio. well-being of employees through Qualcomm Technologies, Inc. and Jio, across India in the recently concluded positive contribution through this commissioned Asia’s deepest gas the pandemic, Reliance significantly These include the acquisition of leading along with its wholly owned subsidiary spectrum auctions conducted by the unprecedented phase. Diversified field and India’s first ultra-deepwater gas stepped up its support to the digital marketplace, Netmeds, furniture Radisys Corporation, announced Government of India. Through this customer base, global product field – R Cluster in KG D6 Block. community. The COVID-19 response and home decor retailer, Urban Ladder expanded efforts to develop open acquisition, Reliance Jio’s total spectrum placement and feedstock flexibility This will help Reliance work towards included use of facilities for production and the lingerie and intimate wear and interoperable interface compliant footprint has increased significantly, supported performance. India’s transition to a cleaner and of grades and equipment used in brand, Zivame. Reliance Retail also architecture-based 5G solutions with a by 56%, to 1,732 MHz. The acquired greener gas-based economy. medical applications, steps to support entered into an agreement to acquire virtualised RAN. This work is intended to spectrum can be utilised for transition The year was also marked by the state medical infrastructure and the retail and wholesale business and fast-track the development and roll-out to 5G services at the appropriate COVID-19 crisis, which resulted in a contributions to social efforts in helping the logistics and warehousing business of indigenous 5G network infrastructure time, where Jio has developed huge loss to mankind. During these marginalised communities and migrant of the Future Group for a consideration and services in India. its own 5G stack. tough times, Reliance leveraged all its workers. Reliance is geared to provide of `24,713 crore. This acquisition is resources – human as well as material products and services needed by Indian awaiting requisite approvals. ~100% MHz Utilisation of O2C assets even – to assist India in its fight against the consumers as the economy emerges 1,732 during the COVID-19 COVID-19 pandemic. Reliance Jio total spectrum from the lockdown. footprint
To combat climate change, Reliance has set itself a target to become Net Carbon Zero by 2035. This is based on RIL’s vision of clean and green development which will provide the Company with an opportunity to accelerate and develop a New Energy and New Materials business.
44 Reliance Industries Limited Integrated Annual Report 2020-21 45 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis OVERVIEW REVIEW STATEMENTS Financial Performance and Review
Financial Performance Summary (Consolidated and Standalone)
Particulars Consolidated Standalone
FY 2020-21 FY 2019-20 FY 2020-21 FY 2019-20
` in crore US$ in billion ` in crore ` in crore US$ in billion ` in crore Alok Agarwal Srikanth Value of Sales and Services (Revenue) 5,39,238 73.8 6,59,997 2,78,940 38.2 3,66,177 Venkatachari EBITDA 97,580 13.3 1,02,280 48,318 6.6 66,394 Cash Profit 79,828 10.9 67,179 36,411 5.0 42,844 Segment EBIT 62,460 8.5 70,192 30,048 4.1 46,817 Net Profit 53,739 7.4 39,880 31,944 4.4 30,903 Cash and Marketable Securities 2,54,019 34.7 1,75,259 1,82,225 24.9 1,45,577 Tangible and Intangible Assets (Excluding Goodwill) 6,56,999 89.9 6,31,505 3,39,668 46.5 3,34,443 Anshuman Thakur Dinesh Thapar Saurabh Sancheti C. S. Borar Raj Mullick Gross Debt 2,51,811 34.4 3,36,294 2,21,698 30.3 2,98,599
US$1=`73.11 (Exchange rate as on 31.03.21)
Revenue Gross Debt Finance Cost
Reliance achieved consolidated revenue Reliance’s Gross Debt was at `2,51,811 Finance Cost was at `21,189 crore of `5,39,238 crore (US$73.8 billion), crore (US$34.4 billion). This includes (US$2.9 billion) as against `22,027 a decrease of 18.3%, as compared to standalone gross debt of `2,21,698 crore in the previous year. Large capital Lockdowns enforced to contain the global pandemic `6,59,997 crore in the previous year. The crore and balance in key subsidiaries, raise through Asset Monetisation and decrease in revenue was primarily due including Reliance Jio (`11,196 crore), Rights Issue were primarily utilised led to severe demand destruction, testing the resilience to lower volumes and realisation across Reliance Retail (`9,030 crore), Shale to deleverage the balance sheet. The key products in the O2C segment. Gas Operations (`3,931 crore), Reliance benefits of deleveraging were partially of our operating models and flexibility. Revenue in the Retail segment were Sibur Elastomers (`2,339 crore) and offset by lower capitalisation of interest impacted by store closures, operational Independent Media Trust Group with commissioning of projects disruptions, and significantly lower ( 2,414 crore). across businesses. Despite the challenges, we operated O2C facilities at near-normal levels and delivered ` footfalls in view of the pandemic industry-leading results. Robust growth in the Digital Services business and steady revival in situation. This was partially offset by Cash and Marketable Other Income Securities the O2C and Retail segments helped us deliver strong operational results for the year. higher revenue from the Digital Services Other Income was at `16,327 crore segment on account of continued Cash and Marketable Securities were at (US$2.2 billion) as against 13,164 We leveraged our strengths at a time when the Indian economy was poised for a confident ` subscriber traction and higher ARPU. `2,54,019 crore (US$34.7 billion). The crore in the previous year, primarily on recovery. We demonstrated both resilience and agility in adjusting to changing market Company’s cash and cash equivalents account of gain on sale of investments Profit conditions. The robustness and scalability of our businesses, particularly the consumer were higher than the outstanding debt and interest income. businesses, attracted marquee partners and investors which strengthened our balance sheet. Consolidated EBITDA for the year as on March 31, 2021. decreased by 4.6% on a y-o-y basis to Basic EPS Tangible and Intangible We remain focused on delivering value for our stakeholders and achieving our longstanding `97,580 crore as compared to `1,02,280 Basic Earnings Per Share (EPS) for Assets financial priorities. Our stronger-than-ever balance sheet gives us the opportunity to invest for crore in the previous year, primarily the year ended March 31, 2021 (after due to lower contribution from O2C sustainable long-term value creation across businesses. Reliance’s fixed assets (excluding exceptional items) was at `76.37 as businesses, which were impacted by goodwill) stood at `6,56,999 crore against `63.07 in the previous year. pandemic related demand destruction (US$89.9 billion) as on March 31, 2021. Basic Earnings Per Share for the in 1H FY 2021. The Retail and Digital This includes RIL’s standalone fixed year ended March 31, 2021 (before Services businesses achieved all-time assets of `3,39,668 crore and balance of exceptional items) was at `67.60 as high EBITDA levels during the year. `3,17,331 crore in its subsidiaries, mainly against `70.19 in the previous year. Cash Profit increased by 18.8% to Reliance Jio and Reliance Retail. Capital Expenditure `79,828 crore as compared to `67,179 crore in the previous year. Profit Capital Expenditure for the year ended After Tax (after exceptional items) was 34.8% March 31, 2021 was `79,667 crore higher by 34.8% at `53,739 crore. PAT growth y-o-y (US$10.9 billion), including exchange (after exceptional items) rate difference. Capital Expenditure was principally on account of the Digital Services business, projects in the O2C business and in the Retail business.
46 Reliance Industries Limited Integrated Annual Report 2020-21 47 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Financial Performance and Review OVERVIEW REVIEW STATEMENTS
RIL Standalone Segment review
RIL’s standalone revenue for FY 2020-21 was `2,78,940 crore (US$38.2 billion), a decrease of 23.8% Retail Digital Services Oil to Chemicals on y-o-y basis. Profit after tax was Reliance Retail delivered a resilient The business recorded revenue of `90,287 Revenue for the O2C business declined at `31,944 crore (US$4.4 billion) an performance against the backdrop of an crore, as against `69,605 crore in the previous by 29.1% to `3,20,008 crore on account of increase of 3.4% against `30,903 unprecedented and challenging operating year, with year-end subscribers base at 426.2 lower volumes and price realisation across crore in the previous year. Basic EPS environment, arising from the COVID-19 million. Reliance Jio reported strong financial key products. Sharp demand contraction on standalone basis (after exceptional pandemic situation that emerged at the start performance for the year. Segment EBITDA in the first half of the year impacted growth items) for the year was `49.66 as against of the year. The business delivered Gross was at `34,035 crore for the year, as against for the year. The price realisation was `48.42 in the previous year. Basic EPS Revenue of `1,53,818 crore. The revenue were `23,348 crore in the previous year. lower due to decline in average crude and on standalone basis (before exceptional impacted on account of store closures (80% feedstock prices. Brent crude price for items) for the year was `42.97 as against stores operational), significantly lower footfalls the year averaged at US$44.3/bbl versus `55.07 in the previous year. (65% of last year) and operational disruptions `90,287 crore US$61.1/bbl in the previous year, a decline through the year. At an EBITDA of `9,842 Digital Services revenue of 27.5%. EBITDA for the year was lower Movement in key crore for FY 2020-21, the business posted with weak demand environment in 1H FY financial ratios its all-time high profit, driven by the gradual 2021. Gradual easing of lockdowns and rebound of revenue streams, judicious cost improvement in economic activities during • The debtors turnover ratio improved PG 68 management initiatives and boosted by higher 2H FY 2021 supported demand and margin to 47.9 in FY 2020-21 as against 37.4 investment income. recovery for transportation fuels and in the previous year primarily due to downstream chemicals. effective collection of receivables, conservative credit policy and high- crore quality customer base `1,53,818 Retail revenue crore • The interest coverage ratio declined `3,20,008 O2C revenue to 2.4 in FY 2020-21 as against 4.7 in the previous year with lower EBIT PG 50 and increase in finance cost with PG 94 lower interest capitalisation due to commissioning of projects • The current ratio improved to 1.0 in FY 2020-21 as against 0.5 in the Media and Entertainment Oil and Gas E&P previous year due to higher current Consolidated EBITDA of the business rose Revenue for the Oil and Gas business declined assets with accounting of call money 29% y-o-y to `796 crore despite the by 33.4% y-o-y to `2,140 crore, primarily due receivable towards rights issue and pandemic impact dragging revenue down by to lower volumes from conventional fields payment of other current liabilities 12% y-o-y. EBITDA margin rose to a highest and overall lower commodity price realisation. • The net profit margin (after ever ~17%, having improved y-o-y EBITDA for the year declined by 26.9% to `258 exceptional items) improved to 11.5% for three years continuously. Broad-based crore. Price realisation for Coal Bed Methane in FY 2020-21 as against 8.4% in the cost controls across businesses, growth in (CBM) gas for the year was lower by 40% at previous year due to gains on sale of annuity-style revenue streams and content US$4.27/mmbtu (GCV). Realisations in the investments, lower tax provision and cost renegotiations have boosted profitability. US Shale business also declined by 27% to lower turnover base with sharp fall in PAT jumped by ~9x y-o-y to `547 crore. US$2.07/MCFe. Lower conventional volumes average price realisation for the year. due to expiry of Panna Mukta Production • The return on net worth fell to 8.8% Sharing Contract in December 2019 and in FY 2020-21 as against 10.4% in `5,459 crore cessation of production from D1D3 (KG D6) FY 2019-20 as net worth increased Media and field in February 2020. primarily on account of rights issue Entertainment revenue and retained earnings for the year.
PG 82 `2,140 crore Oil and Gas revenue
PG 112
48 Reliance Industries Limited Integrated Annual Report 2020-21 49 Management Discussion and Analysis Business Overview
Retail
Reliance Retail was founded with a view to revolutionise retail in India. Today, it is the largest, fastest growing and most profitable retail company in India with diversified omni-channel presence Subramaniam V. Isha Ambani Akash Ambani Anant Ambani Ashwin Khasgiwala through integrated store concepts and digital commerce platforms. It is the only Indian retailer to feature in ‘Global Powers of Retailing’.
As a market leader, Reliance Retail caters to five Akhilesh Prasad Darshan Mehta Damodar Mall Brian Bade Kaushal Nevrekar Sunil Nayak key consumption baskets
1 Consumer Electronics 4 Pharma Retail 2 Fashion & Lifestyle 5 Connectivity 3 Grocery Dinesh Thapar Jayant Bhalerao Dr. Vinodkumar Bijay Sahoo Gulur Venkatesh Dhanuka
1,00,000+ “Reliance Retail’s results reflect a certain resilience Customers served every hour and growing fast in a challenging operating environment. Our robust Reach operating model, agility in execution and leading 1 156 million 7,000+ 640 million capabilities have withstood the testing times posed Registered Loyal Cities Footfalls by the pandemic, which allowed us to serve our Customer Base customers far and wide and enabled us to deliver a Scale
12,711 33.8 million Sq. ft 2,00,000+ market leading performance.” Retail Stores Retail Space Employees
Highlights FY 2020-21 Infrastructure
REVENUE 5.6% EBITDA 1.5% EBITDA MARGIN 263 272 million cu. ft. 1.4 million Warehouses Of warehousing Route kms and Distribution space moved per day `1,53,818 crore `9,842 crore 7.3% Centres EBITDA Margin is calculated on 1. FY 2019-20 number being used in view of FY 2020-21 year being disruptive revenue from operations
50 Reliance Industries Limited CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Business Overview: Retail OVERVIEW REVIEW STATEMENTS
Performance Operating Framework Vision To be the most admired and successful retail company in India that Summary Reliance Retail’s guiding philosophy rests on the tenets of inclusive growth and building sustainable societal enhances the quality of life of every Indian. value for millions of Indians. REVENUE Mission (` in crore) • Provide millions of customers with unlimited choice, outstanding An inclusive approach to retailing value proposition, superior quality and unmatched experience 1,63,029 1,53,818 across the full spectrum of products and services Product Innovation / • Serve the entire spectrum of Indian society i.e. from households, 1,30,566 Investing in Design Customer Design Brands Solutions kiranas and merchants, to small and medium enterprises and Development Insights Expertise and institutions • Reach the length and breadth of the country through our physical Network of and digital distribution platforms Developing Sourcing Vendor • Be the partner of choice and enable win-win opportunities for our Ecosystem Producers, Local Regional and Development ecosystem across producers, small and medium enterprises, brand MSMEs Manufacturers National Brands companies and global suppliers • Generate direct and indirect employment opportunities with skill Widest Reach Efficient Last Mile transformation and talent development on an unprecedented scale FY FY FY Building Supply 2019 2020 2021 Chain Infrastructure State-of-the-art Technology Enabled
Pan-India Physical Stores Digital Platforms Strategic Advantages and EBITDA Network (` in crore) Expanding Retail Network Competitive Strengths 9,695 9,842
6,201 Electronics Grocery Trusted Empowering India’s only true Deep understanding Partners Merchants national retailer with of India and Bharat, Fashion Pharmacy the widest coverage serving all consumption baskets Better Benefiting Experience FY FY FY Consumers 2019 2020 2021 Unmatched retail Partner to producers, capabilities: End-to-end MSMEs, national, value chain, design, regional, local and RETAIL STORES • Reliance Retail has set up and • The business is investing in building • The New Commerce model seeks to merchandising, global brands (nos.) continues to invest in building design state-of-the-art supply chain partner with millions of unorganised own brands and product development centres infrastructure in India by linking all merchants through an inclusive 12,711 to offer relevant, contemporary and major sourcing locations through model of growth while digitally 11,784 high quality products to meet the an automated, modular, reliable and enabling and empowering them, 10,415 diverse needs of its customers scalable warehousing, logistics and and offering them a compelling • Reliance Retail’s sourcing ecosystem last mile fulfilment ecosystem value proposition to grow their Extensive supply chain Deep technologies and works with small producers and • Reliance Retail’s selling ecosystem businesses and earnings. Together, it infrastructure data intelligence at the manufacturers SMBs, regional, comprises a vast network of stores will serve millions of households and core national and international brands. and digital commerce platforms to customers across the country In particular, it supports small serve customers across the length • Reliance Retail provides employment producers to modernise their and breadth of the country to tens of thousands of people, operations, minimise inefficiencies bringing joy and pride to their and reduce leakages families while enabling livelihoods Best-in-class and Talent and organisation FY FY FY for many others scalable project to power operations 2019 2020 2021 execution
52 Reliance Industries Limited Integrated Annual Report 2020-21 53 Highlights FY 2020-21 New Commerce partnerships with over a million merchants Reinforced and enhanced safety across consumption baskets and hygiene standards across the breadth of Reliance Retail’s operations with the emergence of Forayed into pharma retail; the COVID-19 situation acquired online pharmacy, Netmeds Created 65,000+ new jobs since Delivered revenues at par with Registered loyal customer base the onset of the pandemic last year despite store closures continues to grow, currently at and operational disruptions 156 million, up 25% y-o-y Executed India’s largest fund raise in the consumer / retail sector from EBITDA at an all-time high, Opened 1,456 new stores, taking marquee global investors, reflecting driven by business rebound, the total store count to 12,711 the conviction in Reliance Retail’s track cost management and with operated area spanning record, operating model and prospects investment income over 33.8 million sq. ft.
Stepped up Lifestyle play Strengthened digital commerce through the acquisition of and omni-channel capabilities Urban Ladder and Zivame across all businesses of Grocery, Consumer Electronics, Fashion & Lifestyle and Pharma
Launched India’s largest hyperlocal platform, JioMart, with presence in 200+ cities
54 Reliance Industries Limited Integrated Annual Report 2020-21 55 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Business Overview: Retail OVERVIEW REVIEW STATEMENTS
Industry Overview Performance Update
India’s retail market is estimated at US$822 billion in FY 2019-20 and is expected to grow at a CAGR of 10% over the next five Financial, Non-Financial, Revenue Mix years to reach US$1,315 billion by FY 2024-25. The penetration of organised retail market is estimated at 11% in FY 2019- (In ` crore) FY 2020-21 FY 2019-20 % change 20 and is expected to grow to 18% by FY 2024-25. The organised retail market is estimated at US$88 billion in FY 2019-20 y-o-y and is expected to grow at a CAGR of 19% over the next five years to reach US$231 billion by FY 2024-25. The unorganised Value of sales and services 1,53,818 1,63,029 (5.6) retail market is poised to grow to over US$1 trillion over this period, making it amongst the most attractive consumer sector Revenue from operations 1,35,252 1,46,365 (7.6) opportunities across the world. EBITDA 9,842 9,695 1.5 EBITDA Margin(%)* 7.3 6.6 +70 bps Emerging Trends and Business Response Area operational (million sq. ft.) 33.8 28.7 * EBITDA Margin is calculated on revenue from operations
• Reliance Retail delivered a resilient • As operating curbs were • In what is the largest fund raise in Description performance against the backdrop of progressively lifted, new store the consumer/retail sector in India, Growth of Online Omni-channel Physical stores Evolving customer Transforming an unprecedented and challenging openings resumed with 1,456 stores Reliance Retail raised `47,265 crore Channel as a new normal remain a growth preferences and and empowering operating environment, arising from being added. This notably would for a 10.09% stake from marquee Digital commerce Convergence of opportunity emergence of new unorganised retail the pandemic situation that emerged be amongst the highest offline global investors rd gained significant Physical and Digital Physical stores remain categories Addressing supply at the start of the financial year expansions undertaken by any • Reliance Retail ranks 53 in the traction in the wake of retail emerging an opportunity for Change in consumer side challenges and • Reliance Retail delivered Gross retailer across the world in the COVID list of Global Powers of Retailing lockdown/restrictions; as the new normal expansion, particularly behaviour leading to technology are key Revenue of `1,53,818 crore. The constrained context and is among the fastest growing likely to remain buoyant in smaller towns re-curation of product to transforming the revenues were impacted on account • The total store count stood at 12,711 retailer in the world* portfolios and boost to unorganised retail sector of store closures (80% stores covering 33.8 million sq.ft. at the * A s per Deloitte Global Powers of Retailing 2021 select categories operational), lower footfalls (65% of end of the year last year) and operational disruptions • The business continued to attract • Reliance Retail won two awards at through the year and serve millions of customers TRRAIN Retail Awards 2020-21 • At an EBITDA of `9,842 crore for across the country far and wide. Guarded Retail Employees Amidst FY 2020-21, the business posted The registered loyal customer Turbulence (GREAT) Award an all-time high profit, driven by base now stands at 156 million, a HR Initiative of the Year Award the gradual rebound of revenue growth of 25% y-o-y won by its Consumer Supply streams, judicious cost management • The business generated >65,000 Chain Management business initiatives and boosted by higher new jobs even in a year like this, investment income bringing to life its mission to How Reliance Retail is geared up? • The thrust on expansion and enhance livelihoods, whilst enabling Launched and Strengthened Operates > 2/3rd of Design centres enable Creating an integrated transformation continued particularly positive societal impact not just accelerated roll-out of digital commerce its stores in Tier II and development of state-of-the-art supply on strengthening omni-channel for its employees but the broader >65,000 JioMart, India’s largest and omni-channel smaller tier towns. portfolio in keeping chain infrastructure and digital platform capabilities and ecosystem within which it operates Jobs generated hyperlocal solution. capabilities with with emerging trends. connecting all supply scaling up New Commerce During the year, over all Reliance Digital, and demand markets. Activated half the expansion Focus on developing fashion & lifestyle DISTRIBUTION OF STORES IN INDIA reliancedigital.in for was carried out in own brand portfolio Investing in technology- and grocery stores electronics, scaled smaller tier towns. in categories such driven logistics and 154 132 being omni-enabled. North up AJIO in fashion & as health and last mile fulfilment Over half the orders lifestyle and created a Stores are enabled immunity, boosting infrastructure. on digital platforms 675 479 range of mono-brand for fulfilment, return, foods in grocery, and from Tier II and Rapid scale up of 2,030 2,167 sites for premium refund (same or productivity devices North East East smaller tier towns. New Commerce and luxury brands. different mode), house and appliances in merchant partnerships. kiosk for endless isle Partnerships with consumer electronics. Acquired Netmeds, experience and better unorganised retailers Developing a portfolio Zivame, and Urban Re-curation of fashion conversions, upsell across categories of own brands Ladder to offer a portfolio with launch of 356 461 and cross-sell. and geographies. for New Commerce. West wider portfolio. ‘Work from Home’, ‘At Home Essentials’ and Building bonds, 601 Athleisure collection. digitally enabling West South 1,095 South and empowering merchant partners. 2,367 2,117
Consumer Electronics Fashion & Lifestyle Grocery In addition to the above, there are 77 stores outside India.
56 Reliance Industries Limited Integrated Annual Report 2020-21 57 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Business Overview: Retail OVERVIEW REVIEW STATEMENTS
Business Performance
Consumer Electronics Competitive Strengths Key Developments
Overview Steady progress on expansion Range of offerings across with 188 new store openings categories under the licensed brands of BPL and Reliance Retail is India’s Activated Kelvinator were launched largest consumer electronics 1 www.reliancedigital.in, and rolled out across retailer with an extensive full network of Reliance Digital Personalised selling backed up by general trade, including a intuitive store designs and industry stores omni-enabled with network of 8,600+ stores foray into the electricals leading service levels unmatched delivery service across 7,000+ towns. category across 19,000+ pin codes Reliance Digital has been Enabled fulfilment from store recognised as India’s inventory with over >95% Only Electronics Retailer Consumer electronic purchase orders delivered within six often necessitates a ‘touch and feel’ Superbrand award for the hours of the product and in many cases 2 second consecutive year involves demonstration, installation, Unmatched delivery proposition Broad-based growth across maintenance and after sales service. enabling delivery within 24 hours categories: laptops and Reliance Digital won: Reliance Retail operates differentiated of purchase tablets, high-end televisions, store concepts that are centred • Gold for ‘Digital around ‘Service’, ‘Solution’ and air care and appliances Marketing Excellence in ‘Consumer Experience’ personalising technology for consumers. Impactful festive activations, Social Media’ at Digixx successful campaign around Awards 2020 by Adgully The stores house buying guides for affordability and new product discerning consumers simplifying • ’Social Media App product complexities. Guidance launches delivered growth 3 Effectiveness’ award extended by expert store staff makes well ahead of the market shopping journey easier for consumers. ResQ for solutions encompassing at Global Customer end-to-end product life cycle Growth led by robust Engagement Awards requirements performance in Tier II/III 2020 by ACEF Differentiated Store Concepts for Consumer Electronics towns
New Age Digital Platforms
https://www.reliancedigital.in/ Key Highlights • Destination consumer • Full-fledged after sales service arm • Reliance Digital’s online shopping electronics store • India’s first multi-product, multi-brand website and app with presence 4 • Product experience zones and multi-location service network across 1,340 cities Strong relationships with all the 1,100+ 4,000+ Laptops sold every day Installations by resQ • 300+ national, international brands • End-to-end product life • Fully integrated omni- leading national and international every day • Differentiated value proposition cycle support channel experience brands • ISO certified service organisation • Extending JioMart to consumer electronics for providing a one-stop 1,600+ shopping solution High-end televisions • Smaller stores offering mobility and sold per day communication devices • Store presence in 7,000+ towns • Extending reach by • Offering Reliance Digital’s 5 catalogue and web-sales assortment through hyper- Exclusive brand licences and own local fulfilment brand products through Reconnect, JioPhone and LYF
58 Reliance Industries Limited Integrated Annual Report 2020-21 59 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Business Overview: Retail OVERVIEW REVIEW STATEMENTS
Business Performance
Fashion & Lifestyle Competitive Strengths Key Developments Luxury Overview Reliance Brands Launched 600+ new stores, Fashion & Lifestyle New Commerce highest among any fashion & Reliance Retail is the Premium lifestyle retailer globally Significant scale up in largest fashion retailer in 1 business across merchant Mid Apparel and footwear base, brands, sellers India with 2,850+ stores AJIO, Project EVE Robust design and sourcing Augmented omnichannel and product offerings. across 850+ cities. Marks & Spencer capabilities Strong insights of diverse tastes and capabilities to 500+ cities Geographic coverage Economy preferences across regions under Trends umbrella extended to 2,265 cities Trends, Trends Footwear Trends Woman, Trends Man, Trends Junior Buoyant revenue led by higher Jewels conversion and bill values It operates multiple specialty store Competitive performance Mass concepts with an extensive portfolio backed by impactful New Commerce, Reliance Smart Business recovery driven by of own and partner brands catering Trends Smalltown strong in-store execution, activations and launch of to all consumer segments through 2 affordable light weight value, premium, bridge-to-luxury and freshness and impactful luxury. Reliance Retail controls the Fashion pyramid Fastest growing store network activation jewellery entire fashion value chain through a 100+ stores launched on an average Design capability coming vertically integrated operating model every year for the last 14 years Curating product portfolio which generates fresh fashion across relevant to emerging trends to the fore with launch of stores on a regular basis. drives category performance collections across the year Further strengthened Received the ‘Most Admired Diverse Store Concepts for Fashion & Lifestyle own brands portfolio with Emerging Retail Brand of the continued launch of brands Year’ award at Mapic India 3 New Age Digital Platforms Retail Awards 2021 Strong own brand portfolio Trends assortment now live Own brands contribute >75% of Trends on JioMart with direct from Received ‘The Retailer of • India’s largest fashion destination • Experiential store with mid to • Online fashion and lifestyle destination revenues and >60% of footwear revenues store shipment at >3,000 pin the Year’ and ‘Marketing • Strong portfolio of own brands premium positioning • Nearly 6 lakh options spanning codes Campaign of the Year’ • E xtensions to tap residual • Caters to entire wardrobe over 2,500 brands awards at the Business market opportunities • Curated section AJIO Luxe offers AJIO the best of luxury, bridge to luxury Leader of the Year Awards and premium brands Revenue run rate up 4x over • Partner to 45+ international brands Partner Brands previous period along with • Affordable family footwear store • Global experience within India 4 In luxury and premium • Wide range of own brands • Access to affluent consumers improvement across customer • India’s most loved furniture brand Partner of choice for global brands and operating metrics brands, digital commerce • Presence across 20 cities and 11 Portfolio of over 45+ exclusive revenues up 3x over last experience centres esteemed international brands • Destination for fine jewellery year • Range of silver, gold, diamond and • Global category leader in • Key highlights Engaging customers by bridal jewellery children’s premium toys • 100% purity, transparency • Presence across 17 countries • Offering Trends assortment through pioneering ‘Distance Selling’ hyperlocal fulfilment 180+ million and impactful shopping Units of apparel & events Mono brand sites 5 footwear sold https://www.gasjeans.in https://www.stevemadden.in/ • Offers solutions for every stage Unrivalled integrated https://www.hamleys.in https://www.superdry.in in a woman’s life omni-channel play million https://www.marksandspencer.in https://www.visionexpress.in/ • Delivering across 1,900+ 1,000+ stores catering to both instore 2.9 cities, 65 stores Kurtas sold per month https://www.mothercare.in and online orders
60 Reliance Industries Limited Integrated Annual Report 2020-21 61 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Business Overview: Retail OVERVIEW REVIEW STATEMENTS
Business Performance
Grocery Competitive Strengths Key Developments
Overview Rapid expansion with 600+ Business continues to new stores rolled out leverage brand partnerships Reliance Retail is India’s largest for exclusive launches, Launched and rapidly scaled events and activations grocery retailer and operates 1 JioMart, India’s largest multiple store concepts – from Robust value chain hyperlocal platform. It Emerged as a trusted neighbourhood stores to Pan-India collection, processing and continues to gain traction partner for customers distribution centres destination supermarkets and across regions with Tier II and and merchants during the Tier III cities contributing over lockdown with enhanced JioMart. half of orders safety and hygiene standards Strengthened own brands
These concepts leverage engaging portfolio with new product Leveraged own supply chain store experience, trained staff and 2 launches across staples, network and worked closely attractive value proposition to address processed foods, HPC with vendors and producers specific shopping needs of consumers. Omni-enabled network at scale Largest network of stores and digital and general merchandise to ensure timely availability Reliance Retail has developed own commerce channels categories through the year of products despite brands that provide a wide range pandemic-led disruptions of quality offerings across various JioMart kirana service now categories such as staples, food Differentiated store active in 33 cities, launched Snactac Mixed Fruit Jam and FMCG, home and personal care concepts for Grocery self-onboarding application, Scrubz were ranked #1 in (HPC), and general merchandise. New Age Digital Platforms aiding rapid merchant their respective categories Over the years, Reliance Retail has made additions by Consumer Voice significant investments in developing 3 an end-to-end value chain that is magazine in FY 2020-21 • India’s widest footprint hyperlocal Strong own brand portfolio Market-leading performance, backwardly integrated for fresh foods • Gourmet retail chain grocery delivery platform Wide portfolio of own brands across driven by essentials (staples) which enables product quality, supply • 200+ cities staples, consumer products and security and sourcing efficiencies. This and processed foods • Integrated with stores to offer general merchandise has resulted in win-win partnerships seamless customer experience with producers. • Destination supermarket store Through its New Commerce initiative, • Serves food and non-food needs Key Highlights Reliance Retail is linking producers • Everyday low-price strategy; with small merchants and consumers savings promise million to create a win-win partnership model. 2.9 Units of groceries The New Commerce footprint is being 4 sold per day expanded from 33 cities at present, Need better image with investments in supply chain and • Neighbourhood multipurpose store Winning partnerships with brands technology, to make Reliance Retail a • Blending physical and digital Preferred retail partner for new brand MT trusted partner for millions of merchants – endless aisle, e-kiosks and launches, promotions, exclusive 1,800+ Fruits, veggies and across the country. digital services launches and activations staples sold per day
Own Brand Portfolio Across Staples, Processed Foods, Home, Beauty and Personal Care >50% Share of fruits and veggies in modern trade 5 Hyperlocal digital strategy Serving customers and merchant partners through unique fulfilment model
62 Reliance Industries Limited Integrated Annual Report 2020-21 63 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Business Overview: Retail OVERVIEW REVIEW STATEMENTS
Pharmacy Reliance Retail forayed into pharmacy retail during FY 2020-21. CASE STUDY CASE STUDY It aims to lead the category by pioneering an Diversity and Driving Inclusive omnichannel pharma strategy encompassing physical stores, digital platform Netmeds.com, and Gender Equality Development Agenda partnerships with connected local pharmacies. This integrated and inclusive offering will enhance accessibility and affordability of medicines for Gender equality is not just about hiring or To promote inclusive and sustainable Indian customers. training women at Reliance Retail, but also a growth, Reliance Retail identified a part of its commitment to empower women. talent pool from the marginalised Today, women constitute 23% of Reliance sections across rural and urban regions Retail’s store workforce. However, it has to provide employment at its Fashion & been observed that women representation Lifestyle stores. at managerial levels drop significantly due It has partnered with 24 NGOs such as Key Developments to life stage events and other factors. Unnathi, Leonard Cheshire, APD, Sarthak and To develop young women leaders and augment Pankh to provide them vocational training, 114 pharmacies operationalised their career path, Reliance Retail launched WE increase their employability, and also recruit Women Leaders, a focused intervention for successful candidates post completion of Strengthened pharmacy digital platform high-potential women at managerial levels. course modules. capabilities through acquisition of Netmeds The programme instilled greater confidence and The business is recruiting around 600 understanding of leadership styles among the associates every month through these participants while enhancing their capabilities to institutions. The programme has so far take on bigger responsibilities. provided 7,000 people a career, enabling Today, women managers run more than 250 social and financial freedom. Connectivity Reliance Retail stores, which score higher on several parameters including hygiene standards, Reliance Retail works as the master distributor for Jio connectivity services. discipline and working conditions. 600 The distribution network comprises of 8,200+ Jio stores and a vast network Associates recruited every month of retailers across the country for new customer acquisitions and recharges. through partnerships with NGOs
Jio Stores provide customers best- in-class service of activations, recharges, devices availability and after Aditi Anand sales service. “What stood out for me was that the workshop In addition, in order to enhance was attended by intelligent women within our seamless customer recharge and organisation and the interactive nature of the activation experience, the business session not only highlighted this respect, but also has created a unique entrepreneur allowed us to get to know each other. The training model by onboarding over 1.6 million and tasks helped a lot in self-realisation”. Jio Associates who help customers to remain connected at all points in time.
To keep friends and family safe, business is encouraging digitally savvy customers to recharge online on their own and stay home, stay safe and stay connected. Business has also enhanced the technology solution/architecture to improve recharge experience on its online partner platforms.
64 Reliance Industries Limited Integrated Annual Report 2020-21 65 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Business Overview: Retail OVERVIEW REVIEW STATEMENTS
CASE STUDY CASE STUDY COVID-19 response Outlook
Empowering Frontline Ensuring Safety and Navigating the Situation While Reliance Retail has charted Staff to Serve Consumers Well-being of Employees and Future-Readying the Business out its growth path to become During the Pandemic their Families a leading top league global Securing our Securing our store retailer. With a view to serving employees operations Reliance Retail’s Learning & Development Reliance Retail understood the impact Navigating the and delighting its customers far (L&D) team deployed various digital tools the pandemic can have on the physical Situation Securing Securing supplies to deliver multiple training sessions, and mental health of its employees and availability for across the and wide, in the near term the including Virtual Instructor Led Training proactively stepped up efforts to ensure our customers ecosystem business will focus and drive (VILT) workshops, for the frontline staff. their well-being. the following five key strategic To support JioMart hyperlocal solution, two Physical well-being vital applications – UROVO and GRAB – thrusts: were implemented. Within a month, 7,500 • Hospital tie-ups to ensure proper medical Enhancing Strengthening associates were trained on the UROVO care for employees and their families safety & Digital Commerce • Develop supply side ecosystem application and 5,000 delivery partners • Physical distancing, staggered shifts, hygiene and Omnichannel and invest in design, product underwent the GRAB training through digital sanitising stations, distribution of standards capabilities Future tools like JioMeet/MS Teams. PPE suits, face masks, gloves, face development and sourcing Readying shields and sanitisers Accelerating Developing Own Reliance Retail also aggressively hired • Rigorous awareness drive undertaken, roll-out of Brands portfolio • Leverage broader India retail frontline employees. Of the total 65,000+ including extensive safety and hygiene JioMart New in keeping up with new hires, 53,000+ were freshers. Training opportunity through continued training for frontline employees and Commerce emerging trends interventions, induction and role-readiness service partners store expansion programmes were deployed on a massive • Awareness campaigns for Emergency care scale to make them job-ready in the shortest – REFERs, Jio Health Hub • Scale up digital platforms possible time. It also hired and trained 15,000 • Antibody test administered to over 50,000 delivery partners. across businesses, led by frontline employees Broad-based decisive actions JioMart At Reliance resQ, we make sure that each one • Prophylactic medicines provided to taken to secure and recover of our service technicians goes through a 144- 43,000+ frontline and supply chain staff hour in-depth training, followed by rigorous business • Onboard merchant partners assessment and certification process. Mental well-being across categories and We have built five fully equipped Regional Training Labs across the country at all • Rolled out ‘Spring’ – a series of workshops geographies major cities and are in the process of on positive thinking habits and wellness building the sixth. • Organised online yoga sessions, Zumba • Build new businesses, classes, Drum and Jam, and counselling segments and own brands workshops to reduce stress • ‘Sampark’ initiative – calling each employee To support this, the business will at least once a month to boost morale look to establish an extensive Initiated vaccination drive for employees and their families supply chain network, leverage technology backbone and build talent and organisation for a 3,50,000+ world-class retail enterprise. Staff and service partners undertook COVID-19 Symptom Checker Survey daily
66 Reliance Industries Limited Integrated Annual Report 2020-21 67 Management Discussion and Analysis Business Overview
Digital Services
Jio has revolutionised the digital landscape of India, fast-tracking the adoption of digital life and furthering the vision of Digital India
Sanjay Mashruwala Isha Ambani Akash Ambani Anant Ambani Mathew Oommen Pankaj Pawar for 1.3 billion Indians. In growing its ecosystem to make India the world’s premier digital society and economy, Jio is not just enhancing the experience of its existing 426 million Kiran Thomas Harish Shah Jyotindra Thacker Anish Shah Anshuman Thakur Rajneesh Jain customers, but is also accelerating the transition towards digital for the next 300 million mobility users, 50 million homes and 50 million micro, small and medium
V. Sridhar Ashish Lodha Shyam Mardikar Dhruv Kumar Tayal Anuj Jain Prateek Pashine businesses. Jio’s impact on internet usage in India has been termed the ‘Jio effect’.
Jio provides best-in-class across promising Indian next-generation network, devices, start-ups and globally renowned applications, content, service technology companies, Jio is Aayush Bhatnagar Saurabh Sancheti R. Srinivasan Sanjay Jog Rahul Mukherjee experience and affordable tariffs set to drive the next leg of hyper for every citizen of the country. growth for digital businesses. A key catalyst in broadband data Harnessing the world’s best tech proliferation, it is ranked the #1 capabilities, it is determined to mobile telecom operator in the provide world-class fixed-wireless country by both Adjusted Gross converged connectivity network, Revenue (AGR) and subscribers. complemented with disruptive It has been recognised by Brand digital technology platforms Jio was conceived to democratise digital services Finance as the 5th strongest for entertainment, commerce, brand globally. communication, finance, education and drive technology revolution in India. Jio is and health, to improve the life of Together with the investors in every citizen of the country. committed to enhance customer experiences and Jio Platforms Limited, partners make India a premier digital society.
Highlights FY 2020-21
REVENUE 29.7% EBITDA 45.8% DATA TRAFFIC 28.9% 426.2 million Over 5 Exabytes Subscribers Data traffic carried by Jio `90,287 crore `34,035 crore 62.5 billion GB network per month
68 Reliance Industries Limited CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Business Overview: Digital Services OVERVIEW REVIEW STATEMENTS
Vision Performance Operating Framework Jio remains committed to connecting everyone and everything, Comprehensive Ecosystem Approach on the World’s Leading Technology Platform everywhere – always at the highest quality and the most affordable Summary price. Jio also strives to build technology enabled product platforms Jio has made over US$50 billion investment since inception to create the largest and the most advanced digital and for a Digital Society – leveraging Indian technical expertise to serve SUBSCRIBERS EoP connectivity ecosystem in India, with a rich bouquet of successful apps and platforms. Jio has built sufficient network global enterprise markets. (million) capacity for the next 300 million mobile broadband subscribers, over 50 million fiber homes and 50 million micro, small and medium businesses. Mission 426.2 387.5 Reliance’s Digital Society Vision is built on the core thesis of the transformative power of data combining • Connectivity for every Indian connectivity as an enabler with digital platforms across industry verticals. • Superior customer experience 306.7 • Affordable data • Best-in-class digital solutions and platforms Ecosystem Platforms
Strategic Advantages and Connectivity and Cloud Agriculture Competitive Strengths Retail and New Commerce Financial Services FY FY FY Combining its domain expertise across business verticals with the latest 2019 2020 2021 Media / Gaming G2C / Smart Cities cutting-edge technologies in the platform company, Jio will provide world-class Education Energy and Material connectivity and digital solutions across business verticals and customer life cycle. Process Manufacturing Health DATA TRAFFIC (billion GB) People Practices 62.5 Coverage Quality Talent Product Operating Companies Management 48.4 Structure With 99% population coverage, Jio’s Unmatched network experience, Owned in Reliance Group Architecture reach is more extensive than the overall consistently achieving the highest Communities 2G coverage, extending to almost every speeds in India since launch. LTE 32.3 System Performance nook and corner of India. More than 250 network provides best-in-class of Works million people in the country have Jio as customer service, easy app-based & Growth Technology Platforms Quality the only provider of broadband services. customer interaction for recharge and Leadership Jio’s network is backed by a pan-India query resolution, and AI-based bots Jio Mobility and 5G AI / ML Agile, CI / CD 4G spectrum and the best fiber and ensure seamless onboarding and Culture Next-gen Operation tower infrastructure. service experience. FY FY FY Blockchain Secure Identity 2019 2020 2021 IoT Speech / NLP / Smart Bots
AR / VR Computer Vision REVENUE & EBIDTA Data Affordability Cloud and Edge Compute Robotics MARGIN Jio’s network carries over 5 exabytes Affordable and simple pricing 90,287 Customer Owned Data Drones of data per month, among the plans, made possible by superior 44.4 69,605 highest globally with average per technology-based operating Devices & Operating Quantum / Genomics / Systems capita data usage of over 13 GB in efficiencies has led to large-scale 39.3 3D Printing the last quarter. adoption of Jio services. 37.1 48,660 Digital Connectivity
Agility Enterprise An agile business model has helped Wireless Home FY FY FY and SMB Jio reduce time to market, scale 2019 2020 2021 broadband broadband broadband efficiently and adapt quickly in an Revenue (` crore) orderly manner. EBITDA Margin (%)
70 Reliance Industries Limited Integrated Annual Report 2020-21 71 Highlights FY 2020-21 Jio became the first operator outside China to cross the 400 Jio Platforms Limited million subscriber milestone completed fundraising in a single country market; of `1,52,056 crore across Commercial partnerships the subscriber base at the end 13 global marquee investors with global tech companies, of FY 2020-21 was 426 million Facebook and Google, to provide ‘made for India’ Launch of multiple digital Completed testing of solutions for digital commerce platforms like JioMart, indigenously developed and devices JioMeet, JioHaptik, JioPOS- end-to-end Jio 5G Radio and lite, JioGames, JioUPI and Core Network Solution for a Launch of JioBusiness with JioHealthHub, which were key self-sufficient and cost-effective a rich suite of services and enablers of work from home, rollout in the near future differentiated bundled learn from home, health from offerings combining wireline home and shop from home and wireless connectivity for during the COVID-19 crisis enterprises
Introduced first-of-a-kind, long-term value JioPhone Expansion of addressable plans to accelerate the market for JioFiber transition from 2G to 4G services with the launch of connectivity-only plans for Jio enhanced its spectrum first-time wired internet users portfolio by 56% to 1,732 Revamped post-paid offerings MHz during the year through with the launch of JioPostPaid acquisition of spectrum via Plus, providing best-in-class the auction conducted by the plans across connectivity, Department of Telecom in international roaming, content 2021 and spectrum trading bundling and in-flight agreement with Bharti Airtel connectivity
72 Reliance Industries Limited Integrated Annual Report 2020-21 73 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Business Overview: Digital Services OVERVIEW REVIEW STATEMENTS
JioFiber has been the lifeline Industry Overview of over 2.5 million homes enabling work from home, learn from home and health Increasing 4G Penetration Exponential Growth of Enhancement of Spectrum from home. Data Usage Footprint The proliferation of 4G networks in India since Jio’s launch across urban and rural Improving broadband network Following the acquisition of the right India has resulted in over 700 million penetration, device and services to use spectrum in all 22 circles across subscribers for network operators, affordability, and new use cases for India in the March 2021 auction held by including Jio. Deeper rollout of 4G-LTE digital have caused a 33% increase in the Department of Telecommunications networks has meant increased mobile data usage across the country over of India, Reliance Jio Infocomm Limited Digital Connectivity services bundle high-speed internet the bundling of best-in-class fiber internet penetration in rural areas to CY 2020 (99 exabytes of data usage in (RJIL) has completely de-risked its for Homes connectivity, content and fixed line connectivity and digital solutions. Its voice in a single affordable plan. The vertical-specific digital solutions are 35% versus 13% at the time of Jio’s India during 2020). Mobile data usage spectrum portfolio. Subsequently, Jio The sub-optimal wireline infrastructure, quality of the JioFiber network and Jio likely to help expand telecom operators’ launch. Increasing network coverage, in India is expected to quadruple to over has also signed a definitive agreement which has suffered due to decades of Set Top Box allows seamless streaming share in enterprise Information affordable tariffs, improving device 35 exabytes per month by 2026 with with Bharti Airtel Limited, for trading of low investments, has resulted in poor and consumption of content, creating Communication Technology (ICT) ecosystem and affordability, and new 1.2 billion smartphone users (Ericsson right-to-use spectrum in the 800 MHz wireline penetration across homes further use cases for IoT, commerce, spend within the country, with its unique use cases should continue the transition Mobility Report 2020) Jio, with its band in Andhra Pradesh, Delhi and (<10%) making India a laggard in fixed education, healthcare and gaming, value proposition being augmented of over 300 million 2G feature phone affordable data plans, has been the Mumbai circles. Post the spectrum broadband services. Fiber penetration is among others. Today, JioFiber is by the comprehensive, long-term users to 4G over the next 12-18 months. primary driver of data boom in India over auction and the trading agreement with even lower with most fixed broadband the lifeline of over 2.5 million homes partnership with Microsoft for its the past three years. Bharti Airtel Limited, Jio has expanded running on legacy copper-based Towards 2G Mukt Bharat (2G enabling work from home, learn from Azure Cloud Services and Productivity its spectrum footprint by 56% to 1,732 infrastructure. Jio looks at Fiber to the Free India) IUC Regime for Domestic home and health from home. Suite (Microsoft 365 with Office Apps, MHz. It now has the highest amount Home (FTTH) services as a significant Voice Call Ends Outlook Email, One Drive and Teams). Since its launch in 2017, JioPhone of sub-GHz spectrum with 2X10 greenfield opportunity to connect 50 has upgraded over 100 million users Following the industry’s transition from MHz contiguous spectrum in 18 out million homes across 1,600+ cities MSMEs, considered to be the bedrock million to the digital network, but without a Interconnect Usage Charges (IUC) to Bill of the 22 circles. It also has at least in India. Its extensive intracity fiber 2.5+ of the Indian economy, lack access Homes connected by JioFiber device ecosystem and affordable 4G and Keep (BAK) regime on January 1, 2X10 MHz in 1,800 MHz band and network, last mile execution, seamless to integrated digital services and services till March 2021 devices, millions of 2G subscribers are 2021, Jio honoured its commitment to 40 MHz in 2,300 MHz band in each of customer experience along with an the knowhow to adopt. JioBusiness still unable to access the basic features make off-net domestic voice-calls free the 22 circles. attractive bundling of digital content is bridging this gap by providing Next-generation Digital of internet and digital applications. as soon as IUC charges were abolished. With the enhanced contiguous and smart home IoT solutions would be enterprise-grade voice and data Solutions for Enterprises JioPhone (marketed by Reliance Retail) On-net domestic voice calls have always spectrum footprint and pan-India key differentiators. services, digital solutions and devices has been instrumental in bridging this been free on the Jio network. The to small businesses which would infrastructure, RJIL has increased Poor infrastructure is also making it Jio has a targeted approach and digital divide by providing affordable transition to BAK regime is expected to make them efficient, competitive and network capacity to serve both its difficult for India’s >150 million pay differentiated offering for large technology in the hands of every hasten the adoption of more efficient propel India’s march towards a new existing and potential subscribers. The TV homes to transition to nonlinear enterprises and Medium, Small and Indian. Further, Jio and Google have technologies like VoLTE, which have Atmanirbhar Digital India. acquired spectrum, with an average content consumption. JioFiber Micro Enterprises (MSMEs) with agreed to jointly develop an entry-level a negligible cost for carrying and life of 15.5 years, can also be utilised affordable smartphone that will help servicing essential voice services. for transition to 5G services at an unlock the true potential of the Digital appropriate time in places where Jio has JioBusiness – Enterprise-grade Bundled Offering India movement. developed its own 5G stack. 56% Increase in RJIL’s spectrum footprint JioMeet - Microsoft 365 - JioAttendance - Fixed Mobile Jio Centrex - Video conferencing Efficient communication Employee attendance, Convergence Communication and and collaboration locations and working - Simultaneous calling with multiple JioPhone has been with Office Apps, hours management ringing and seamless voice lines and FMC Highest Email and Teams swapping between mobile and landline instrumental in Amount of eradicating the sub-GHz spectrum digital divide by providing affordable technology in the Jio TV Plus Toll-free High-speed Internet Boost360 - Devices - Digital presence Digital Prime hands of every across social Membership media website including discounts, Indian. build and e-commerce extended warranty and onsite support
74 Reliance Industries Limited Integrated Annual Report 2020-21 75 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Business Overview: Digital Services OVERVIEW REVIEW STATEMENTS
Emerging Trends and Business Response Business Performance
Digital platform suite becomes the lifeline of millions during the pandemic
Emerging Trends Jio has been a pioneer in launching media and entertainment applications in the country. Its rich suite of 2G to 4G transition Increasing FTTH Digitisation of MSMBs Growing ecosystem of applications and tools encompassing general entertainment, movies, music and news is available to every Transition of 300 million penetration in India B2C applications subscriber of the Jio network. MyJio, an industry first self-care application, has become a gateway for all 2G feature phone users to Rapidly increasing demand Integrated fiber connectivity Proliferation of broadband digital solutions under the Jio umbrella. digital networks for high-speed fiber backed and digital solutions for connectivity drives adoption Leveraging its technology investments and customer engagement, Jio has indigenously internet at homes 50 million MSMBs of digital applications developed and launched new consumer applications and use cases.
JioMart is an Indian online grocery delivery service JioMeet is a made-in-India multimedia launched in May 2020 across 200 cities and collaboration tool that supports end-to-end town. Customers can access JioMart through encryption (credentials, signaling, voice, video website, native apps on Android and iOS, with full and content flows). The platform allows unlimited integration into MyJio. The platform has expanded participants and session time across all categories into selling apparels and electronics in some parts of users with a cloud-ready architecture that has of the country. JioMart has scaled up rapidly, been integrated with enterprise domains for secure with more traffic, active users and orders. Kirana video/audio conferencing. The robustness of the partnerships are being expanded, reaching over 33 solution was evident when 3,00,000+ attendees cities by the end of March 2021. met on JioMeet during the 43rd RIL virtual AGM. How Jio is responding Jio has been offering a JioFiber services offer JioBusiness is now Jio has built a suite of unique bundling of device, best in class digital offering enterprise solutions and services 200 3,00,000+ connectivity and content connectivity for home with grade connectivity across entertainment, Cities and towns Attendees connected through JioMeet at for its JioPhone users which unlimited data, content and and easy to use digital commerce, communication, served by JioMart the 43rd RIL AGM has a subscriber base of smart home solutions solutions in collaboration finance, education, over 100 million with our partners games and health
Performance Update
Digital Services reported another year Financial Performance of strong revenue and EBITDA growth (In ` crore) FY 2020-21 FY 2019-20 % change y-o-y in FY 2020-21 on the back of continued Value of services 90,287 69,605 29.7 increase of wireless subscribers and Revenue from operations 76,642 59,407 29.0 modest growth in wireline services EBITDA 34,035 23,348 45.8 subscriptions. Customer engagement EBITDA margin* (%) 44.4 39.3 on the Jio network remained healthy Subscribers EoP (million) 426.2 387.5 across data and voice services, with Data traffic (billion GB) 62.5 48.4 video accounting for 70% of data usage. * EBITDA Margin is calculated on revenue from operations Jio led subscriber growth in the country with gross addition of 99 million. Gross Key Performance Indicators for the Quarter Ended March 2021 revenue of `90,287 crore on a year- * end subscriber base of 426 million * 13.3 GB per user and EBITDA margin of 44.4% attest `138.2 Average Revenue Average data to the execution capability of the Per User (ARPU) consumption Digital Services team. * 16.7 billion GB 823 VoLTE minutes per user Total data Average voice consumption consumption
* Per User Per Month 76 Reliance Industries Limited Integrated Annual Report 2020-21 77 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Business Overview: Digital Services OVERVIEW REVIEW STATEMENTS
JioSTB Network Management Innovation across The hybrid Set Top Box (STB) Jio network is based on a Technology Platforms provided to JioFiber customers is disaggregated, cloud native data Since its inception, Jio has strived the entertainment hub that uses a lake platform which uses Machine to lead innovation in India across self-developed JioOS platform. This Learning as a Service (MLaaS). This network technology, platforms and provides an unparalleled TV experience facilitates network automation with consumer services. It has a large to Indian home based on cutting-edge use cases such as: inhouse R&D team with over 8,000 technology that includes: • Finding anomalous network pattern technical and research professionals • Virtual assistant across multiple, to create reports and alerts working across software and hardware native Indian languages with speech • Proactive root cause analysis engineering, networks, big data, AI, ML, recognition and conversational skills and resolution before a network system integration and performance • User analytics-based symptom affects operations engineering, information security recommendation engine based on • Operational insights, data binding and product management. The market and promotional trends and correlation without writing a pool of talent also includes domain • User-selected profile creation single new line of code experts across retail, e-commerce, JioUPI Technology Augments the with content permissions, • Auto triggering of workflows manufacturing, financial/banking, Pan-India rollout of BHIM UPI on Next-generation Digital watchlists and reminders and task assignments with AI to media, healthcare and technology MyJio was done during the year. This Platform • Integrated JioHome App with automate the workflow experts across 5G, mixed reality, Haptik is an AI assistant platform that provides functionalities like hassle- soft TV remote, soft gaming blockchain, IoT, vision and speech. uses natural language processing free Payments to Merchants (P2M) MyJio Call Centre Automation controller and ability to integrate technology. It enabled MyGov Corona – both online and in-store – as well as Jio’s first-in-the-industry self-care app During the COVID-19 pandemic and Till date, Jio has been granted 371 personal cloud on TV Helpdesk, India’s official WhatsApp peer-to-peer (P2P) recharges and bill has been the digital companion to lockdown, Jio seamlessly transitioned patents across multiple jurisdictions • Targeted ads based on user analytics chatbot helpline, to address FAQs on payments with personalised dashboard the entire user base and is the most its call centre operations to its inhouse for the pioneering initiatives it has across multiple ad formats COVID-19. Over 30 million citizens used for every customer, based on spending used and downloaded application in developed Call Centre Automation undertaken. In FY 2020-21 alone, • Indian customer focused curated it during the lockdown. MyJio Virtual patterns and behaviour. its category. This is a highly scalable Platform. This is entirely mobile based the Company filed for 38 patents app ecosystem including media and Assistant, powered by Haptik, handled and resilient platform that is powered which allowed 100% migration of and was granted 40. Among the key entertainment, education, health and over 5 million conversations and by Jio’s inhouse AI/ML services. The the 6,000+ call centre agents to a technology areas covered by these real-time video communication resolved 1.8 million queries for Jio users Hassle-free various unique functionalities of distributed work from home framework. patents are Quantum Blockchain Payments during the pandemic. the platform are: Network Technology, Quantum to Merchants • Unified identity and profiling system SON, Deep Learning Applications in across channels, apps and devices, Health & Agriculture and AI Industrial 30+ million which is enhanced based on usage IoT Automation. Citizens used Haptik patterns and behaviour during the lockdown E-learning Solutions • Deep widget-based integration Jio’s ed-tech platform, Embibe, is in of other applications from the Jio 40 EasyGov advanced stages of development. ecosystem which can be modified Patents granted to Jio’s Government to Citizen (G2C) Meanwhile, Jio has launched over 65 due to a highly configurable Jio in FY 2020-21 platform has transformed the digital educational channels on JioTV, with and modular design. Single experience for 350 central and state national and state-specific content, discovery point for various apps, government welfare schemes (PAN in collaboration with the MHRD, features and modules with no 37.9 million card, caste certificate and income NCERT and seven state governments. additional downloads Subscribers added certificate). Apart from spreading Education-related podcasts across • Contextual and targeted notifications awareness about the PM Garib 1,100 titles are being streamed based on customer usage Kalyan Yojana (Government of India’s on JioSaavn. The Jio Set Top Box and preferences 13.3 GB coronavirus relief scheme), 14 million provides access to 21 education- • Universal search and cart Average data consumption eligibility checks for the Atmanirbhar related applications. with text and voice bot, order per user per month Bharat Abhiyan and other schemes for history and tracking during the quarter ended March 2021 migrant labourers and farmers were • Comprehensive payments module carried out on the platform. including Jio’s own Payment Service This application provides a convenient Provider (PSP) framework for in-app 62.5 billion GB alternative channel for subscribers to UPI-based payment Total data traffic million 14 recharge, purchase a new connection Eligibility checks carried out or port into the Jio network. This P2P through EasyGov for government recharging application has had a very schemes healthy traction and minimised the impact of the lockdown on the recharge cycle of Jio subscribers. 78 Reliance Industries Limited Integrated Annual Report 2020-21 79 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Business Overview: Digital Services OVERVIEW REVIEW STATEMENTS
CASE STUDY COVID-19 Response Outlook Jio 5G – Empowering India’s journey Seamless connectivity Jio is committed to creating the world’s best digital ecosystem in towards self-reliance through tough times India, enabling the country to fully realise its socio-economic potential.
India is at the forefront of the global digital of Multiple-in Multiple-out (MIMO) and indoor 5G • During these tough times of COVID-19, Jio’s world- It would also enable Jio to generate revolution. Jio is accelerating the rollout of small cell is at advanced stages. Radio frequency class broadband connectivity solutions across wireless adequate shareholder returns over digital platforms and indigenously developed capacity and coverage planning are also underway and wireline continue to enable work from home, learn the next several decades. next-generation 5G stack, making it affordable based on 4G data traffic profile. Work is also from home and health at home for all Indians. and available everywhere. ongoing on standardising 5G device configurations • Multiple initiatives have been undertaken with a Key pillars of building this digital by collaborating with Original Equipment customer-focused approach to ensure minimum Jio and Qualcomm, along with JPL’s wholly society would be: Manufacturers (OEMs). disruption in customer service and business. owned subsidiary, Radisys Corporation, have • Jio has ensured zero impact on network despite developed an open and interoperable interface- With 5G technology, Indian subscribers will • Best-in-class wireless and wireline minimum staff and COVID-related restrictions due to compliant architecture-based 5G solution with experience the benefits of higher data rates, low data network for all at the most high degree of automation and network virtualisation. a virtualised RAN (vRAN), which will accelerate latency communications and enhanced digital • Digital initiatives like Jio Associate Programme affordable prices the development and rollout of indigenous 5G experiences across a wide array of connected undertaken over the past year continue to enhance • Digital platforms for media network infrastructure and services in India. devices, from 5G-enabled smartphones, customer outreach and ensure continuity of The 5G RAN Platform has crossed the 1 Gbps enterprise laptops and AR/VR products to and entertainment, commerce, recharges/services. Services are being taken milestone on the Jio 5G core network and 5G vertical IoT solutions. education, financial services, to customer doorsteps to help with this critical smartphones. This achievement not only testifies lifeline for customers. health, government services, to Jio’s 5G credentials, but also signifies the entry • All this has been achieved with teams practicing agriculture and more of Jio and India into the gigabit 5G NR product Gbps 1+ and following all COVID-related safety portfolio. Additionally, the in-house development Milestone achieved by Jio and • Talent pool to build on next- measures and protocols. Qualcomm’s 5G RAN Platform generation technologies such as Zero impact 5G, Blockchain, AI, IoT and AR Ensured on network Over the next few years, Jio will focus on creating a robust wireline network across the country, offering high-speed connectivity and a bouquet of digital services to every home and enterprise. Jio is geared up to touch the lives of over a billion Indians through its digital offerings.
80 Reliance Industries Limited Integrated Annual Report 2020-21 81 Management Discussion and Analysis Business Overview
Media and Entertainment
Network18 Media & Investments (Network18) is a pan-India, pipe and screen-agnostic, full-portfolio media and entertainment conglomerate. Rahul Joshi Jyoti Deshpande Ramesh Damani It has evolved into an ambitious, nimble, digital-first behemoth with consolidated growth engines. Network18 today operates relatively young properties that resonate with media consumers across platforms The group has successfully dealt with the challenges and socio-economic strata. It has posed by the COVID-19 pandemic, and posted much successfully combined corporate sensibilities and processes with improved profitability across all business lines in a start-up-like agility and innovation, difficult year. The connect of our diverse brands with intermeshed depth of content and consumers has only grown during this period. Our reportage with the breadth of its consumer base, and employed a plans to invest in digital growth and our resolve to balanced approach to growth and excel in television remain constants amidst a dynamic profitability. business environment
News Entertainment
Highlights FY 2020-21 TV Regional
REVENUE 11.8% EBITDA 29.0% TV VIEWERSHIP SHARE
`5,459 crore `796 crore 12.64% Digital
82 Reliance Industries Limited CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Business Overview: Media and Entertainment OVERVIEW REVIEW STATEMENTS
Performance Operating Framework Vision and Mission Network18’s operating model places the audience at its centre and contextualises business models to genres. In the process, it Network18 aims to be a channel-agnostic provider of top-drawer Summary has established a strong connect with viewers through multiple mediums, diverse brands and cutting-edge content. content across genres, regions and languages. We seek to be India’s OPERATING MARGINS Network18 has a track record of building successful strategic alliances with international media companies such as ViacomCBS top media house with unparalleled reach, and touch the lives of (%) Indians across geographies and demographics. 18.6 in entertainment, WarnerMedia (CNN) in English general news, NBCU (CNBC) in business news, A+E Networks in factual entertainment and Forbes in business magazines.
15.1 Value Chain 13.0 Strategic Advantages and Network18 is spread across content creation and distribution, thereby delivering the best of Indian and global content and brands to discerning audiences across India’s vast demographic diversity.
5.7 16.9 Competitive Strengths 11.5 ontent C
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o B
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FY FY FY
n s s Audience
Reach d
Engagement 2019 2020 2021 e
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i Network18 consolidated s
• 1 in 2 Indians watch Network18 e Su u • India’s largest TV news portfolio, u b B News (TV, digital, misc) ven scr television channels that reach >95% with an 8.9%* share of viewership; Re ip Entertainment g tio of TV homes in India annually entertainment channels enjoy a in Producer n is In Medium rt c • 1 in 4 internet users in India access 10.2% viewership share TV VIEWERSHIP SHARE e o v m (%) Network18 websites or apps every d ation an e • MoneyControl is the leading A t Cre d C 56 56 en ura month, making Network18 group #2 55 nt hip with Br ti Finance app; News18.com is the o ers oad on C wn ca among digital media publishers in O ste #2 digital news platform IP r) India, and among the top 10 globally ( • Voot is the #2 broadcaster- Network 18 is ranked OTT in the country; with class- leading watchtime/user Digital Own Platform (B2C) 11.90 12.64 13.40 #2 * for 1H FY 2021 BARC data for News Among digital media genre was blacked out since November 2020 TV Cable / DTH / FTTx (B2B2C) publishers in India Voot garnered Digital Telco Platform (B2B)
12 billion minutes FY FY FY Watchtime during 2019 2020 2021 C FY 2020-21 on TV viewership share ( ten on Inb t Syndicati Number of domestic channels oun d) d and Outboun * including viewership of associate ETV Diversity Partner • 20 domestic TV news channels DIGITAL REACH (million) in 15 languages; digital news 196.65 in 13 languages 193.97
• Full-portfolio entertainment offering that includes 10 regional language TV channels, a film studio renowned 123.66 for clutter-breaking cinema and a leading OTT platform
Network18 group offers Advertiser Audience 56 Domestic TV channels across FY FY FY more than 15 languages 2019 2020 2021 Network18 group monthly unique visitors Source: Comscore MMX
84 Reliance Industries Limited Integrated Annual Report 2020-21 85 Highlights FY 2020-21
Achieved best ever profitability Accelerated cost optimisation TV Entertainment grew in a challenging business initiatives across business lines viewership share by ~2% environment, as operating instituted prior to the onset of the Delivered ground-breaking innovation to 10.9%; full year margins margins expanded to ~17% pandemic without compromising on in content production with highest ever (from 11.5% in FY 2019-20) scale, creating a nimbler organisation ‘The Gone Game’ series during the that surpassed previous year’s lockdown; the series was shot Flagship GEC Colors revived performance entirely from a home environment ranking to #2 driven by strong content pipeline and return of Ad-led sub-segments of Digital Scaled up subscription products in marquee shows News and Entertainment Digital News and Entertainment platforms turned profitable TV News remains #1 on reach; margins expanded all through the year, despite pandemic-linked logistics constraints and blackout of BARC ratings in 2H FY 2021
Pivoted to a ‘Digital first, TV always’ strategy Strengthened Movie channel portfolio, with the launch of Colors Bangla Cinema and Rishtey Cineplex on Freedish
86 Reliance Industries Limited Integrated Annual Report 2020-21 87 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Business Overview: Media and Entertainment OVERVIEW REVIEW STATEMENTS
Industry Overview
The onset of the pandemic and the platforms’ inherent advantages of Digital engagement continued to grow due to volume of INDIA AD-INDUSTRY OTT Video Subscriptions in India consequent lockdowns significantly being able to target audiences, drive high-quality content and key events. Industry sources indicate (` billion) impacted the economy in general, personalisation and lower costs. a ~10% y-o-y increase in OTT video consumption. Increased 2020 2019 2018 and the Media & Entertainment (M&E) propensity to pay has been witnessed, amidst domestic OTT Video 100-125 78 49 TV penetration in India at ~67% remains sector in particular, in the first half of OTTs increasing prices selectively, while global players create Subscriptions (million) 685 703 well below that in the US (93%) and FY 2020-21. This led to a sharp fall in India-specific cheaper offerings. Digital subscription revenue Avg. ARPU per 56 55 49 626 626 42 China (99%), according to a BCG advertising spend even as viewership 82 continued to rise sharply, albeit off a low base, both from B2C Subscription (`/ month) 565 44 report. The EY FICCI M&E Report soared during the lockdown, as weak 75 148 (direct) and B2B (telco-driven) distribution of OTT platforms. 34 states that the pay-TV subscriber Subscription 84 51 29 economic activity and lack of fresh 199 144 Revenue ( billion) base was temporarily impacted by ` content during the first quarter kept 194 141 COVID-19 (primarily a ~3% dip in the Source: BCG CII Big Picture Report advertisers at bay. The second half fared 274 cable segment), even as Free TV much better on the back of relaxation 250 267 232 gained by return of top entertainment in lockdowns and higher advertiser 250 channels. Overall, time spent on appetite for the festive season. TV rose by 7% y-o-y in 2020 as per 239 Risks 188 BARC, as demographic and COVID- 137 158 106 linked tailwinds joined hands. TV 17.5% TRAI’s NTO 2.0 Fragmentation Digital monetisation Content costs rising CY 2018 CY 2019 CY 2020E CY 2021P CY 2022P pricing remained stable post New Decline in ad spend may impact bouquet of viewership is lagging investments, due to spike in Digital TV Tariff Order (NTO) 1.0, as NTO 2.0 in 2020E reach, channel across platforms, especially amid demand for content Print Radio/Cinema/OOH remained sub-judice. subscription and revenue especially digital strong competition creation/curation The industry expects a much more Total normal 2021, with advertising TV subscriptions in India Source: Dentsu Digital report million recovering close to 2019 levels. Digital is E-Estimated 2020 2019 likely to continue growing its share and P-Projected Cable 73 75 TV is expected to revive fully, while print DTH 56 56 and other media are likely to remain under pressure. HITS 2 2 Emerging Trends and Business Response Free TV 40 38 Summarising FY 2020-21 Total 171 171 TV viewership soared up 35-40% during Usage of technology in enhancing Making content appealing to lockdown 1.0. News alone contributed Source: EY-FICCI M&E Report News reach, salience and veracity both India and Bharat to half the increase, reflected in the recovery of News advertising by the end of 1Q FY 2021. Other genres like Movies TV VIEWERSHIP and Kids also saw an improvement, driven largely by a captive homebound ~45% jump in TV viewership audience. However, pay-GECs lost due to lockdown Spike driven by resumption their viewership share as fresh content 45 42.2 of original content Gradual could not be produced and telecast 40 Return to reduction 36.0 during the initial phase. Entertainment 35 near-pre-COVID levels 28.9 advertising normalised by 3Q FY 2021, 30 29.1 with GECs resuming fresh programming 25 around the festive season. The top 20 four broadcasters re-run and movie 15 GVMs (000’s) channels were re-launched on the Free 10 How is Network18 geared up? Dish FTA platform in June 2020, driving 5 viewership and monetisation. As the 0 Over the last couple of years, Network18 has Network18 is aggressively localising its lockdown eased towards the second driven synergies across the Digital business to content, rooting its channels through not just half of the year, TV viewership settled at build its core technology layer across CMS, Ad local languages but also local subjects and Wk 1 2021 Wk 3 2021 Wk 5 2021 Wk 7 2021 Wk 9 2021 Wk 9 2020 Wk 17 2020Wk 17 Wk 2020 47 Wk 2020 51 Wk 2020 31 Wk 2020 41 Wk 2020 11 Wk 2020 21 Wk 27 2020 Wk 37 2020 Wk 19 2020 Wk 35 2020 Wk 49 2020 Wk 29 2020 Wk 33 2020 Wk 39 2020 Wk 15 2020 Wk 25 2020 Wk 13 2020 Wk 23 2020 Wk 45 2020 slightly above pre-pandemic levels, and Wk 43 2020 Tech, audience and personalisation. TV and formats. This also allows it more flexibility in genre shares normalised too. Entertainment News Total T V Digital content ecosystems are integrated and conceptualisation, production and monetisation, have capabilities for Artificial Intelligence/Machine as well as driving cost efficiency. Digital media platforms witnessed an Source: BARC Learning based content screening, editing increase in content consumption. Digital and deployment. advertising gained momentum from
88 Reliance Industries Limited Integrated Annual Report 2020-21 89 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Business Overview: Media and Entertainment OVERVIEW REVIEW STATEMENTS
Performance Update Business Performance
The business has fully offset the Costs and Profitability • Operating leverage drove pandemic-induced negative impact, entertainment margins to ~19%, Television Business The improvement in profitability is a especially visible during the first half despite COVID impact result of cost controls and concerted of FY 2020-21 with the lockdown • TV News operating margin expanded efforts to increase annuity-style restricting content production and to ~16%, marking four years of revenue streams, including subscription dampening advertising appetite. continued improvement and syndication. News • Digital News broke even on Advertising a full-year basis, driven by TV News advertising recovered by ~17% accelerated revenue growth 2Q FY 2021 and grew across the year. Highest ever Digital News advertising continued to operating margin accelerate, driven by growing salience. Entertainment advertising revived fully Business News Regional News by 3Q FY 2021, led by a full content Summary of Financials The Business News pack maintained its Most of the 14 channels (including roster. Strong viewership trends for pre-dominant leadership in the genre, the eight launched over FY 2015- Hindi GECs (both pay and FTA) drove (In ` crore) FY 2020-21 FY 2019-20 % change as the markets touched new highs 17) are now among the top 4 in their y-o-y underlying ad growth into high-single amid the pandemic. respective geographies. Value of Services 5,459 6,186 (11.8) digits by 4Q FY 2021. General News Revenue from Operations 4,705 5,357 (12.2) CNN News18 and News18 India Subscription EBITDA 796 617 29.0 are among the top 3 in their Domestic subscription revenue EBITDA margin (%)* 16.9 11.5 respective genres. remained resilient, offsetting stress in * EBITDA Margin is calculated on revenue from operations international. Improved distribution tie- ups for TV and Digital continue be the drivers of subscription growth.
Entertainment Jio Studios
Jio Studios is RIL’s fully-owned content Jio Studios is a prolific storyteller, be studio that was set up in 2018 to create it through films or web-series, and Hindi General Entertainment Youth and Music platform-agnostic content across 10+ constantly explores disruptive models As programming normalised with MTV Beats viewership share languages to power the triple play to entertain audiences across platforms. the easing of lockdowns, Hindi GECs rose to 19% and ranks #3 in a ambitions of Jio platforms. With its unparalleled scale of original performed strongly on both platforms crowded category. and aggregated content, combined with (pay and FTA). Colors regained its In a short span, Jio Studios has become the staggering reach and distribution strong #2 ranking as original content a leading entertainment industry player of Jio mobility and home platforms, resumed fully in 2H FY 2021. Colors by partnering with talent to create Jio Studios offers a unique compelling Rishtey and Rishtey Cineplex made a blockbuster films such as Stree, Luka consumer value proposition for data, return to the DD Free Dish distribution Chuppi, Bala and Angrezi Medium, to broadband and content. platform after a year’s hiatus, driving name a few. In a bid to revive the Indian up monetisation. film industry from its post-COVID With an exciting line-up of content and aftermath, Jio Studios took the bold alliances, Jio Studios is well poised to English Entertainment step of being the first to release its become India’s #1 Content Studio and Colors regained its In a year that saw some peers exit mainstream film, Roohi, in cinemas. power Jio platforms as the destination the niche genre entirely, Viacom18 The film not only enjoyed critical and of choice for consumers to discover and strong #2 ranking channels registered a combined commercial success, but also gave consume content. viewership share of ~91%. confidence to other film producers within the year to announce release dates, thereby bringing back audiences and the Content created magic of cinemas. across 10+ languages 90 Reliance Industries Limited Integrated Annual Report 2020-21 91 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Business Overview: Media and Entertainment OVERVIEW REVIEW STATEMENTS
Digital Business COVID-19 Response Business Stewardship Keeping people informed Supporting and entertained at home those in need Braving the pandemic, the News18 network’s At Network18, Corporate Social Responsibility (CSR) Digital Content 1,200-strong journalists continued to report on key is embedded in its long-term business strategy. MoneyControl (leader in the finance issues, including the progress of the pandemic. Network18’s community initiatives help elevate the category), VOOT (#2 broadcaster-OTT Leveraging technology, innovative solutions were quality of life of millions, especially the disadvantaged in the country) and News18.com (#2 deployed including seamless integration of physical sections of society. digital destination for all general news) studios with virtual ones for news anchors working • P&G’s Whisper and Network18 launched a continued to grow in stature. Pay- from home, while completely overhauling news menstrual hygiene awareness initiative, ‘Pride of product Voot Select was the fastest gathering systems. Period: Ek Swachch Soch’. It seeks to open a free- to 1 million D2C subscribers, boosted Adhering to all COVID-19 related safety protocols, flowing dialogue around menstruation. by novel digital exclusives, digital-first is arguably the most successful such Digital Commerce includes Network18 was the first network to restart original • In November 2020, a 5-episode digital-only spin- TV content and digital-only spin-offs. offering, powered by cutting-edge tools programming in the GEC category. Non-fiction off, ‘MTV Nishedh Alone Together’, was launched Subscription product MoneyControl Pro and research for investor tentpoles ‘Khatron Ke Khiladi’ and ‘Bigg Boss 14’ for creating awareness on the treatment of were executed successfully, overcoming their unique tuberculosis (TB). logistical constraints • Viacom18 joined hands with GiveIndia to support NGO Goonj in an endeavour to provide relief to Voot Select, which was launched in March 2020 to COVID-19-impacted families and also protect the Television Business Film Business bring original shows on the OTT platform, streamed poor from the virus. a 100% conceptualised and shot-from-home web Entertainment series, ‘The Gone Game’. The series was produced at one-tenth the cost of a regular original.
Film Business includes Viacom18 1,200 Network18 Studios and Jio Studios. Journalists of News18 network continued to Launched #IndiaGives, a campaign to Kids Entertainment Regional Entertainment report on key issues, including the progress of financially support the country’s most As the COVID-19 pandemic affected Nickelodeon has been #1 in the The regional entertainment bouquet the pandemic vulnerable citizens during the lockdown. As both film production and theatrical Kids category since August 2014. comprises Colors Kannada and a first step, 6,000+ employees of Network18 exhibition, Jio Studios had 2 theatrical The Kids portfolio commanded a Colors Super (Kannada), Colors contributed a day’s salary to the Prime releases and Viacom18 Studios had no 32% market share. Bangla, Colors Oriya, Colors Gujarati, Minister’s National Relief Fund. major releases during the year. Colors Tamil and the recently launched movie channels – Colors #1 Kannada Cinema, Gujarati Cinema In the Kids category and Bangla Cinema. since August 2014 Publication Business Infotainment has factual Outlook entertainment channel, History TV18. The Indian media industry has a heavy dependence on advertising revenue, which has largely recovered from the pandemic impact. Subscription Publication Business has a is beginning to rise in the revenue mix, as propensity to pay for content portfolio of highly reputed magazines comprising Forbes India, Overdrive and increases steadily. Network18 has viewed the crisis as an opportunity to Better Photography. rethink business models and emerge stronger and ready for the post-COVID world. Vernacular content and Digital outreach continue to be the strategic axes of growth (and consequently, investment) across both Entertainment and News.
92 Reliance Industries Limited Integrated Annual Report 2020-21 93 Management Discussion and Analysis Business Overview
Oil to Chemicals
RIL reorganised its Refinery & Petrochemicals business into Oil to Chemicals (O2C) business in FY 2020-21 to reflect evolving strategy and management matrix. The restructuring is aimed at facilitating faster decision-making while Nikhil R. Meswani Hital R. Meswani Anant Ambani P. K. Kapil Sanjiv Singh Srinivas Tuttagunta pursuing focused opportunities across the O2C value chain. It will also help attract dedicated pools of capital and create value through strategic partnerships. The O2C business captures a broad portfolio Harish Mehta Vipul Shah Piyush Bhatt C. S. Borar Ashwani Prashara Seema Nair spanning transportation fuels, polymers, polyesters and elastomers. The deep and unique integration of the O2C business includes world- class assets comprising ROGC, Aromatics, Gasification, multi-feed and gas crackers along with downstream manufacturing facilities, logistics and supply chain infrastructure. Specifically, Reliance O2C entity includes refining and petrochemicals plants and The severe demand destruction due to global manufacturing assets located at Jamnagar, lockdowns impacted O2C business. Flexibility in Hazira, Dahej, Nagothane, Vadodara, Patalganga, Silvassa, Barabanki and Hoshiarpur. operations and agile response to changing market It also includes 51% equity interest in fuel dynamics enabled operations at near-normal levels retailing JV with bp – Reliance BP Mobility Limited (RBML) and 74.9% equity interest in and deliver industry-leading results. Domestic demand Reliance Sibur Elastomers Private Limited. has recovered sharply across the O2C business. 1.4 MMBPD 63.6 MMT Highlights FY 2020-21 Crude processing Production meant for sale* capacity *FY 2020-21 REVENUE 29.1% EBITDA 29.1% TOTAL THROUGHPUT
crore crore MMT 21.1 13 `3,20,008 `38,170 71.9 Jamnagar site Manufacturing Complexity Index facilities in India (10) and Malaysia (3)
nd One of the Largest 2 Integrated polyester players Largest producer of globally PX globally
94 Reliance Industries Limited CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Business Overview: Oil to Chemicals OVERVIEW REVIEW STATEMENTS
Performance Operating Framework Vision and Mission Accelerate new energy and materials businesses while ensuring Summary The key priorities of the O2C business are as under sustainability through circular economy and target to be Net Carbon Zero by 2035. REVENUE AND EBITDA
13.4 11.9 11.9 Transition from Transition from Scaling up transportation fuels fossil fuels to recycling in materials 4,72,450 to produce chemical renewables for 4,51,355 CO capture and Strategic Advantages and building blocks integrated captive energy 2 conversion to useful 63,403 with sustainable demand chemicals and materials Competitive Strengths 3,20,008 downstream derivatives 53,803
38,170
Deep and unique World-class integration across sites manufacturing facilities Circular and FY FY FY Sustainable business, • World’s largest and • Top quartile performance 2019 2020 2021 targeting most integrated O2C in costs, safety and Revenue (` in crore) Net Carbon Zero complex at Jamnagar operations excellence EBITDA (` in crore) • Flexibility to process variety • One of the lowest cost EBITDA Margin (%) of feedstocks – crude, producers of building condensate, naphtha, refinery blocks – ethylene, TOTAL THROUGHPUT off-gases, ethane/propane propylene and aromatics (MMT) and straight run fuel oil 79.8 77.3 71.9 Customer Continuous ownership and optimisation and downstream cost reduction integration
Robust portfolio Unparalleled logistics catering to growing and supply chain consumption markets network • Only company globally, • 5x bigger distribution FY FY FY with integration from oil footprint than nearest 2019 2020 2021 to polymers, chemicals, Move from commodity product Advantaged crude and competitor in India; unique polyesters and elastomers supplier to customer ownership feedstock sourcing pan-India reach leveraging • Allows margin capture PRODUCTION MEANT through solutions and services multi-modal logistics Capture margins across across industry value FOR SALE • Serving 11,000+ (MMT) Scaling up trading and conversion chains with deep chains and reduces distribution business integration and reduce exposure customers for chemicals 71.0 exposure to cyclicality 70.2 to individual product cyclicality and materials across India 63.6 Alliances and partnerships through 16 regional offices for downstream sustainable Continuous O2C level and 61 warehouses product derivatives optimisation for profitability and • Serving transportation fuels to lowering energy costs retail customers everyday at over 1,400 outlets Conversion cost reduction through productivity and minor capex projects
FY FY FY 2019 2020 2021
96 Reliance Industries Limited Integrated Annual Report 2020-21 97 Highlights FY 2020-21
Delivered resilient performance Reliance and bp commenced despite unprecedented operations of their new Indian challenges and macro fuels and mobility joint headwinds venture - operating Agile business model under the ‘Jio-bp’ brand – Developed in-house Reliance (domestic to export and back to which aims to become a Olefin Removal Catalytic domestic as per market demand) leading player in India’s (REL-ORCAT) Technology leveraging our fuels and mobility market global customer base and multi- SEZ refinery won the prestigious modal distribution capabilities ‘Refinery of the Year’ award from Federation of Indian Petroleum Industry (FIPI)
Operated plants at near-full capacity while ensuring the safety of employees and communities, even as global and domestic peers substantially lowered operating rates and even shut down plants Ramped up the capacities to Successfully completely during 1Q FY 2021 produce 1,00,000 personal commissioned the Petrochemicals business won protective equipment (PPE) Halobutyl-Rubber Plant ‘Company of the Year’ award per day during the peak of in partnership with from FICCI for our significant pandemic SIBUR value creation in society and contributions towards fight against COVID-19
98 Reliance Industries Limited Integrated Annual Report 2020-21 99 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Business Overview: Oil to Chemicals OVERVIEW REVIEW STATEMENTS
LNG PRICE ASSESSMENT (US$/mmbtu)
Warm 35 weather forecast in Colder winter in China / Korea / Japan Industry Overview Far East 30 Ethane and Naphtha Prices FY 2020-21 was characterised by unprecedented volatility in crude oil and LNG prices were highly volatile during Panama congestion / Wheatstone, Cameron supply concern Panama Average naphtha prices in Asia were feedstock prices. It was a year of two halves – significant demand contraction in the year, with prices in Asia starting at a 25 canal the first half due to pandemic-related lockdowns followed by a sharp recovery in low level of around US$2/mmbtu at the Chinese and Korean demand Belhai Terminal Fire congestion down by 21% y-o-y in FY 2020-21 amidst returned, Gorgon Uncertainty eases economic activity and demand revival with fiscal stimulus in the second half. beginning of the year due to demand 20 softening of crude price in 1H FY 2021 and slowdown of demand due to low drop before peaking at US$32.50/ Hurricane Delta Crude Oil Demand and Supply mmbtu in January 2021 due to supply 15 global economic activity. However, prices Hurricane Laura Hammerfest Fire recovered in 2H FY 2021 with healthy Global oil demand plunged by 16.2% y-o-y in 2Q CY 2020 to 82.9 mb/d. It recovered disruptions in Nigeria, Panama Canal demand from downstream chemicals/ sharply to 92.6 mb/d in 3Q CY 2020. Overall demand in CY 2020 was at 91.0 mb/d, congestion and colder winter in Far 10 Lockdown in High Hurricane Sally products, improving demand of gasoline 8.7% below that in CY 2019. China was the only country to register growth. East. Prices have since then cooled with Gas consuming 5 blending and higher crude prices. the restoration of supplies. Nigerian Pipeline explosion OPEC and several other oil exporting countries carried out coordinated supply cuts, Typhoons in S. Korea and Nuclear shutdown which peaked at 9.7 mb/d during May-June 20 and averaged 5.3 mb/d for CY 2020. Cost of shipping crude surged in March 0 Polymers and Elastomers These cuts helped reduce crude inventories and rebalance supply and demand 2020 and continued to be high in April 01-04 01-05 01-06 01-07 01-08 01-09 01-10 01-11 01-12 01-01 01-02 01-03 2020 2021 Global Market Environment 2020 as weak demand for prompt supporting oil prices. Japan Korea Marker West Coast India Demand destruction in certain sectors supplies had seen an increasing number like automotive, housing and construction Global Refining Operations of tankers booked for floating storage. manner from May 2020 and reached Asian Cracks for Transportation and white goods/consumer durables had In clean freight markets, demand for 70% of pre-pandemic levels by the end Fuels a negative impact on the downstream Global Refinery Crude Throughput (mb/d) floating storage caused shipping rates of FY 2020-21. Jet/Kero demand fell (US$/bbl) FY 2020-21 FY 2019-20 business. At the same time, the pandemic CY 2020 CY 2019 Change 2020 vs. 2019 to soar in April 2020. From May 2020, sharply by 47% y-o-y. resulted in surge in demand for polymers freight rates normalised for both crude Gasoline 3.0 6.7 OECD Americas 16.5 19.1 (2.6) and polyesters from the health & hygiene, as well as products as global crude Margins Jet 1.2 12.6 OECD Europe 10.7 12.2 (1.5) packaging and e-commerce sectors. production fell sharply and reduced During FY 2020-21, 10 ppm gasoil and China 13.4 13.0 0.4 Gasoil 5.7 14.1 interest in floating storage with Jet/Kero cracks in the Singapore market Global polymer demand [for polyethylene Source: Platts Rest of the World 33.8 37.4 (3.6) lower production. were down by 60% and 90% y-o-y (PE), polypropylene (PP), polyvinyl World Total 74.4 81.7 (7.3) respectively. Low jet fuel demand due Global Cracker Operations chloride (PVC)] in CY 2020 was Transportation Fuels to disruption in air travel and tourism 230 MMT, up by 2% y-o-y. Global PP Global demand for ethylene registered Source: IEA Global Market Environment industry made refiners shift yield and PE demand grew by 3% in a moderate 1.7% y-o-y growth to Global gasoline and gasoil demand in towards the gasoil pool, capping gasoil CY 2020, led by Asia, especially China In CY 2020, refining runs were lower by 7.3 mb/d from a year earlier, while demand 166 MMT in CY 2020 from 163 MMT CY 2020 was lower by 3.0 mb/d and cracks upside. and India. Demand for PVC remained declined by 8.7 mb/d. This resulted in weaker margins and permanent closure of in CY 2019, while operating rates 1.8 mb/d respectively compared to subdued during the year as a sustained refineries. Globally, announcements have already been made for the permanent Gasoline 92R cracks were lower by fell to 86% from 90%. New capacity CY 2019. Gasoline demand recovered high price environment caused shift to closure of ~3.4 mb/d refining capacity by 2023. 55.3% y-o-y, as lockdowns resulted in addition of 11 MMTA during the quickly from the lows in 2Q CY 2020, as alternative products. Global demand reduced mobility across the globe. High year significantly outpaced demand preference for use of personal vehicles for Polybutadiene Rubber (PBR) and Crude Oil and LNG Prices spare capacity and inventory levels growth. The liquidity crunch caused for daily commute increased during Styrene-Butadiene Rubber (SBR) weighed on gasoline cracks. by the pandemic delayed start-ups Crude prices plummeted during 1Q FY 2021 with Brent crude oil touching a the pandemic. Diesel demand was also elastomers contracted by 6% and 7% as well as final investment decisions low of US$18.5/bbl in April 2020. However, the sharp supply cuts, coupled with adversely impacted, before recovering However, in 1Q CY 2021, gasoline respectively during CY 2020, on the back for new projects. disruptions in February 2021 due to Texas freeze, pushed crude prices back to in-line with revival in economic activity. cracks touched pre-pandemic levels of weak automotive sector demand. pre-pandemic levels in March 2021. while gasoil and jet cracks continued to Jet fuel demand was the worst hit due to Domestic Market Environment lag at 49% and 39%, respectively. stringent restrictions on air travel, falling PP demand in the country grew at OIL PRICES 40.6% from the previous year. a marginal 2% y-o-y on account of (US$/bbl) Domestic Market Environment subdued demand from the auto sector 90 WHO declares COVID-19 a Pandemic and overall lower consumption owing to Texas deep freeze India’s petroleum products demand 80 contracted by 9.1% to 195 MMT in the pandemic in 1H FY 2021. However, 70 OPEC+ group of countries agree FY 2020-21; LPG demand maintained demand from the health & hygiene production cut 60 an upward growth trajectory. India’s sector, raffia and Biaxially Oriented 50 demand for gasoline and gasoil Polypropylene (BOPP) packaging 40 rebounded sharply in the second remained buoyant. PE demand registered a healthy growth of 7% y-o-y, driven 30 half, but overall demand in FY 2020- by e-commerce, FMCG and liquid 20 21 was still down by 6.7% and 12%, packaging. Policy boost for several 10 respectively. Gasoline sales returned to pre-pandemic levels in September 2020. water and sewage pipeline projects Jul-19 Jul-20 Jan-19 Jan-21 Jan-20 Jun-19
Jun-20 further pushed polymer demand. Apr-19 Oct-19 Apr-20 Oct-20 Feb-19 Mar-19 Feb-21 Mar-21 Feb-20 Mar-20 Sep-19 Dec-19 Sep-20 Dec-20 Nov-19 Nov-20 Aug-19 Aug-20 May-19 May-20 The aviation industry was the worst hit. The all-time-high prices of PVC caused Dated Brent WTI Dubai Domestic flights resumed in a calibrated Source: Platts a slight demand shift to alternative materials for the pipes sector.
100 Reliance Industries Limited Integrated Annual Report 2020-21 101 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Business Overview: Oil to Chemicals OVERVIEW REVIEW STATEMENTS
Elastomer demand gradually recovered Performance Update as the operating rate of the auto majors increased gradually from 25% Financial and Business Performance in May to 80% in July, and supply chain hurdles eased with the lifting of Financial Performance the lockdown. Tyre majors registered In ` crore FY 2020-21 FY 2019-20 % change y-o-y a good performance in 2H FY 2021 Revenue 3,20,008 4,51,355 (29.1) amid strong farm and 2/3-wheeler EBITDA 38,170 53,803 (29.1) tyre demand which drove up domestic EBITDA margin (%) 11.9 11.9 - demand for SBR to 7% y-o-y, while PBR Total throughput (MMT) 71.9 79.8 (9.9) demand remained flat. Production meant for sale (MMT) 63.6 71.0 (10.4) Margin Polymer prices weakened at the The O2C business experienced both average crude and feedstock prices. operating rates went up despite rising 28% while PX-Naphtha margins beginning of 2020, but gradually price and margin dislocation due to Brent crude price for the year averaged inventory in the first half of the year. dipped 41% y-o-y, well below 5-year improved by the second quarter on the pandemic and lockdown in many at US$44.3/bbl versus US$61.1/bbl in MEG demand strengthened in the latter average levels. the back of healthy demand from countries in 1H FY 2021. Even in the previous year. part of the year due to supply concerns the essential goods and services PTA markets in China remained testing times such as this, the business from the US, and this was reflected in EBITDA was also lower with weak sector. Global operating rate for oversupplied given the capacity delivered robust performance by declining port inventories. demand environment across PP and PE averaged 86% and 85% addition of 9.9 MMTA and large market leveraging the strong international products in 1H FY 2021. The segment respectively during 2020. Polymer Overall demand for polyesters was inventories. Global PTA operating and domestic supply chain, multi- % performance was supported by a sharp 11.9 margins strengthened especially in marginally lower by 6% to 77 MMT. rates dipped to 78% in 2020. Overall, modal logistics, deep integration and EBITDA margin recovery in downstream demand and 2H FY 2021 with recovery in demand, The pandemic adversely affected the in FY 2020-21, PTA prices dropped feedstock flexibility. deltas in 2H FY 2021. reduced availability due to supply global demand for textiles and apparels, by 21% while PTA-PX margins firmed Revenues for the O2C business chain constraints and polar freeze in but demand for PET (face shield), LAB up by 1% y-o-y. declined 29% with lower volumes MMT USGC. Integrated PP-Naphtha and (detergent products) and non-woven 71.9 Global MEG markets witnessed and lower realisation due to decline in Total throughput HDPE-Naphtha margins expanded 22% staple fibre (PPE kits, face masks, and capacity addition of ~3.7 MMTA in an and 31%, respectively. PVC margins polyester swabs) witnessed a surge. were at multi-year high amidst supply already over supplied market. Global shortages. Elastomer margins remained Domestic Market Environment MEG operating rates dropped to strong, especially towards the end Domestic demand for intermediates 66%. However, in the second half of FY of the year, due to lower feedstock was impacted due to demand 2020-21, MEG markets strengthened prices and supply constraints. Margins destruction in the textile and polyester as supplies from the US were impacted trended above 5-year average and were industry at the time of the pandemic. by hurricanes and the Arctic freeze. up 64% and 77% y-o-y for PBR and Demand for the year contracted by High polyester operating rates also SBR, respectively. ~14%, reflecting pandemic’s impact on kept sentiments healthy. MEG prices downstream sectors. dropped by 9% and MEG-Naphtha Southeast Asia Polymer Margins margins firmed up by 8% y-o-y. The downstream polyester industry (US$/MT) FY 2020-21 FY 2019-20 in the country bore the brunt of PET markets witnessed a slowdown as HDPE-Naphtha 512 390 the nationwide lockdown and the consumption of beverages witnessed PP-Propylene 193 166 closure of downstream units due to a dip amid the global pandemic. PVC-EDC- 584 462 mass labour exodus. The industry However, demand in the health Naphtha revived with the gradual easing of the sector and packaging improved. PET PBR-BD 727 444 lockdown and festive season demand, prices dropped by 16% and margins SBR-BD-Styrene 718 405 reaching pre-pandemic levels by the dipped by 8% y-o-y. end of FY 2020-21. Source: Platts and ICIS Intermediates and Polyester Margin Trends Margins (US$/MT) FY 2020-21 FY 2019-20 Intermediates and Polyesters With reduced global gasoline blending PX- Naphtha 172 292 demand, integrated chemical Global Market Environment PTA-PX 157 155 Global demand for Intermediates complexes continued to ramp up PX MEG-Naphtha 232 215 (MEG/PX/PTA) fell by 6% to 143 MMT production. This resulted in a high PX in CY 2020 from 152 MMT in 2019. inventory (up to 4 MMTA) in China, POY-PTA & MEG 203 282 PX markets improved in the latter part which was further impacted by capacity PSF-PTA & MEG 150 163 of the year due to new downstream expansions of 1.8 MMTA. Global PX PET- PTA & MEG 146 158 PTA capacity additions. PTA markets operating rates dropped to 71% in 2020 Source: Platts, ICIS, CCFGroup remained healthy as downstream on the back of unprecedented capacity expansions in China. PX prices dropped
102 Reliance Industries Limited Integrated Annual Report 2020-21 103 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Business Overview: Oil to Chemicals OVERVIEW REVIEW STATEMENTS
Business Performance
Production Meant for Sale (in MMT) Particulars Products FY 2020-21 FY 2019-20 In FY 2020-21, bulk diesel industry Transportation Fuels Gasoil 24.9 26.3 volumes shrunk by 22% on y-o-y basis. Gasoline / Alkylate 10.5 12.1 Despite facing a contraction of 17% ATF 2.2 4.9 y-o-y, RIL did better than the industry Polymers and Elastomers PP 2.9 2.9 and increased its market share to PE 2.3 2.2 9.3%, focusing on the infrastructure, PVC 0.7 0.8 construction and mining segments. Elastomers and Feedstock 0.3 0.3 Reliance BP Mobility Limited (RBML), Intermediates and Polyesters PX 3.4 2.8 a 51:49 joint venture of Reliance Benzene and Derivatives 0.5 0.5 Industries Limited (RIL) and bp, went live PTA 2.0 2.4 on July 10, 2020. RBML operates under MEG 1.3 1.2 the ‘Jio-bp’ brand. Filament 1.0 1.2 Staple 0.7 0.8 RBML, with its network of 1,419 outlets PET 1.1 1.2 and fleet programme (Transconnect), Others Fuels, Solids and Others 9.7 11.5 fully recovered its pre-pandemic Total 63.6 71.0 gasoline and gasoil sales volumes.
RBML has become India’s largest fuel door delivery network for specified Overall production meant for sale Transportation Fuels use, with presence at 1,083 sites in 21 reduced from 71 MMT to 63.6 MMT. states. RBML has launched light-weight Most of the reduction came from The strong network presence on the and tamper-proof high density PE Reflecting the Net Carbon Zero target Polymers and Elastomers Intermediates and Polyesters transportation fuels due to global highways and industry-leading fleet fuel containers for doorstep delivery of RIL, RBML aspires to provide Indian demand destruction. However, with programme (Transconnect) helped RIL maintained steady polymer A total of 2.1 MMT was exported in which promises operational ease, consumers with advanced fuels an agile business model and the ability recover gasoline and gasoil volumes production with reliable operations FY 2020-21 across the entire polyester efficiency, and quantity and quality that have lower emissions, charging to optimise feedstock usage, Reliance to pre-pandemic levels. Strong Quality across sites and achieved the highest chain. RIL also maintained its market (Q&Q) assurance. infrastructure for electric vehicles and was able to run downstream plants at and Quantity (Q&Q) assurance also ever PE production in FY 2020-21. share in the domestic polyester market. other low carbon solutions. full throughput. contributed to the volume recovery. In August 2020, RBML took over the It maintained operating rates higher Significant PX and Benzene exports operations of RIL aviation fuel stations To support the proposed network than its peers due to its keen focus on in 1H FY 2021 helped maintain the across the country. It aspires to expansion of up to 5,500 outlets exports in the first half, and its ability operating rate of aromatics plants. bring industry-leading technology, over five years, RBML kickstarted its to ride on a buoyant market in the PTA exports during 1H FY 2021 were best-in-class service and innovative franchise onboarding process. It has second half. RIL maintained its market impacted, curtailing PTA production. customer-centric solutions to aviation initiated infrastructure development leadership in polymers, with a domestic Demand destruction in MEG was fuelling. RBML fuelled medical, at all supply locations and started pilot market share of 34%. It exported countered by diverting the surplus repatriation and cargo flights across testing of battery swap stations at over 1.3 MMT of polymers across the world volume into exports market. India at the peak of the lockdown. 24 select locations. Initial response has during the year. RIL continued to explore new been encouraging with strong growth in RIL’s agile supply chain helped place products and market segments with daily order deliveries. 80% polymer products in the export the introduction of biodegradable 1,419 outlets RBML is committed to create a market within 10 days during the polyester and R3S in the paint In the RBML world class fuelling experience for challenging 1Q FY 2021, as against segment. At the same time, given the network its customers, with proven customer 20% during the pre-COVID period. This unique circumstances, RIL focused value proposition, synergies of helped in operating plants at near full on developing essential products extended group companies (RIL and capacity of 98% during 1Q FY 2021 like PPE suits, polyester swabs and 5,500 outlets bp), company-wide focus on customer while the rest of the domestic industry other medical applications to cater Proposed network centricity and best-in-class technology. operated at 60% levels. to the needs of critical segments like post expansion health and hygiene.
104 Reliance Industries Limited Integrated Annual Report 2020-21 105 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Business Overview: Oil to Chemicals OVERVIEW REVIEW STATEMENTS
Leadership in adopting circular economy in India
RIL is committed to supporting and leading the industry on circular economy and sustainability. The Alliance to end plastic waste Company constantly endeavours to imbibe the concept of circularity in its operations and processes. RIL is the founding member and the lone Indian company to Cognisant of the fact that achieving this objective requires long-term commitment and collaboration participate in the global effort to eliminate plastic waste in amongst various stakeholders, it supports like-minded organisations, NGOs and individuals in waste the environment through the Alliance to End Plastic Waste recycling and diverting post-consumer waste away from landfill while creating awareness about the (AEPW). The Company aims to bring the best technologies environment among consumers. and companies to India for elimination of plastic waste.
RIL has identified short, medium and long term strategies to support a circular economy for plastics. In the short term, the focus is on increasing the Company’s PET recycling footprint and usage of Multi-layered Plastics (MLP) for Support for Indian Centre for Plastics in the road construction. In the medium term, it is focusing on Launch of waste reduction programme Environment (ICPE) polyolefin recycling and ‘waste to oil’ strategy. In the long R|Elan™ collaborated with Forest Essentials™, the Ayurveda- RIL continues to support ICPE communication initiatives term, the Company is looking at chemical recycling, plastic based skincare and perfume brand, in September 2020 to by supporting the ‘Fight Pollution, Not Plastics’ (FPNP) waste composites and design for circularity. Various encourage recycling of used plastic packaging. As part of the awareness campaign, school engagement campaigns and initiatives are on the go. collaboration, Forest Essentials™ created a collection facility an all-India creative competition to find ways to reduce in each of its major stores across the country. Customers are plastics pollution. being encouraged to drop empty jars and bottles into these Reverse vending machine facilities through a reward programme. The waste collection is RIL has sponsored more than 100 reverse vending machine to be processed and repurposed to make GreenGold™ fibres installations across major cities to enhance awareness R|ELAN™ — Circular Design Challenge and fabrics for apparel, bags and other applications. amongst the public about plastic waste. During FY 2020-21, R|Elan™ initiated the third season of Anti-microbial mask from R|Elan™ Circular Design Challenge (CDC) in partnership with the #FeelSafeFeelFresh Campaign United Nations Environment Programme (UNEP) at the R|Elan™ tied up with India’s leading brand, Proline® to create Lakme Fashion Week (LFW) in March 2021. In partnership a range of attractive, high performance masks using R|Elan™ with IMG and UNEP, R|Elan™ unveiled the collection ‘Malai’, FeelFresh™ fabric with anti-microbial attributes. The Proline® winner from the second edition of LFW. The collection uses a Reusable Protection Mask has a three-layer triple particle bio-composite material made from the agricultural waste of filtration system and offers the superior fabric qualities South India’s coconut industry. With circularity at the core of R|Elan™ FeelFresh™, which is embedded with silver of all six designers’ portfolio, CDC 3.0 showcased stunning technology to provide long lasting protection. collections made from materials like discarded tarpaulin, post-consumer clothing, handwoven and upcycled textiles, waste denim and recycled PET bottles.
Collaboration with Pankaj and Nidhi at LFW R|Elan™ has been consistently supporting circularity in the fashion industry. During the year, the brand collaborated with the famous designer duo, Pankaj and Nidhi, for the second time to showcase its latest collection at the first-ever digital edition of LFW.
The new collection showcased R|Elan™ GreenGold, made from 100% recycled PET bottles, R|Elan™ FeelFresh, which has anti-microbial properties, and R|Elan™ Kooltex, which keeps the wearer cool and comfortable for a longer time.
106 Reliance Industries Limited Integrated Annual Report 2020-21 107 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Business Overview: Oil to Chemicals OVERVIEW REVIEW STATEMENTS
Scaling up Digital Platforms to Enrich Customer Experience CASE STUDIES Outlook
Ecosystem for indigenous Global vaccination drive and The COVID-19 pandemic led to a Digitalisation in supply chain, • Export General Manifest (EGM) sudden change in the way of working, planning and optimisation downloads from ICEGATE PPE production large stimulus programmes supported and sustained by digital (e-commerce portal for central excise • Warehouse Management (EWM) will influence consumer collaboration platforms. The following and customs) are now automated RIL scaled up production of PP fibre and filament grades operated mobility solutions on smart digital initiatives were implemented through deployment of bots that are used as raw material for N95 masks and PPE suits. sentiments and demand devices, which simplified complex in a short span of time to support • Export documentation processes like It developed very high-flow melt blown grades (1800-2300 logistics, optimised inventory growth, in the medium term. the shift in business condition and LC Scrutiny, SI (Shipping Instruction) MFI) in collaboration with a domestic compounder and tracking, distribution operations and ensure seamless migration to a virtual BL (Bill of Lading) scrutiny and masterbatch manufacturer to produce indigenous PPE kits Oil demand is expected to multi-channel fulfilment working environment. SI filing with shipping line portal with higher Particulate Filtration Efficiency (PFE). As a result, • Improved profitability through recover in CY 2021 to 96.4 are digitised and automated with India became the world’s 2nd largest PPE kit manufacturer and digitalisation of the integrated value Digital customer experience the help of AI/ML net exporter, even though it did not have capacity to produce mb/d, still below CY 2019 chain planning and optimisation for • Trip check application was rolled PPE kits till January 2020. • Collaborative planning through all downstream products, including levels of 99.7 mb/d as per out on tab devices at downstream CRM platform to effectively manage Recron Malaysia and integration with secondary warehouses. Major IEA. However, tightness in the customer demand upstream at Cracker • Mobility apps for approvals, account components of this application are 1 lakh/day crude oil market and strong Truck Health Check, Trip Check (Pre- Production of PPE kits management and customer visits to Digitisation and Analytics for prices are likely to continue empower the sales team for better process optimisation Load) and Trick Check (Post-Load) and N95 masks customer service due to OPEC+ cooperation. • SCM Spend Analytics to include • Secured document sharing platform components like shipping, multi- (E-Room) for effective (finance, Global transportation fuels modal and chartering (bulkers) Redefining fuel retailing shipping and forwarding documents) demand (except Jet fuel) collaboration with internal as well through e-commerce in India as external bodies primarily with a is likely to reach pre-COVID work-from-home focus RBML is the first Oil Marketing Company (OMC) to get the levels only by the end of approval of Mobile Dispensing Unit and the only OMC to use HDPE containers (non-metallic) for on demand delivery of FY 2021-22. Container fuel. With its services spanning across India, it is uncovering shortages are expected to the latent needs of the non-transport sector, and meeting these needs with great efficiency, leading the way to market continue through 1H FY leadership in the non-transport sector. 2022, supporting margins for polymers and intermediates.
Transconnect: Building Strong domestic demand strong relationships across key segments such as healthcare, packaging, RBML’s large network, channel participation and field force focus with customised IT tool helps it drive volume. The durables, auto and Transconnect programme helps it ease the transaction infrastructure is expected process through secure card-less solution (Trans-mobile). Through Transconnect, RBML leveraged contactless to drive demand for operational capability during the lockdown, leading to downstream products. Near significantly higher fleet volume share and highest ever monthly sales in FY 2020-21. term demand trends can be impacted by the ongoing second wave of the pandemic and fresh restrictions.
108 Reliance Industries Limited Integrated Annual Report 2020-21 109 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Product Flow Chart OVERVIEW REVIEW STATEMENTS
A Diverse Set of Products Abbreviations CBFS Carbon Black feedstock DEG Di-Ethylene Glycol and End Applications EDC Ethylene Di-Chloride NATURAL CRUDE EO Ethylene Oxide GAS OIL FDY Fully Drawn Yarn HDPE High Density Polyethylene HPIB High Purity Isobutylene HTPB Hydroxyl Terminated Polybutadiene LAB Linear Alkyl Benzene Light Ends / Feedstocks Transportation Fuels Solids/fuels LDPE Low Density Polyethylene Refinery C4 Offgas Propane Naphtha LPG Diesel Jet/Kero Fuel Oil / CBFS Petcoke Sulphur LLDPE Linear Low-density Polyethylene Gasoline / Alkylate LPG Liquefied Petroleum Gas Ethane/Propane Ethane BUTYL RUBBER MEG Mono-Ethylene Glycol MTBE Methyl Tertiary Butyl Ether
Refinery C4 Ethylene Propylene C4's C6+ PETCOKE GASIFICATION PBR Poly Butadiene Rubber Butene-1 PET Polyethylene Terephthalate PP HPIB EDC MTBE Benzene PFF Polyester Filament Fibre Petcoke Coal POY Partially Oriented Yarn HDPE/LLDPE Butene-1 Toluene Butyl Rubber PP Polypropylene LDPE HTPB Butadiene Xylenes Syngas Sulphur Halogen PSF Polyester Staple Fibre EO PTA Purified Terephthalic Acid Halobutyl Rubber Hydrogen SNG PTY Polyester Textured Yarn Cyclohexane PVC PolyVinyl Chloride VCM LAB Orthoxylene SBR Styrene Butadiene Rubber SBR Paraxylene SNG Synthetic Natural Gas PVC Styrene PBR TEG Tri-Ethylene Glycol DEG/TEG Normal VCM Vinyl Chloride monomer Kerosene Paraffin Salt
MEG PET PTA RELIANCE COMPOSITE SOLUTIONS Caustic Chlorine Acetic Acid Glass rowing Multiple raw materials PTA, EO, Styrene, etc. (procured) (captive / procured) Polyester Chips
Filament Staple PET Bottles Resin Glass Fibre (Recycled) (Polyester / Epoxy / Phenolic) FDY PSF PFF POY PTY Spun Yarn Non-woven Applications Filament Mass Transport Centrifugal Pultrusion Sheet Molding Wind Mill Unit General Molding Winding Unit Casting Texturised /Twisted Dyed Yarn Filler Products/ Non-wovens/ Product Plants Technical Textiles Fabrics
Apparel Purchased Raw Materials Wool Viscose Partly Purchased Raw Materials Silk Linen Existing Products New Products End Use Applications
110 Reliance Industries Limited Integrated Annual Report 2020-21 111 Management Discussion and Analysis Business Overview
Oil and Gas Exploration & Production
Naresh Narang Sanjay B. Roy Gautam Dhar
E&P business’s focus has been on safeguarding health and safety of the people and assets while augmenting production and ensuring business continuity, project delivery and minimal disruption to operations. Despite the unprecedented constraints, in The Company’s oil and gas assets in December 2020 we successfully commissioned Asia’s India include – • Block KG D6, where projects, R Cluster in deepest and India’s first ultra-deepwater gas field - the December 2020 and Satellite Cluster in April R Cluster (D34) field, in Block KG D6. It is a significant 2021, have commenced production, while MJ project is in the development stage milestone in India’s energy landscape and showcases • Two Coal Bed Methane (CBM) blocks – Reliance’s commitment in the nation’s transition Sohagpur (West), which is currently producing, and Sohagpur (East), which is under towards a cleaner and greener gas-based economy. development • Block KG UDW1, which is in the area contiguous to Block KG D6, where the Highlights FY 2020-21 Company is undertaking Infrastructure led exploration efforts REVENUE 33.4% EBITDA 26.9% PRODUCTION (RIL’s SHARE) The Company has a joint venture with Ensign Natural Resources in US shale play. `2,140 crore `258 crore 126.6 BCFe
112 Reliance Industries Limited Management Discussion and Analysis Business Overview: Oil and Gas E&P
Highlights FY 2020-21 Vision
To be India’s Leading Player and major contributor to India’s Gas based economy supplying >25% of India’s production. Mission Performance Our mission is to maximise stakeholders’ value by finding, Summary producing and marketing hydrocarbons and to provide sustainable growth while catering to the needs of customers, partners, employees and the local communities in which we do business. DOMESTIC PRODUCTION We will conduct our business in a manner that protects the (RIL’S SHARE*) (BCFe) e-Auction for CBM Gas environment as well as the health and safety of our employees, • e-auction for sale of CBM gas contractors and the local communities in which we do business. 58.9 successfully completed • 0.82 MMSCMD gas sold for 1 year, through a transparent Strategic Advantages and 38.8 and dynamic e-bid system run Competitive Strengths 27.8 First Gas from R Cluster field independently by CRISIL India’s Leading Deepwater E&P operator with in Block KG D6 best-in-class safety and reliability track record • Production ramped-up to 12.8 MMSCMD FY FY FY 2019 2020 2021 Safety Partnership with World Class deepwater bp synergising RIL’s hub infrastructure in SHALE PRODUCTION • Zero LTI and Zero Recordable Injury project execution and the East Coast (RIL’S SHARE*) (BCFe) during R Cluster installation and operations with bp’s global E&P knowledge commissioning works campaign 98.8 94.5 and major overhauling / inspection / 80.4 maintenance jobs • 100% safe and uninterrupted ~3 TCFe resources in Exploration underway production operations in CBM e-Auction for KG D6 Gas the Block KG D6 in the proven geological fairways of the • Conducted second round contiguous Block KG of e-auction for sale of gas, UDW1 US Shale Portfolio through a transparent and CY CY CY • JV partners (Reliance and Ensign) dynamic e-bid system run 2018 2019 2020 acquired Newpek’s Working Interest independently by CRISIL (WI); Ensign and Reliance hold • 7.5 MMSCMD gas sold to Gas based portfolio * For RIL’s interest in Oil and Gas Joint Operations, contributing in India’s refer Note 32.1 on pg 365 50.74% and 49.26% WI, respectively buyers for 3-5 year term transition towards clean energy • Reliance sold its WI in Marcellus • In total, 12.5 MMSCMD gas Shale assets to EQT and NOG has been sold to 19 buyers across sectors like CGD, Power, Refinery, Industrial among others
114 Reliance Industries Limited Integrated Annual Report 2020-21 115 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Business Overview: Oil and Gas E&P OVERVIEW REVIEW STATEMENTS
E&P Asset Life Cycle and Portfolio Industry Overview CY 2020 was a turbulent year for global oil and gas industry as COVID-19 related restrictions lowered demand from transport and other sectors. Market saw an oversupply of ~20 MMb/d in April 2020, pushing Brent prices to US$18.5/bbl Exploration & Project Definition & Field Management Field before recovering to US$63.5/bbl by the year-end. There was an overall collapse of 8.8 MMb/d demand in 2020. Majority Appraisal Field Development & Operations Abandonment of E&P companies opted to defer project investment decisions amid capital preservation measures. Brent and West Texas Intermediate (WTI) crude averaged at US$42.0/bbl and US$39.2/bbl respectively in CY 2020. This was US$15/bbl lower than KG UDW1 KG D6 KG D6 KG D6 the average CY 2019 price. MJ R Cluster D1D3 The demand is expected to recover, though resurgence in COVID-19 cases is slowing the rebound. Widespread vaccination CBM Fields Satellite Cluster MA effort and an acceleration in economic activity coupled with OPEC+ decision to delay further easing of cuts and Saudi Arabia’s CBM Fields Tapti Fields additional supply reduction of 1 MMb/d in February and March is expected to spur stronger growth in coming time. US Shale Assets Global gas demand fell 2.5% to ~3,840 BCM while output fell 3.6% to 3,918 BCM. Natural gas prices in 2020 remained low due to dampened economic activities impacting both production and consumption. US Henry Hub gas price averaged at US$2.05/ MMBTU (compared to average of US$2.57/MMBTU in CY 2019), the lowest annual average price in decades.
Emerging Trends and Business Response
Description
Clean Energy Brownfield Developments Digital Technologies Global focus is on green energy In these challenging times, The COVID-19 pandemic has reinforced in order to address environmental when demand and prices for oil the importance of adoption of new concerns to reduce greenhouse gas and gas are falling, companies technologies for improved efficiencies (GHG) emissions are focusing on brownfield E&P Portfolio developments to reduce cost
JV Acreage Block Country Partner RIL Stake Status (in acres) Conventional Domestic KG-DWN-98/3 India bp–33.33% 66.67% 2,90,230 R Cluster Field on production from December 18, 2020. Satellite Cluster on production from April 25, 2021 and MJ Field - Development activities underway. NEC-OSN-97/2 India bp – 33.33% 66.67% 2,05,520 FDP Submitted. Under review with GoI KG-UDWHP-2018/1 India bp – 40% 60% 374,093 Exploration
Unconventional Domestic CBM SP(East)- CBM-2001/1 India - 100% 1,22,317 Development ongoing SP(West)-CBM-2001/1 India 100% 1,23,552 Producing
International How RIL E&P is geared up? Shale Ensign JV USA Ensign– 50.7% 49.3% 1,27,907 Producing. Acquired Newpek’s share The Company is focusing on building The Company is leveraging its existing The Company has always been at a gas-based portfolio. Gas being a infrastructure in the KG Basin to the forefront in the adoption of latest cleaner fuel, is considered world-over develop three projects in Block KG technologies. It is further enhancing Notes: Newpek’s stake was acquired by Ensign and Reliance as a transition fuel to green energy D6 and is undertaking exploration in its capabilities through Digital contiguous areas Twin, Autonomous Fields, Virtual Command Centres and other cutting- edge technologies
116 Reliance Industries Limited Integrated Annual Report 2020-21 117 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Business Overview: Oil and Gas E&P OVERVIEW REVIEW STATEMENTS
Performance Update
Segment revenues for FY 2020-21 Financial Performance were lower by 33.4% y-o-y to `2,140 crore primarily due to lower volumes Parameter FY 2020-21 FY 2019-20 % change from conventional fields and overall (` in crore) (` in crore) y-o-y lower commodity price realisation. Revenue 2,140 3,211 (33.4) EBITDA for the year declined by EBITDA 258 353 (26.9) In Marcellus JV, Chevron put one pad 26.9% to `258 crore. on production in operated areas which For the year, domestic production was drilled and frac’ed in 2019, before (RIL share) was at 27.8 BCFe, down handing over the operatorship to EQT. Operational Performance 28.4% y-o-y due to expiry of Panna In Eagleford JV, Ensign continued with Mukta Production Sharing Contract Domestic one rig programme until 1H CY 2020. in December 2019 and cessation of Unit of JV production FY 2020-21 FY 2019-20 Only three new wells were put on production from D1D3 (KG D6) field Measurement stream, while it drilled 11 wells. in February 2020 and in US Shale (RIL KG D6 share), production was 98.8 BCFe, up Gas BCF 24.0 17.5 Reliance’s aggregate capital 22.9% on a y-o-y basis. PANNA- MUKTA investments across JVs decreased Oil MMBBL - 2.6 significantly y-o-y and was US$66 Gas BCF - 34.2 million during CY 2020. CBM Gas BCF 11.8 12.2
New Technologies Coal Bed Methane (CBM) In 4Q FY 2021, Reliance sold its interest Bio-CBM Business Performance in Marcellus JV to EQT Aurora LLC and To increase recovery from RIL is currently producing CBM from Northern OIL & Gas. CBM fields, Reliance is the Block SP (West)–CBM–2001/1. engaged in R&D efforts with KG D6 R Cluster and Satellite During 2Q FY 2021 Newpek LLC, the More than 300 wells are on production current focus on Bio-CBM. Till date, the Block has produced Cluster have been with production averaging 1 MMSCMD minority partner in Ensign JV, exited and 3 TCFe of gas, oil and condensate while during the year. To sustain plateau its participating interest was acquired by In CBM, methane gas, which establishing several global benchmarks commissioned. production further, development is Reliance and Ensign proportionately. is adsorbed and trapped naturally in coal seams, in terms of operational performance, being undertaken in the Blocks SP Due to the adverse changes in market Satellite Cluster Abandonment is produced. Bio-CBM including 99.9% uptime and 100% (West)–CBM–2001/1 and SP (East)– environment, reduction in activity All five development wells have been D1D3 field ceased production technology uses microbe incident-free operations. Majority of CBM–2001/1 block. by operator and recent operational drilled and completed. Production from in February 2020. The D1D3 injection to produce in-situ existing production facilities are being performance, the Shale Gas subsidiaries the field commenced in April 2021, two Field Decommissioning Plan for Reliance Gas Pipelines Limited, a methane where either the utilised towards integrated development have impaired their assets, including months ahead of schedule. abandonment of wells and facilities has subsidiary of RIL, operates the 302 km coals are devoid of methane of the three ongoing projects. unavoidable costs based on contractual been submitted to OISD for approval. Shahdol-Phulpur Pipeline from Shahdol or conventional CBM Development Status commitments, totalling to `15,691 crore. R Cluster Field (MP) to Phulpur (UP) connecting the extraction is uneconomical. Exploration Strategy The R Cluster field was commissioned MJ Field CBM gas fields with the Indian gas grid. Operational Performance Lab tests have shown successfully in December 2020, despite Engineering, procurement and RIL’s exploration strategy is US Shale encouraging results challenges imposed due to COVID-19 manufacturing activities for FPSO, focused on catchment areas to JV Unit of CY CY Production Measurement 2021 2020 with respect to methane and adverse weather. Located at a water Subsea Production System, Risers leverage existing infrastructure. Block The sharp decline in commodity prices production potential. depth of greater than 2,000 meters, it is and Umbilicals are currently underway. KG-UDWHP-2018/1 (KG-UDW1) was slowed down development activity in Gas BCFe 65.9 83.3 Research is underway to Asia’s deepest and India’s first ultra- Drilling campaign commenced awarded to RIL-bp JV under OALP both JVs. Despite prices recovering Condensate MMBBL 2.4 2.6 establish the ability of this deepwater gas field. in March 2020 and is currently II licensing round and Petroleum during 2H CY 2020, given the weak ongoing. First installation campaign In 2020, the JVs together drilled 28 wells technology to scale up to a All six wells have been opened and Exploration License (PEL) was issued macro environment and its impact on commenced in 4Q FY 2021 with the and put 26 wells on production. commercial operation. tested, with ramp-up programme in August 2019. Due to the ongoing price realisation, both Marcellus and second and final installation campaign currently ongoing. Current production COVID-19 pandemic, the Government Eagleford JVs pursued minimal activity Gross JV production was ~0.64 BCFe/d planned in 4Q FY 2022. is in line with expectation and is being of India granted 341 days extension of and optimised costs. Reliance and for the two JVs, up 22% y-o-y. Reliance’s ramped-up. The field is expected to the initial exploration phase. its JV partners continued efforts on share of production and sales were at preserving long-term value through reach plateau gas production of about 3D Seismic Acquisition campaign is 99.0 BCFe and 85.9 BCFe, respectively strict capital discipline and curtailing 12.8 MMSCMD in 2021. being undertaken in the Block. in CY 2020, compared to 80.4 BCFe and development activity. 70.5 BCFe in CY 2019.
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Outlook
Gas is expected to play a key COVID-19 Response role as a transition fuel and Update on Arbitrations and CSR Activities in Shahdol during COVID-19 CSR Activities in Gadimoga share of gas in energy mix is Other Legal Issues during COVID-19 • 4 MMUs provided critical primary care services to 150 expected to increase from Due to the COVID-19 related villages of Shahdol, Kotma and SHPPL • Organised awareness camps on COVID-19 and 6% to 15% by CY 2030. circumstances, there has not been any put up posters depicting DO’s and DON’T’s in • Regular COVID-19 awareness campaigns conducted progress in the following matters: KG nearby villages RIL, with development of and banners displayed at prominent places D6 Cost Recovery Arbitration, Public • Distributed sanitiser bottles, masks and hand three deepwater gas projects Interest Litigations relating to KG D6 • More than 50,000 masks distributed to frontline gloves to village volunteers, Panchayat Sanitary Block pending before the Hon’ble workers, District Administration, and community in KG D6, will continue Workers, Medical staff and Asha workers working Supreme Court of India, suit filed by • Innovative contact less hand washing unit installed at during the lockdown to play a key role. While NTPC Limited against RIL before prominent places the Hon’ble Bombay High Court, • Provided sanitiser in bulk to the medical staff two projects have been Government of India’s proceedings • Over 1,500 poor households were supported for dry working in COVID care centres successfully commissioned, seeking setting aside of arbitration ration kit as relief while more than 40,000 individuals • Distributed Relief Material (~ 6,000 kits) to nearby award relating to alleged migration got food through central kitchen at Shahdol one project is expected villages during the first COVID wave of gas from KG D6 Block before the • Support through online education platforms to come onstream in FY Hon’ble Delhi High Court and Writ • Support extended to District Administration by benefitted around 150 students in Shahdol Petition filed by RIL before Delhi High providing cots and chairs to COVID care centres / 2022-23. With this, RIL is Court relating to jurisdiction of Delhi • 3 youths supported by CSR got selected in government hospitals expecting to reach a peak Anti-Corruption Bureau. the Armed Forces production of ~ 30 MMSCMD PMT Arbitration On January 29, 2021, in its latest final in CY 2023, i.e., ~25% of partial award, the Arbitration Tribunal 100+ India’s production and ~15% has unanimously decided certain Migrant labours were linked with different issues in favour of BG Exploration schemes and provided support for improved of India’s demand. and Production India Limited and RIL farming through inputs and technical guidance (together the Claimants). Government RIL will continue its of India has filed an appeal before the exploration efforts in the English High Court against the latest final partial award. Further, due to the catchment areas, which, COVID-19 related circumstances, there 2,500 Education materials if successful, will be able has not been any substantial progress distributed to around in the claimants’ application before the to leverage its existing students Arbitration Tribunal seeking an increase world-class deepwater hub in the PSC Cost Recovery Limits and government’s execution petition before infrastructure. the Hon’ble Delhi High Court seeking enforcement and execution of the As the COVID-19 pandemic Tribunal’s 2016 Final Partial Award. continues to pose constraints and challenges, RIL’s focus remains on ensuring safety for its people and assets, timely delivery of ongoing projects and uninterrupted production operations.
120 Reliance Industries Limited Integrated Annual Report 2020-21 121 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis OVERVIEW REVIEW STATEMENTS Liquidity and Capital Resources
Treasury Management and Credit Rating Financial Strategy Reliance’s financial discipline and prudence are reflected in the strong credit ratings ascribed by rating agencies. The table below depicts the credit rating profile: Reliance Treasury makes sure that
capital is made available at the Instrument Rating Agency Rating Remarks optimum risk adjusted cost and is made Srikanth Venkatachari Soumyo Dutta Anshuman Thakur available at the time when businesses International Debt S&P BBB+ Two notches above India’s sovereign rating require it. It also ensures maintaining International Debt Moody’s Baa2 One notch above India’s sovereign rating a prudent mix of funding sources across instrument classes, financing Long-Term Debt CRISIL AAA Highest rating by CRISIL products, geographical markets and Long-Term Debt CARE AAA Highest rating by CARE investor classes. Long-Term Debt ICRA AAA Highest rating by ICRA The highlight of financing activity in FY 2020-21, was an early prepayment of Ratings Definitions US$7.8 billion of long-term foreign S&P BBB+: An obligation rated BBB+ exhibits adequate protection parameters. However, adverse currency debt, undertaken in 2Q and economic conditions or changing circumstances are more likely to lead to a weakened capacity of the FY 2020-21 has been a year of unprecedented volatility 3Q FY 2021, with requisite approvals obligor to meet its financial commitment on the obligation. from the RBI. This is the highest ever Moody’s Baa2: Obligations rated Baa are judged to be medium-grade and subject to moderate credit in the financial market and liquidity conditions. prepayment of debt undertaken by any risk and as such may possess certain speculative characteristics. corporate borrower in India. CRISIL AAA: Instruments with this rating are considered to have the highest degree of safety Reliance has been able to successfully navigate regarding timely servicing of financial obligations. Such instruments carry the lowest credit risk. During FY 2020-21, the Company CARE AAA: Instruments with this rating are considered to have the highest degree of safety took over Reliance Holding USA, Inc, this volatility. regarding timely servicing of financial obligations. Such instruments carry the lowest credit risk. (RHUSA) debt of US$4,455 million. ICRA AAA: Instruments with this rating are considered to have the highest degree of safety regarding These debts were guaranteed / timely servicing of financial obligations. Such instruments carry the lowest credit risk. The Company has successfully completed one of the largest equity capital raise supported by the letter of comfort given programmes and has repaid debt liabilities including US$7.8 billion of ECB borrowings, by the Company. Subsequent to its the largest ever such prepayment programme undertaken by any corporate entity in acquisition, the Company refinanced a Liquidity and portion of debt aggregating US$2,455 Treasury Management India. The Company remains firmly committed to efficient financing of its working capital, million, most of which was maturing Reliance maintains a strong focus on basis to factor in evolving global and across all formats of businesses, and maintains a strong liquidity position with more than during FY 2020-21 in compliance with liquidity to ensure that the Group always domestic macro factors. `2.5 lakh crore of cash and cash equivalent in its consolidated balance sheet. the provisions of the Foreign Exchange has adequate cover to face any potential Management (Cross Border Merger) Reliance maintains sufficient working short-term market disruptions. Reliance Regulations, 2018. This refinancing was capital resources for running all its maintained a strong liquidity position Highlights achieved at the lowest pricing in over a businesses smoothly. It continuously in its balance sheet in the form of cash decade for the applicable tenor. monitors and optimises working capital During the year, Reliance successfully Financial markets were extremely a consistent return on its investment and cash equivalents. Cashflow from requirements by actively leveraging raised equity in (i) Jio Platforms choppy and volatile during the year. portfolio by staying invested in low risk, In order to shore up its liquidity buffer operating activities continued to remain trade financing solutions covering Limited from global strategic investors, The first half of the year saw large-scale liquid instruments. Reliance Treasury and to insure the Company against strong. The slowdown in hydrocarbons receivable and payment products including Facebook and Google and destruction of demand in the economy, continued to stay focused on providing risks of volatile business cashflow, was compensated by the strong growth and executing innovative structured marquee financial investors totaling significant fall in interest rates and liquidity to the businesses at the Reliance raised `24,955 crore in consumer businesses. trade products. US$21 billion for ~33% stake, (ii) weakening of the rupee and the second optimal risk adjusted cost by accessing through rupee debentures for up to Reliance’s liquidity management Reliance Retail Ventures Limited from half of the year witnessed a bounce financing from different markets 5 years tenor, during the lockdown The investment portfolio balances and investment plans are created marquee financial investors totaling back in growth, recovery of crude and using appropriate instruments period in 1Q FY 2021. well between the dual objectives within the context of its strategic and ~US$6 billion for ~10% stake; (iii) fuel oil price, strengthening of the rupee and currencies. of generating optimal returns with retailing business by entering into and an upward movement in interest annual financial planning processes. Reliance continues to enjoy a strong appropriate risk/reward and maintaining a partnership with bp; (iv) Reliance rates. The Company was successfully The plans are reviewed on an ongoing credit rating and continues to be the assurance of liquidity at short notice. Industries Ltd by way of Rights Issue. able to navigate all such dislocations rated two notches above sovereign The equity capital thus raised allowed in the market, maintain adequate by S&P and is rated one notch above Reliance to significantly deleverage its liquidity on its balance sheet, manage sovereign by Moody’s. balance sheet and deliver on its promise its financial market risks and deliver of attaining zero net debt status.
122 Reliance Industries Limited Integrated Annual Report 2020-21 123 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis OVERVIEW REVIEW STATEMENTS Risk and Governance
The Company is prone to the following categories of risk:
Strategic and Health, safety and Compliance and Financial risks commercial risks environment risks control risks
Nikhil R. Meswani Hital R. Meswani Srikanth Venkatachari These risks, either separately or in combination, could have a materially adverse effect on the implementation of Reliance’s strategy, its business, financial performance, results of operations, cash flows, liquidity, prospects, shareholder value and returns, and reputation.
Governance Framework
Reliance’s Risk Management Framework is designed to be a simple, consistent and clear framework for managing and Laxmidas V. Harish Shah K. R. Raja reporting risks from the Group’s operations to the Board. The Board provides oversight through various Risk and Merchant Executive Committees listed below:
The Board Committees Executive Committees Business Risk and Assurance Committees Risk Management Committee Group Operational Risk Committee (BRAC), which meet on a monthly Audit Committee Group Financial Risk Committee basis for Business and Strategic Risk Reliance’s Risk Management Framework was stress Stakeholders’ Relationship Committee Group Audit & Disclosure Committee Management tested by the black swan event and the business CSR and Governance Committee Group Compliance Committee Finance Committee Group People Committee Business and Functional outcomes are encouraging. HR, Nomination and Leaders: Functional assurance and Remuneration Committee monitoring on an on-going basis and The Group’s motto, ‘Growth is Life’, aptly captures the ever-evolving spirit of Reliance. Health, Safety and weekly LOD meetings It also presents multiple opportunities and risks that are managed through the robust Environment Committee Risk Management Framework. The framework helps the Group identify, assess, respond to and monitor, on a real-time basis, risks that impact business objectives. Risk management is an integral component of the Reliance Management System. The cadence of governance meetings, including weekly meeting of the three lines of defense, reinforces early Effective risk management with enhanced use of technology has improved the quality of identification of a new risk and its mitigation. business decisions. For understanding the Company’s corporate governance and functioning of the Board and details on Internal Controls, please refer to the Board’s Report and Corporate Governance Report
Enterprise Risk Management The Company has a well-established The framework and related processes at Reliance “Three Lines of Defense” approach: seek to maximise business outcomes by The Risk Management Framework covers risk management activities at three levels: allowing the management to: Global events have challenged nearly every company, leading to a rethink of 1 Business/Process • Understand the risk environment and assumptions and adaption of strategies Managers (Self-verification, assess the overall potential exposure 1 2 3 to a new operating environment that first line of defense) • Determine risk mitigation strategies Day-to-Day Risk Business and Strategic Oversight and involves managing major risks with a Management Risk Management Governance renewed focus on the safety of people. 2 Risk Management Function • Allocate resources and actively At Reliance, the Risk Management (Functional Assurance, manage those risks This includes identification This is executed by business, function The Board, Executive Committees, Function, enabled by the effective use second line of defense) and mitigation of risks by the and Group leadership. It also results Group and functional leadership • Monitor the effectiveness of risk of new technologies, has enhanced management and staff at Reliance’s in integration of risks with key provide oversight to the identification management – across the value chain the organisation’s readiness in entities, assets and functions. business processes such as strategy, and management of the most 3 Internal Audit and and all the way up to the Board responding to COVID-19. Management Assurance This is executed as an embedded planning and execution, performance significant risks and are also Function (Independent component in the Operating management and resource allocation. responsible for improving the Risk Assurance, third line of Management System, Financial Management Framework and defense) Management System and People ensuring compliance. Management System.
124 Reliance Industries Limited Integrated Annual Report 2020-21 125 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Risk and Governance OVERVIEW REVIEW STATEMENTS
RISKS AND RESPONSE
STRATEGIC AND COMMERCIAL RISKS Customer Experience and Retention
Risk Description Commodity Prices and Markets Digital Services now has over 426 million customers on the back of an innovative customer acquisition strategy. Along with the expansion of its current customer base, customer retention and experience are of utmost importance to generate Risk Description sustainable business performance and return on investments. The business needs to continuously deliver differentiated The risk arising out of COVID-19 – from social distancing, national lockdown, uncertainty in environment, demand customer experience to proactively mitigate any risks that may weaken its value proposition, brand and customer loyalty. contraction, government intervention (ranging from encouraging certain businesses to indirect stoppage of goods and Reliance Retail operates in the consumer sector and a slowdown in macro-economic growth and weak consumer services) – has overshadowed the entire year. sentiments and spending could have a bearing on its performance. In a fast-changing external environment, with evolving External market conditions, in particular; prices of crude oil, natural gas and downstream products have a direct impact customer preferences and shopping habits, inability of the retail business to stay abreast of these trends and behaviours on RIL’s financial performance. These prices are affected by supply and demand, both globally and regionally. Factors could weaken its compelling value proposition and offering for customers and overall customer experience. that influence fluctuations in crude prices, crude availability and that can have an impact on margins include operational issues, natural disasters, political instability, including geopolitical risks, economic conditions and aggressive pricing by Risk Response competitors. Stringent recycling norms and government regulations can reduce plastic consumption. Digital Services sustains its customer options to its customers for mobile is delivered. It continues to drive Government restrictions on account of the COVID-19 pandemic could affect smooth operation of business activities, value proposition through continuous recharges, scaling up virtual call consumption in emerging categories store operation, and expansion. Reliance’s inability to build infrastructure at a pace and scale needed by the rapidly innovation on products/service centres for customer support and resulting from evolving customer growing Retail business could hinder operational efficiency and demand fulfilment. offerings, considering the needs resuming store operations with the preferences and shopping habits, of various customer segments and lifting of the lockdown. It enhanced thereby enabling sustained demand affordability. It makes continual network capacity for better indoor across businesses. investments in operational excellence coverage and, above all, has been Risk Response Focus on developing own brand and network infrastructure to deliver continuously driving improvement in Since RIL operates an integrated of heavy crude oil. Reliance has a its operating models by activating portfolio in categories such as health superior customer experience. the quality of service. The Company O2C business, some of these risks robust Commodity Risk Management digital commerce platforms and immunity boosting food in Through its Prime Membership continues to develop new products in one part of the business are offset Policy and Framework that enables and strengthening Grocery, productivity devices and Program, the Company offers the and services on the back of next by gains in other parts of the Group’s hedging the exposures arising omni-channel capabilities. appliances in Consumer Electronics, most competitive monthly tariff plans generation technologies such as AI, integrated O2C business. from commodity price fluctuations, serving ‘at home’ lifestyle through The business made steady progress in the industry, apart from offering IoT and 5G networks. such that the risks remain within re-curation of range in Apparel are RIL exports its products to diverse in bringing New Commerce to life attractive deals, thereby ensuring acceptable levels. Reliance Retail continuously some of the ways in which business geographical locations so that the risk by extending partnerships with customer retention and loyalty. of non-evacuation is mitigated with In its downstream business, RIL merchants and becoming their undertakes market study to stay has kept pace with changing minimal adverse effect. The Company explored new opportunities for trusted partner. Digital business has swiftly taken abreast of the emerging trends and consumer habits. increased the usage of multimodal manufacturing surgical gowns, PPE, multiple steps for superior customer implements proactive measures to Proactive steps were taken to engage . logistics (including coastal) to fulfil masks, testing-swabs for medical experience, including multiple ensure that the customer promise with customers through initiatives its contractual commitment to application. RIL is advocating in such as distance selling, store on customers. The Company operated at favour of the environment on the Data Privacy Risk wheels, pop up stores among others near full throughput even during the basis of life cycle studies of plastics to ensure customers are served well in lockdown period. vs alternatives, and is focusing on Risk Description the most difficult times. plastic waste collection and disposal, Due to COVID-19, the companies are collecting personal information about the medical condition of employees, vendors The risk of non-availability of crude increasing recycling footprint With operating curbs lifted and other visitors to their premises. Reliance is required to comply with statutory, regulatory and contractual restrictions and feedstock is actively managed in the country. progressively, thrust on expansion with respect to the collection of data, its storage, its security and dissemination to manage data privacy risk. by sourcing crude from multiple continued as the business opened geographies using short-term and Reliance Retail undertakes regular The Government introduced the Personal Data Protection Bill, 2019 (PDP 2019) in Parliament, which would create the new stores across geographies long-term purchase contracts. assessment of emerging risks and first cross-sectoral legal framework for data protection in India. Currently, the data privacy requirements are governed by and maintained its pace and As OPEC and other producer opportunities and has implemented the Information Technology Act 2000, amendment 2008. scale of growth. countries implemented a coordinated necessary steps in securing its Citizens and governments across the globe continue to face data breaches and scandals. This has transformed the way production cut, RIL diversified its people and business in the volatile citizens, governments and organisations think about data privacy globally. Data privacy laws and societal expectation are feedstock supply sources to ensure and uncertain operating environment increasing the imperatives to protect personal information of individuals. adequate and timely availability of posed by COVID-19. feedstock. It also increased Straight- Risk Response Decisive actions were taken by the run Fuel Oil (SRFO) sourcing to Reliance continues to ensure that into business processes and utmost awareness campaigns are conducted business to adapt and strengthen mitigate risk of lower availability privacy principles are enshrined in the care is taken to validate these on an ongoing basis. Reliance is fully organisation and its services. Since regularly. Enhanced practices are in compliant with the existing Indian Reliance is also involved in providing place to ensure protection of personal privacy laws and is gearing up to health support during the pandemic data while sharing it with third adopt requirements of the anticipated to both employees and society at parties. Identified applications that Indian PDP Bill, 2019. large, the data privacy requirements store personal data are adequately as per the law are tightly integrated secured. Besides, data privacy
126 Reliance Industries Limited Integrated Annual Report 2020-21 127 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Risk and Governance OVERVIEW REVIEW STATEMENTS
Cybersecurity Risk Health, Safety and Environmental (HSE) Risks in Operations
Risk Description Centre for Chemical Process Safety bio-bubbles at manufacturing like process monitoring, HSE COVID-19 made it imperative for the organisation to embrace certain practices, including social distancing, remote (CCPS) for mutual learnings. The locations, AI monitoring of behaviour, auditing and safety reviews were working and all these, in turn, led to significant dependence on and increased usage of digital technologies. Reliance Company has actively learnt from health monitoring, medical support seamlessly supplemented by remote continues to focus on large scale digital transformation/adoption of technology across its Retail business. A digital external HSE incidents in the industry via online daily symptom check collaboration digitally. For Grocery security breach or disruption to digital infrastructure caused by intentional or unintentional actions, such as cyber-attacks, and strengthened its systems and and remote doctor consultation business, food safety checks have data breaches or human error, could have a serious impact on business. This impact could include loss of process control, processes. Guidelines and advisories and tie-ups with private hospital been implemented to provide multiple impact on business continuity or damage to assets and services, harm to the environment, loss of sensitive data or on ‘Health and Safety management chains to ensure medical facilities layers of assurance, thereby ensuring information, legal and regulatory non-compliance, reputational damage as well as revenue loss. during pandemic’ have been promptly are available for Reliance employees safety of consumers. developed and deployed, considering and their family. Suitable online Reliance has initiated digital safety the new-normal conditions. Reliance’s programmes were organised to keep Risk Response platform activities underpinned with central technical teams have been morale high and ensure the mental The Company subjects its networks processes, cybersecurity incident ISO 27001 security benchmark and Industry 4.0 technologies like Big data agile in engaging with various expert well-being of employees. Reliance and systems to security penetration monitoring mechanisms, disaster Reliance Retail is now re-certified with and predictive analytics, Machine groups to timely facilitate resources has ensured required technical tests on a continuous basis. Reliance recovery controls and trained the global PCI DSS 3.2 (Payment Card Learning, Artificial Intelligence and to the sites for troubleshooting, competencies were always available invests significant resources to manpower. Cybersecurity controls Industry Data Security Standard). IoTs. With digitisation, there will maintenance and oversight to to operate and maintain its facilities. ensure cybersecurity resilience are ensured at design stage through Reliance exchanges cybersecurity be real-time access of information ensure that there are no deviations Dynamic risk management actions and data protection. Periodically, its integration with DeVSecOps. intelligence with industry to management and asset facing in HSE practices. were devised in its operations as independent assessments are Reliance’s cybersecurity measures peers and government bodies. personnel for timely intervention the scenario progressed during carried out to validate and improve are aligned to the growth and Cybersecurity awareness training The Company has taken multiple and to make safety critical the pandemic, enabled by digitally resilience to cybersecurity attacks. diversification of the Company. and tests are conducted for every steps with respect to employees decisions proactively. connected technology. Risk These encompass technical Reliance’s Hydrocarbon and Digital employee and partner. including work from home, security controls, secure operational businesses are now re-certified with assessments and oversight activities
Safety and Environmental Risks During Transportation SAFETY AND OPERATIONAL RISKS Risk Description With most of the crude being supplied to RIL by sea vessel, and the overwhelming majority of refined products being Health, Safety and Environmental (HSE) Risks in Operations exported by sea, road and pipeline, the Company faces the risk of HSE incidents, oil spills and so on, leading to disruption in business activities. Risk Description HSE risks include the effects of natural disasters (floods, earthquakes, among others) and safety lapses on human capital. Events like technical integrity failure, natural disasters, extreme weather, human error and other adverse events or The nature of Reliance operations exposes the Company, its employees and the society, to a wide range of health, safety, conditions could lead to loss of containment of hydrocarbons or other hazardous materials, as well as fires, explosions or security and environment risks due to the geographical location and technical complexity of operations. Various HSE other personal and process safety incidents. regulations across geographies regulate Reliance’s business of Exploration & Production of oil and gas, and their further RIL is operating a fleet of tugs, port service vessels and operations of port and terminal infrastructure and is exposed to a refining and downstream processing. HSE risk in retail extends to food safety. complex and diverse range of marine risks, with respect to exploration vessels, oil tankers, chemical tankers, gas tankers, A major HSE incident, such as fire, oil spill and security breach, can result in loss of life, environmental degradation and and dry cargo vessels. overall disruption in business activities.
Risk Response RIL has a strong vessel vetting, in case physical inspection of vessels collaboration with contractors. The Risk Response incident monitoring and emergency is not carried out due to COVID-19. contractors are supported by the Oil to Chemicals (O2C) business poses up to the decommissioning phase. exposure to these risks and they are response system. Vendor management audits are Company through capacity building risks inherent to Oil & Gas operations Advanced risk assessment techniques an integral part of risk management. carried out at prescribed intervals for their drivers in areas such as RIL’s augmented ship vetting involving fire, explosion, spills and are applied to assess the HSE risks for time charters and STS service defensive driving, route hazard During the year, the industry has faced programme ensures, the vessels that chemical releases. With an endeavour periodically, recognise emerging risks providers in accordance with the mapping and real time tracking. A challenges in managing the health of are contracted to carry RIL Cargo to mitigate these risks throughout the and embed appropriate controls. Marine Assurance Framework. dedicated state-of-the-art emergency personnel, supply chain, competent are screened based on risks prior to operating life cycle, robust practices Reliance facilities have employed response centre provides emergency resources to manage hazardous their induction. The third party ship RIL’s control framework for road are embedded to manage Safety inherently safer design strategies response to transporters. facilities and adherence to practices vetting system based on extensive transportation has matured over and Operational risks across the and state-of-the-art controls in the for managing health of assets. data analysis narrows the risk arising, a period of time and is run in . business entities. hazardous processes that reduce Reliance has proactively reached out vulnerability of these facilities to HSE HSE risks, including process safety, to industry peers, industry forums incidents. These risks are owned and are identified through a systematic and have actively participated in actively managed at asset-facing risk assessment programme starting industry efforts like ‘Reflections from level. Every member of the workforce from project ideation, design, global process safety leaders during is communicated on the potential commissioning, normal operations and following pandemics’ by the
128 Reliance Industries Limited Integrated Annual Report 2020-21 129 CORPORATE MANAGEMENT GOVERNANCE FINANCIAL NOTICE Management Discussion and Analysis Risk and Governance OVERVIEW REVIEW STATEMENTS
Physical Security and Natural Calamity Risks FINANCIAL RISKS
Risk Description Due to the geographical presence of sites and nature of its business operations, Reliance is susceptible to hostile acts such Treasury Risks as terrorism, vandalism, shoplifting or piracy which could harm the Company’s people, property and disrupt its operations. Some of Reliance’s sites are subject to natural calamities such as floods, cyclones, lightning and earthquakes. Risk Description Some of the network locations, offices, employees and other ecosystems are subject to various forms of intentional or Treasury risks include, among others, exposure to movements in interest rates and foreign exchange rates. Following is natural disruptions, thereby impacting network availability, customer experience, restoration cost and efforts. the summary of key risks faced by Reliance:
Failure to respond quickly or to be perceived as not responding fast enough in an appropriate manner to either an external Liquidity Risk or internal crisis, could disrupt the Company’s business and operations severely and also damage reputation. The impact of At the onset of the COVID-19 pandemic, liquidity across markets initially tightened. However, across markets, central such disruption can severely impact business and operations if the Company is unable to restore or replace critical capacity banks almost immediately pressed into action and significantly eased monetary and credit conditions. to the required level within the necessary timeframe. Interest Rate Risk Reliance borrows funds from domestic and international markets to meet its long-term and short-term funding Risk Response requirements. It is subject to risks arising from fluctuations in interest rates. As central banks maintained easy and Global Corporate Security (GCS) a situational awareness has been Security & Loss Prevention (SLP) accommodative monetary policies, interest rates across the world dropped very sharply. dedicated and distinct function of RIL, enhanced and speedy response proactively supports in reducing Foreign Exchange Risk de-risks, safeguards and secures the mechanisms are put in place at pilferage, theft and losses to enable Reliance prepares its financial statements in the Indian rupee, but most of the payables and receivables of the Company. It maintains best-in-class critical locations. Regular mock drills/ higher business profitability and Hydrocarbon business are in US dollars, minimising the cash flow risk on account of fluctuations in foreign exchange detailed disaster recovery, crisis and exercises are conducted, with all mitigating risks at Reliance Retail. It rates. Reliance avails long-term foreign currency liabilities (primarily in USD, Euro and JPY) to fund its capital investments. business continuity management the stakeholders for checking the is enhanced with a prudent mix of RIL also avails short-term foreign currency liabilities to fund its working capital. plans to respond to natural calamities, efficacy of the same. physical security, remote surveillance and any disruption or incident. and data-based audit interventions to Rupee depreciated sharply against the dollar during the first quarter. However, it soon reversed its trajectory completely Additionally, risks pertaining to digital foster a safe and secure environment and went on to close the year ~3% stronger. The businesses are provided services are uniquely mitigated and to protect assets 24X7. assurance on an ongoing basis by through integrated response that is GCS with respect to the management facilitated by various teams such as RIL is rolling out an integrated Risk Response of security risks affecting its people, security, customer services, corporate security platform with wide area As liquidity conditions eased out, sufficient liquidity buffer to meet as a large part of its borrowings assets and operations. It actively services, network maintenance and high-end sensors, seamless electronic Reliance raised `24,955 crore of additional demands that may emerge are floating on short-term monitors the threat landscape the local geographical offices to keep communication and AI-based Rupee debentures in the 3 - 5 year on account of the COVID-19 crisis. benchmark rates. tenor to add to its already existing to prevent/mitigate risks using the networks functional, thereby analytics across the enterprise. Interest rate risk is normally managed Foreign exchange risk arising from the liquidity buffer in 1Q FY 2021. cutting-edge technology solutions, safeguarding Company assets, actively through financial derivative mismatch of foreign currency assets, . Capital flows received in FY 2020- seamlessly deployed as a digital- people security while maintaining instruments available to convert liabilities and earnings is tracked and 21 by way of the Rights Issue and physical managed service on a customer experience. floating rate liabilities into fixed managed within the internal Risk stake sale in Digital and Consumer platform-based approach. Real-time rate liabilities or vice-versa. In Management Framework and rules Retail businesses strengthened FY 2020-21 Reliance benefited that are dynamic to market changes. RIL’s liquidity position further. The significantly on account of the COMPLIANCE AND CONTROL RISKS Company continues to maintain ultra-low interest rate environment
Regulatory Compliance Risks
Risk Description Increased regulatory scrutiny has raised the bar on regulatory compliance. This requires alignment of corporate performance objectives, with regulatory compliance requirements. COVID-19 has led the government to announce a range of notifications which companies need to adopt swiftly and effectively.
Risk Response Reliance has adopted a digitally- Reliance Compliance Management The Company’s code of conduct, enabled comprehensive compliance System. The responsibility matrix is training as well as focus on management framework. It is cascaded down to a single point of ensuring 100 % compliance and updated at regular intervals, responsibility. Apart from assurance continuous monitoring have and is integrated with business through Three lines of defense, enabled a mature, digitally-enabled processes, risks and controls. compliances are also periodically compliance framework. Changes in regulations including monitored at the Group Compliance COVID-19 induced changes are also Committee level. tracked and integrated within the
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Leadership Awards • RIL Chairman, Shri Mukesh D. • RIL ranked 81 on Forbes ‘World’s • RIL recognised at the Institute of Ambani, ranked among Top 5 World’s Best Employers’ list among 750 Chartered Accountants of India (ICAI) Most Famous, Most Reputable CEOs multinational and large corporations Awards for Excellence in Financial Insurance – Risk Mitigation headquartered in 45 countries Reporting for 2019-2020 • Smt Nita Mukesh Ambani Reliance maintains insurance cover for properties on All Risk basis, including against Act of God perils and Reliance Foundation • RIL recognised by the Great Place • Patalganga Manufacturing (flood, earthquake, cyclone, tsunami etc.), business interruption and third party liability. The Company recognised among top COVID-19 to Work® Institute as Great Place Division awarded FAME covers the properties on full sum insured basis on replacement value. It also maintains various other types philanthropists of 2020 to Work – Certified™, based on Excellence Award 2020 their two-step evaluation process of insurance, such as Erection All Risk for its major capital expenditures projects, Directors’ and officers’ • RIL debuts on Great Place To • Jamnagar Manufacturing Division of Culture Audit© and Trust liability, transit cover, charterers’ liability cover and employee benefit insurance policies. The scope of Work® ‘India’s Best Workplaces in refinery awarded the ‘Refinery of Index© assessments coverage, insurance premiums, policy limits and deductibles are in line with the size of the company and Manufacturing 2021’ list the Year’ Award by the Federation of its nature of business. • Reliance ranked among Indian Petroleum Industry • RIL ranked among LinkedIn’s Dare2Compete’s ‘Top 25 Dream ‘Top 25 best workplaces to grow Companies to Work for’ among the your career in India’, featuring in top 30 B-schools in their 2020 list Leading Edge Technology – Governance, Risk, Compliance ‘companies that invest in their talent’ and ‘help employees build a and Audit (GRCA 2.0) Platform professional foundation that sets A robust ERP system, data analytics capabilities and GRCA tools are used for risk management. Reliance them up for success both at the has transformed risk management during the year to enable real-time risk monitoring with the launch company and beyond’ of the GRCA 2.0 Platform. GRCA is an in-house development on open source technology that fosters real-time actionable dashboards that enables real-time risk assessment and its mitigation. It is scalable and agile.
The Future Ahead COVID-19 has been one more litmus test for resilience and adaptability. Based on the deep culture of risk management built over the past years, and supplemented with strong cadence-enabled governance, Reliance has a matured Risk Management Framework enabled by technology. Reliance’s risk management is agile for course correction in the VUCA world, including dealing with upside risks. Recovery of economic activity and the consequent demand rebound as vaccination programmes reach scale in various countries will result in a more favourable environment.
Jamnagar Manufacturing Division refinery awarded ICSI CSR Excellence Award to Reliance Industries with the ‘Refinery of the Year’ Award by the Limited, 2020-21 Federation of Indian Petroleum Industry.
Dahej Manufacturing Division won Platinum Award in Silvassa Manufacturing Division won the ‘Grow Care India Environment Excellence Award 2020’ Greentech Environment Award 2020 organised by in the Petrochemical Sector. Greentech foundation
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Technology, Patents, R&D • Nagothane Manufacturing Division • RIL received Special Jury Mention and Innovation ranked 2nd in State Level Energy Certificate at the FICCI Healthcare Retail Awards Digital Services Media and Conservation Awards (MEDA) for Excellence Awards under ‘Excellence • Team from VCM/PVC, UB2, GOP (E) Awards Entertainment the year 2019-20 in Social Initiative’ Category for its • Reliance Digital won Gold for won Gold in the State level Quality • Nagothane Manufacturing Division contributions under project ASMAN ‘Digital Marketing Excellence in • Reliance Jio rated as fifth Awards Circle Convention organised by won award for ‘Commendable Work • RIL received special recognition in Social Media’ at Digixx Awards strongest brand in the globe Quality Circle-Vadodara • News18 Network’s ‘Corona for Changing Public Perception’ ‘Excellence in Community Impact’ 2020 by Adgully as per Brand Finance Global Wall’ won Best Technological by FICCI. The ‘Plastics to Road’ Award category at SHRM HR 500 2021 ranking Innovation in News Television project was presented under Excellence Awards 2020 • Reliance Jio named ‘Best (English) at the News the award category • Reliance Foundation Information 4G Network Provider’ at Television Awards Services received Certificate of ET Telecom Awards • News18 Network’s ‘Elexa-A’ Health, Safety and Appreciation from Acharya N G • Jio awarded the Digital recognised as the Best Use of Environment Ranga Agriculture University, Andhra Enterprise of the Year at Drivers Technology by a News Channel • Dahej Manufacturing Division Pradesh for continuous efforts in of Digital Awards (AR/ VR/ AI) (English) category won the Annual Greentech transferring technology to farmers in • Jio won Gold at SAMMIE at the 12th ENBA Awards Environment Award 2020 by the agriculture and allied sectors during • Reliance Digital won ‘Social 2021 for the Best Brand in the • CNN-News18 primetime show • Won APEX Award in National Awards Greentech Foundation the COVID-19 pandemic Media App Effectiveness’ award Telecom category ‘Viewpoint’ won in the Best Early for Manufacturing Competitiveness • Silvassa Manufacturing Division • Reliance Foundation awarded at Global Customer Engagement • Reliance Jio named the ‘Most Prime Show (English) category at (NAMC) 2019-20, organised by won the Greentech Environment ‘Certificate of Commendation’ by Awards 2020 by ACEF Powerful Brand of the Year’ at the 12th ENBA Awards International Research Institute for Award 2020 organised by Indian Red Cross Society during its • Reliance Jewels awarded the Labels Conference and Awards • News18 India won accolades Manufacturing (IRIM) Greentech foundation centenary celebrations ‘Most Admired Emerging Retail • MyJio recognised as Best for ‘Sau Baat Ki Ek Baat’ in Print Sustainability • Patalganga Manufacturing Division • Petrochemicals business won Brand of the Year’ at Mapic India Consumer Mobile Service at & Publishing category at the 9th won Greentech Environment ‘Company of the Year’ award from Retail Awards 2021 India Digital Awards 2021. Global Customer Engagement • Jamnagar Manufacturing Division Award 2020 in the Environment FICCI for its significant value creation • Reliance Jewels named ‘The • MyJio named the ‘Most Awards, and ‘Best Current won ‘Sustainable Corporate of the Protection category in society and contributions towards Retailer of the Year’ and Innovative App’ at Drivers Affairs Programme – Hindi’ at Year Award’ from Frost & Sullivan & • Dahej Manufacturing Division won fight against COVID-19 ‘Marketing Campaign of the of Digital Awards the 12th ENBA Awards TERI Sustainability 4.0 Platinum Award in ‘Grow Care India Year’ at the Business Leader of • Reliance Jio won the SHRM – • CNBC TV18 won ‘Best Coverage • Silvassa Manufacturing Division Human Resources Environment Excellence Award 2020’ the Year Awards HR Excellence Awards in the on Policies & Macro Economy – won the India Green Manufacturing in the Petrochemical Sector • Reliance Retail won HR Initiative of • Reliance Digital recognised as category ‘Transition to the Television’ by the Association of Challenge Award 2021, organised by the Year Award won by its Consumer ‘India’s Only Electronics Retailer virtual workplace’ National Exchanges Members the International Research Institute CSR Awards Supply Chain Management business Super Brand’ for the second • Jio Platforms adjudged winner of India (ANMI) 2020 and for Manufacturing at TRRAIN Retail Awards 2020 – 21 consecutive year under ‘Innovative Telecom Best Editorial Team of a News • Vadodara Manufacturing Division • RIL adjudged the Best Corporate Solution’ category at Aegis (Large Category) at the ICSI Channel (English) at the News won Gold at the 2020-21 ‘The India Learning and Development Graham Bell Awards Television Awards Green Manufacturing Challenge CSR Excellence Awards • Jio emerged winner under ‘5G • MoneyControl awarded (IGMC)’ for the consistent progress in 2020 for its Corporate Social Innovation’ category at Aegis ‘Most Admired Mobile improving sustainability factors Responsibility (CSR) efforts Graham Bell Awards App’ by Global Customer • RIL received Special Recognition • Jio – Cadbury Madbury Engagement Awards 2020 Energy and Water in the ‘Excellence in Community Campaign won the Smarties • Colors TV’s ‘Ishq Mein Marjawan Conservation/Efficiency Impact’ category for its response Award 2020 under Mobile to COVID-19, Mission Anna Seva 2’ bagged the Best Serial Award • Dahej Manufacturing Division • Reliance Retail won Guarded Gaming, Gamification and campaign, Recycle4Life Campaign, at the Indian Television Awards conferred The Energy And • National Awards for Excellence in Retail Employees Amidst Esports category Versova Beach and Mithi River Clean- • VOOT won Gold at ScreenXX Environment Foundation Global Training and Development (World Turbulence (GREAT) Award at up drives, employee volunteering Awards 2020 in Agency sector Water Award 2020 for ‘Industrial HRD Congress) for Best Results- TRRAIN Retail Awards 2020 – 21 through mentoring of government Awards – Best Marketing Water Project of the Year’ Based Training presented to Reliance • Snactac Mixed Fruit Jam and school children, concerts with Campaign by a Streaming • Dahej Manufacturing Division won BP Mobility Limited Scrubz were ranked #1 in SOS Children’s Village and Platform for the Big Boss- CII National Award for Excellence in their respective categories Month of Good Deeds #Aslifans Campaign Water Management 2020 by Consumer Voice • RIL won India Today-MRDA Special • Nagothane Manufacturing magazine in FY 2020-21 Healthgiri Award 2020 for ‘Best Far Division awarded for ‘Efficiency in • Marks & Spencer Reliance Reaching Corporate Contribution Water Use’ by FICCI India Private Limited featured for a Wider Social Impact’ during • Nagothane Manufacturing Division in the top 10 list of India’s Best COVID-19 pandemic won ‘EFF Global Award 2020’ for Companies to Work for Women • Saathi award conferred on ART water reuse project • Marks & Spencer Reliance Centre, Lodhivali, for its contribution • Patalganga Manufacturing Division India Private Limited won CII to ‘Elimination of Mother to won Platinum Award in ‘Excellence SCALE award for outstanding Child transmission of HIV & in Energy Efficiency’ and in performance in Supply Syphilis’ in Maharashtra • FICCI Award for Excellence in ‘Excellence in Health & Safety for Chain and Logistics Skill Development to Reliance Workers’ categories Petchem Academy
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