By :-

Pravin Pansuriya

2
 An Industrial Report

On

BY

PRAVIN PANSURIYA

SUBMITTED FOR THE PARTIAL FULLFILMENT OF

POST GRADUATE DIPLOMA IN MANAGEMENT

FROM

SINHGAD BUSINESS SCHOOL (MATRIX) -PUNE

YEAR: 2009-2011

SINHGAD BUSINESS SCHOOL (MATRIX)

3
AMBEGAON (BK), PUNE-411042

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 Index
1. Industries Profile 4

2. Company Profile 7

3. Organizational Structure 11

4. Product and Service Profile 13

5. SWOT Ananlysis & Compitior Ananlysis 20

6. Company Current Position 22

7. Future Plan of Company 23

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Industries Profile

Petrochemical Industry

The petrochemical industry in India has been one of the fastest growing industries in the country.
Since the beginning, the Indian petrochemical industry has shown an enviable rate of growth.
This industry also has immense importance in the growth of economy of the country and the
growth and development of manufacturing industry as well. It provides the foundation for
manufacturing industries like construction, packaging, pharmaceuticals, agriculture, textiles etc.

The Indian petrochemical industry is a highly concentrated one and is oligopolistic in nature.
Even a few days back, only four major companies viz. Reliance Industries Ltd (RIL), Indian
Petrochemicals Corporation Ltd. (IPCL), Gas Authority of India Ltd. (GAIL) and Haldia
Petrochemicals Ltd. (HPL) used to dominate the industry at a large extent. The recent
amalgamation of IPCL with RIL has made the industry more concentrated further, as they jointly
account for over 70% of country's total petrochemical capacity. However, the scene is a bit
different for the downstream petrochemical sector, which is highly fragmented in nature with
over 40 companies exist in the market.

The Characteristics of Indian Petrochemical Industry

Petrochemical Industry in India is a cyclical industry. This industry, not only in India but also
across the world, is dominated by volatile feedstock prices and sulky demand. India has one of
the lowest per capita consumptions of petrochemical products in the world. For example, the per
capita consumption of polyester in India lies at 1.4 kg only comparing to 6.6 kg for China and
3.3 kg for the whole world. Similarly, the per capita consumption of polymers is 4 kg in India,
whereas the per capita consumption is around 20 kg for the whole world.

The Growth

The petrochemical industry in India came into existence during 1970s. The 1980s and 1990s saw
some rapid growths for Indian petrochemical industry. The biggest reason for this growth was
the high demand for petrochemicals in India, which grew at an annual rate of 13 to 14% since
late 90s. It also called for rapid expansion of capacity. The BMI forecast of average annual
growth in India over 2007-2011 is 14 to 16%. However, the industry suffered setbacks during
2008 due to surge in the price of crude oil. It will be tough for Indian petrochemical industry to
plug the deficit of 5mn TPA of ethylene and 4mn TPA of polymer by 2012 (according to the
predictions of the government).

The Present Scenario Presently India has three gas-based and three naphtha-based cracker
complexes with a combined annual capacity of 2.9 MMT of ethylene. Besides this, there are also
4 aromatic complexes with a capacity of 2.9 MMT of Xylenes.

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The production of 5.06 MMT polymers during FY09 accounted for around 62% of the total
production of key petrochemicals. It also achieved 88.5% capacity utilization. The industry also
produced 2.52 MMT of synthetic fibres during FY09 with a 73% of capacity utilization.

Key Segments

Petrochemical industry is constituted of the following key segments:

 Polymers: The demand for polymers saw a growth of 13.4% during 2007, comparing
to a demand growth of 5.6% in 2006. According to the prediction of Chemicals and
Petrochemicals Manufacturers' Association (CPMA), the demand growth for polymer
would further be augmented to over 15% in the coming year.

 Polyester Intermediates: The combined production of 5 fibre intermediates (CAN,

DMT, Caprolactum, MEG and PTA was 3,417 KT during 2007. Among those, PTA and
MEG accounted for 69% and 27% respectively, while the rest were DMT, Caprolactum
and CAN.

 Aromatics (Paraxylene): The demand for Paraxylene (PX) saw a growth of 18%
during 2007. According to the prediction of CPMA, it is expected to grow at the same
rate in the coming year as well.

 Benzene, Toluene, MX and OX: The demands for Toluene and OX saw a contraction
rate of 4% and 10% respectively during 2007. However, Benzene and MX saw a positive
growth though.

Top Petrochemical Companies in India

Though the Indian petrochemical industry is highly dominated by only a few players, however,
there are a number of petrochemical companies in India, doing their share of business. Some of
the top companies can be listed as below:

 Reliance Industries Ltd.

 Haldia Petrochemicals Ltd.
 Indian Oil Corporation
 Gas Authority of India Limited
 National Organic Chemical Industry Ltd.
 Bongaigaon Refinery and Petrochemicals Ltd.
 Manali Petrochemical Limited
 I G Petrochemicals Limited
 The Andhra Petrochemicals Limited
 Tamilnadu Petroproducts Limited

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8
Reliance Group

The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private
sector enterprise, with businesses in the energy and materials value chain. Group's annual
revenues are in excess of US$ 44 billion. The flagship company, Reliance Industries Limited, is
a Fortune Global 500 company and is the largest private sector company in India.

Backward vertical integration has been the cornerstone of the evolution and growth of Reliance.
Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical
integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil
and gas exploration and production - to be fully integrated along the materials and energy value
chain.

The Group's activities span exploration and production of oil and gas, petroleum refining and
marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles, retail
and special economic zones.

Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre
producer in the world and among the top five to ten producers in the world in major
petrochemical products.

Major Group Companies are Reliance Industries Limited (including main subsidiary Reliance
Retail Limited) and Reliance Industrial Infrastructure Limited

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ABOUT THE COMPANY:-

1991, Reliance industries set up a new subsidiary, Reliance Refineries Private Ltd. Thesubsidiary
later changed its name to Reliance Petroleum Limited, and in 1993 launcheda public offering,
which at that time was India's largest ever IPO.

FIG:- Reliance Industries Limited

Reliance continued to pioneer financing channels in India. In 1993, for example, the
company became the first Indian company to raise capital on the foreign market,
through a Global Depositary Receipt (GDR) issue in Luxembourg. The company
completed a second successful GDR issue in 1994. The company used the new capital
in part to expand its petrochemicals wing, building the world's largest multi-feed
cracker at the Hazira site. The company also added production plants for monoethylene
glycol, polyethylene, and purified terephthalic acid. The new units launched production
in 1998.

Reliance's opportunity for entry into petroleum refining came in 1997, when the Indian
oil industry reached a state of near collapse. Unable to fund further exploration
operations, and lacking the capital to expand its existing production, the government
was forced to liberalize the sector. In that year, Reliance announced a plan to build one
of the world's largest and most modern petroleum refining complexes in Jamnagar,
Gujarat, at a cost of some $6 billion. The government agreed to the plan, and granted
the company the right to import petroleum directly, rather than going through Indian
Oil, which helped Reliance greatly drive down operating costs.

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Constructed in record time, the Jamnagar site was commissioned in 1999. The site's
production capacity was double that of any other Indian refinery and ranked among the
top five in the world. The addition of the new facility also placed Reliance at the top
rank of the country's private-sector companies. In 2002, Reliance Petroleum was
merged into Reliance Industries, which then became one of the country's top three
companies, including state-owned entities.

Breaking Up in 2006:

Dhirubhai Ambani died in 2002, and the Ambani brothers took over as heads of the
company. In that year, the company increased its dominance of the country's
petrochemicals sector through its acquisition of main private-sector rival Indian
Petrochemicals Corporation. Also in 2002, Reliance launched a diversification effort

targeting the telecommunications sector, especially the fast-growing cellular phone

market. Reliance set up its own phone service, Reliance Infocomm, in that year.

Yet the petroleum industry remained the company's major growth focus. In 1999, the
Indian government auctioned off 25 blocks for exploration; bids were given in the form
of royalty percentage offers. Reliance won 12 of the blocks and promptly set in place
its own team of exploration experts, backed by oilfield services from Halliburton and
Schlumberger. Reliance's investment quickly paid off with the discovery of natural gas
reserves estimated at some 14 trillion cubic feet, the largest natural gas field discovered
in India in decades, in the Krishna-Godavari Basin in the Bay of Bengal. In 2004, the
company struck again, locating a new gas field in the Bay of Bengal, off the Orissa
Coast.

Buoyed by its successful exploration efforts, Reliance unveiled an ambitious expansion

program for the second half of the 2000s. The company's plans included a $6 billion
extension of the Jamnagar site, doubling it in size and making it the world's largest ans
complex refinery by 2009. The company also announced that it intended to spend $10
billion on further oil exploration efforts, targeting the international market. In this way,
the company hoped to increase its production tenfold by the end of the century. At the
other end of the petroleum market, the company launched a $1.5 billion expansion of
its Reliance gas station chain, with the goal of 6,000 stations. The company also
expanded internationally, becoming the world's leading manufacturer of polyester yarn
with the acquisition of Germany's Trevira. In addition, the company boosted its
telecommunications wing, acquiring U.K.-based FLAG Telecom, an operator of a
50,000-kilometer underwater fiber-optic cable network

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COMPANY SPECIFIC:-

VISION:-

Reliance Industries Limited (RIL) was set up by the farsighted businessman Dhirubhai Ambani
(1932-2002) more than three decades ago. RIL has emerged as India's largest private-sector
enterprise and carved out a distinct place for itself in global Fortune 500 companies. Reliance's
business success and competitive position reflect the leadership provided by its founder, who
said, "Growth has no limit at Reliance. I keep revising my vision. Only when you dream it do
you get it."

The leadership system defined by Ambani is based on value creation, particularly for the
customers and shareholders. Now, Shri Mukesh Ambani, chairman and managing director, is
steering the company, building on the founder's vision.

The Hazira manufacturing unit's management team, headed by Shri H. S. Kohli, executive
director, is focused on fulfilling the needs of its various stakeholders through excellence in
systems, processes, technology, and people and toward fulfillment of the corporate vision: "To
become a globally competitive enterprise, driven by the market, creating and maintaining a lead
over competition through quality products and establishing itself to be the preferred supplier of
its customers."

With vertical integration of its chain from refinery to textiles, Reliance has a unique fully
integrated structure, producing fabrics from crude oil. Its existing and emerging businesses in
exploration and production, refining and marketing, petrochemicals, textiles, and retailing have
given Reliance a unique leadership position in India and the world.

Reliance has the distinction of being among the top 10 global producers in all of its major
petrochemical product lines. The company's vision is "to grow on a sustainable basis and be the
largest and most innovative, profitable, and admired polyester producer in the world."

MISSION:-

To attain global best practices and become a world-class ,Starting in 1991, he

directed Reliance Industries in its efforts to raise ..... PARC is today a state of the art technology
center in the Indian petrochemical industry. ..

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 Founder Chairman

"Growth has no limit at Reliance. I keep revising my vision.

Only when you can dream it, you can do it."

Dhirubhai H. Ambani
Founder Chairman Reliance Group
December 28, 1932 - July 6, 2002

Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global leader
in the materials and energy value chain businesses.

He is credited to have brought about the equity cult in India in the late seventies and is regarded
as an icon for enterprise in India. He epitomized the spirit 'dare to dream and learn to excel'.

The Reliance Group is a living testimony to his indomitable will, single-minded dedication and
an unrelenting commitment to his goals.

Board of Directors of Reliance Industries Limited

Shri Mukesh D. Ambani

Chairman & Managing Director

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Shri Nikhil R. Meswani Shri Hital R. Meswani Shri PMS Prasad
Executive Director Executive Director Executive Director

Shri P.K.Kapil
Shri Ramniklal H. Ambani Shri Mansingh L. Bhakta
Executive Director

Shri Yogendra P. Trivedi Dr. D. V. Kapur Shri M. P. Modi

Dr. Raghunath
Prof. Ashok Misra Prof. Dipak C Jain
Anant Mashelkar

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Products & services

We pride ourselves on being "your local BP people” as our core business is in Regional
Australia. We strive each and every day to be, your local BP people, and to remain the face
of BP in Regional Australia. We stock the full range of both BP and Castrol products,
giving you even greater choice and flexibility, as well as the peace of mind that comes from
a proven brand.

Reliance Petroleum offers a vast array of products including bulk fuels and lubricants to spray
oils and solvents to dispensing equipment and convenience goods.

Our partnership with BP and Castrol completes our total offer to our customers offering premium
fuel and lubricant products. We distribute fuel to 600 service stations across Australia. We own
and operate over 200 of these, the remainder being independently-owned and selling fuel under
the BP banner.

Reliance Petroleum offers a complete spectrum of services in the commercial and retail markets
especially bulk fuel and lubricant purchases for farms, mines, transport  fleets, construction sites,
and service stations.

PRODUCTS

RPL intends to sell bulk of diesel to Europe, given the dieselization there and shortage of diesel,
gasoline exports would primarily target

USA & Asia.

RPL also intends to enter into a long term contract with RPL for the provision of sales and
marketing services for its refined petroleum products in order to leverage on its experience in
this area.

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16
Product % of Total Production

SHOWING PRODUCT % OF TOTAL PRODUCTION

100
80
60
40
20 % of TOTAL PRODUCTION
0
e e
lin en e
so s ok le r
Ga
er o
etc
opy hu se
l
es
K P r lp Di ss TA
L
t/ lyp Su lo O
Je Po & T
uel
F

roduct % of Total Production

Gasoline 31

Jet / Kerosene 5

Petcoke 9

Polypropyle 3

Sulphur 2

Disel 42

Fuel & losses 8

Total 100

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18
SERVICES

Reliance Card

In an increasingly fast moving world, it’s good  to know you’re travelling with a reliable partner
to help keep your business on track. The Reliance Card is specially tailored to your needs no
matter where you are, in the office, or on the road.

More locations

With over 1600 sites including the Reliance Petroleum network and the nationwide BP network,
you’ll always have access to a reputable brand and guaranteed quality fuels.

Less Paperwork

With single tax invoices and itemised charges on statements and reports, you’ ll know exactly
how to optimise the running of your vehicles.

More than just fuel

Your card. Your choice. You can link a variety of product options directly to your card. In fact,
you can use it in any of our diners and for other in-store purchases. It really doesn’t stop at just
fuel.

And even less paperwork with RelianceNow.

Service Stations

We aim to deliver the highest quality convenience store offer to all of our customers. Our 2go
shops offer an exclusive range of convenience products as well as food and car wash in selected

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sites. Reliance Petroleum operates over 200 BP service stations primarily throughout  regional
Australia .

Find a Reliance Petroleum operated service station near you.

We are committed to great customer service and our friendly, local staff are always ready to help
assist you in choosing the products that are right for you. You will experience a consistently
good service experience no matter where you deal with us.

Our stores vary across our extensive network from Travel Centres to small compact convenience
stores and we offer  a wide assortment of convenience goods such as fresh milk & bread, grocery
items, dairy lines, magazines, newspapers, tobacco products and a great range of drinks
including flavoured milk and juices, confectionery, chips & ice creams and fresh, affordable,
food and coffee to go. Our stores also carry bagged ice all year round.

On-site Refuelling

Reliance On-Site is the refuelling service that comes to you and delivers fuel directly into
your equipment – when and where you need it. It eliminates the need for you to store bulk
fuel on site and all the problems with self-fuelling your own vehicles and machinery.

Reliance On-Site has a fleet of specially designed vehicles that can manoeuvre into difficult
places on site to deliver small amounts of fuel to you as economically as possible, for filling
vehicles, mobile plant and equipment, earth moving equipment and back-up generators.

We understand the costs associated with downtime, when equipment is waiting to be refuelled –
so you can rely on us to be reliable and responsive, delivering fuel to your site promptly to meet
your requirements.

Your equipment can be refuelled after-hours or when not being used, eliminating downtime and
resulting in increased productivity.

With Reliance On-Site, you can eliminate the costs of storing costly bulk fuel, because you only
pay for the fuel you use.

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 Reliance On-Site makes administration and control easy – at each delivery, our operator uses a
hand-held computer to clearly identify each piece of equipment and the amount of fuel delivered.

Lubricant Solutions

Reliance Petroleum distributes the full range of BP and Castrol lubricants and greases
from our network of regionally-based depots and delivery fleet. Our lubricant specialists
can help you choose the right product for your vehicle or equipment and offer problem
solving, product rationalisation information, cost reduction analysis and lubricant surveys.

We offer the full range of BP and Castrol lubricants and greases including:

 Engine Oils

 Gear/Transmission Oils

 Hydraulic Oils

 Agricultural lubricants

 Mining Lubricants

 Greases

Our wide range of specialty products include:

 Cleaners and Detergents

 Solvents

 Cutting oils (neat and soluble)

 Spray oils and animal health products

 Rulvapron Spray Adjuvant [link to brochure]

 NONOX Adblue

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 NONOX Adblue FAQ

You can find out more about the products we sell from the product catalogues and guides below:

 BP's On line Product Catalogue

 Macnaught's online Product Catalogue

You can also download product Material Safety Data Sheets (MSDS) and Technical Data Sheets
(TDS) from the BP, Castrol and NoNox Adblue websites.

 Material Safety Data Sheets BP

 Material Safety Data Sheets Castrol

 Technical Data Sheets BP

 Technical Data Sheets Castrol

Storage and dispensing options including:

 Self bundled double skinned tanks & Conventional lubricant storage tanks

 Pumping and greasing equipment

 Metering devices

We are able to meet the demands of your bulk and packaged lubricant requirements through our
network of regionally based terminals, depots and fleet of delivery vehicles.

All vehicles are operated by our experienced drivers and distribution staff who have an extensive
local knowledge and understanding of handling lubricants, whether bulk or in drums.
Alternatively, customers are welcome to choose the convenience of picking up their lubricant
products from any of our local depot locations.

We offer the convenience of a single account to cover all of your lubricant and fuel needs. A
Reliance Petroleum account offers simple, easy to read invoices and statements, a dedicated
1300 account enquiry hotline and the convenience of online account management through
RelianceNow. Sign up now

Bulk Fuel

Reliance Petroleum has a network of locally based bulk fuel depots and a large fleet of
delivery vehicles to meet all of your bulk fuel needs.

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Our delivery fleet is operated by our experienced transport staff and distribution team who have
an extensive regional knowledge and understanding. We offer specialised delivery suited to your
needs and a convenient FREECALL number to place all of your orders 1800 333 275.

Storage Equipment

We provide a range of options to meet your fuel storage needs. A variety of storage options are
available ranging from farm tanks and trailer tanks to large bulk fuel installations. There are
strict regulations and controls around bulk fuel storage. By dealing through Reliance Petroleum
you can be assured that all equipment is fully compliant and backed up by expert advice.

Dispensing Equipment

We provide a wide range of fuel dispensing equipment to meet your needs. Ranging from simple
hand operated dispensing equipment to computerised industrial dispensing systems, you can
select the best option for your business.

24 Hour Refuelling Network

You can use our extensive gofuel network (outside purchase terminals) 24/7. Our gofuel
network consists of over 60 self-service refuelling facilities for your on-road needs. The
network provides extensive coverage and has easy heavy transport access in remote
locations at all hours. You can use your Reliance Card, BP Plus card or normal finance
card.

Easy account management

We offer the convenience of a single account to cover all of your lubricant and fuel needs. All
Reliance Petroleum paperwork is designed to allow you to spend more time on your business and
less time on dealing with your accounts. A Reliance Petroleum account offers simple, easy to
read invoices and statements, a dedicated 1300 account enquiry hotline and the convenience of
online account
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SWOT analysis

Let us now do a SWOT analysis on the industry so as to have a better understanding of the
prospects for the industry, going forward:

Strengths:

 Consolidation: The Indian petrochemicals industry has witnessed consolidation over the
last few years and nearly 85% of the polymer capacity in the domestic market is with the
top three participants (Reliance, IPCL and Haldia Petrochemicals (HPL)). Of the three
companies mentioned, IPCL forms a part of the Reliance stable while GAIL is set to pick
up stake in HPL. Such high concentration is likely to benefit these players, as this would
help reduce duplication of production.
 Synergies: Most of the petrochemical players have integrated facilities, thereby reducing
external dependence to a large extent. To put things in perspective, Reliance Industries
uses naphtha from its own Jamnagar refinery as a feedstock for the petrochemicals
production. IPCL uses Reliance's vast and widespread marketing network to reach out to
global consumers. On the other hand, GAIL utilizes natural gas for its petrochemicals
capacity. Rich natural gas is evacuated into the pipelines and after separation of the
hydrocarbons such as ethane, propane and butane, the lean gas is transmitted to
consumers such as power and fertilizer industry. Further, petrochemicals business being a
high value add, would add further to the profitability of these integrated companies.

Weaknesses:

 Low bargaining power vis-à-vis the suppliers: Input costs form nearly 50% to 60% of
the raw material costs. Further, gas prices are regulated but in short supply, while naphtha
is an expensive source of feedstock. Refineries realize the import parity prices on naphtha
produced and in case of high feedstock prices, petrochemical players have little
bargaining power against the suppliers. These players are therefore vulnerable to raw
material prices.
 Low Bargaining power vis-à-vis customers: In case of increase in input costs, the
companies might not be able to pass on the rise to the consumers as the prices of products
is highly influenced by factors such as international prices and supply.

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Opportunities:

 Low per capita consumption: Currently, domestic per capita polymer consumption is
nearly 4 kgs while the global average is nearly 20 kgs. This underlines the fact that there
is immense scope of capacity expansion in the country as the market to be tapped is huge.
Further, spending on R&D activities is around 2% of sales as compared to an
international average of 18%. This leaves enough room for product development. Also,
currently, India has a chemicals trade deficit of about US$ 1.5 bn a year, which leaves
enough investment opportunities in the industry.
 Increased economic activity:The government has set aside nearly Rs 400 bn for
infrastructure projects such as roadways, airports and convention centers and also
towards rural housing augur well for the petrochemicals industry as this is likely to
increase demand for various products (high density polyethylene, low density
polyethylene among others) for the purpose of road development, packaging, cables and
wiring. Also sustained growth in the auto sector is likely to keep the demand for
petrochemical products high. As per our estimates, the auto sector is likely to grow at
nearly 12% over the next few years.

Threats:

 Customs duties: Historically, the domestic industry has been protected from overseas
competition by high import duties imposed by the government. However, of late, Import
duty on polymers has been steadily reduced and is currently at 20%. As part of its
commitment to various multilateral and bilateral trade agreements, the government is
likely to reduce duties going forward and this is likely to reduce the cushion enjoyed by
the domestic players as against the landed cost of imported products.
 Growing competition: The domestic industry is likely to witness immense competition
going forward with IOC all set to enter the segment with its Rs 64 bn project in FY06.
Further, ONGC is also venturing into petrochemicals business. With commitments to
reduce and eliminate tariff and non-tariff barriers, India, with huge market potential,
might witness entry of global majors such as ExxonMobil, Dow Chemicals and Shell into
the business. These global majors with deep pockets can actually lead into a pricing war,
which could result in squeezing margins.

The above analysis is just to provide a view of the sector and by no way advocates any
opportunities to invest in the petrochemicals sector. Taking a cue from their global counterparts,
Indian majors such as IOC and ONGC are entering into this value add business in a huge way
and this is likely to change the entire business dynamics of the companies, not only in India but
Asia as Asia is fast becoming the largest petrochemicals manufacturing hub. Going forward,

25
investors need to be aware of this reality and make informed investment decisions in the energy
sector.

Company Current Position

Reliance's philosophy of 'Growth is Life' has truly manifested itself in value creation
opportunities for its myriad stakeholders, which include its valued customers.

The focus on Growth has helped us grow as one of the world's largest producers of polymers.
Our 2009-10 polymer production (Polypropylene, Polyethylene and Polyvinyl Chloride) is 4,091
kilo tonnes.

This growth has been achieved with state-of-the-art world scale projects and setting global
benchmarks in product quality, standards and services.

Reliance's sites at Hazira, Vadodara, Gandhar in Gujarat and Nagothane in Maharashtra are
integrated with crackers. The Jamnagar site is integrated with the world class refinery, ensuring
feedstock security at all the sites.

At Reliance our constant endeavour is to provide products and services that meet global
standards. Based on our extensive interaction with the industry, we offer a wide range of grades
for diverse applications across packaging, agriculture, automotive, housing, healthcare, water
and gas transportation and consumer durables.

Superior technologies, strong focus on R&D, latest IT-enabled services to support supply chain
management and the end-to-end solutions offered across the value chain reinforce our
commitment to customer satisfaction.

Be Our Partner In This Growth.

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Future Plan
Reliance eyes joint venture with US’ Atlas Energy

Mumbai: Indian energy major Reliance Industries is seeking a joint venture with Atlas Energy to
develop the US firm’s Marcellus Shale gas operations, a source with direct knowledge of the
matter said.

Independent oil and gas company Atlas is looking for a partner for its operations in the booming
Marcellus Shale in the eastern United States, which could bring in $1 billion or more for the
firm.

Reliance, India’s largest listed firm, is eyeing a deal in the wake of two recent failures in trying
to gain a foothold outside India, as it attempts to break into new markets and expand its various
businesses including refining, oil and gas exploration and petrochemicals.

The Marcellus Shale, which spans parts of Pennsylvania, West Virginia and New York, could
hold enough natural gas to satisfy US demand for a decade, according to some geologists.

Analysts have said Reliance, controlled by the world’s fourth-richest man Mukesh Ambani,
should seek oil and gas assets overseas as these can feed the company’s massive refining
complex in western India.

The company has raised $2 billion by selling stock in recent months, a warchest it could put to
use for its ambitious overseas plans.

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