reliance industries ltd Management discussions
Forward-looking Statement
The report contains forward-looking statements, identified by words like plans, expects, will, anticipates, believes, intends, projects, estimates and so on. All statements that address expectations or projections about the future, but not limited to the Companys strategy for growth, product development, market position, expenditures, and financial results, are forward-looking statements. Since these are based on certain assumptions and expectations of future events, the Company cannot guarantee that these are accurate or will be realised. The Companys actual results, performance or achievements could thus differ from those projected in any forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any such statements on the basis of subsequent developments, information or events. The Company disclaims any obligation to update these forward-looking statements, except as may be required by law.
BUSINESS OVERVIEW
Analysis and description of all major business segments of Reliance covering brands, strategic advantages and competitive strengths. The discussion structure covers the market environment the business operates in and
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Global Economy
Global economy grew 3.4% in CY22, slowing from the post-COVID rebound of 6.2% in CY21. Growth was in-line with pre-pandemic average (201519) of 3.4% despite Russia-Ukraine conflict and aggressive rate hikes by central banks. Advanced economies (AEs) saw above-trend growth of 2.7% in CY22, higher than the 2.1% average seen in the five years prior to the pandemic. This was led by strong growth in both US and Euro area which grew at 2.1% % and 3.5% respectively. Inflationary pressures remained near multi-decade highs in AEs, with US inflation averaging 8% Y-o-Y (highest since 1980s), while Euro area inflation also averaged a multi-decade high of 8.4%. Developed market central banks aggressively tightened their monetary policy to address inflation, with US Federal Reserve raising rates by 450bps in CY22, while European Central Bank hiked rates by 250 bps. Emerging Market and Developing Economies (EMDEs) grew 4% in CY22, below the pre-pandemic average of 4.4% due to slowdown in Chinese economy amidst frequent lockdowns. China growth eased to 3%, well below the pre-pandemic average of 6.7% on continued zero-COVID policy and housing downturn. Crude oil prices were elevated during FY 2023, averaging $93/bbl, remaining above $100/bbl in first half of the fiscal year due to Russia-Ukraine conflict,
but receding in the second half with Chinese demand slowing and release of strategic petroleum reserves from OECD countries.
Global growth is expected to slow in CY23 to 2.8% as the lagged impact of synchronised global monetary tightening. Growth in advanced economies is expected to decelerate to 1.3%, with US and Euro area growth expected at 1.6% and 0.8% respectively. Effect of rapid rate hikes over last one year as well as emerging credit crunch risks from US regional banks remain key concerns for advanced economies. Emerging markets growth is expected to hold near pre-pandemic average at ~3.9% in CY23, supported by India and
China. China growth is expected to rebound to 5.2% in CY23 from 3% on reopening of the economy after three years and continued monetary policy support. India is expected to remain amongst the fastest growing economies as per IMF.
Indian Economy
The Indian economy remained relatively stable amidst the global imbalances caused by the Russia- Ukraine conflict. The economy grew at 72% in FY 2022-23, down from 9.1% in FY 2021-22, as per the National Statistical Office data release.
The spike in global commodity prices pushed up prices in India too, with retail inflation peaking at 779% in April 2022, above the medium-term target band of 2%-6% of the RBI. The RBI took stringent measures to combat the rising prices, hiking repo rate six times in FY 2022-23, from 4% at the beginning of May 2022 to 6.5% at the close of the financial year. Private consumption, however, witnessed a strong surge fuelling a boost in production across sectors. Domestic sector services activity remained resilient with average Services PMI higher at 575 in FY23 vs 52.2 in FY22. Manufacturing too remained robust with average manufacturing PMI higher at 55.8 in FY23 vs 54.1 in FY22. Credit growth gained traction with year-on-year growth of 15% (as of March 23) while deposit growth lagged with year-on-year growth of 9.6%, leading to a rise in incremental credit-deposit ratio.
India overtook Japan and Germany to become the third largest automobile market in terms sales in December 2022. India also emerged as the second largest mobile phone manufacturer globally. Indias digital adoption continues in an accelerated way. UPI payments continued their impressive run in FY 2022-23, with transaction volumes almost doubling from ~45 billion in FY 2021-22 to ~84 billion in FY 2022-23, while transaction value also surged to ~139 lakh crore
in FY 2022-23 from ~84 lakh crore in FY 2021-22. The pan- India monthly mobile data traffic stood at 14.4 Exabyte in 2022 with 3.2x growth over last five years. Rapid digitisation supported by solid infrastructure is driving efficiency and productivity in the economy. Indias external sector continued to gain strength as FY23 merchandise exports grew to $447 billion, growing at 6% Y-o-Y and services exports grew to $322 billion, growing at 27% Y-o-Y.
Global supply chain improvements and falling commodity prices coupled with softening domestic demand are likely to moderate inflation to 5.1% in the current financial year. With a growing working age population, a large domestic market, boost to infrastructure development and advent of digitisation, India is well positioned to be the fastest growing large economy in the world. India GDP is expected to grow at 6.5% in FY24.
Performance Overview
Reliance delivered strong annual performance amid macro headwinds caused by geo-political conflicts, disruptions in commodity trade flows and economic downturn. Resilience of Reliances strategic and operational capabilities reflected in its ability to adapt to dynamic business environments and navigate through complex business situations. Growth was supported by agile and efficient operations by all business teams with sound strategic planning and implementation.
Earnings growth was led by rebound in O2C business, backed by healthy domestic demand, strong fuel margins and high utilisation rates.
Oil and gas segment performance reflected volume growth in KG D6 gas production, higher gas price realisations and margin improvements. Operational efficiencies continued with 100% uptime.
Consumer business segments continued to strengthen their positions in the market with aggressive expansion of footprint and strategically prudent acquisitions. Jio successfully launched True 5G services across over 2,300 towns and cities, thereby continuing to offer enhanced digital experiences to its subscribers. The retail business broadened its product and distribution base further, making available a vast assortment of products and brands to its consumers at affordable prices.
Reliance Jio Financial Services is demerged. The new entity is expected to unlock value for shareholders and give them an opportunity to be a part of a new growth platform.
The New Energy business is making rapid progress with fast paced implementation of the giga factories at Jamnagar. With strategic partnerships and significant investments in newer technologies, Reliance is well on track for building the New Energy business as a strong sustainable growth engine and achieving the target of becoming Net Carbon Zero.
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CONSOLIDATED REVENUE IN FY 2022-23 71 23.6% Y-O-Y
Revenue
Reliance attained a consolidated revenue of 9,74,864 crore ($118.6 billion), up 23.6%, as compared to 7,88,743 crore in the previous year. All operating segments saw growth in revenue. O2C revenues increased on account of improved price realisation for transportation fuels with 19% increase in average Brent crude prices. Sharp increase in gas price realisation coupled with increase in the gas production contributed to growth in Oil & Gas segment revenues. Retail Segment revenue was driven by strong broad-based growth across all consumption baskets and large-scale store expansion. Digital Services
revenue was led by full impact of tariff hike, ramp-up of wireline services and continued subscriber addition for mobility services.
Profit
Consolidated EBITDA for the year increased by 24.4% to 1,53,920 crore ($18.7 billion) as compared to 1,23,684 crore in FY 2021-22. Retail business led EBITDA growth with 44.7% increase mainly due to benefits of scale and operating leverage leading to margin expansion. Growth in Digital Services segment EBITDA was 24.9% on account of higher revenue and steady improvement in margins. O2C EBITDA increased by 17.7% with sharp improvement in transportation fuel cracks and robust demand which was partially offset by introduction of SAED on export of transportation fuel and lower downstream product delta. Oil & Gas segment EBITDA increased over 2.5x with higher gas price realisation. Cash Profit increased by 15.4% to 1,25,951 crore as compared to 1,09,099 crore in the previous year. Profit After Tax was higher by 11.3% at 73,670 crore.
Gross Debt
Reliances Gross Debt was at 3,13,966 crore ($38.2 billion). This includes Standalone gross debt of 2,15,823 crore and balance in key subsidiaries, including Reliance Retail (46,644 crore), Reliance Jio (36,801 crore), Independent Media Trust Group (5,815 crore) and Reliance Sibur Elastomers (2,144 crore).
Standalone
RILs Standalone revenue for FY 2022-23 was 5,65,347 crore ($68.8 billion), an increase of 21.6% as compared to 4,65,045 crore in the previous year. Revenue growth was led by increase in crude and product prices. Profit After Tax was at 43,017 crore ($5.2 billion) an increase of 13.4% against
37,937 crore in the previous year.
Basic EPS on Standalone basis for the
year was 63.6 as against 57.5 in the
previous year.
Movement in Key Financial Ratios
1. The debt service coverage ratio improved to 2.03 in FY 2022-23 as against 1.19 in the previous year due to improved earnings and lower principal repayments during the year.
2. The trade receivable turnover ratio declined to 36.13 in FY 2022-23 as against 50.13 in previous year due to improving terms of trade with tightening of global fuel markets and increased economic activity.
3. The return on capital employed improved to 20.6 in FY 2022-23 as against 14.5% in previous year due to higher operating profit led by strong growth in earnings from oil & gas business and improved profitability of the O2C business.
4. The return on net worth improved to 10.9% in FY 2022-23 as against 10.1% in previous year due to increase in net profit during the year with positive contribution from all key operating segments.
• EBITDA margin was at 78%, up 70 bps Y-o-Y driven by favourable mix, sourcing benefits and operating efficiencies.
• Digital Commerce and New Commerce businesses contributed to 18% of revenue in FY 2022-23.
• The registered customer base grew to 249 million, a growth of 29% Y-o-Y.
• The business crossed the milestone of 1 billion transactions
in FY 2022-23, up 42% Y-o-Y. Stores recorded footfalls of over 780 million, which were up 50% Y-o-Y.
Strategic Update
With focus on store network expansion, the business grew its store footprint across consumption baskets. This year the business opened over 3,300 new stores, taking total count to 18,040 stores with a total area of 65.6 million sq ft. The business added 25 million sq ft store area during the year, representing more than 50% growth of retail space Y-o-Y. Investments in boosting supply chain infrastructure remained a priority to deepen warehousing and fulfilment capabilities, with addition of 12.6 million sq ft of warehouse space during the year.
The retail segment continued to innovate, launch and scale up new retail formats to serve diverse customer segments. New format launches during the year included Smart Bazaar, Azorte, Centro, Fashion Factory and Portico.
The business also added new growth initiatives to its portfolio by foraying into FMCG and Beauty businesses. The FMCG business launched several products during the year including Independence brand and the iconic beverage brand, Campa. The beauty business launched digital commerce platform Tira and opened its flagship store in Mumbai. These businesses will be ramped up progressively in the coming period.
• Jios industry leading net subscriber addition was 29.2 million for
FY 2022-23 with monthly churn remaining stable at ~2%.
• ARPU increased 6.7% Y-o-Y in quarter ending March 2023 due to impact of tariff hike, better subscriber mix and data add-ons.
• Jio network carried 113.3 Exabyte of data on its network (+24 % Y-o-Y). Jio continues to carry >55% of data traffic in the country.
• Healthy subscriber additions across mobility and homes, improvement in ARPU and scale-up of digital
services drives JPL consolidated revenue growth.
Strategic Update
Jio extended the coverage of its True5G services to over 2,300 cities/ towns across India. Jio users in these cities are invited to experience unlimited data at up to 1 Gbps+ speeds, under the Jio Welcome offer. ~60K 5G sites across 700MHz and 3500MHz bands are already deployed and the pan-India rollout is on track to be completed by December 2023.
Introduction of the new home broadband "Back-up Plan" will help expand the broadband market. Jio also introduced a new set of postpaid family plans - Jio Plus bringing the benefits of high-quality True 5G connectivity to the masses.
JPL powered the technology behind streaming of FIFA World Cup, the first ever Womens Premier League and the 16th Indian Premier League garnering unprecedented viewership.
• The business navigated through a difficult revenue environment and economic headwinds to deliver highest-ever operating revenue.
• Advertising revenue was impacted by the economic slowdown and high inflation which constrained advertising budgets of companies across sectors. Withdrawal of Colors Rishtey from DD FreeDish, the Free To-Air platform, also affected the advertising revenue.
• The business made investments in growth verticals - Sports and Digital, which also had an impact on profitability.
• Sports segment made a grand debut with IPL, FIFA World Cup and Womens Premier League, establishing itself as the leading destination for premium sports content.
• Colors consolidated its #2 position in the Hindi GEC space, TV News networks channels rose to leadership status in key markets and
Digital News portfolio continued to be Indias #2 online news publisher, and Movie production segment delivered a strong slate of movies.
Strategic Update
Viacom18 entered into a strategic partnership with Reliance, Bodhi Tree Systems and Paramount Global, to lead innovation and disruption in the Indian M&E space and create one of the largest TV and digital streaming companies in the country.
• The EBITDA was highest ever for the segment despite the impact of SAED of 6,648 crore.
• Revenue was driven by improved transportation fuel cracks, feedstock sourcing flexibility, ethane cracking advantages and better average fuel prices globally.
• Crude oil prices rose sharply with Brent price averaging $96.2/bbl
• FY 2022-23 witnessed a rise in demand for transportation fuels with increase in travel and normalisation of economic activities.
• Domestic demand for oil, polymers and polyesters showed a strong growth. Lower product realisation led to decline in polymer deltas by 15% - 32% on Y-o-Y basis. Domestic downstream chemicals demand was strong with highest ever domestic sales for polymers even though global demand remained soft.
• SAED levy on transportation fuels impacted earnings adversely.
Strategic Update
During the year, Reliance Polyester Limited, the companys wholly owned subsidiary acquired the polyester business segment of Shubhalakshami Polyester Limited and Shubhlaxmi Polytex Limited. Together along with ACRE Ltd., Reliance completed the acquisition of Sintex Industries Ltd.
• EBITDA grew 2.5x driven by increased production and improved realisation
• Gas price realisation improved to $10.6/MMBTU from $4.92/ MMBTU last year in KG D6 block. The CBM block saw increase in price realisations to $21.63/MMBTU from $6.82/MMBTU in FY 2021-22. Production (RIL share) was
175.3 BCFe for FY 2022-23.
• Domestic production in FY 2022-23 was at 10-year high with increased production volumes in the KG D6 block.
• This year witnessed 100% uptime in operations and zero safety incident.
Strategic Update
Production from the MJ field commenced in 1Q FY 2023-24.
The KG D6 gas will account for approximately 30% of Indias domestic gas production at its peak capacity of ~30 MMSCMD and will cater to key sectors like CGD, power, fertiliser, refiners, steel, glass, and ceramics among others.
Liquidity and Capital Resources
Persistent Inflationary pressures and globally rising interest rate environment were the key underlying themes of financial markets in FY 2022-23. The year was also marked by a sharp depreciation of the Rupee against the Dollar. RIL successfully managed its Balance Sheet risks through the challenging environment while ensuring sufficient liquidity for business operations.
External Environment
A persistent broadening of inflation pressures triggered a rapid and synchronised tightening of global monetary conditions, alongside strong appreciation of the US dollar against most other currencies.
The rising price pressures were expected to produce a squeeze on real incomes as well as undermine macroeconomic stability. This led most Central Banks around the world to rapidly lift nominal policy rates to much above the pre-pandemic levels, both in advanced and emerging market economies. The US Federal Reserve raised policy rates aggressively by 500 bps in past fifteen months, the fastest hiking cycle since 1980. In Europe, the war- related intensification of inflationary pressures led European Central Bank to finally exit its negative interest rate regime and ultra-easy monetary policy after eight years and raise interest rates by 325 bps in past nine months. The real activity and financial markets responded to the removal of monetary accommodation with slowing momentum in housing market, credit conditions, labour markets and PMI surveys.
In response to progressive rate hikes by the Central Banks, the global headline inflation started declining in the second half of the year. However, the decline in inflation print reflects the sharp reversal in energy and food prices and the core inflation continues
to remain sticky. Consequently, to anchor inflation expectations major central banks have signalled the need for staying course on a restrictive monetary policy stance.
On the other side, the accelerated policy normalisation has brought forth vulnerabilities in the US regional banks. The risk of contagion across the broader financial sector is inducing volatility in the financial markets and driving market-implied policy path on downside.
RBI too raised rates by a cumulative 250 bps in the year, in-line with global monetary tightening as inflation remained persistently above RBIs 6% upper-target band. As the forward outlook on inflation moderated towards 5-5.5% in the second half of the year, RBI guided for a conditional pause keeping the policy stance focused on withdrawal of accommodation. A prolonged pause from RBI is expected to progressively align headline inflation to its target while also supporting growth.
On the external front, a noticeable improvement in Indias current account deficit (CAD) on back of moderation in oil prices and structural strength in Indias services exports, is expected to keep CAD benign and below 2% of GDP The outlook on capital inflows also looks promising as emerging markets growth is expected to outperform developed markets. As the lagged effect of cumulative hikes sets-in, developed markets is expected to witness slowdown. In contrast, India is expected to emerge as the fastest growing economy in FY 2023-24 with 6.5%, while global growth are expected only at 2.8%. Overall, Indias growth differential and comfortable CAD dynamics are expected to keep the Indian Rupee well supported in the near to medium-term.
Despite the unprecedented macro-economic uncertainty, the Company was successfully able to navigate abrupt adjustments in the market, maintain adequate liquidity
on its balance sheet, manage its financial market risks and deliver a consistent return on its investment portfolio by staying invested in low risk, liquid instruments. Reliance Treasury continued to stay focused on providing liquidity to the businesses at the optimal risk adjusted cost by accessing financing from different markets and using appropriate instruments and currencies.
Treasury Management and Financial Strategy
Reliances medium term Financial Strategy is guided by a Financial Planning process which is integrated with individual business plans. RIL Treasurys key objectives include raising Long Term financing for capex and Short-Term liabilities for financing working capital at the most efficient rates and also design suitable hedging strategies to manage currency and interest rate risks on both the asset and liability side of companys Balance Sheet.
Fund Raising
During FY 2022-23, the Company and its subsidiary Reliance Jio Infocomm Limited (RJIL) tied up $3 billion equivalent through syndicated term loan facilities. The transaction was heavily oversubscribed in the primary syndication market by global lenders across geographies. The proceeds from the loans were used to meet the capital expenditure requirements of both the companies. This was a landmark transaction on various counts:
a) The aggregate liquidity raised from primary syndication was $3 billion equivalent, one of the largest liquidity raised through syndication in Asia Pacific (APAC).
b) 55 international lenders across all major continents participated in the transaction making it the
largest bank group in a corporate loan out of APAC since 2000.
c) This is the largest syndicated loan from India
RJIL tied up its first ever Swedish Export Credit Agency (EKN) supported facilities of $2.2 billion equivalent making it the largest cover ever provided by EKN for a deal to a private corporate globally.
The proceeds of the facilities shall be utilised to finance the equipment and services in relation to RJILs pan-India 5G roll out.
Liquidity Management
The combination of strong cash flows from operations, access to unutilised borrowing facilities, and robust cash and cash equivalents
position forms the basis of Reliance Industries liquidity base. This strong liquidity position provides the company with financial flexibility, enabling it to navigate various market conditions, pursue growth opportunities, and meet its financial obligations effectively.
The operating cycle is closely monitored to optimise the working capital structure and facilitate short term financing. Our proactive approach to reviewing trade financing solutions and optimising the operating cycle demonstrates our commitment to robust working capital management and effective business financing. RIL effectively uses Commercial Paper, Working Capital Demand Loan and other solutions to
finance its payables and receivables and reduce the cost of funds.
RIL manages its cash and cash equivalents through an investment portfolio, diversified across instruments and counterparties. The investments are in highly liquid instruments such as government bonds, AAA papers, Bank deposits and Debt Mutual Funds. The investment portfolio is monitored under a strong risk management framework assuring adherence to liquidity objectives. The portfolio is calibrated continually to straddle between the objectives of capital protection, steady returns, and provision of adequate liquidity at short notice.
Credit Rating
RILs focussed approach on financial discipline and risk management is reflected in its strong credit rating as it continues to be rated two notches above sovereign by S&P and one notch above sovereign by Moodys.
| Instrument | Rating Agency | Ratings | Remarks |
| International Debt | S&P | BBB+ | Two notches above Indias sovereign rating |
| International Debt | Moodys | Baa2 | One notch above Indias sovereign rating |
| Long-Term Debt | CRISIL | AAA (Stable) | Highest rating by CRISIL |
| Long-Term Debt | CARE | AAA (Stable) | Highest rating by CARE |
| Long-Term Debt | ICRA | AAA (Stable) | Highest rating by ICRA |
| Long-Term Debt | India Ratings | AAA (Stable) | Highest rating by India Ratings |
Awards and Accolades
In FY 2022-23, RIL won the much-coveted IFR Asia Award for Investment Grade Bond for the $4 billion multi-tranche Senior Unsecured Notes issued in January 2022.
Way Forward
RIL will continue to draw strength from its robust balance sheet and operating cash flows to create value for its shareholders in a sustainable manner by investing in new business opportunities. RIL will continue to monitor financial markets for the right opportunity to raise capital to support growth plans of existing and new businesses while maintaining a keen focus on financial discipline and risk management.
Retail
Reliance Retail operates an integrated network of stores, digital commerce and new commerce platforms. Reliance Retail is Indias largest retailer and is committed to delivering exceptional value to our customers while driving sustainable growth for our business and stakeholders in the ecosystem.
It is the only Indian retailer to feature among the top 100 global retailers and ranks in the list of fastest growing retailers globally.
Fashion and ^ Lifestyle
Reliance Retail is the largest fashion and lifestyle retailer in India and has adopted a multi-format approach to serve its customers through diverse formats catering to value, premium, bridge to luxury and luxury segments.
Reliance Retails fashion and lifestyle operations are vertically integrated with interventions across the fashion value chain from designing to fabric sourcing, logistics and distribution.
It has thus created a robust "yarn- to-wardrobe" operating model, with a strong portfolio of own brands, helping it to quickly adapt to emerging fashion trends.
As Indias leading value fashion chain, its flagship format, Trends commands a market leadership position and is democratising fashion. The brand has further extended itself to launch specialised store concepts focusing on the need for specific categories through Trends Men, Trends Women, Trends Junior and Trends Footwear.
The business operates Ajio the leading digital commerce fashion destination in the country that offers curated collections across thousands of national and international brands as well as a wide collection of own brands across product categories.
The Fashion & Lifestyle portfolio comprises of wide number of concepts specialising in different categories to cater to customer requirements such as Avantra by Trends and Kalanikethan (saree), Portico (home furnishings), Urban Ladder (home furniture), Zivame, Clovia, Amante (lingerie), Hamleys (toys), Reliance Jewels (jewelry) and more.
Reliance Brands has a portfolio of partner brands that spans across the entire spectrum of luxury, bridge to luxury, high-premium and high-street lifestyle and is a partner of choice for international brands.
The new commerce business through Ajio Business has partnered with merchants across the country and is providing them with access to wide bouquet of high-quality fashion merchandise with a strong value proposition.
Strategic Progress
• Largest network of stores across the country with the widest reach in Tier 2 and Tier 3 towns.
• Ajio continued to scale to new highs as it strengthened its catalogue and attracted millions of customers on its platform through exciting offers.
• Partner Brands business tied up with several marquee international brands during the year to bolster its portfolio.
• The business launched and scaled many new formats to serve diverse customer segments during the year. These include Azorte, Centro, Fashion Factory GAP, Portico and more.
• Own brand portfolio grew from strength to strength with introduction of new brands targeting various customer cohorts.
• Business continued its focus on securing the textile value chain and scaling manufacturing infrastructure by setting up Design labs, Quality labs, Sampling and R&D Centres across the country.
• Jewels launched several national and regional collections during the year.
Grocery
Reliance Retail is the largest grocery retailer in the country and operates multiple formats of Reliance Smart Superstore, Smart Point, Smart Bazaar, Fresh Signature, Freshpik and 7-Eleven stores, each with a unique value proposition. These stores serve the daily and monthly shopping needs for essentials, fresh produce, general merchandise and more at an unbeatable value proposition in a modern and friendly shopping environment.
Investments in developing an end to end value chain for fresh produce has improved product quality, supply stability and sourcing efficiencies for the grocery business which are served through a network of collection centres and processing centres.
Through its New Commerce initiative, Reliance Retail is investing in infrastructure that links producers with small merchants and consumers to create a winning partnership model. Lakhs of merchant partners have joined the platform and are benefiting from this inclusive initiative.
Iconic chain of convenience stores serving snacks, beverages and daily essentials
New Commerce Platform
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Empowering merchant partners by providing them with wide and quality assortment, competitive pricing, next-day delivery and seamless customer support and service
Strategic Progress
• Reliance Retails stores led by Smart and Smart Bazaar formats witnessed strong growth arising from store expansion and volume growth in existing stores.
• Business delivered fastest pace of store opening in the industry.
• Continued focus on premiumisation in assortment pushed order size and value and improved the shopping experience for customers.
: • There was a broad based growth across categories with sustained uptick in contribution of non-food categories.
• The business has partnered with many small and medium scale entrepreneurs in branded food segment and helping them to grow their presence Pan-India.
• Grocery new commerce business continued to grow rapidly with expansion of its merchant partner network across geographies.
Consumer Brands
Reliance Retail has developed an extensive portfolio of brands that provide a wide range of quality offerings across various categories such as staples, food, FMCG, home and personal care, and general merchandise.
Strategic Progress
• Consumer brands business is on a strong growth path with all categories performing well.
• Consumer brands bolstered its portfolio by acquiring many revered brands such as Campa, Sosyo,
Lotus chocolates, Raskik, Toffeeman during the year.
• Successful launch and scale up of Independence brand, which provides Indian consumers locally developed, quality products at affordable prices.
JioMart and Milkbasket
JioMart is a cross-category e-commerce platform for Grocery, Electronics, Fashion, Home & Kitchen, Jewellery, Beauty and more, that is making shopping easier, faster and more convenient than ever before. Milkbasket is a subscription business that enables daily subscription of essential products for households.
Cross-category e-commerce platform offering a wide assortment of products across grocery, fashion, electronics, home, pharma and more
milkbasket
Indias leading subscription based daily micro-delivery service
Strategic Progress
• JioMart had a broad based growth across all town classes and is considered to be an online shopping destination by millions of families.
• The platform strengthened its capabilities by augmenting the catalogue size and seller base multi-fold during the year.
• The business launched JioMart on WhatsApp native app during the year, a novel and disruptive initiative that brings the simplicity of instant chat service to the online shopping experience to millions of consumers.
• JioMart continued to augment non-grocery category contribution to its platform. Introduction of Consumer Electronics, Trends, Hamleys and Urban Ladder merchandise on
the platform has expanded the product offerings.
• Milkbasket doubled its business over the previous year and enjoyed trust of millions of families.
s-o Pharma
Reliance Retail operates Netmeds, a chain of pharmacies and digital commerce platform, creating a seamless online-offline experience for customers seeking prescription medicines, beauty essentials, OTC products, Ayush wellness and more.
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Netmeds.com is a leading online health and wellness portal for affordable, authentic medicines, diagnostic services, wellness and beauty products
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Netmeds Wholesale is a comprehensive, one-stop B2B supplier serving pharma and non pharma needs of local pharmacies
Strategic Progress
• The pharma consumption basket delivered robust revenue growth across all channels.
• The Hyperlocal operating model supported faster and reliable supply capabilities giving the omni-channel benefit to customers.
Connectivity
Reliance Retail serves as the master distributor for Jio connectivity services, which I are sold through a network of MyJio and Digital stores.
Additionally, it has partnered with a wide network of retailers throughout , the country to provide best in class service of activations, recharges, devices availability and after sales service.
[CASE
Conscious Culture Festival at Jio World Drive, Mumbai
The Conscious Culture Festival at Jio World Drive was an innovative and visionary initiative aimed at promoting sustainable prosperity by fostering a culture that provided a ne\ positive vision for the future. A two- day immersive event held between March 4 and 5, 2023 at the Jio World Drive in Mumbai, was carefully curated to inspire and influence change in the community. The festival provided a platform for trade, art, networking, collaborations and learning opportunities in a sustainabl lifestyle space. The objective of the festival was to inspire people to build conscious habits by delivering experiences that demanded mindful actions and exposing them to the best conscious homegrown brands across fashion, food, home & beauty. Alongside, talks and workshops were held on upcycling techniques, plant care and games conducted such as Sustainability Pictionary. The event production was designed to be carbon conscious, with focus on the usage of sustainable materials and efficient waste management, ensuring the festivals environmental impact was minimised. The Consciou Culture Festival at Jio World Drive was a significant step towards promoting sustainability and creating awareness about the importance of conscious living.
Democratising Learning
Reliance Retails theme of "Democratising Learning" during the last financial year was aimed to empower employees to take control of their own development and design their careers within the Company. The focus of all learning initiatives was to create a pull- based learning culture that customises learning to employees preferences and enables anytime-anywhere-anyplace learning. To ensure all employees have the desired capability, the learning team works at five levels: Ready to jumpstart, Strive to perform, Aspire to grow, Equip with Future Skills, and Build Leadership Capabilities.
i. The "Ready to Jumpstart" programme offers a structured learning journey for new employees, including organisational orientation, culture immersion, role-based certifications, and manager orientation. Cadre Building programmes focus on nurturing young talent and hiring and developing them.
ii. In the "Strive to Perform" phase, employees continuously upskill and reskill to perform effectively in their current role. Reliance Retail offers easy access to on-demand learning opportunities and a Competency- Based Learning System (CBLS) that recommends courses based on identified competency gaps.
iii. The "Aspire to Grow" stage is when employees with growth potential and high performance are considered for next-level job readiness. Reliance Retail has a Competency Framework for critical roles and a structured development journey with Individual and Group Development programmes.
The Company also has a Talent Mobility process to facilitate career growth by aligning individual career aspirations with organisational talent needs. More than 11,615 sessions were delivered across
all businesses, with over 19,225 self-learning modules available in LMS. Employees could access over 11,000+ courses on LinkedIn Learning and 9,700+ courses on Coursera anytime, anywhere, through the Learn and Grow App.
iv. Reliance Retail identifies future skill requirements through business and functional needs. The Company has established structured learning academies, including the Academy of Future Skills, Data & Analytics Academy, Tech Academy, and Metaverse Learning. These academies offer courses and learning journeys to develop skills and capabilities in new-age skills, data analytics, technology, and 3D-rich learning content. We enable development of 18 Future Skills and Capabilities. Over 6,700 employees have registered for the trainings and 1,700+ employees have been already certified.
v. Reliance Retails Leadership Development Model emphasises agility, human-centricity, inclusive growth, and high performance. The leadership development academy offers four levels of programmes based on the organisations leadership archetypes and 10 tenets of leadership capital to build leaders who model the desired behaviours and foster the desired culture. 400+ leaders across multiple levels went through these leadership programs.
As a testimony to our efforts to democratise learning, our employees clocked over ~1.4 crore learning hours last year.
~1.4 CRORE
EMPLOYEE LEARNING HOURS IN FY 2022-23
JioMarts Crafts Mela
JioMart launched the Crafts Mela category initiative, which has helped empower over 15,000 craftsmen from 28 Indian states by providing them with a platform to showcase their unique products to millions of customers.
Through this initiative, JioMart has helped showcase over 60,000 artisan-crafted products from over 98 indigenous crafts, fulfilling the growing demand for locally made products.
JioMart has also collaborated with three large state emporiums and government livelihood missions to ensure minimum cost of doing business for artisans, thereby supporting the livelihoods of sellers from diverse socioeconomic backgrounds.
JioMart has onboarded artisans, weavers, and micro-entrepreneurs, providing them with extensive support to them on various aspects like imaging, cataloguing, and market intelligence to help them grow their business. These initiatives are also promoting local art and culture and contributing to the countrys economic growth by empowering anc supporting these artisans.
The Company will continue to engage with artisans and weavers from across India to strengthen its product portfolio that highlights the beauty of ‘Bharat to domestic and global customers.
OUTLOOK
The Indian consumption trend is poised to remain on an upward trajectory supported by several long term sustainable tailwinds. These include a favourable demographic profile, increasing per capita income, rising aspirations supported by affordable data that has narrowed the information gap, and improved access to stores and e-commerce in rural areas that has deepened the reach of brands and closed the aspirational divide between urban and rural consumers.
Furthermore, emerging organised retail formats, digital and technological advancements, the ongoing trend of urbanisation and greater access to financing are changing the consumption landscape. With per capita GDP surpassing the critical $2,000 threshold, consumer discretionary spending is likely to trend upward, and these trends together suggest a promising outlook for the Indian retail sector.
Reliance Retail with its industry leading store network and emerging digital platforms, investments across the consumption value chain and its track record of strong execution is well poised to lead the industry in the coming decade.
Digital Services
Dio is augmenting Indias largest digital services platform with the introduction of 5G capabilities and cutting-edge Fixed Wireless Access (FWA) solutions.
With plans to roll out its 5G network pan-India by December 2023, Jio intends to deliver a truly robust and converged network experience combined with disruptive digital technology platforms for entertainment, commerce, communication, finance, healthcare, agriculture, and education.
COMPETITIVE MOAT
The Jio effect on Indias digital ecosystem is a key competitive advantage which will continue to drive industry-leading growth, operating leverage and stakeholder returns.
Worlds most Advanced Network
Dios core network was conceived ground-up to offer converged wireless and wireline services across multiple customer cohorts. This has been enhanced with next-gen digital pillars like Edge Compute, Cloud Native Applications and Services, and Artificial Intelligence/ Machine Learning. Jio has ushered the digital revolution in India with 4G-LTE and is now building the best 5G network.
Executing at Scale with the Fastest Time-to-Market Jio has consistently proven its execution capabilities in large technology projects in the most time and cost-efficient manner. The commitment to rollout one of the worlds largest 5G network with cutting edge solutions in just over a year is further testament to this capability.
Physical-Digital Distribution Infrastructure Jio has built a mobility network with over 99% population coverage and reaches ~25 million homes with fiber. Through ~9,000 digital stores, more than 1 million merchant partners and ~3 million Jio Associates to enhance customer outreach, Jio has the widest and deepest market presence.
Partnerships for an Integrated Ecosystem Jio has partnered with Indian and global companies across network technology, consumer and enterprise products and services, to catalyse the digital society vision.
Suite of Digital Services Jios full stack of digital products, platforms and services caters to customer segments across consumers, homes, small merchants and businesses, and enterprises. Jio has also been instrumental in proliferation of digital channels for customer onboarding across services with the use of best-in-class self-care application and e-KYC.
INDUSTRY OVERVIEW
Government Sets the Ball Rolling for 5G in India
The Department of Telecommunications (DoT), during the year, conducted auctions for spectrum across the 600MHz, 700MHz, 800MHz, 900MHz, 1800MHz, 2100MHz, 2300MHz, 2500MHz, 3300MHz, and 26GHz bands, including those to be used for 5G services.
An aggregate of 72,098 MHz of spectrum was put up for auction, of which 51,236 MHz (71% of the total) was sold, with cumulative bids amounting to 1,50,173 crore.
Spectrum allocation to operators is now complete and 5G services were launched in India in October 2022 by Honourable Prime Minister Narendra Modi during the India Mobile Congress.
JIOs Spectrum Footprint (in MHz)
Jio has a unique combination of low-band, mid-band and mmWave spectrum, which coupled with deep fibre network and indigenous technology platforms, will enable it to provide 5G Everywhere and 5G For All.
Jios total owned spectrum footprint has increased significantly to 26,768 MHz (uplink + downlink), which is the highest in India. Jio has the highest amount of sub-GHz and mmWave spectrum.
Jio consolidated its leadership position in all 22 circles by acquiring the right to use spectrum in the 700MHz, 800MHz, 1800MHz, 3300MHz and 26GHz bands. The cost of acquiring the right to use the 25,036 MHz technology-agnostic spectrum for 20 years amounted to J87,947 crore. As per the terms of the auction, Jio has opted for the deferred payment option and accordingly, paid an upfront amount of J7,865 crore and balance of J80,082 crore is payable in 19 equated annual instalments with Interest at 7.2% p.a.
Robust Increase in Data Usage
Total wireless data usage across the country increased ~19% Y-o-Y to ~155 billion GBs during CY 2022. According to Ericsson Mobility Report November 2022, total mobile data traffic in India is projected to reach 53 billion GBs per month by 2028. The share of smartphones in total mobile subscriptions in India is expected to grow from 77% in 2022 to 94% by 2028. Monthly mobile data traffic per smartphone is expected to more than double to 54 GB during the same period.
Acceleration in the Adoption of Wired Broadband
JioFiber has led the industry expansion resulting in 20%+ Y-o-Y increase in wired broadband connections in India to ~33 million by March 2023. Flexible workspaces/ Work-From-Anywhere, online education and other digital platforms post the COVID-19 pandemic have necessitated high-quality wired broadband connection at homes and offices. The evolution of newer technologies like FWA and faster last-mile execution would further accelerate growth going forward.
Digital Personal Data Protection Bill 2022
In November 2022, the Ministry of Electronics and Information Technology (MeitY) released a draft of the Digital Personal Data Protection Bill 2022 for public consultation. Subsequent to this, stakeholders submitted their comments and they are presently under consideration with MeitY. The Bill is expected to be presented in the Parliament in the coming months. This Bill will protect the interest of Indian citizens and will be instrumental in developing the domestic data processing industry.
PERFORMANCE UPDATE
Digital Service revenue Y-o-Y growth is 19.6%; EBITDA Y-o-Y growth is 24.9%, primarily led by a higher subscriber base, better subscriber mix and the full impact of tariff hikes in mobility services.
Customer engagement on the Jio network saw a sharp rise, with average per capita data and voice consumption at 23.1 GB/month and 1,003 min/ month, respectively, for the quarter ending March 2023.
Gross Revenue of 1,19,791 crore for the year and closing subscriber base of 439.3 million with EBITDA margin of 49.3% was driven by sustained market share gains, benefits from lower spectrum usage charges and operating leverage.
BUSINESS PERFORMANCE
Jios Differentiated True 5G Services
Jio is committed to making India the largest data-powered economy in the world by rolling out the most advanced 5G network. Jio has deployet Standalone 5G, which has zero dependency on the 4G network, in ove 2,300 cities/towns across India as of March 2023.
In addition to the 3500 MHz midband, which is globally earmarked for 5G, and the 26 GHz millimetre-wave band for ultra-high capacity, Jio is the only operator with 700 MHz low band spectrum essential for deep indoor coverage. These frequencies are seamlessly combined into a single powerful data highway using Carrier Aggregation.
The three-fold advantage of Jios True 5G services, i.e., its Standalone architecture, the largest and best mix of spectrum, and Carrier Aggregation, is enabling an unparalleled combination of coverage, capacity, quality, and affordability.
With its True 5G network, Jio can deliver new and powerful services such as low latency connectivity, massive machine- to-machine communication, 5G voice, edge computing and network slicing.
To fulfil its ambitious pan-India 5G rollout plan, Jio has committed to an investment of 2 lakh crore.
Jio Network Carries 10 Exabytes Monthly
Jios consistent subscriber market share gains and increasing engagement due to best-in-class network experience has resulted in a 24.0% Y-o-Y increase in overall data traffic to 113 billion GBs during FY 2022-23.
Jio exited FY 2022-23 with monthly data traffic of more than 10 exabytes. 5G rollout and its applications across mobility and FWA, along with an acceleration of FTTH rollout should also result in growth acceleration. With over 55% share of data traffic in India, Jio continues to be the broadband network of choice.
Jio Extends Lead on Wired Broadband Penetration
Within four years of the launch of FTTH services, Jio has over 9 million connected premises with an average data usage of almost 280 GB per month. Jio is catalysing wired broadband rollout in the country and leads on net home additions. Infrastructure rollout has also continued briskly with almost 25 million homes passed on the network. Imminent launch of FWA has extended the home broadband market beyond fibre. Jio is now aiming to connect 100 million premises with unparalleled digital experiences and Smart IoT solutions.
Redefining the Enterprise Connectivity Landscape
Jio has seen a significant increase in all key metrics for the enterprise business aided by its focused go-to- market strategy for each product. There has also been a strong traction in deal wins and client engagement across BFSI, Government, IT/ ITeS, Automotive, and Utilities, across service offerings, including Cloud, IoT, Security and end-to-end managed infrastructure services. Jio is also leveraging its partner ecosystem to target enterprises across industry verticals to provide customised and holistic solutions, including devices, connectivity, productivity and CRM tools, Software-as-a-Service and IoT.
Leading Technology Innovations in the Country
Right from its inception and subsequent commercial launch,
Jio has steadily developed and deployed path-breaking technologies for network rollout and building the digital ecosystem in India. Its strong team of technology professionals has worked across 5G stack, Cloud and Edge Computing, Devices & Operating Systems, Blockchain, IoT, Mixed Reality, AI / ML, Secure Identity, and Natural Language Processing.
Total count of patent applications filed worldwide is 1,120. Among the key areas covered by these patents are 5G and 6G technologies, and Distributed Ledger Technology.
Technological Initiatives to Expand the Addressable Market
5G Stack
Jio has indigenously developed an end-to-end 5G stack which is fully cloud native, software defined, digitally managed, with support for even advanced features like Quantum Security. This has already been deployed in Jio network and makes Jio 5G uniquely positioned to offer captive or private 5G solutions for Indian enterprises. This stack not only enhances strategic capability but will also enable us to become an exporter of telecom products.
Jio has built a complete array of 5G radio products including massive MIMO radio unit, indoor small cell, mmWave outdoor small cell, 5G integrated macro gNodeB, 5G indoor combo small cell and combined centralised and distributed unit. Jio has also developed its own indigenous 5G core which with its radio products complies with global 3GPP standards. Jios True 5G technology stack offers superior performance and ease of
installation besides being secure, cost g
competitive and agile.
JioBharat
. JioBharat would accelerate the
j
2G-Mukt Bharat vision by enabling existing 250 million feature phone users to transition towards internet- enabled phone. JioBharat leverages Jios device and network capabilities to deliver digital services on entry- level phones in partnership with other phone brands.
JioDive
JioDive is a smartphone-based virtual reality (VR) headset to convert a phone into a 100-inch virtual theatre and enjoy 360-degree view of live sporting events. JioDive runs on JioImmerse application which has been built exclusively for Jio users to launch VR experiences across gaming, learning, entertainment, and wellness on the phone.
? MEC Racks
Jios Multi-Access Edge Compute (MEC) stack with Intelligent Edge Server Platform is a differentiated, cloud-ready solution with central management platforms. This end-to- end platform drives significant savings on power costs.
, Streaming Platform
Jio Platforms powered the technology that enabled seamless 4K streaming of FIFA World Cup 2022, Womens Premiere League 2023 and Tata IPL 2023 on JioCinema. Jio delivered marquee live sports events on an active media cloud platform and managed the backend infrastructure as well. Stateless API-driven architecture was used for unlimited scalability. JioCDN and JioAds were also used to deliver streams to end users and ad impressions.
AirFiber
s JioAirFiber is a FWA solution that brings clutter-free high-speed
. connectivity of up to 1 Gbps to homes and offices. Multiple devices, including smartphones, PCs, tablets, smart TVs, and set-top boxes can be connected simultaneously without compromising on internet speeds or stability. Jio has included additional enhancements for safe browsing, network security and parental controls.
STRATEGIC PRIORITIES AND PROGRESS
5G Network Rollout
Progress in FY 2022-23
• Launched True 5G services in over 2,300 cities/towns as of March 2023
• Use-cases across agriculture, education, healthcare, commerce, safety and surveillance, industrial automation with the use of AR/VR, IoT and Robotics are under trial
Medium-term Priorities
• Jio is leading the rollout of 5G in the country and targets to complete pan-India coverage by December 2023
• Jio is simultaneously deploying its indigenously built 5G stack which could then be taken to global markets
Driving 4G/5G Transition in the Country
• Device partnership with leading OEMs in the country
• Catalyse the 2G to 4G transition with devices like JioBharat
• Extend OEM partnerships to design and develop new 4G/5G devices
Scale up JioFiber and JioAirFiber Services
• Jio extended its market leadership with over 9 million connected premises
• Increased homes passed to almost 25 million
• JioAirFiber will extend the target market by an additional
50 million to 100 million premises
• Accelerate the pace of homes connect and infrastructure rollout in partnership with LCOs
• Enrich content for large screens at home and increase penetration of smart home IoT solutions
Accelerate Growth of Enterprise Segment
Progress in FY 2022-23
• More than doubled enterprise broadband connections and IoT connected devices
• Revamped sales engine has driven acceleration in deal wins across Strategic Large and Government Enterprises and SMBs
Medium-term Priorities
• Deployment of customised end-to-end digital solutions on the worlds best connectivity platform
• Partner with technology providers, system integrators and industry specific solutions architect for faster time to market
Technological
Enhancements
• Development of efficient Edge Cloud solutions to ensure ultra-low latency experience for users
• JPLs technology engine powered the 4K streaming of FIFA World Cup 2022, Womens Premiere League 2023 and Tata IPL 2023 on JioCinema at record scale
• Rollout of Containerised Edge Cloud with best-in-class reliability and power efficiency
• Enhancement of user experience with AR/VR, multi-lingual
and 4K streaming of marquee sports events
^CASE STUDY^
Transforming Cattle Farming with loT
Indian dairy farmers are saddled with labour-intensive operations including the monitoring and upkeep of cattle. This leads to low productivity, high animal mortality rates and increased costs. Despite being the leading dairy producer globally, Indias per capita milk production is significantly lower than that of global producers.
Dios cattle loT device will assist in monitoring the activity levels, food habits and rumination of the cattle, and also in the detection of early signs of diseases. The data collected by the device can be shared in real-time for benchmarking and analysing cattle health and productivity using Al. This is then shared with the farmer daily through the Dio GauSamriddhi application.
^ CASE STUDY^
*
Remote Diagnostics and
Community Clinics -
Approximately 65% of the Indian population lives in rural areas with limited access to high-quality, critical pre- _
emptive diagnostics. In addition to this, the doctor-patient ratio is as low as 1:2000. These limitations often lead to delayed detection of diseases, escalated treatment costs, and a higher mortality rate.
To address this, Jio will enable a robotic teleradiology set-up with a radiological probe at remote sites and a haptic controller at specialist doctor sites. Camera feeds will relay live patient feed and haptic feedback with no latency. Doctors can then examine radiological imaging data and diagnose conditions without being physically present at the location.
Jio True 5G-enabled community clinics will bring quality healthcare to remote geographies using the Clinic in a Bag platform. Paramedics and ASHA workers can carry connected probes such as stethoscopes, ECG machines, glucose monitors and ENT probes to remote locations, and real-time feedback can be shared with specialised doctors.
^casesTudY^
Augmenting the Shopping Experience with Smart Retail
With Jio True 5G, retail experiences are set to transform. Users can create a 3D avatar with a depth sensor- enabled camera. Using a life-sized smart mirror, users can virtually try-on a variety of clothing options. This can significantly improve the choices on offer and add convenience to the process, and enhance the shopping experience.
r CASE STUDY^
Intelligent Farming with IoT Sensors and Precision Spraying Drones
Jio 5G can significantly boost per capita output by relying on IoT and drone-based precision farming solutions. 5G-powered drones can be flown remotely from distant control centres from actual sites such as farmers premises, district or taluka offices, or even the state or central headquarters. Drones can cover farmlands and multi-spectral cameras can be used to scan the fields with real-time relay of images
on the cloud over the 5G network.
The data can then be analysed using AI/ML algorithms to detect insect or pest infestations, soil moisture and irrigation.
Jio Krishi IoT devices such as weather stations and soil testers can aid in data-driven farming methods ensuring the optimal use of farming resources, judicious use of harmful chemicals, and improvement in farm productivity.
OUTLOOK
Dios digital services span the entire ecosystem, and these capabilities will power scale-up of all our businesses. This would equip Jio to spearhead Indias transformation into a leading Digital Society. Once proven at scale, these solutions can also be taken to the rest of the world.
Jio True 5G is uniquely positioned to deliver the best quality, highest value digital connectivity solutions to every citizen of India. The scale of Jios 5G rollout will give it a distinct competitive edge and accelerate market share gains. All this will generate strong shareholder returns over the next several decades.
Media and Entertainment
Network18 Media & Investments (Network18) is one of Indias most prominent Media & Entertainment conglomerates. With a 3600 presence across content genres including news, entertainment, sports, movie production, and live entertainment, it is a one-stop-destination for audiences seeking diverse content.
The companys focus on delivering authentic news and wholesome entertainment content that resonates with audiences across demographics and socio-economic segments has helped it build a unique connection with its viewers. Our content is agnostic of distribution channel and consumption platform, reaching out to consumers wherever they are present. To maintain its position as a leading player in the media industry, Network18 continues to invest in creating quality content, expanding its reach, and creating partnerships with players across the media value chain.
The company is well-positioned to capture the growth opportunities presented by Indias rapidly growing and evolving media landscape.
COMPETITIVE MOAT
Diverse Network with Genre Defining Brands
• The only Indian M&E company with presence across all content genres - news, entertainment, sports, movies, live entertainment.
• 20 channels covering news in 16 languages and digital news platforms in 13 languages; #1 TV news channels in Hindi, English and Business News genres.
• Full-portfolio entertainment offering including 10 regional language TV channels, premium sports content, leading OTT platform, and a film studio renowned for standout cinema.
• Brands like CNBC TV18, News18, Colors, MoneyControl,
MTV have a strong brand equity and are synonymous with the genres they operate in.
60 TV channels in 16 languages
Reach and Engagement
• JioCinema became Indias #1 OTT platform, reaching ~450mn users for IPL.
• 1 in every 2 Indians tunes in to Network18 television network that reaches >95% of TV homes in India, annually.
• 40% of internet users in India access Network18 websites or apps every month, making it the
#2 digital news/information publisher in India, and amongst the top 10 globally.
• Indias largest TV News portfolio, with 11.9%1 share of news viewership; Entertainment network enjoys a 10.3%2 viewership share.
• MoneyControl is Indias #1 financial news and information platform in terms of engagement across platforms.
JioCinemas IPL streaming reached ~450mn users in 2 months;
TV Network reaches 700mn+ every month
Strong Partnerships Across the Board
• Partnerships with leading global and Indian players to strengthen content creation and distribution capabilities.
• Bodhi Tree Systems, Paramount Global, NBCU (CNBC), Warner Bros. Discovery (CNN, HBO)
A+E Networks, Forbes are among some of Network18s global partners.
• Leading content distribution platforms like Jio mobile,
Jio Fiber, Den, Hathway are part of the parent Group, enabling Network18 to have extensive reach.
• Advertisers across the country leverage Network18 platforms to reach
their audience on TV, Mobiles, CTVs and other touch points.
~3,000 advertisers use Network18 platforms to reach their consumers
HIGHLIGHTS
Strong Operating
Performance
News
• Undisputed leadership in key markets - News18 India (Hindi), CNN News18 (English) and CNBC TV18 (English Business News) were #1 channels in their genres.
• News network reached its highest ever viewership share of 11.9%3.
• Digital portfolio strengthened its position as Indias #2 online news publisher with leadership in vernacular genre.
Entertainment
• Entertainment portfolio had a share of 10.3%4 in the genre with a strong #2 position in the Hindi general entertainment segment.
• Digital platform, Voot, continued to deliver industry leading engagement metrics and saw a strong growth in paid subscribers.
• Viacom 18 Studios delivered a strong slate of movies and shows during the year.
Sports Business Delivered a Big-Bang Performance in its First Year
• JioCinemas coverage of IPL set new viewership records, making it the most watched digital event globally - 17 billion+ video views,
32 million+ peak concurrency,
120 million+ reach for the
final match.
• Digital streaming of FIFA World Cup and Women Premier League events received accolades from consumers for high quality delivery and never seen-before features.
• Strengthened the sports catalogue with acquisition of media rights of premium properties like IPL (Digital) WPL, Olympics 2024, SA20,
Moto GP
Viacom18 Completed the Strategic Partnership with Bodhi Tree, Paramount and Reliance
• Post completion of the transaction for strategic partnership, JioCinema app came under the fold of Viacom18 and Viacom18 got access to 15,145 crore.
• The partnership enables Viacom18 to significantly scale-up its reach and make investments in growth initiatives. Viacom18 is equipped to lead disruption and innovation of the M&E sector in India.
New Content Formats for the New Age Audience
• Firstpost Vantage, a digital-first, multi-platform show which covers world affairs with an Indian lens, was launched to cater to aspirational Indian audience.
• Local18, a platform for hyper-local, video-first coverage of news was rolled out in 250 districts across the country.
Resilient Financial Performance Despite Economic Headwinds
• Consolidated revenue grew by 6.4%, despite a slowdown in the economic environment.
• Continued investments across businesses helped build a strong foundation for growth.
INDUSTRY OVERVIEW
With 72% GDP growth in FY 2022-23 India is one of the fastest growing major economies in the world.
Despite the impact of high inflation due to the sharp rise in oil prices post US-Ukraine conflict as well as the disruption of global supply chains in the aftermath of the pandemic, Indiar economy fared better than the rest of the world. However, consumer demand slowed down in the first half as prices of consumer goods increase! to keep pace with raw material prices. The increase in lending rates in the second half also impacted the industrial growth and consumer spending power.
Media and Entertainment sector, being inextricably linked to the macro-economic environment, also faced headwinds during the year. While Y-o-Y growth (CY2022 vs CY2021) was strong at ~20%, compared to pre-pandemic levels of 2019, total revenue was only 10% higher. The demand for content continued to grow as consumers increasingly spent more time on media consumption, but monetisation faced challenges on both advertising and subscription fronts. Growth durin the year was driven by 30%5 growth in Digital segment. Digital advertising including spends by small and medium sized businesses, for whom digital is often the only marketing platform due to limited budgets, commanded more than 50% share of the total ad revenues. TVs share in the total ad pie declined by ~500 bps as the ad revenue on the medium wa flat. As per various industry reports, TV and Digital are the most effective mediums for brand building and reach, capturing nearly 80% share of the total ad spends. Print continued to struggle and despite a 13% Y-o-Y growth, it remains well below the pre-pandemic levels. While cinema advertising continues to languish, theatrical revenues saw a sharp jump
5 Source : FICCI EY Report 2023
as consumers returned to cinemas and several movies achieved phenomenal box-office success. For CY2023, the reports forecast that the M&E industry will grow at ~12%, led by digital which is expected to grow at ~18% while TV is expected to grow at low single-digit rate.
OTT Advertising and Subscription to Continue Growing
Given the secular trend of increasing smartphone and internet penetration, digital medium is expected to continue its impressive growth for the foreseeable future. Within Digital, OTT is one of the fastest growing segments as increasingly more consumers are spending time consuming content on these platforms.
As per the BCG CII Report - Shaping the future of Indian M&E, the current size of the Indian OTT market is $2.6 bn and it is expected to grow at a CAGR of 20%-23% to reach $11-13 bn by 2030. OTT provides two options to the consumer - to consume free content which is monetised through advertising (AVOD model) or watch premium content on paying a subscription fees (SVOD model).
As per the same report, India currently has 85-90mn paid subscriptions, which is expected to nearly double to 160-165mn by 2027 Bundling of subscriptions through telecom plans and emergence of aggregator platforms is also expected to aid this growth.
OTT advertising will continue to grow on the back of increasing internet-connected audience, growing time-spend and improving targeting advertising capabilities.
SIZE OF THE INDIAN OTT INDUSTRY
Connected TVs - A Promising Growth Opportunity
Internet-connected mobile phones have been the primary driver for the massive growth in digital content consumption, responsible for nearly 90% of this growth. However, the engagement levels on big screens (TV) continue to be much higher than handsets. Connected TVs (CTV) offer the best features of both traditional and digital eco-system - a large screen size and ability for targeted advertising, thus providing an opportunity to brands to reach premium audiences in an intelligent fashion. Due to a low penetration of CTVs, advertising on the medium is currently at a nascent stage in India, at just over 1% of total TV spends.
47%
CAGR CTV AD SPENDS IN INDIA 2022-2027
Source: Groupm TYNY Report, 2023
New Tariff Order Finally Clears Legal Hurdles
After being mired in multiple litigation challenges for more than two years, the New Tariff Order was cleared for implementation after the regulatory body, TRAI, amended the regulation post an industry-wide consultation process.
The proposal to lower the price ceiling for including a channel in a bouquet to 12 was dropped, reverting to the earlier price limit of 19. Another key proposal to introduce a discount cap of 33% on the bouquet price vis a vis a-la-carte price was modified, with the discount limit increased to 45%. While a few appeals were filed against the new regulation by some distribution platforms, it was implemented in February 2023.
However, with the fast-increasing adoption of CTVs in India, it is expected that advertising spends on the platform will also follow suit. The growth in CTV revenue is also expected to be driven by subscription, fuelled by the investments in high quality digital content. This is likely to further accelerate the adoption of CTV, as viewers seek out big-screen experience for the premium content.
CTV ADVERTISING SPENDS FORECAST
($ MILLION)
Key Hindi General Entertainment Channels moved out of the DD Freedish Platform
At the beginning of the year, all the major broadcasters took their FTA channels off DD Freedish distribution platform. This had an impact on viewership, up to 90% for some of these channels, as they run older content which doesnt get much viewership on pay platforms.
Subsequently, it also impacted the ad revenue growth for these channels and the networks. However, it has helped to slow down the loss of pay-TV subscribers, an issue which has affected the industry since the implementation of the New Tariff Order (NTO) in early 2019, followed
by the pandemic a year later. Given that the quality of content on these channels is superior to most of the other content available on the FTA platform, it provides an incentive for consumers to upgrade and become pay subscribers.
EMERGING TRENDS AND BUSINESS RESPONSE
Content consumption on digital platforms is growing. With over 500 million people consuming content on digital/OTT platforms, digital has now become a secondary screen, and in some cases the primary.
Network18 is focused on creating digital platforms which become the default destinations for content consumption.
The group is not only investing in content creation for its platforms but is also leveraging technological innovations to provide consumers with a seamless and unique experience on the medium of their choice. JioCinemas IPL streaming reached ~450mn consumers with innovative features, setting new reach and engagement benchmarks. News18.com and Moneycontrol are amongst the top destinations for digital news audience.
New content forms are emerging. From user generated videos to short-form content to metaverse, content creation is seeing a wave of disruption.
Network18 has been at the vanguard of content evolution in the country, continuously experimenting and innovating new concepts. Our teams keep their ears close to the ground to understand changing consumer preferences and continuously adapt. From launching Firstpost Vantage and Local18 for digital-first audience to introducing multi-cam feed for sporting events on digital platform which gives audience control of their viewing experience and option to choose from 12-language audio feed, innovation continues to be the driving force.
STRATEGIC PRIORITIES AND PROGRESS
| Continue to Strengthen ‘Digital First, TV Always Proposition | Strengthen Position in Regional Markets |
| Progress in FY 2022-23 | |
| • News business continued to improve its digital first approach with newsroom integration, revamped workflow, organisational redesign and scaling up of tech capabilities. | • TV News network became leader in several Hindi-speaking regional markets. |
| • New features launched on digital platform for sporting events, to give viewers a unique viewing experience. | • Network18s vernacular digital portfolio became #1 in the country. |
| Medium-term Priorities | • Entertainment network gained traction in select regional markets. |
| • Provide a seamless experience to the user, irrespective of the platform. | • Become a true pan-India player with strong positions in markets across the country. |
| • Complement the mass nature of TV viewing with the personalisation experience of digital. | • Establish strong vernacular presence on digital platforms. |
| Build Sustainable and Scalable Business Model for Digital Products | • Leverage learnings from one market to replicate success in others. |
| Progress in FY 2022-23 | Continue Innovation and Expansion into New Content Genres |
| • Sports content made available free on AVOD model, driving record-breaking reach and scale. | • Firstpost Vantage, a digital-first show, gives audience global stories with an Indian perspective. |
| • Subscription products - Voot Select and MC Pro continued to gain subscriber base. | • Local18 curates hyperlocal news for audience across the country. |
| Medium-term Priorities | • Be the go-to destination for diverse demographic and socio-economic audience segments for content across genres. |
| • Leverage both AVOD and SVOD opportunities to drive growth. | |
| • Evaluate opportunities to create new monetisation streams. | |
| • Digital contribution to revenue to grow to 50%. |
PERFORMANCE UPDATE
The business navigated economic headwinds and a soft advertising environment to deliver 5.8% growth in operating revenue, driven primarily by Sports and Movie verticals. Despite a strong operating performance, revenue in the core segments was subdued. The business made substantial investments in Sports and Digital segments, which impacted the profitability.
| FY 2022-23 | FY 2021-22 | % change Y-o-Y | |
| Value of Services ( crore) | 7,266 | 6,831 | 6.4% |
| Revenue from Operations ( crore) | 6,223 | 5,880 | 5.8% |
| EBITDA ( crore) | 236 | 1,131 | (79.1)% |
| EBITDA Margin* | 3.8% | 19.2% | (1,540) bps |
Jio Studios, the media and content arm of RIL, is a leading content studio that produces movies and web originals in Hindi and all other major Indian languages. Achieving market leadership within five years of its inception, Jio Studios has demonstrated scale, commercial success as well as garnered critical acclaim with 16 films and 8 web series sweeping over 100 awards in India and internationally. Jio Studios takes its stories to viewers via theatres, as well as broadcast television and digital OTT platforms and has been instrumental in powering the entertainment launch of Jio Cinema post IPL.
The ‘Jiofication moment of the content industry occurred when the studio for the first time unveiled its spectacular content slate in April 2023, the single largest slate ever produced by an Indian studio in any given year. It has lined up ready to release over
100+ stories across genres of films and original web series in multiple languages including Hindi, Marathi, Bengali, Gujarati, South and Bhojpuri, capturing every emotion and genre of storytelling - Action, Drama, Thriller, Comedy, Romance, Biopics, Horror, Musicals et al.
In a largely fragmented industry, the depth and width of this marquee offering promises to be a game- changer in the world of Indian entertainment, delivering high quality content that is both entertaining and thought provoking. This has been achieved through meticulous collaboration with some of the best creative minds in the country.
Jio Studios vision is to power stories for India and Bharat, that not only entertain but also have purpose, to partner with storytellers in every Indian language and take these stories mainstream. Its mission to Make in India and Show the World is vast and inclusive.
As the Media & Entertainment sector is expected to grow at a CAGR of 10.5% to reach D2.83 trillion by 2025, Jio Studios aspires to lead from the front as a gamechanger in the content creation value chain with respect to scalability, technology, and creative excellence to put Indian stories on the global map.
Winning Laurels
Vikram Vedha
11 FA — Best Leading Actor, Male
Bhediya
Zee Cine Awards 2023
• Most Streamed Album of the Year
• Performer of the year 2023, Actor
Dasvi
OTTplay App Awards (Best Web Original Film — Jury Award)
Mi Vasantrao
National Awards — Best Singer
BUSINESS PERFORMANCE News Business
TV News
Business News
Our Business News portfolio, comprising of CNBC TV18, CNBC Awaaz, and CNBC Bajar, continued to be the leader in the market, offering a 3600 coverage of business and financial news, deep analysis of daily events, interviews with eminent industry leaders and a global perspective on important events.
General News
CNN News18 (English) and News18 India (Hindi) rose to leadership during the year amidst a highly competitive environment, driven by their in-depth coverage of national, local, and international events. CNN News18, with a panel of award-winning journalists, has been a thought leader all along and has pioneered several path breaking initiatives. News18 Indias strong, purposeful reportage of key issues and substantive journalism typified by constructive criticism have been the key drivers of its ascent to leadership.
Regional News
The regional portfolio, with 1,000+ reporters stationed in virtually every corner of the nation, covers 26 states in 16 languages and caters to 60 million viewers across India. 5 of the 14 regional news channels were leaders in their markets.
#1
CHANNELS IN HINDI, ENGLISH AND ENGLISH BUSINESS NEWS GENRES
Networks18s digital news portfolio, consisting of Moneycontrol and News18.com (across 13 languages), continued to be Indias #2 online publisher attaining leadership in the non-English segment. Firstpost Vantage, a digital-first show, helped the brand gain ~1mn subscribers on YouTube, while CNN News18s YouTube channel was #1 amongst all the English news channels. MoneyControl Pro continued to see growth in pay subscriber base, driven by its cutting-edge tools, research and exclusive content.
Entertainment Business
TV Entertainment
Hindi General Entertainment
Colors increased its market share across prime time and full day to strengthen its #2 position in the genre, driven by a programming mix of fiction shows and popular reality shows. FTA channel, Colors Rishtey, witnessed a decrease in viewership after its exit from DD FreeDish platform in April 2022.
Hindi Movies
Colors Cineplex, the pay movie channel, increased its market share during the year, driven by more than 20 World Television Premieres. FTA movie channels, Colors Cineplex Superhit and Colors Cineplex Bollywood, helped the network maintain a strong position in the free-to-air genre.
Music and Youth
MTV continued to be a strong brand in the Youth category and MTV Beats maintained its position amongst the top music channels in India.
English Entertainment
Viacom18 continues to be the undisputed leader in the English genre, with a combined viewership share of 95%+.
Kids Entertainment
Indias leading portfolio of Kids entertainment channels commanded a 30%+ market share with Nickelodeon being the #1 channel for over 9 years.
l,
Regional Entertainment
In the regional entertainment bouquet, Colors Kannada maintained a strong _ #2 position through the year and
Colors Marathi exited the year as the #2 channel. Other channels in the portfolio include Colors Bangla, Colors Oriya, Colors Gujarati, Colors Tamil, Colors Super (Kannada), and the movie ,l channels - Colors Kannada Cinema, Gujarati Cinema and Bangla Cinema.
Infotainment channel, History TV18, continued to be amongst the top 2 channels in the genre in urban markets.
Digital Entertainment
OTT platform, Voot, continued to be one of Indias highest engagement platform and was the #2 broadcaster- OTT in terms of time spent per day. JioCinema established itself as a destination for premium Sports content with streaming of IPL, FIFA World Cup and Women Premier League.
The platform set new benchmarks of scale and engagement with its wide reach and unique features.
Live Events and Ticketing business, Bookmyshow, delivered a sharp improvement in operating and financial performance after the impact of pandemic on the business for almost two years.
Film Business
Viacom18 Studios
As the impact of COVID-19 on the movie industry receded, Viacom18 Studios ramped up its slate and released several movies during the year. Some of the notable movies released during the year were Laal Singh Chaddha, Jugjugg Jeeyo, and Shabaash Mithu.
Print/Publishing Business
Portfolio comprises of print and online versions of Forbes, Better Photography and Overdrive, each one of them, a leader in their own category, and continuously striving to achieve new heights.
CSR INITIATIVES
At Network18, Corporate Social Responsibility (CSR) is embedded in its long-term business strategy. Network18s community initiatives help elevate the quality of life of millions, especially the disadvantaged sections of society.
Mission Swacchta Aur Paani
The latest season of Network18s largest initiative, Mission Paani, pivoted to Mission Swachhta Aur Paani. Stories of water conservation, hygiene and sanitation took centre stage throughout the season, focusing on the great precedence being set by the North-eastern states. These stories were amplified across our TV, Digital and Social media platforms. The initiative upheld the cause of inclusive sanitation where everyone has access to clean toilets, culminating with an 8-hour long telethon on World Toilet Day to mobilise Indians for better sanitation.
Future. Female. Forward. - The Womens Collective
CNBC TV18 embarked on a new journey, charting a path of gender parity, focusing on the status of women representation across industries and sectors and celebrating the women champions across different spheres. The theme of making gender parity an inevitable reality was taken to the WEF23 in
Davos, where leaders from across the globe wore FFF batches as a token of support for the cause. In March 2023, one of the biggest summits on gender parity was organised, mobilising leaders from across industries.
Sadak Suraksha Abhiyaan
An initiative in partnership with the Ministry of Road Transport and Highways to educate the masses and inculcate a sense of responsibility towards creating safe roads. A comprehensive campaign on raising awareness around these issues concluded with a four-hour special telethon in the presence of Honble minister Nitin Gadkari, highlighting the importance of Safe Roads for the worlds fastest growing economy.
OUTLOOK
We firmly believe in the long-term growth potential of the Indian M&E industry as it has a significant room for growth, in terms of penetration as well as monetisation.
India stands out from other countries due to its linguistic diversity, creating a distinct landscape that necessitates presence across various languages to establish a nationwide presence. Despite the unique characteristics of each of these markets, an ever-increasing appetite for quality content remains a constant theme throughout the country.
Digital penetration has unlocked a great opportunity to reach masses with on demand content and a fast-growing adoption of connected TVs presents an opportunity to reach premium audience at scale. We are committed to make investments across our businesses, to make them the default platform of choice for consumers seeking diverse, quality content. This will not only help us to achieve a commanding operating position, but will also help us to leverage future growth opportunities.
Oil to Chemicals
The Oil to Chemicals (O2C) business portfolio spans transportation fuels, polymers and elastomers, intermediates and polyesters. The O2C business includes world-class assets comprising refineries and petrochemical units that are deeply and uniquely integrated across sites along with logistics and supply chain infrastructure.
The RIL O2C business includes a 51% equity interest in a fuel retailing JV with bp - Reliance BP Mobility Limited (RBML), operating under the brand Jio-bp, and a 74.9% equity interest in Reliance Sibur Elastomers Private Limited (RSEPL).
The integrated O2C business structure enables an integrated decision-making approach that helps to optimise the entire value chain from crude to refining to petrochemicals to the B2B/B2C model. The O2C business will further leverage technology and its existing assets and streams to maximise conversion of crude to chemicals and materials, with an aim to create a sustainable, holistic, circular materials business.
COMPETITIVE MOAT
Deep and Unique
Integration Across Sites
• Fully integrated O2C value chain comprising the highly integrated complex at Jamnagar, with strong linkages to other O2C sites
• Flexibility to process a variety of feedstock including crude, condensate, naphtha, refinery off-gases, ethane/ propane, reformate, vacuum gas oil and straight run fuel oil
• Highly optimised operations across the entire value chain from crude selection, product yield management, logistics to product placement, leading to best- in-class profitability
• Presence across diverse product categories, feedstock flexibility and security provides stability of cash flow even in volatile commodity markets
World-class
Manufacturing Facilities
• Large global-scale manufacturing sites based on competitive technology and flexible design
• Top quartile performance in costs, safety and operational excellence
Unparalleled Logistics
and Supply Chain
Network
• Unmatched distribution footprint in India with multi-modal logistics
• 10,500+ customers for chemicals and materials across India
• Retailing transportation fuels at 1,560+ outlets spread across India
Strong Project
Management Capability
• Track record of delivering world-class, large-scale projects
Robust Portfolio Catering to Growing Consumption Markets
• The only company globally with integration from oil
to transportation fuels, polymers and elastomers, intermediates, and polyesters
Global Competitiveness and Leadership
• Worlds 3rd largest producer of paraxylene and among the worlds top Five producers of PP and PTA
(Source: Chemical Market Analytics / Wood Mackenzie)
• Worlds largest integrated polyester producer
OPERATIONAL HIGHLIGHTS FY 2022-23
| Highest ever O2C earnings pre-SAED (Special Additional Excise Duty) with tight fuel market due to geopolitical conflicts and recovering global demand post reopening of economies | Fluid Catalytic Cracking (FCC) de-bottlenecked during shutdown to enable O2C transition with superior petrochemical yields and improved feedstock flexibility |
| Weak global demand for petrochemicals weighed on chemicals margin but RIL margin remained resilient on sustained domestic demand and advantaged ethane cracking | Maximised margins with advantaged feedstock sourcing, yield optimisation and superior product placement |
| Crude sourcing flexibility improved with de-bottlenecking of naphtha, handling capability in CDUs |
Improved and sustained gasifier performance ensuring zero LNG imports in high price scenario, reducing the energy cost |
| Maximised primary and secondary units processing to capture higher refining margins | Aromatics production optimised based on net-back for alternate product (PX vs Gasoline) |
| Focused on differentiated and specialty polyester products |
Jio-bp added 1,000+ new charging points and a multitude of industry level partnerships, to strengthen position amongst the countrys leading CPO (Charge Point Operator) |
| Processed 13 new crudes, widening feedstock sources including feedstock for Fluid Catalytic Cracking (FCC) | Cracker feed-mix optimised based on Naphtha Vs Ethane economics, lower US ethane prices supported chemical margins |
INDUSTRY OVERVIEW
FY 2022-23 was a year of high volatility and uncertainty in oil markets amid higher geopolitical tensions due to the Russia-Ukraine conflict.
This led to significant rise in oil prices in the year with Brent crude reaching $123.7/bbl in June 2022.
Europe imposed an embargo on imports of Russian crude oil and refined products in December 2022 and February 2023 respectively. These European sanctions further led to re-routing of global crude and product trade flows.
Global oil demand continued to rise in FY 2022-23 despite being impacted by high oil prices, Chinas Covid lockdowns during the first half of the year, and global economic growth concerns during the second half of the year.
International air travel rose steadily throughout the year as most countries lifted restrictions with covid related concerns receding. Global refinery operations also increased on support of rising demand. Improving mobility and gas to oil switching, amid high natural gas prices, also supported oil demand growth during the year.
Tightening of monetary policy by Central Banks caused concerns on economic recovery leading to sharp drop in oil prices in March 2023.
Crude Oil Demand and Supply
Global Oil demand in CY 2022 increased by 2.3 mb/d to 99.8 mb/d.
High oil prices and China Covid lockdowns limited oil demand growth in the year. However, demand growth
was supported by improving mobility, rising air travel demand, increasing use of oil for power generation and gas to oil switching in the industrial sector.
Global oil supply increased by 4.5 mb/d to 99.9 mb/d in CY 2022. Oil supply growth was strong in the year in both OPEC and Non-OPEC countries. OPEC supply growth was led by Saudi Arabia, UAE and Iraq. Non-OPEC supply growth was led by US.
Global Refining Operations
During FY 2022-23, Global refinery operations increased steadily on the back of strong demand, high refinery margins and also due to start-up
of new refineries in Middle East, US and China.
In CY 2022, global refinery throughput was 1.9 mb/d higher than in CY 2021. Overall refinery utilisation reached 82% by March 23. Refiners increased run rates to take advantage of the higher product cracks.
Refining margins were strong in FY 2022-23 as concerns of loss of Russian product exports to Europe due to sanctions led to huge disruption in global trade flows. Margins were healthy in the year mainly due to strong middle distillate cracks amid rising fuel demand and lower global inventories.
GLOBAL REFINERY CRUDE THROUGHPUT
(MB/D)
| CY 2022 | CY 2021 | Change 2022 vs. 2021 | |
| OECD Americas | 18.7 | 17.7 | 1.0 |
| OECD Europe | 11.5 | 11.0 | 0.5 |
| China | 13.7 | 14.4 | (0.7) |
| Rest of the World | 36.6 | 35.5 | 1.1 |
| World Total | 80.5 | 78.6 | 1.9 |
Crude Oil, LNG and Ethane Prices
Oil Prices
Crude oil prices rose sharply in FY 2022-23 with Brent price averaging $96.2/ bbl in the year. Higher crude oil prices during February 2022 to August 2022 were mainly on account of war premium as an after effect of Russia Ukraine conflict. Brent oil rose to high levels of $123.7/bbl in June 2022 amid rising demand and on concerns of impact of upcoming EU embargo on Russian oil imports from
December 2022. However, Oil prices started to cool down after June 2022 as US increased SPR oil sales and Russia was able to divert much of its crude oil exports from Europe to Asia.
Oil price volatility continued through the year with Brent oil prices falling to $81.1/ bbl in December 2022 on recessionary concerns while Russian oil exports remained resilient. China lifting COVID-19 restrictions in
LNG Prices
During the year, LNG prices were highly volatile, with Asian prices ranging from a high of $71.25/MMBtu in April 2022 to a low of $12.10/
MMBtu in March 2023. Asian LNG prices averaged at $32.96/MMBtu in FY 2022-23.
Geopolitical tensions reduced pipeline gas flow from Russia to Europe leading to decrease in European inventories by Q1 2022. Also, significant outages at LNG terminals like USA, Australia, Malaysia tightened LNG availability during FY 2022-23.
In anticipation of the winter season, despite a tight LNG market, Europe
acquired an additional 45 MT of LNG over and above their 2021 volume to substitute Russian pipeline gas to build inventory.
These events resulted in significant increase in LNG prices during Q2 2022. However, high LNG prices and tight COVID restrictions in China led to demand destruction in Asia (7%) and Europe (13%).
In addition, the relatively mild winter experienced in Europe and Asia resulted in sustained high inventories towards the end of winter 2022, which subsequently contributed to reduction of LNG prices by March 2023.
Ethane Prices
In February 2023, Reliance completed six years of ethane value chain project.
The ethane chain acted as a virtual pipeline from US to India ensuring uninterrupted ethane supply to our crackers and providing them feedstock security, flexibility and a unique competitive advantage.
During the year, ethane prices were highly volatile, seeing a high of 68.0 US cents per gallon (cpg) in June 2022 and a low of 22.7 cpg in February 2023. As ethane prices moved in tandem with natural gas prices for most of the year, prices peaked in anticipation of strong winter and low inventory levels. However, the Freeport LNG terminal shutdown, rising interest rates and milder winter eased ethane prices.
The average price of ethane for FY 2022-23 was 44.4 cpg. Despite relatively higher prices, ethane continued to be the preferred as a competitive feedstock in the region.
US ETHANE AND NG PRICES
(US$/GAL) / (US$/MMBtu)
Transportation Fuels
Global Market Environment
Global gasoline demand growth remained steady during the year on rising mobility. In CY 2022, demand recovered to 97.5% of pre-pandemic levels (CY 2019 levels) to 26.0 mb/d as restrictions on mobility were lifted gradually by various countries. China lifted Covid related mobility restrictions in December 2022.
Global diesel demand was strong during the year due to improving economy and rising industrial activity. In CY 2022, diesel demand recovered to pre-pandemic levels to reach 28.3 mb/d.
Jet fuel demand gradually increased through the year. It recovered to 78% of pre-pandemic levels in CY 2022 to 6.2 mb/d amid slow recovery in business and international travel.
Domestic Market Environment
Indian transportation fuel market has bounced back completely to register new highs across both HSD and MS segment in FY 2022-23. Despite being significantly below pre-covid levels, ATF volumes have shown the steepest growth.
INDIA FUEL CONSUMPTION TREND (EXIT QUARTER TREND)
(MMT)
| Product | Q4 FY 2019-20 | Q4 FY 2020-21 | Q4 FY 2021-22 | Q4 FY 2022-23 |
| HSD | 19.7 | 20.6 | 20.6 | 22.0 |
| MS | 7.1 | 7.8 | 7.9 | 8.7 |
| ATF | 1.9 | 1.4 | 1.4 | 2.0 |
With this being the first complete year since FY 2020-21 without any specific (pandemic led or otherwise) demand disruption in the country, there has been healthy growth of petroleum products in the country despite elevated retail selling prices.
Indias oil demand grew by 10.2% and stood at 222.3 MMT LPG demand also maintained an upward growth trajectory.
Strong economic traction is reflected in the double-digit growth demonstrated by gasoil and gasoline with demand for both fuels surpassing peak demand levels of pre-pandemic times. While gasoil demand has grown
by 12%, gasoline has grown back at 13% on Y-o-Y basis.
Despite the slowdown concerns of previous year, both state-owned oil marketing companies and private players have continued expanding their network, adding over 4,000 outlets in FY 2022-23, and taking the total number of retail outlets in India to over 90,000.
Buoyant economic activity in the country, consistent growth in 2w and 4w sales, continued enhancement of road infrastructure and increase in retail outlet network augurs well for maintaining the momentum in transportation fuels demand growth in the country over the coming decade.
The Electric Vehicle market in India scaled up significantly in FY 2022-23 with 6,600+ charging stations and cumulative country-wide EVs of 2.7 Mn.
Building on the steady growth shown largely on back of domestic travel, Aviation industry has grown by more than 47% in FY 2022-23. This is on the back of unleashing of pent-up travel demand both within India and outside due to lockdown concerns over the last few years. That the growth is coming despite churn and consolidation amongst the airline players augurs well for sustained growth of Indian Aviation sector.
Margins
Gasoline margins rose to $14.7/ bbl in FY 2022-23 from $11.4/bbl in FY 2021-22 backed by steady demand growth and improving mobility.
The recovery of transport demand post Covid partially offset demand loss due to high fuel prices. Limited exports from China also supported gasoline cracks.
Gasoil margins rose sharply to $40.7/ bbl in FY 2022-23 from $12.3/bbl in FY 2021-22 amid strong global demand growth on rising economic activity. Also, uncertainties around Russian diesel supply due to EU embargo on Russian products, gas to oil switching and low global inventories kept gasoil margins strong during the year.
Jet fuel cracks rose to $32.9/bbl in FY 2022-23 from $9.1/bbl in FY 2021-22. Jet fuel margins increased on support of steady demand growth and strong gasoil margins.
ASIAN CRACKS FOR TRANSPORTATION FUELS
($/BBL)
| FY 2022-23 | FY 2021-22 | |
| Gasoline 92R | 14.7 | 11.4 |
| Jet | 32.9 | 9.1 |
| Gasoil | 40.7 | 12.3 |
Polymers and Elastomers
Global Market Environment
Global polymer demand in CY 2022 was stable at 245 MMT on Y-o-Y basis. Global polyethylene (PE) demand grew by 0.3%, polypropylene (PP) demand remained flat, while PVC demand contracted by 3.4% in CY 2022. Growth in global demand for Styrene Butadiene Rubber (E-SBR) was 4% and Polybutadiene Rubber (PBR) was 2% in FY 2022-23 on the back of automotive sector demand.
Global Cracker Operations: Global Ethylene demand increased by 2% Y-o-Y to 183 MMT in CY 2022 against 8% Y-o-Y growth in CY2021. New capacity addition of 10 MMTA in CY2022 resulted in lower operating rates at 85% compared to 86% in CY2021.
Ethane and Naphtha Prices:
US Ethane average prices increased by 27% Y-o-Y from 35 cpg to 44 cpg in FY 2022-23, led by higher Natural gas prices. Naphtha average prices in Asia were down by 3% Y-o-Y from $718/MT to $696/MT, due to lower demand from Petrochemicals.
Domestic Market Environment
PP domestic market demand grew by 6% on Y-o-Y basis on account of healthy demand from health & hygiene sector and Biaxially Oriented Polypropylene (BOPP) packaging.
PE demand registered 8% growth Y-o-Y basis majorly driven by pipes, insulation, e-commerce, FMCG and liquid packaging. PVC demand grew by 32% Y-o-Y, driven by growth in construction activities and policy boost for several water and sewage pipeline projects.
Indian PBR market grew by 7% Y-o-Y, while SBR market declined by 1%.
Margins
Polymer prices weakened during FY 2022-23 amidst lower demand from China due to COVID related restrictions including recessionary concerns in major developed markets. Global operating rate for PP, PE and
PVC averaged 81%, 83% and 79% respectively during CY2022, lower than CY2021. Polymer margins weakened during the year as product prices declined more than feedstock prices. Integrated PP-Naphtha, HDPE- : Naphtha and PVC margins contracted
c by 32%, 15% and 17% respectively during the year.
Intermediates and Polyesters
Global Market Environment
Global demand for intermediates (PX/PTA/MEG) increased marginally Y by 1% to 159 MMT in CY 2022 from 157 MMT in CY 2021, as markets remained under pressure due to volatility in crude prices, high energy costs and weak demand in China.
PX demand grew marginally by 2% while supply remained tight due to production cut by few PX producers y amidst unfavorable economics. PTA demand marginally reduced by 1%
; to 75 MMT in CY2022 due to high inventory of Polyester products T in China and weak downstream demand. MEG witnessed flat demand at 33 MMT in CY2022.
MEG operating rates dropped from 66% to 58% in CY2022 with higher capacity additions.
Polyester overall global demand remained flat at 85 MMT in CY2022 amid inflationary concerns. Global polyester markets were under pressure as demand weakened in China due to Covid related restrictions. Western markets too witnessed lacklustre demand on account of high inflation and slowdown in economic activities.
SOUTHEAST ASIA POLYMER MARGINS
(US$/MT)
| ^^FY 2022-23 | FY 2021-22 | % change Y-o-Y | |
| HDPE - Naphtha | 362 | 426 | -15% |
| PP - Naphtha | 360 | 529 | -32% |
| PP - Propylene | 92 | 236 | -61% |
| PVC - EDC - Naphtha | 474 | 572 | -17% |
| PBR - BD | 1060 | 1125 | -6% |
| SBR-BD-Styrene | 869 | 1060 | -18% |
Domestic Market Environment
Intermediates demand improved by 4% on account of continued recovery in textile and polyester demand. Overall Polyester demand grew by 14% in FY 2022-23. PET witnessed strong growth of 28% followed by PSF 17% and PFY 10%. Demand revived strongly on account of resumption of normalcy in schools, offices, festive and marriage related celebrations and increase in tourism activity post removal of Covid related restrictions. High cotton prices aided usage conversion from cotton to polyester globally.
Margins
In FY 2022-23, PX prices improved by 16%, while PX-Naphtha margins surged by 63% surpassing the 5-year average of $303/MT. Integrated producers continued to optimise production based on PX vs.
Gasoline economics.
PTA market in China was impacted due to weak downstream demand. PTA producers responded by moderating operating rates and keeping check on inventory levels.
PTA prices registered gain of 15%, while PTA-PX margins improved by 8%.
MEG margins were under pressure as inventory remained high due to weak downstream demand and high energy cost. MEG-Naphtha margins reduced significantly by 78% as the MEG prices dropped by 22% while Naphtha prices remained firm.
PET margins were supported by strong demand in packaged drinking water segment. Filament and Staple margins were severely affected due to energy crisis, high inflation in EU and US markets and poor retail demand in China.
INTERMEDIATES AND POLYESTER MARGIN TRENDS
(US$/ MT)
| ^^FY 2022-23 | FY 2021-22 | % change Y-o-Y | |
| PX- Naphtha | 350 | 215 | 63% |
| PTA-PX | 113 | 105 | 8% |
| MEG-Naphtha | 44 | 203 | -78% |
| POY-PTA & MEG | 200 | 294 | -32% |
| PSF-PTA & MEG | 110 | 151 | -27% |
| PET-PTA & MEG | 164 | 191 | -14% |
Source: China/North East Asia prices as per Platts, ICIS, CCF Group, RM-PTA & MEG
PERFORMANCE UPDATE F
| FY 2022-23 | FY 2021-22 | % change Y-o-Y | |
| Revenue ( crore) | 5,94,650 | 5,00,899 | 18.7% |
| EBITDA ( crore) | 62,075 | 52,722 | 17.7% |
| EBITDA margin (%) | 10.4% | 10.5% |
O2C EBITDA was at record high with strong fuel cracks and competitive feedstock sourcing aided performance. Introduction of SAED
on transportation fuels impacted full year earnings by 6,648 crore. Highest ever domestic sales for Polymers, Elastomers and PET
supported realisation, favourable domestic demand environment and ethane cracking economics supported profitability.
BUSINESS PERFORMANCE
PRODUCTION MEANT FOR SALE
| Particulars | Products | ^^¦FY 2022-23 | FY 2021-22 |
| Transportation Fuels | Gasoil | 25.2 | 25.8 |
| Gasoline / Alkylate | 12.2 | 11.7 | |
| ATF | 4.7 | 3.7 | |
| Polymers and Elastomers | PP | 2.7 | 2.9 |
| PE | 2.2 | 2.2 | |
| PVC | 0.8 | 0.7 | |
| Elastomers and Feedstock | 0.4 | 0.4 | |
| Intermediates and Polyesters | PX and By-products | 1.9 | 2.9 |
| Benzene and Derivatives | 0.4 | 0.5 | |
| PTA | 2.2 | 2.2 | |
| MEG and By-products | 1.0 | 1.2 | |
| Filament | 1.2 | 1.2 | |
| Staple | 0.8 | 0.8 | |
| PET | 1.2 | 1.2 | |
| Others | Fuels, Solids and Others | 9.5 | 10.8 |
| Total | 66.4 | 68.2 |
Transportation Fuels
In FY 2022-23, RIL remained among the largest producers of transportation fuels, exporting 36.1 MMT of products across the globe.
RIL can also produce a large variety of grades to meet international market requirements of Europeans countries, Africa, East Asia and Australia. The Company is well recognised as a trusted supplier of high-quality transportation fuels with zero cases of quality and quantity disputes. RIL has a cost advantage as it operates through one of the most modern and efficient ports - Jamnagar. The Company marketed 10.7 MMT of products in the domestic market in FY 2022-23.
On the back of industry defining value propositions, RIL is building on its intra-city presence to complement its strong highway presence. RIL launched first ever country-wide national scheme to further augment gasoline sales. It is also working at creating the best-in-class experience for gasoil customers. With improved delivery in on-demand fueling, RIL is reinforcing the value proposition for fleet and non-transport/off- road segment.
On the backdrop of growth in retail outlet network, further improvement in Quality and Quantity (Q&Q) and best-in-class technology, RIL is well placed to help stimulate the continued transportation fuel growth in the country.
5 HSD B2B Business
In FY 2022-23, RIL market share in HSD B2B business increased from 9.4% to 11%. While industry de-growth was 48% in the year, RIL registered only 39% de-growth on Y-o-Y basis.
Adapting to evolving market scenario RILs O2C business continued to increase footprint across segments and geographies in both private and government sectors. Building on strong customer connect, the business saw a significant increase in the marine bunkering segment by 52%.
RIL has further strengthened position as supplier of choice in infrastructure and mining, contributing to Indias continued growth.
Fuel Retail Business
Reliance BP Mobility Limited (RBML), operating under brand Jio-bp, a 51:49 joint venture of RIL and bp, with a network presence of 1,561 outlets continued investing in incubating and growing network footprint of industry leading propositions.
With the development of bespoke additives after multi-year research using Indian fuel, Indian engines and simulated Indian conditions, the company is set to elevate both diesel and petrol standards of India. To take the product to every single customer, Jio-bp has constructed curated automated dosing infrastructure across its country-wide supply network and built country-wide additive supply chain from scratch.
Building on the convenience proposition, Jio-bp has commissioned Worlds first Wild Bean Cafe outside fuel forecourt to strengthen brand recall and complement their electric charging offering.
Continuing its pioneering work in reducing industry pilferage and encouraging safe practice, Jio-bp, operating under Jio-bp fuel4u, has received patent for technology enabled tamper proof HDPE containers used for transporting diesel. Built in-house, the container is testimony to continued innovation
1,560+
RETAIL OUTLETS
to redefine the range of retail outlet. Today, with ~100 mobile dispensing units and recently approved HDPE packed containers, Jio-bp supports the functioning of mobile towers, agriculture, hospitals, and remote mines alongside ensuring continued fuel delivery in the event of calamities in remote areas. .
In its quest to offer low carbon solutions, Jio-bp has forayed into CNG retailing and continues to tie-up with CGD players across the country. In line with the Government of Indias vision, the company was amongst the first OMCs to launch E20 fuel and has also commissioned its first Compressed Biogas retailing facility.
Aviation Turbine Fuel (ATF) Business
With the domestic aviation industry growing steadily, Jio-bp (operating under Air bp-Jio) has registered a growth of 35% in direct sales volume, staying ahead of the competition and reinforcing customer trust. Foray into key markets of Mumbai and Delhi have ensured strong volume growth prospects with scheduled airlines. Sustained technology leadership to
improve service levels and achieve operational excellence has ensured multiple public awards (including Best Service Provider by Assocham & Ministry of Civil Aviation; bp International Award for Operations and Technology) for Air bp-Jio in FY 2022-23.
Downstream Chemicals
RIL maintained steady polymer production with reliable operations across sites. It maintained operating rates higher than its peers based on the market scenario by leveraging global supply chain. This was achieved by leveraging high level of integration from feedstock to finished goods, strong global business networks, multi-modal logistics capabilities and enhanced digital capability with all stakeholders in the value chain. RIL maintained its market share in both polymer and polyester market. As RIL continued to explore new products and market segments, the integrated O2C business model helps optimise feedstock to run downstream plants at full capacity.
Polymer domestic demand is expected to be strong, driven mainly by growth in e-commerce, packaging, durables, auto and infrastructure segments. Strong demand likely to continue for Pipe sectors backed by infrastructure projects.
STRATEGIC PRIORITIES AND WAY FORWARD
Diversified Feedstock Sourcing, Minimising Feedstock Cost
• Long term contract for timely EDC imports to ensure zero loss in productivity.
• Feed flexibility in CDUs with debottlenecking of lighters+naphtha handling capability.
• Feed flexibility in FCC with upgradation of flue gas desulfurisation capability.
• Increase EDC production and reduce import dependence.
• Maximise Ethane sourcing to optimise feedstock cost.
Improved Product Netbacks with Wider Market Reach and Quality Upgrade
• Integrate Polyester assets of Shubhalakshmi Group to augment RIL polyester product portfolio.
• Implementation of naphtha quality upgrade for improved product placement flexibility and netbacks.
• PVC downstream processors tie up across the business value chain.
• Strengthening product portfolio with new grade development to support domestic sales.
• Increase PP sales to promote value- added exports of Woven Sacks and FIBCs by RIL downstream customer.
• Leverage Butadiene sourcing for uninterrupted elastomer production.
• Plan to service nearby EO customers through pipeline for increased sales and safe transportation.
Asset Sweating and Operating Cost Minimisation
• Implementation of various Performance Improvement Options (PIOs) for energy conservation
in Gasification.
• In-house development of speciality grade PP and LDPE catalyst for cost optimisation.
• Low-cost debottlenecking of existing assets for petrochemical capacity enhancement.
• In-house technology development for O2C transition, sustaining market advantage.
Digital Transformation
• Digital Twin development Proof of Concept (POC) completed for analysing and predicting plant performance.
• Evaluation of application for early event detection/ prediction of failures to minimise unplanned downtime.
• Use of AI/ML for predictive business analytics over conventional processes and systems to
track and predict future global business trends.
m‘ • Platform development for Planning & Optimisation and Trading.
• Development of Network operation ¦ center for real time information of
O2C business operation.
Supply Chain Management
• Real-time automated order servicing and agile inventory management system for enhanced customer experience.
• Establishment of end-to-end Supply Chain Control Tower for operational visibility and disruption management.
• Increase use of multi modal movement , explore transportation with alternative fuels and integration with GoI ULIP (Unified Logistics Interface Platform) for reducing overall carbon emissions.
Sustainability and Transition to Net Carbon Zero
• Successful trial of green hydrogen production with torrefied biomass firing in Gasifier.
• Increased Biomass firing in CFBs.
• Commissioning of new Toll manufacturing plant at Andhra Pradesh and ramping up recycling capacity to 5 billion bottles per year.
• To set up commercial plants of 25 TPD and scale up the chemical recycling technology to promote plastic circularity.
Process the pyrolysis oil produced at our processing units to produce circular polymers.
• Develop green polyolefin product portfolio and ramping up capacities to deliver application specific green products.
• Develop ReRoute™ as the preferred choice of customers for waste
to road product and ramping up capacities by on boarding vendors and dealers across India.
• Transition plan for renewable power from fossil fuel-based power.
• Evaluation of technologies for Bio-diesel and SAF production.
Domestic Transportation Fuel Sales Push through Jio-bp
• Reinforce fleet management program to consolidate position in highway segment.
• Grow network of mobile dispensing units (MDU) and packed fuel containers (PFC).
• Leverage technology and expedite rollout to sustain market leadership in mobile fuelling.
• Network-wide rebranding exercise for existing outlets, AFS and tank- trucks.
• Launch additivated Fuel offering followed by country wide brand launch.
• Expedite network footprint of all new customer value propositions launched.
Strengthen Presence into Low Carbon Fuels (EV Charging and CNG)
• Continue to tie-up with demand aggregators, technology providers and OEMs.
• Strengthen dosing infrastructure and country-wide additive supply chain.
• Ramp-up country wide footprint of EV charging network.
• Evolve technologies and operating model to stay abreast with the EV industry.
• Continue tie-up with leading gas distributors for country-wide availability and strengthening existing network.
Fabric 2.0
R:Elan™ and Circular Economy Update
Launched bio-mimic biodegradable R:Elan™ Fabrics 2.0
R:Elan™ ECOGOLD with CICLO? collection created by Gauri and Nainika
The 10th season of R:Elan™ at the Lakme Fashion Week (LFW) at Jio World Convention Centre in Mumbai was a momentous occasion for the brand as it witnessed the launch of the most innovative fabric on the runway, R:Elan™ EcoGold with CiClO?. The special technology infused in the fabric makes it bio-mimic biodegradation process and hence a potential solution to reduce the cycle of waste accumulation in landfills, soil, wastewater, and oceans.
With this season at LFW, R:Elan™ accomplished 5 successful years of participating, collaborating and contributing at Indias largest fashion event while pioneering and creating awareness about the importance of sustainability and circularity in fashion. For this edition R:Elan™ collaborated with the designer duo Gauri & Nainika
who used sustainable fabrics R:Elan™ GreenGold, made entirely out of 100% post-consumer used PET bottles and R:Elan™ EcoGold with CiClO? together with an aesthetic variant, R:Elan™ FreeFlow to create their stunning collection, Midnight Botanica 2023.
Midnight Botanica 2023 collection had a rich, dark, dreamy look with stark contrasting hues of the night and botanical inspirations. Floating fashionably down the ramp were light-as-air chiffons, crepes and organzas that were turned into swirling dresses, jumpsuits and red-carpet-worthy flowing Grecian gowns. The romantic colours set the mood for the collection as fiery red and delicate ivory were merged skilfully with strong jewel tones.
The spring-summer R:Elan™ EcoGold line by Gauri and Nainikas collection was inspired by Grecian lines and incorporated styles that were inclusive and generous and warm and designed to flatter all body types.
Working with R:Elan™ fabrics enabled the designers to create a special sustainable collection, contributing to the green fashion movement worldwide.
EarthTee 4.0
As a brand championing sustainability through fashion, R:Elan™ launched EarthTee 4.0 to continue creating awareness about the importance of circularity with the aid of fashion. R:Elan™ EarthTee is made from R:Elan™ GreenGold - 100% post-consumer PET bottles collected from FDCI X Lakme
Fashion Week22. These EarthTees are shared with various influencers and celebrities to amplify the power of sustainable fashion and inspire consumers to adopt sustainability and circularity as their lifestyle.
Circular Design Challenge
Circular Design Challenge has emerged as Indias largest platform that incentivises and awards fashion & design entrepreneurs working in circular fashion to find scalable solutions for waste reduction in the fashion and textile industry.
R:Elan™ Fashion for Earth, ‘Circular Design Challenge Season 4 winner ‘Pieux brings sustainable fashion on the ramp in 2022
Winner of the R:Elan™ Circular Design Challenge Season 4 in Partnership with the United Nations in India, at the Lakme Fashion Week X FDCI during the March 2022 edition, Pieux by Pratyush Kumar brought a great sustainable fashion experience on the ramp. The award-winning collection made use of deconstructed and reconstructed old clothes, that infused more life into the garments. Inspired by the incredible world of life under the microscope, Pieux showcased the theme "Illusion" in their collection at the event.
When it came to the foundation of the collection, the brand opted for materials like CARTEX (100% Upcycled carpet waste handloom textile), R:Elan™ GreenGold (100% Recycled polyester made from postconsumer PET Bottles), R:Elan™ GreenGold + R:Elan™ FeelFresh Fusion Fabric (100% Recycled Polyester with added anti-microbial properties), GRS certified recycled nylon, GRS certified recycled Polyester and organic cotton to create garments as well as footwear. Fashion that is faithful and concerned about the environment has a lasting effect on the trend charts and the "Illusion" collection by Pieux was the ideal offering for buyers whose thoughts are on the right sustainable path. Warina
Hussain, the showstopper of the collection on the runway applauded the initiatives by R:Elan™ and Pieux.
New Innovative Fabric Launch
R:Elan™ Cotluk - A fabric that is smarter than cotton
Cotton has been a key raw material for the textile industry. Though the textile industry faces some major challenges such as low productivity and volatile price fluctuations when they use cotton as a raw material.
The impact of wide price fluctuations has its negative impact on both - the textile value chain and the end consumers. RIL, with its extensive R&D, has developed a smarter alternative to cotton by introducing R:Elan™ Cotluk fabric. With volatility in cotton availability, it is extremely important to have a superior alternative with cotton-like attributes. R:Elan™ Cotluk, offers cotton-like look and feel, becomes an apt alternative as it is a perfect material for making high-quality knits and woven apparel across categories like Casual Knits, Denims, Formal wear etc. R:Elan™ Cotluk also has superior features like excellent strength, durability and easy care.
Empowering the Green Fashion Revolution
Keeping in mind the ever-increasing demand from consumers for sustainable products, R:Elan™ Cotluk is also made available from recycling 100% post-consumer used PET bottles as R:Elan™ GreenGold Cotluk. Cotluk is also available for the home textile category under the brand name Recron? Cotluk that can be used across varied applications like Bedsheets, Cushion Covers, Curtains, Towels, etc. Thus, R:Elan™ keeps its promise by consistently offering smart fabric solutions using extensive technical knowhow and cutting-edge technology.
Industry Recognition and Accolades
RIL was recognised for its continuous efforts to develop state-of-the-art digital capabilities and ensure customer delight for sustained business growth.
RIL was recognised by industry forum, Chemical and Petrochemical Awards 2022 under the DigiTech Front Runner of the Year category on November 2, 2022 at India Chem organised by the Ministry of Chemicals and Fertilisers, and FICCI.
This award acknowledges RIL leadership in continuously implementing and adopting new technologies for sustained business growth.
Platform Push for Jio-bp
• Transitioning to a complete platform organisation for facilitating seamless growth.
• In New Retail Outlet Monitoring, to centrally monitor work at 1,000+ operating sites.
• In Battery Swap and Fixed Charging, to rapidly seed customers in high growth vertical.
• In Mobile Fueling, to ensure 100% digital transaction for seamless on-demand doorstep fuel delivery.
• In Loyalty, to build countrys largest integrated coalition program.
Industry 4.0 Deployment for Process Efficiency at Jio-bp
• Facial recognition based Manpower management for centralised Driveway Sales Man (DSM) control
• Drone technology for cost and time efficient demand assessment for new outlet
• Remote Monitoring for centralised HSSE compliance at far-off project sites
• IoT for proactive maintenance of all critical forecourt assets. E.g., DG set, Dispenser
Enhancement of Existing Digital Platforms
Planning and Optimisation (P&O)
Consolidation of inputs from multiple sources and stake holders to facilitate the Planning and Optimisation (P&O) team to run the weekly/monthly rolling plans based on changing market conditions.
Business Operation Centre
Role/Team based data driven performance management system with built in analytics for business service delivery for profitable product placement, cost distribution & supply chain and top-notch customer service.
Operations and Chartering
• Automation of Clean Freight Forward Assessments based on market data.
• Vessel Management Platform: Automation of Time Chartered Vessel Reporting Data for freight cost optimisation.
• Digitisation of claim process from trigger to settlement.
• Extension of workflow-based BOC (Business Operations Centre) Platform for Chartering, Operations and Settlement.
Sales and Service
• Customer First Platform:
Personalised experience for customers and channel partners, on device agnostic open-source technology including easy and secure onboarding, Product cart management, Order and Contract Management, Credit Management, Payments and settlement, visibility of dispatch plan and location tracking of consignment along with desired analytics. Also services like B2B integration with customer for billing, delivery and customer payment systems. WhatsApp Chatbot for customer, is under beta testing
• Jio CRM Platform: Customer service management for Reliance Sales Force for active customer engagement and service.
• Product branding for new materials: Dynamic Websites including self-service content management systems for new Materials like HexaRel, RelWood, Relinforce, Tuffrel have been developed.
Data Management Platform to Deliver Data Products
During this year Reliance progressed in configuring and adopting the enterprise data platform and data management architecture to unlock data from source systems and create data pipelines. These include performing end-to-end data management activities from ingestion, and contextualisation to creating data models and consumable datasets.
^CASE STUDY^
Drone Based Demand Assessment. Creating New Normal
Taking accurate data in remote highways for demand assessment of new retail outlets is time consuming, costly and error prone process. Through drone technology in partnership with Asteria, RIL has found a innovative solution at a fraction of cost and time with close to 100% data accuracy. The project was recently awarded as Geospatial Awards 2022.
^casesTudy^
ADF Facility - Making a New Start
100% additivated fuel is the heart of RIL retail fuel offering. To facilitate that RIL has created unique independent facility adding a new name - Automated Dosing Facility - to Indian petroleum industry. Manned by only a handful of resources these sites constructed at the cost of low end retail outlets is a testimony of technological brilliance. This is ensuring every single drop of RIL oil is additivated even if it is coming through hospitality location.
T CASE STUDY^
Remote Monitoring - Eye in the Sky
Technology can help surmount the biggest of operational challenges, if used innovatively. Through smart CCTV, RIL has deployed remote monitoring system which automatically alerts employee / workers if they are not compliant with service or HSSE SOP at operating or under construction site respectively.
r CASE STUDY^
Creation of Mobility Bouquet for Corporates
With a portfolio of low carbon fuels (including CNG, BioCNG, EV and differentiated fuel) and convenience solutions (under Wild Bean Cafe - WBC), Jio-bp is helping the leading majors in IT, FMCG and Auto sector. Their unique fuel portfolio reduces supply chain carbon footprint of these majors and brand recall of WBC gets new motorists to Jio-bp fuel forecourt. This is a first-of-its- kind corporate-mobility solution provider partnership in India.
r CASE STUDY^
Aviation: Technology Driven Excellence
With demand dip during the pandemic condition, RIL invested in upgrading technology at AFS stations. Alongside receiving awards at national and International forum, RIL has been growing much faster than industry after demand takeoff. Building trust through technology driven assured quality and transaction clarity helped RIL strengthen relationship with airline partners.
^casesTudy^
The Rise and Rise of Jio-bp Pulse
Aligned with governments vision to provide green mobility solutions and inspired by parent companies (RIL and bp) target to be Net Carbon Zero Jio-bp Pulse has grown strongly building upon the sizeable Indian growth in both parc and public awareness for EV.
Widest
Operating under the brand Jio-bp Pulse, Jio-bp has added over 1,000+ public charge points in FY 2022-23, taking their network strength to 1,400+ across 8 cities and major highways. Expected to grow multifold again in FY 2023-24.
Curated
Includes seven of countrys largest charging hubs (100+ charge points) with dozens other hubs under construction. Also, built facility at malls, public parking place, work place and residential areas. One stop solution of entire set of offerings.
Safest
Adhering to global best practices, deployment of high-quality & compliant hardware and digital systems to ensure complete peace of mind for customers.
Differentiated
Future ready fast charging network to match charging requirements in rapidly growing battery capacity and size in upcoming Electric Vehicles.
Tech Led
Quality digital experience through state-of-the-art platform; Jio-bp offers feature-rich, scalable, and modular mobile app for seamless charging journey of users.
Integrated
Partnering with major retail estate players, OEMs, technology providers, demand aggregators and other stakeholders across EV value chain to strengthen the entire ecosystem.
Backed by widest, curated, safest, differentiated, tech led and integrated network, Jio-bp Pulse is on path to be the leading Charge Point Operator in the country.
OUTLOOK
Oil Demand is expected to remain healthy on the back of steady economic growth. New supply from upcoming refining capacities in Middle East, China and Africa will likely keep the market balanced. Oil price and product cracks to remain firm as global trade realigns in the aftermath of Russia Ukraine conflict. Relaxation in Chinese Zero Covid Policy is expected to boost China demand. Trade flows are likely to improve with easing out of supply chain disruptions. Polymer domestic demand is expected to be strong, driven mainly by growth in e-commerce, packaging, durables, auto and infrastructure segments. Strong demand likely to continue for Pipe sectors backed by infrastructure projects.
Oil and Gas E&P
The key focus of the E&P business has been safe and reliable operations and project delivery while maximising the production from the deepwater and CBM fields.
The production has been ramped up to 20 MMSCMD from the R & Satellite Cluster fields. With the commissioning of the MJ field in 1Q FY 2023-24, the KG D6 block will produce ~1 BCFe/day by FY 2023-24, thereby contributing ~30% of Indias gas production.
This will significantly reduce the dependence on costly imported gas and bridge the gap in Indias energy requirements especially in times of geopolitical uncertainty and constrained supply.
VISION
To be a major contributor to Indias Gas based economy supplying ~30% of Indias production.
MISSION
Our mission is to maximise stakeholders value by finding, 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. We will conduct our business in a manner that protects the environment as well as the health and safety of our employees, contractors and the local communities in which we do business.
COMPETITIVE MOAT
Indias leading deepwater E&P operator with best-in-class safety and reliability track record
World-class deepwater hub infrastructure on the East Coast
~3 TCFe resources in Block KG D6
Exploration underway in the proven geological fairways of the contiguous Block KG UDW1
Gas-based portfolio contributing to Indias transition towards clean energy
PORTFOLIO
| Block | Country | Partner | RIL Stake | JV Acreage (acres) | Status |
| Conventional KG-DWN-98/3 |
India | bp-33.33% | 66.67% | 2,90,230 | R Cluster Field: Producing from |
| December 2020 Satellite Cluster: Producing from April 2021 |
|||||
| NEC-OSN-97/2 | India | bp-33.33% | 66.67% | 2,05,520 | MJ Field: Development activities underway FDP submitted; under review with GoI |
| KG-UDWHP-2018/1 | India | bp-40.00% | 60.00% | 3,74,093 | Exploration activities ongoing |
| Unconventional SP(East)-CBM-2001/1 |
India | - |
100.00% | 1,22,317 | Development ongoing |
| SP(West)-CBM-2001/1 | India | - | 100.00% | 1,23,552 | Producing |
PERFORMANCE UPDATE
Revenues and EBITDA were up 120.3% and 149.0% respectively.
This was mainly due to higher price realisation along with increase in the gas production as compared to FY 2021-22.
| FY 2022-23 | FY 2021-22 | % change Y-o-Y | |
| Revenue ( crore) | 16,508 | 7,492 | 120.3% |
| EBITDA ( crore) | 13,589 | 5,457 | 149.0% |
| EBITDA margin (%) | 82.3% | 72.8% | 950 bps |
INDUSTRY OVERVIEW
2022 was another volatile year for global oil markets on account of unprecedented challenges. At the start of the year, strong oil demand growth was expected as the economy continued its recovery from the global pandemic. However, Russia-Ukraine conflict introduced huge geopolitical uncertainties and caused energy prices to soar.
Global oil demand in CY 2022 grew over 2 million b/d from 2021 but remained below pre-pandemic levels.
The Brent crude oil price averaged $96.2/bbl in FY 2022-23 and the WTI spot price averaged $95/bbl. Oil prices rose significantly in the first half of 2022 due to geopolitical tension but declined in the second half of the year.
Natural gas witnessed record high prices in 2022 due to steep decline in Russian piped gas supply to Europe, higher gas burn in the power sector and strong storage injections. Europe TTF spot prices averaged a record high of $38/MMBtu in 2022 while Henry Hub prices averaged $6/MMBtu, their highest level since 2008. Asian spot LNG prices also averaged $32.96/MMBtu for FY 2022-23 which is highest level on record.
Record high gas prices led to an unprecedented reduction in gas demand in industry in 2022.
Gas consumption declined by an estimated 2% in Asia and 13% in Europe (over 70 BCM). United States experienced growth of 5.4% in gas
consumption largely due to colder than average temperatures during the heating season.
LNG demand was dominated by a sharp surge in gross LNG imports into Europe, which was balanced by a steep decline in the rest of the world, particularly in Asia. LNG supply growth was relatively modest in 2022 at 5.5%, despite an unprecedented rise in LNG demand in Europe following the gradual decline in Russian pipeline gas deliveries throughout the year.
The Govt. of India appointed Dr. Kirit Parikh Committee to review domestic natural gas pricing. The Committee recommended removal of price ceiling on gas produced from High Pressure High Temperature (HPHT) fields from January 1, 2026.
BUSINESS PERFORMANCE
PRODUCTION
| JV Production | Unit of Measurement | FY 2022-23 | FY 2021-22 |
| KG D6 | |||
| Gas | BCF | 248.8 | 224.3 |
| Oil | MMBBL | 0.230 | 0.2 |
| CBM | |||
| Gas | BCF | 9.3 | 10.2 |
Reliances Oil & Gas business encompasses complete chain of activities from exploration to production across a portfolio comprising of exploratory Blocks NEC-25 and KG UDW1, and development and production from deepwater KG D6 Block and two CBM blocks.
Since the commencement of production till date the Block KG D6 has produced 3 TCFe of gas, oil and condensate while establishing several global benchmarks in terms of operational performance, including 99.9% uptime and 100% incident- free operations. The three integrated projects - R Cluster, Satellite Cluster and MJ - have been leveraging the existing hub infrastructure in place by utilising existing production facilities and thus reducing costs.
In FY 2022-23, on back of higher production and improved price realisation, the business delivered a robust performance.
~30 MMSCMD
EXPECTED GAS PRODUCTION IN FY 2023-24
KG D6
Deepwater Production Update
RIL successfully and safely delivered R Cluster & Satellite Cluster projects in the KG D6 Block during the peak COVID times.
Currently both the fields together are producing about 20 MMSCMD gas and contributing ~20% to Indias gas production.
MJ Deepwater Development Update
MJ Field has started producing gas and condensate from 1Q FY 2023-24. All offshore installation and commissioning works have been completed. Floating Production Storage and Offloading (FPSO) is at the field. Drilling and completion of wells is in progress.
Incremental gas production from MJ field, combined with gas production from R Cluster and Satellite Cluster fields, is expected to deliver ~30 MMSCMD in FY 2023-24.
Combined production from these three projects is expected to enhance Indias energy security in volatile market environment. With the incremental production from MJ field, KG D6 block is expected to contribute around 30% of Indias gas production.
Exploration Strategy
Block KGUDWHP-2018/ (KG-UDW1) was awarded to RIL-BP JV under OALP II licensing round and Petroleum Exploration License (PEL) was issued in August 2019.
Despite the COVID-19 pandemic and related challenges, the 3D Seismic Acquisition and Processing campaign was completed in the Block. Currently Seismic data interpretation and prospect maturation is ongoing, post which first exploration well is planned to be drilled in the Block.
Abandonment
D1 D3 Field ceased production in February 2020, following which the Oil Industry Safety Directorate (OISD) and Management Committee (MC) have approved the permanent Plug & Abandonment (P&A) of wells and in-situ abandonment of the associated equipment. P&A of one well in the D1 D3 field has been completed in FY 2022-23. Procurement of Rig & Services to complete P&A of the balance wells in the D1 D3 field is ongoing.
Following cessation of production in 2018, MA Field was decommissioned, Hydrocarbon freeing of flexible flowlines and flushing of umbilicals was completed and FPSO was demobilised. The flexible flowlines, dynamic flexibles dynamic umbilicals, subsea structures, mooring lines and STP buoy have been decommissioned. In FY 2022-23, P&A Activities have been completed in all wells in accordance with the Field Decommissioning Plan approved by the OISD and the MC.
MANAGEMENT DISCUSSION AND ANALYSIS
Risk and Governance
Reliance Risk Management Framework provides consistent, clear and robust framework for managing risks across the group and thus is fundamental to our performance and progress as a company.
WE CARE is the one common, unifying thread that runs through everything we do at Reliance. At Reliance, we are continuously working to deliver a sustainable future along with stakeholders. Reliances integrated risk management helps the group in management of risks at both strategic and operational levels and enables achievement of short and long term business outcomes. It ensures a safe and compliant operating environment, aligned to our values and behaviours.
Enterprise Risk Management (ERM) at Reliance
Ever-changing dynamics of risk environment has made it inevitable for every organisation to have a robust risk management process in place to address multi-dimensional risks proactively in holistic manner.
The Companys Risk Management Framework follows the below mentioned risk assessment process and thus allows the management to:
• Identify specific risks and assess the overall potential exposure
• Decide how best to deal with those risks to manage overall exposure
• Allocate resources and actively manage those risks
• Obtain assurance over effectiveness of the management of risks
and reporting
Governance Framework
Reliances Risk Management Framework is designed to be end-to-end framework for managing and reporting risks from the Groups operations to the Board. The Board provides oversight through various Risk and Executive Committees as below:
Governance, Risk, Compliance and Audit (GRCA 2.0) Platform
Further, the company has effectively advanced to ERM 2.0. GRCA platform enables real-time monitoring of risks and controls across three lines of defense. Basis the risk heat map, the minimum levels of oversight, review, escalation and endorsement are adopted from process manager level to the leadership level.
Executive Committee provides oversight and governance through Group Operational Risk Committee, Group Financial Risk Committee, Group Audit & Disclosure Committee, Group Compliance Committee and Group People Committee.
For understanding the Companys corporate governance and functioning of the Board and details on Internal Controls, please refer to the Boards Report and Corporate Governance Report.
Business Risk and Assurance Committees (BRACs) are headed by Business, Function and Group leadership which meets on a periodic basis for management of Business and Strategic Risks.
Business and Functional Leaders
ensure safe and reliable incident-free daily operations through identification, mitigation and monitoring of existing and new risks on day to day basis through weekly meetings consisting of all three lines of defense (LOD).
Climate Change and Energy Transition
Risk Description
Climate change continues to feature in the top 10 global risks cited by the Global Risk Report 2023. Global warming is having a compounding effect on the climate system, resulting in increased humanitarian challenges and further straining already stretched fiscal balances.
For businesses, climate change risks manifests in two broader categories, namely physical and transition risks, as outlined by global frameworks. Physical risks refer to the potential impacts on a company caused by both short-term extreme weather events (acute) and long-term changes in climate patterns (chronic). On the other hand, transition risks pertain to the potential hazards businesses may face as the world transitions to a lower-carbon energy system which includes risks due to policy changes, legal action, technological advancements, shifts in supply and demand, and changes in stakeholder attitudes.
Physical Risk
Throughout the year, an array of climate change induced weather events was experienced around the globe and in India too. These calamities included extreme weather events like intense heatwaves, cyclones, erratic rainfall, floods, and others, affecting almost every region of the country and causing unprecedented levels of destruction. Having a wide geographical spread, the organisation is susceptible to such erratic weather phenomenon which could cause disruptions in its operations and supply chains, in addition to causing negative impact on the wellbeing of our people and our assets.
Additionally, long term changes in climate patterns causing rising temperatures and sea levels may also expose our operations to future impacts of worsening climate change, which can impact our business continuity in certain vulnerable regions.
Risk Response
Reliance has robust business continuity management plans to manage risks arising from the physical impacts of climate change events. Each business segment after thorough evaluation of risks and its impact, develops these plans to ensure uninterrupted availability or swift recovery of essential business processes, resources and
operations. Regular review and testing are undertaken to ensure the effectiveness.
The Global Corporate Security (GCS) team focuses on adopting pre-emptive, de-risking strategies to safeguard and secure operations from disasters, natural calamities, and any other disruptions or incidents at RIL. Digital Services has established an integrated process for Disaster Recovery and Emergency Response to ensure network functionality and uninterrupted customer services. Retail has also developed comprehensive plans for disaster recovery and incident response to guarantee business continuity during any potential disruptions or incidents.
Transition Risk
Risks Related to Policies, Law and Regulations
Driven by ongoing geopolitical tensions and the urgency to act on climate change, a new global energy order is emerging - leading to a shift in the way energy is produced and consumed. This gradual move away from fossil fuels is prompting an increased focus on developing policies, incentives and regulatory frameworks that can bolster the adoption of low-carbon technologies and green products - which may impact the demand for RILs current products. Additionally, the envisaged development of a domestic carbon market regime and thereby the likely introduction of stricter regulations related to GHG emissions may impact RILs operating costs.
Risk Response
Reliance continues to focus on energy management and resource optimisation to reduce its carbon footprint through adoption of data analytics, advanced process controls and optimisation models. It is proactively shifting its dependence on fossil fuels to renewable alternatives like solar, biomass etc. to meet its captive energy demand. The Company also has plans to establish 20 GW of solar energy generation capacity by 2025, which will be consumed for captive round-the- clock (RTC) power and will also serve as intermittent energy for Green Hydrogen production.
Reliance is committed to scaling up responsible consumption practices and maximising circularity across its value chain through sustained investments in R&D of innovative technologies and solutions. By keeping resources in use for longer, our circular business models can help to reduce the demand for new raw materials and the associated carbon emissions from their extraction, transportation and processing. These initiatives are enabling us to minimise our impact on the environment and thereby mitigate the regulatory risks that may arise from a high carbon liability.
Market Risk
With the increasing number of customers embracing clean energy and materials, the demand for conventional products is likely to reduce, which may potentially impact the companys revenue and profits.
Risk Response
The Company has integrated climate-related issues into its strategic planning, investment reviews, risk management processes, and long-range supply and demand forecasts. As reflected in its adoption of a long-term perspective on the transition to green energy, Reliance has set a bold and forward-looking vision to establish itself as a leading global player in the New Energy and New Materials industry. The companys 15-year plan entails a multi-pronged approach to creating sustainable energy sources and futuristic materials for Indias future, while advancing the development of cutting-edge technologies to convert CO2 emissions into useful products,
use CO2 as feedstock and develop next-gen carbon capture and storage technologies, in line with its focus on sustainability and innovation.
With a plan to invest around H 75,000 crore over a span of 3 years, Reliance aims to:
• Establish and enable 100 GW of solar energy by 2030.
• Build five Giga factories namely the integrated solar photovoltaic module factory, an advanced energy storage battery factory, an electrolyser factory, a fuel cell factory, and a power electronics factory, thereby creating an integrated, end-to-end renewable energy ecosystem.
• Partner with leading companies globally in Solar, Battery, and Electrolyser space.
• Focus on bioenergy, offshore wind, and other non-conventional sources.
• Maximise crude to chemicals integration and create a portfolio of advanced and speciality materials.
• Transform RILs business into Net Carbon Zero operations.
Once proven at scale, RIL is prepared to double the investment to scale up its manufacturing ecosystem.
In addition, Reliance is also engaging in R&D initiatives and taking concrete measures to enable transformation in its value chain. For instance, RIL along with Ashok Leyland developed this unique technology of Indias first Hydrogen Internal Combustion Engine (H2-ICE) powered heavy duty truck.
Through these strategic initiatives, RIL aims to not only mitigate the negative impacts of climate change, but also position itself as a reputable leader in green energy business. The companys green energy transition underscores its commitment to address evolving customer demands for a sustainable future, as well as its dedication to responsible corporate citizenship.
Technology Risks
As Reliance is shifting to explore newer business avenues in cleaner technologies, there are inherent risks and costs for scaling up novel technologies to their full potential.
Risk Response
Reliance is leveraging the expertise and experience of its New Energy Council (NEC), a group of leading global technocrats and thought leaders, to accelerate its transition to clean energy. NEC is enabling creation of a strong foundation to realise
our vision of New Energy business - its strategic advice on innovative technologies and partnerships will help us mitigate the risks posed in these novel areas.
Reputational Risk
Growing concerns about climate change and increased momentum towards Net Carbon Zero could result in higher expectations from society and investors to address the environmental impact. Failure to meet these expectations could lead to damage to the companys reputation, which could impact RILs ability to access capital, as well as to attract and retain talent.
Risk Response
Reliance is closely monitoring the progress of its Net Carbon Zero by 2035 target including realisation of its near-term targets. We have set interim timelines for significant milestones across various initiatives within the New Energy business. A dedicated ESG committee has been instituted at the group level to facilitate supervision over the implementation and review of crucial initiatives, with the aim of ensuring progress towards the attainment of our Net Carbon Zero goals.
Further, the company recognises the significance of effective stakeholder engagement, particularly in relation to its climate change goals and believes that ongoing dialogue with its stakeholders is essential to ensure alignment with the companys objectives for a sustainable future.
With focus on research and technological innovation, strong fundamentals and deep understanding and knowledge of chemistry and materials that adds to our competitive edge. Reliance is well positioned to manage, risks while creating opportunities in the coming decades.
Commodity Prices and Markets
Risk Description
The Russia Ukraine conflict and consequent US and EU sanctions on Russian crude oil, product and natural gas exports have the potential for creating shortages of crude oil and products and driving up prices. This can impact the availability of crude oil and cause a spike in price of feedstock.
The high energy inflation could lead to headwinds for the global economy affecting oil demand and refining margins.
There was unforeseen market scenario with a disruption of energy sources and oil supply mainly in the western regions due to geo-political developments between neighbouring countries of Ukraine and Russia. This has resulted in a shift in sourcing of energy and oil from alternate destinations, which has led to change in the trade-flows worldwide.
The resultant longer sea passage has created shortage of availability of tankers and thus historically high volatility in freight rates.
Further, the phased embargoes of Russian products that has come into place has created challenges which are likely to continue to be more complex for transportation of food and energy worldwide.
Non availability of goods at right price, quality and quantity can adversely affect our retail business. There are several variables that may impact procurement decisions such as stock limits imposed by Government, adverse monsoon which may impact commodity prices, international geo-political events such as Russia - Ukraine war.
Risk Response
RILs strategy has been to source feedstocks from diverse sources to ensure supply security. Accordingly,
RIL has long term contracts with various Middle East National Oil Companies, African and Latin American countries. It has also entered into term contracts with Canadian companies to source heavy crude oil.
Reliance has a robust ship tanker fleet, which is suitable to trade worldwide. This set of time charter ships was optimally and proactively utilised along with ships from the spot markets achieving smooth and timely cargo evacuation and by limiting exposure to freight cost.
The liquid tanker shipping markets has never seen such demand before. The challenge was to find suitable ships at commercially viable cost. This was managed by tight monitoring of the time charter ships multiple scheduling until the last minute for the best and optimum route for the time charter ships, while ensuring nil downtime (100% utilisation) basis ship and cargo availability and at the same time fulfilling the contractual commitment to the customers.
Minute planning and close coordination between the teams of Business, Operations and Chartering achieved this complex task.
Reliance Retail undertakes a detailed analysis of the macro-economic situation and proactively maintains and tracks market intelligence on geo- political/economic policies shaping up in the global market. Continuous interactions and engagement with different stakeholders like brokers, traders and monitoring commodity exchange trades gives business the right impetus to carefully plan and de-risk itself against the external factors. We have internal controls and processes to ensure we procure optimum quantities at competitive prices in the market and also have wide base of vendors across geographies for each of the goods we procure.
Customer Experience and Retention
Risk Description
Digital Services being a customer oriented business, any sub-optimal customer experience may result in customer dissatisfaction and increased chances of churn.
Evolving habits and changing customer preferences could weaken our value proposition and in turn could lead to low loyalty and repeat purchases from customers.
Reliance Retail could lose customers or incur liability for any injuries suffered by customers which can impact our reputation and financial performance.
Competition from other oil marketing companies poses risk of customer retention as the country is surplus in petroleum products. Certain sanctions and embargoes on export of petroleum products to some countries may also pose a risk.
Risk Response
For sustained customer experience at
Digital business, following measures
are adopted:
• Superior usage and billing experience
• Anytime, anywhere mobile and wireline broadband network access
• Best-in-class customer service backed by technologies like AI, Bots and app based QRC (Query Resolution Complaints) process
• Competitive tariff pricing
• Agile service model adopted to develop systems and platforms
• Enhancing customer experience with localised support
• Structured process of measuring Customer Satisfaction (CSAT) across all touchpoints.
Customer engagement remains robust with strong gross additions of subscribers, significant increase in net MNP subscribers and increase in per capita data usage. The Company has also invested in newer technologies start-ups such as AI / ML, Blockchain, BoT, Speech / NLP, Metaverse, Mobility & 5G network, Robotics, Cloud & Edge computing etc. Use of these technologies will further enhance customer experience and value proposition.
Reliance Retail remains abreast on the trends in consumer preferences taking place in Indian and global markets. Its deep consumer understanding helps in designing and developing trendy and relevant products to cater to the dynamic needs of its consumers.
Reliance Retail is consumer centric organisation and has adopted a
stringent policy of taking cognisance of CUSTOMER SAFETY as topmost value and priority. Rigorous quality checks and all safety norms are adhered to at all times.
On the customer complaints front, the business has placed a dedicated Customer Service team that handles all queries routed through emails, voice calls, chats, social media etc. This has ensured faster resolutions and enabled retention of our end consumers.
Ensuring timely deliveries, quality assurance, efficient logistic solutions, pricing options, etc. at competitive prices reduce the risk of customer loss in oil to chemicals business. Diversified customer profile across various geographical regions provides alternative markets for our products thereby reducing risks arising from sanctions.
Oversight over Investee Companies/Alliances
Risk Description
Strategic alliances formed with various other business entities to expand Reliance businesses could have an adverse impact on our financial performance and our competitive position. Inadequate oversight over Investee companies or challenges in successful integration could also result in significant higher costs to its business.
Risk Response
Aligning investee companies in a structured manner to the group has been high priority for Reliance. We focus on strong governance
processes and internal controls including integrating the financial systems and operational processes. The investee companies are brought
under the Reliance Risk Management Framework, which provides a holistic view to formulate Annual Operating Plans that integrates across various businesses and functions.
Talent to Support Scaling Business
Risk Description
The ability to attract people, develop and retain talent is one of most critical factors for enabling smooth operations within our business. Given the scale and breadth of our operations, retaining talented personnel is imperative and a source of competitive advantage for the business.
Risk Response
Reliance has always adopted a forward-looking approach and has always treated its people with equal opportunities, thereby taking care of its people needs and retaining them by providing them fast paced growth opportunities.
Constant training and skilling initiatives along with a rigorous development regime empowers our businesses to have the right set of people at the right place and at the right time.
Focus to continuously build a strong talent pipeline by having an elaborate succession planning from critical roles to leadership roles is already in place and the business is well positioned to meet all its people demands in the near future.
Data Privacy Risk
Risk Description
Data has undoubtedly become a key pillar in this digital economy where every interaction results in generation of massive datasets. This data is consumed and used by businesses for providing customised experiences, helping shape new business models and driving a customer-centric service environment in this competitive market. This also brings challenges to organisations in ethically handling such data. The rising number of data breaches is the greatest concern for organisations of every size and scale.
Due to the large-scale digitisation and expansion of B2C businesses, the handling of personal data of customers, consumers, employees, partners, and service providers transparently and securely becomes of utmost importance. Improper handling and inadequate data protection practices may lead to data breaches and non-compliance with laws and regulations.
Risk Response
Reliance recognises the importance of Data privacy and safeguarding personal data is one of the top priorities at Reliance. Data privacy principles are followed across the lifecycle of personal data to address data privacy risks.
Reliance ensures all its business processes follow the privacy-by-design and privacy-by-default approach and makes sure that the personal data is used ethically and legally. Adequate control measures are implemented for
the protection of the personal data of individuals collected, processed, and stored by RIL.
Data Privacy processes are formalised across all businesses. Data Privacy Impact Assessments are conducted for all business processes that are involved in handling data. Transfer or sharing of personal data is controlled through Personal Data sharing processes. Data Privacy Awareness and training are conducted periodically to make users
aware of best practices while handling individuals personal data.
Reliance always strives to stay ahead of the compliance curve. Although compliance with the existing laws and regulations is demonstrated, global best practices are being adopted to comply with laws applicable to any jurisdiction or geography in which we operate going forward.
Cybersecurity Risk
Risk Description
RIL has always been at the forefront of using cutting-edge technologies for bringing more efficiency into businesses. Digital transformation is thus an ongoing activity in Reliance. The pace of digital transformation has been increasing over the years. One of the consequences of such rapid digital transformation is the expansion of cyber-attack surfaces. Cybersecurity risk is thus emerging as one of the prominent business risks.
Cybercrime and Cyber Insecurity is considered as one of the severe global risks as per the World Economic Forums Global Risk Report 2023 making it clear that cyber risks will remain a constant and significant concern over the next decade. Cyber Attacks today are more sophisticated, persistent, and disruptive in nature. Geo-political influences are magnifying the risks to critical infrastructure. Adversaries are leveraging emerging technologies such as AI etc. to initiate cyber-attacks on organisations that typically evade the existing defenses.
Risk Response
Reliance has adopted an approach of being proactive and at the same time being resilient to manage cyber risk. The Cyber Security strategy defined at Reliance is based on Mark to Threa and is aligned to business as well as technology.
Security by design principle and shift left strategy is followed across the lifecycle of the digital platforms to ensure that cyber security controls are part of the design. The cyber-attack surface is continuously monitored to identify vulnerabilities or misconfigurations and identified weaknesses are fixed on priority.
Contemporary and state-of-the-art security technologies and processes are deployed for protection against emerging attacks at multiple layers. Intelligence-driven Cyber Defense
operations are performed for proactive threat detection. Rapid response playbooks are in place and updated regularly for cyber t incident management.
Third-party risk management processes are in place to manage and minimise the impact of supply chain attacks.
At RIL, special attention is paid to Cyber Security awareness and to foster a culture of Cyber security as humans have turned out to be the best defenses to combat cyber threats. Innovative solutions such as R-phish are deployed to improve user awareness levels by tracking their Phishing Resistance Score levels.
Cybersecurity awareness month is observed every year with a
context-based campaign. The context for this year was "Fostering a culture of cyber security". During this month we have also released a "Cyber Suraksha Handbook" for all the users. This handbook acts as a guide to stay safe online in the digital era and contains cyber safety guidelines for Work Place, Digital Life, teens and kids, and protection of Personal data.
Cyber Security practices followed at RIL are benchmarked against Industry Best standards such as NIST, ISO 27001, etc. RILs O2C and Retail businesses are ISO 27001 certified whereas Retail and RBML businesses have attained PCI DSS certification. Reliance is the only organised and multi-brand retail business in the country to demonstrate PCI DSS certification continuously for the last 10 years.
Multiple layers of proactive and reactive controls are adopted for Digital Services to mitigate the vulnerabilities. All systems and security tools are monitored for any cyberattacks via a 24x7 Security Operations Centre. Continuous Improvement programs are
implemented to improve the maturity and the cyber security posture of the organisation. Additionally, Reliance also ensures that the cyber security posture is validated by third-party experts periodically to obtain additional layers of assurance.
Cyber Security Posture update is made to the Board Risk Management Committee at regular intervals and their guidance is taken to further improve on the posture.
Safety and Operational Risks
Health, Safety and Environmental (HSE) Risks
Risk Description
Managing HSE risks including short term, long-term effects to workforce, assets and public is critical to sustainable and responsible conduct of business operations. These risks may manifest during various phases of facility life cycle and vary in the magnitude depending on the geographic, demographic and regulatory regimes where we operate. Risks may also present themselves through external factors with an impact to companys personnel and assets, like external events in the neighbouring industries and natural calamities.
With rapid-changes in the HSE regulatory requirement due to evolving global trends, changes in legal and regulatory framework, ask from investors, and customer awareness, it is compelling to stay abreast of these requirements for smooth operations and business continuity. The health risk is not only restricted to occupational health but also covers mental health of the workforce. The environment regulations are evolving, and becoming stringent for businesses due to risk of global warming and climate change risk. Safety risk is not only restricted to site operations but also require to capture risk across the upstream and downstream supply chain for business continuity.
Risk Response
Reliances motto of Growth is Life has always been reinforced with our commitment on conducting safe, reliable, compliant and sustainable operations.
There has been a continuous endeavour to manage risks across our existing assets at Exploration & Production, Refining & Marketing, Petrochemicals, Polyester and other dispersed facilities through world-class HSE management practices. Implementation of advanced technologies like video analytics, robotics, remote-sensing devices for inspection have reduced personnel exposure to hazardous environment.
Our People are our critical assets in managing HSE risks. We have invested significant efforts in
developing and maintaining in-house competencies which are critical to manage Safety, including managing Integrity Operating Window, advanced techniques of risk assessment, deep-dive technical analysis techniques and functional safety. This talent pool helps execute risk and control studies and provides assurance with agility, while leveraging industry expertise.
Our HSE risks and controls are maintained through digital platforms enabling traceability and transparency of information to all concerned workforce for effective prioritisation and decision making.
Our involvement in regulatory bodies in setting HSE standards and participation in international and
national HSE forums further aids in imbibing High Value Learnings in conducting our operations. Reliances strong framework of auditing, assurance and third-party verification ensures effective governance of these practices.
With the diversification of operations towards Oil to Chemicals and New Energy, this year presented new opportunities to embed HSE management best practices in the novel technologies since the conceptual stage itself. This involved strategic partnerships with industry experts, application of scientific methods to analyse the risks in the new units and devising advanced technologies for risk mitigation.
Our flagship CASHE program has seen continuity for 20th year with massive involvement of asset facing teams and entire workforce in execution of ideas to improve Safety, Health and Environment.
Health of workforce including mental well-being has been a priority, with programmes organised through internal and external experts to provide support to workforce operating across locations.
Health and Safety Management System (HSMS) is developed and deployed with robust governance
mechanism with an aim to identify, assess, respond and monitor, on a real-time basis, risks that impact business objectives.
The Retail Health and safety management system (HSMS) has been certified with ISO 45001:2018, an internationally recognised standard for Occupational Health and Safety management system. It recognises the best-implemented framework adopted by the organisation for identifying and managing occupational health and safety risks,
improve performance, and promote culture of continual improvement.
Also, the approach and initiatives implemented in the business has been recognised by British Safety Council with "International Safety Award". Retail Business was also conferred with "Road safety award" Gold with 4 stars at 7th OHSSAI HSE Excellence and Sustainability Awards for demonstrating a strong commitment to good road safety management programs and "Best ESG Initiative to Improve Employee Development" at 2nd ESG Summit and Awards 2022.
Safety and Environmental Risks during Transportation
Risk Description
RIL transports significant volume of crude oil & petroleum products on ocean-going tankers with attendant risks like HSE incidents, oil spills, etc. RIL also faces fires, explosion and other personal & process safety incidents besides risks arising from natural disasters, extreme weather, human error, etc. which could lead to loss of containment of hazardous materials, etc. RIL operates a fleet of tugs, port service vessels and operations of port and terminal infrastructure and is exposed to a complex and diverse range of marine risks, with respect to exploration vessels, oil tankers, chemical tankers, gas tankers, and dry cargo vessels.
Risk Response
RIL has instituted a suitable vessel vetting, incident monitoring and emergency response system. A third party vetting system provides a clear picture of the vessel quality based on extensive data analysis. Periodic vendor management audits are carried out for Time Charter and STS service providers in accordance with the Marine Assurance Framework.
Emergency Response system has been tried out in real scenario and found to be adequate. Incident Management includes root cause analysis and ensuring ship-owners addressal of the same. The data I is further used in assisting legal/ operations matter in case of any potential losses to RIL as a result of the incident.
RILs control framework for road transportation has matured over a period of time and is run in collaboration with contractors.
The contractors are supported by the Company through capacity building for their drivers in areas such as defensive driving, route hazard mapping and real time tracking. A dedicated state-of-the-art emergency response centre provides emergency response and incident management to transporters.
Physical Security and Natural Calamity Risks
Risk Description
Our business operations have a vast geographical spread, both onshore as well as offshore. This makes Reliance vulnerable to manmade and natural disasters such as insider threat, social unrest, cyclones etc. These threats may be amplified by divisive use of social media networks. Geopolitical developments too can have a defining impact on business operations. These could cause harm to our assets, people, information and reputation.
Even a seemingly minor incident has the potential to snowball and adversely impact our operations and stakeholders. Therefore, having high situational awareness with prompt and commensurate means to effectively respond in a proactive manner, is required to deal with all crises. Risk management and Business continuity plans are critical to ensure that business operations are not disrupted and if compromised, we should have the ability to restore the operations at the earliest.
Some of the network locations, offices, employees and other ecosystems are subject to various forms of intentional or natural disruptions, thereby impacting network availability, customer experience, restoration cost and efforts.
The growing E-commerce business is vulnerable to specific risks like Customer abuse (fake returns, related account abuse, fake claims - as order not received, empty box, wrong item received etc.), Account compromise, Brand infringement, Phishing/Vishing attacks etc. which are likely to increase manifolds. Of these, customer abuse is probably the most critical of risks. Fraudsters continue to innovate new methods to bypass system checks on Ecom platform/physical processes to defraud. There is thus a need to closely monitor these risks and have a robust mitigation strategy to protect business interests.
Risk Response
Global Corporate Security (GCS) focuses on adopting dynamic and pre-emptive risk management strategies to safeguard and secure the Company.
GCS is responsible for securing people, assets and operations of RIL. GCS works closely with the business teams to conduct a thorough and regular assessment of all the existing and evolving risks to our operations. This is accomplished by employing the best global practices and accepted mitigation strategies to minimise the risk exposure.
We employ the best-in-class security professionals with multi-domain knowledge to draw from their vast experience. We also work in close coordination with sovereign forces and conduct regular mock drills to ensure prompt and effective response to deal with any untoward situation. High level of real time situational awareness is maintained by integrating Human
Intelligence (HUMINT), Open-Source Intelligence (OSINT) and security automation dashboard, at the security operation centres.
We constantly review and upgrade our security plans and incorporate latest technological developments to include integrated security platform, high end electronic sensors, drones, seamless communication and AI based analytics across the enterprise, along with Quick Response Teams (QRTs). GCS has robust business continuity plans that are regularly rehearsed, to deal with disasters, calamities, or any other disruptions.
Digital services have developed and implemented an Integrated Disaster Recovery and Emergency Response Process. Integrated response is facilitated by various teams such as security, customer services, corporate services, corporate communication, regulatory, network maintenance and
the local geographical offices to keep the networks functional and customer services intact.
It has also implemented measures for prevention and detection to any physical security threats which includes patrolling the vulnerable areas, Real-time situational awareness by deploying alarms management and monitoring through centralised Networks Operations Centre (NoC). Disaster recovery processes and drills are also conducted for managing unscheduled downtime. Security & Loss Prevention (SLP) and Field Operations teams proactively supports in reducing pilferage, theft and losses, such as equipment thefts and pilferage of fuel by deploying physical security measure, alarm alerts, video based surveillance, GPS based trackers and consumption monitoring.
To immunise the business from online and e-commerce abuse, the SLP
E-commerce team is continuously monitoring data at a transaction level and providing mitigation strategies to business. Close coordination with field teams and strong IT footprint gives the
robustness required for prompt support in response to red flags being raised.
Through rigorous data analysis, physical audits and investigations, the team has been able to identify critical gaps in existing processes/systems/
tech issues which lend themselves to exploitation on Ecom platform.
In addition, an online fraud prevention service (engine) is also envisaged as part of long term solution.
Compliance and Control Risks
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.
Changes in the regulatory environment, licensing processes and timelines could potentially impede the ease of doing business.
Risk Response
Reliance has adopted a digitally- enabled comprehensive compliance management framework. It is integrated with business processes, risks and controls. Changes in regulations are also tracked and integrated within the Reliance Compliance Management System. Effective control and efficient oversight of the senior management is ensured by cascading the
responsibility matrix till the last performer of the activity. Apart from assurance through three lines of defense, compliances are also periodically monitored through the Segment Compliance Committees and the Group Compliance Committee.
Regular interactions with various trade associations/ councils help in
anticipating regulatory environment and through attuning to any policy changes.
The Companys code of conduct, training as well as focus on ensuring 100% compliance and continuous monitoring have enabled a mature, digitally-enabled compliance framework.
Treasury Risks
Risk Description
RIL faces following key financial risks which is actively managed by Treasury Team.
Liquidity Risk
In FY 2022-23, inflation scaled higher in key economic regions of the globe on account of supply chain constraints. The onset of Russia Ukraine conflict drove commodity prices and inflation higher. Major central banks embarked on liquidity tightening measures through the year as inflation spiralled. On the domestic front too, banking liquidity and financial conditions tightened. Central banks are expected to calibrate their monetary stance based on the balance of risks of continuing inflation and those of financial stability.
Interest Rate Risk
Reliance borrows funds from Domestic and International markets to meet its funding requirements. Faced with the scenario of spiralling inflation, central banks across the globe raised policy rates through the year. US Fed raised rates by 450 bps. RBI was also quick to respond to rising inflation in India and raised policy rates by 250 bps. The rise in global and domestic rates translates into higher finance costs for RIL.
Foreign Exchange (FX) Risk
RIL avails LT and ST Foreign currency liabilities to fund its capital investments and working capital requirements. Rupee depreciation impacts the landed cost of the foreign currency liabilities. Given the steep rise in US interest rates, the Dollar remained strong against most currencies through the year. The INR depreciated sharply through first half of the year and closed the year with a depreciation of 8.4%.
Credit Risk on Investment Portfolio
Reliance deploys its investible surplus in Government securities, State Government securities, AAA Corporate bonds, Fixed Deposits and Debt mutual funds. Corporate bonds and Debt Mutual Fund investments bear credit risk.
Risk Response
RIL maintained healthy liquidity buffer as it had raised Long term Senior unsecured notes of $4.0 billion in January 2022. Even as liquidity tightened through the year, RIL and its subsidiaries accessed Short Term markets comfortably and raise short term INR liabilities (including Commercial Paper, Short-Term Loans and Overdrafts against FDs) to fund its working capital requirements. Reliances Retail business too strengthened the liquidity position by raising Term Loans to fund its capex and business requirements.
Interest rate risk is managed actively by maintaining an appropriate mix of Fixed and Floating rate liabilities which limits the translation of rise in market interest rates into higher coupon costs of market liabilities. RIL has raised significant amount of fixed rate liabilities over the FY 2022-23 and 2H FY 2021-22.
Foreign Exchange (FX) risk arising from the mismatch of foreign currency assets, liabilities and earnings is tracked and managed as per the Internal Risk Management
Framework. A significant portion of the payables and receivables of the h Hydrocarbon business are in dollars which minimises the cash flow risk on account of fluctuations in foreign exchange rates.
Direct investments are restricted to Board approved select AAA rated corporates. Debt Mutual Fund investments are managed and monitored based on a Internal Risk Management Framework.
Insurance - Risk Mitigation
Corporate Risk Management philosophy of RIL inter alia deals with protection of unforeseen risks by transferring them to insurers.
While buying the protection through insurance, it is always our endeavour to have best possible cover on all risk basis to meet any eventuality which may affect our balance sheet. Risk transfer to insurer through insurance is used as risk management tool for protection of all assets and liabilities arising due to business risks. A thorough examination is made for identification of risk, verification and counter verification is done before arranging risk protection. Selection of partner insurers are done after complete verification and is decided based on their balance sheet strength and solvency ratio.
Looking Ahead
Our commitment to sustainable development goes beyond our operating boundaries. We continuously aim to add value to our stakeholders by improving lives. We are committed to help in bridging the Green Energy divide in India and the world through our New Energy business. We continue to build on our leadership in the O2C business with new capacities and capabilities. Jio is rolling out 5G network across India and has developed deep expertise in multiple emerging technologies like AI/ML and blockchain and Mixed Reality. Jio Platforms is blossoming into a global technology player to provide unique digital products and solutions. Reliance Retail has emerged as the fastest growing retailers with the widest and deepest reach in India,
across all product baskets. Reliances risk management enables effective management of all categories of risks in a shared language understood by all levels across the Group, from the Board room to front line. Reliances risk management is agile for course correction and is scalable to support new businesses and ventures.
Awards and Recognition
Leadership Awards
• Reliance has been recognised as "Indias Best Employers Among Nation Builders 2022" by the Great Place to Work? Institute
• Reliance has ranked 20th out of 800 companies globally on the Forbes "Worlds Best Employers 2022" list
• Reliance has been recognised in the "Best Places to Work in India Award 2022" by AmbitionBox
• RIL ranks 2nd in Interbrands Best Indian Brands 2023
• RIL ranks #45 in Forbes Global 2000 for 2023; is top-ranked Indian company on the list
• RIL is named Most Respected Company in India by
BW Businessworld
• RIL ranks among LinkedIns Top Companies for 2023; is on the list for the seventh consecutive year
• RIL was recognised among BW Businessworlds Indias Most Sustainable Companies for 2022
• RIL won the IFR Asia Award for Investment Grade Bond for the $4 billion multi-tranche Senior Unsecured Notes
• Best Asia Bond in the Emerging Markets Awards category by IFR Awards 2022
• Corporate Bond 2022 by The Asset Country Awards for Sustainable Finance 2022
• Best Issuer South Asia 2022 by The Asset Triple A Sustainable Capital Awards 2022
*
Retail
• Reliance Retail won the prestigious "Retail Company of the Year" award at the inaugural ET Retail Awards 2023
• ETHR World has recognised Reliance Retail as one of Economic Times Future Ready Organisations 2022 in the "Large Scale" category 2022
• Reliance Retail won three awards in the Human Capital space during the 3rd National HRD Network (NHRDN)
• Reliance Retail has won the AmbitionBox Best Places to Work Award 2022. Reliance Retail was ranked #1 in the Retail industry (Mega category).
• Reliance Retail has been certified as a Great Place to Work by the Great Place to Work Institute (India) for 2024
• Reliance Retail was recognised at the TRRAIN Awards 2022
• Reliance Retail has been selected as a 2022 ATD 2022 (Association for Talent Development, USA) BEST Award winner for demonstrating enterprise-wide success as a result of employee development
Consumer Electronics
• Economic Times - Best Brands
• Indias Retail Champions 2022 from Retailers Association of India - Consumer Durables and IT
• Most Trusted Brands of India - by India Today
Grocery
• Most Admired Food & Grocery Retailer of the Year. Gourmet Retailer Freshpik, Mumbai
• ET Retail Award 2022 - Grocery Retailer of the Year - Freshpik
Jewels
• IReC (Industry Of Retail & Commerce) Awards 2022- Jewellery Retailer of the Year
• Retail Jeweller Guild Awards 2022-Excellence in Design
JioMart
• Excellence in E-commerce Innovation- Images eCommerce Award 2022
• Value eRetailer of the Year - IReC Awards 2023
Clovia
• IReC Lingerie eRetailer of the Year 2023
• ET Retail 2023 - Lingerie eRetailer of the year
Retail - HSE Awards
• Best Possible Safest Workplace Safe-Tech awards 2022, annually organised by Kings Expomedia (Publisher of "Fire & Safety" magazine)
• Best Employee Training Campaign award by King Expomedia for driving and road safety training
• Best initiative to improve employee development at ESG Summit and Awards 2022
• Best ESG initiative to improve EHS (Environment, Health & Safety) at 2nd ESG Summit and Awards 2022
• OHSSAI HSE & S Excellence & Sustainability Awards for Road Safety measures
• Best HSE initiative award at 6th Annual HSE Strategy India Summit & Awards
Digital Awards
• Kantar Brandz India declared Jio to be among the Top 10 Most Valuable Indian Brands 2022
• Shri Akash Ambani has been named by TIME magazine in the TIME100 Next list that recognises "rising stars from across industries and around the world"
• Reliance Jio bagged the award for Environmental Social and Governance (ESG) performance in the Telecom sector at the 2nd ESG Summit and Awards
• Jio Platforms won the Cloud Native Award at the 24th World Communication Awards in London, UK.
• Jio won three Gold Awards under the Most Admired Brand of the Year, Excellence in Brand Awareness, & Excellence in Partner Marketing categories at the ACEF Asian Leaders Forum and Awards 2022
• Brand Finance has ranked Jio as strongest brand in India and ninth among the worlds strongest brands
• Jio bagged multiple organisation-
based awards at the prestigious
Economic Times Telecom
Awards 2023
1. Best Mobile Technology Breakthrough of the year
2. Emerging Technology Provider of the year
3. ESG Initiatives
4. Project Delivery Excellence Company of the year
5. Telecom Network Operator of the year
R&D and Innovation
• Nagothane Manufacturing Division Site received National Award for Manufacturing Competitiveness 2022 (NAMC) Gold Medal with Manufacturing Competitiveness Index of 91.5.
• Reliance honored for Best Catalyst Technology - "Reliance Olefins Removal Catalytic Technology (REL-ORCAT)" at Hydrocarbon Processing Award 2022.
• Vadodara Manufacturing Division PVC and CPP teams won National and State Level highest category gold awards for Quality Circles.
• Hazira Polyester Division won the highest GOLD AWARD in Oral Case study presentation at 33rd Regional Convention on QCC - "VCQCC 2022"
• Hazira Polyester Division won the highest PAR EXCELLENCE AWARD in Oral Case Study Presentation at 36th National Convention on QCC - NCQC 2022
• CII Innovation Award 2022 for Commercialisation of RELAD Adsorbent for NMP Purification & RELOX Catalyst for Nitrogen gas Purification
• Jio-bp wins the IMAGES Most Admired Retailer of the year award for 2022, for Innovation in Retail design of its mobility stations
• IAM Asia IP Elite Award 2022 for one of the best IP systems and practices amongst leading Asian companies
• Jio-bp won the coveted Golden Peacock Innovative Product Service / Award 2023 for electric vehicle charging service.
Energy and Water Conservation
• Jamnagar Manufacturing Division - C2 Complex won the prestigious award "The EEF Global Water Management and Conservation Project of Year 2022" for best water conservation practices.
• Jamnagar Manufacturing Division - SEZ Refinery won prestigious ICC Award for "Excellence in Energy Conservation and Management"
• Nagothane Manufacturing Division won "The EEF Global Water Conservation Reuse Project of the Year 2022" award constituted by the "Energy and Environment Foundation" for UF-RO project.
• Nagothane CPP plant won 2nd prize in the competition of Best Boiler User - 2022 at Boiler India - 2022 Conclave organised by Directorate of Steam Boilers-Maharashtra.
Health, Safety and Environment
• Jamnagar Manufacturing Division - DTA Refinery and PCG Complex won prestigious "RoSPA Health and Safety Gold Award 2022" from the "Royal Society for the Prevention of Accidents, UK"
• Jamnagar Manufacturing Division - Fire Service received award "Best Industrial Fire Service Measures - Refinery & Petrochemical" from "Safe Indian Hero Plus Awards"
• Jamnagar Manufacturing Division - DTA Refinery won the Prestigious "International Safety Award-2023" from British safety council.
• Jamnagar Manufacturing Division - SEZ Refinery won "Platinum Award" in Petroleum Refining sector category in "Grow Care India Environment Award"
• Barabanki Manufacturing Division awarded for their outstanding achievements in EHS (Environment, Health & Safety) Best Practices by Green Tech Foundation
• KG D6 won Platinum Award by FICCI-GIZ for Excellence in Industrial Disaster Risk Management
• KG D6 won International Safety Award by British Safety , Council for Safety System Management Compliance
Sustainability
• Jamnagar Manufacturing Division received "Gold Medal" and "Apex Award" in "Indian Green Manufacturing Challenge 21-22" organised by "International Research Institute for Manufacturing (IRIM)"
• Hazira Manufacturing Division received prestigious award from FICCI under category "Environmentally Friendly Company of the Year 2022" in Petrochemicals sector.
• Dahej Manufacturing Division - Power Plant was awarded with "Fly Ash Utilisation Award 2023" for continued 100% sale of Fly Ash &
Bed Ash for the 1st time from Mission Energy Foundation supported by Ministry of Coal / Steel / Power / Urban Development / Environment & Forest and Road Transport
and highways.
• Nagothane Manufacturing Division was awarded
the AatmaNirbhar Nation Builder Award in the inaugural edition of the "Aatmanirbhar Factory Recognition Program".
• Hoshiarpur Manufacturing Division won the Product Innovator Award 2022 in Petrochemical Sector for "Development of Eco sustainable Recycled Polyester Fibre Fill Product (Biodegradable)" from FICCI.
• Hazira Manufacturing Division - Filament Products got GRS (Global Recycle Standard) certification for Green gold products.
• Silvassa Manufacturing Division won 1st Prize in "Chemical" Of GHKC & Green Environment Contest 2022-23 held by Baroda Productivity Council.
• Nagothane Manufacturing Division received Certificate of Appreciation in CII 3R Awards 2022, for their efforts towards managing waste
• Jamnagar Mango Pack house received 7 numbers of National & International Statutory Certificates along with "Global Gap" certification.
CSR
• Best CSR Initiative Award at the India Digital Enabler Awards
• Reliance Foundation Digital Extension Services for Disaster Management" was selected for the CII - DX (Digital Transformation) Award 2022 - under the category of "Innovations in CSR"
• Reliance Foundation was awarded the Golden Peacock award for its CSR initiatives across the country.
• Reliance Foundation won the Olive Crown Award for its green initiatives in recognition of efforts as Green NGO of the Year (Silver) for its environmental initiatives aimed at conserving natural resources and promoting sustainability across India.
• Honble Governor of Andhra Pradesh & President, IRCS, Andhra Pradesh, State Branch awarded Gold Medal to Reliance Foundation for rendering services during COVID 19 pandemic in partnership with Indian Red Cross Society.
• Reliance Foundation was awarded the Best CSR Film award for Women Transforming Lives with Technology at the Socio-CSR Film Festival and Awards.
• Mid-Day Health & Wellness Icons - International 2022 for Sir H. N. Reliance Foundation Hospital as the Best Multispecialty Hospital & Best Hospital by Transplant Medicine.
• ET Best Healthcare Brand Awards 2022 recognised Sir H. N. Reliance Foundation Hospital as ET Best Healthcare Brand 2022.
• FE Healthcare Summit & Awards 2022, Delhi 2nd Edition ranked Sir H. N. Reliance Foundation Hospital as the Best Hospital
for Heart & Lung Transplant in Mumbai and Western India and as the Best Multi-specialty Hospital, Best Hospital for Cardiology, for Organ Transplant, for Heart & Lung Transplant at the National level.
• Times of India - Critical Care Ranking Hospital Survey, Health
Lifestyle Survey 2022 and - Multi-Specialty Hospitals Ranking Survey 2023 ranked Sir H. N. Reliance Foundation Hospital as the best hospital in Mumbai and Western India and ranked it as the 2nd best in the National level.
• Navbharat Healthcare Awards 2022 recognised Sir H. N. Reliance Foundation Hospital as Best Multispecialty Hospital in India and Best Hospital for Oncology, Advanced Bariatric & Laparoscopic Surgery, Cardiology, for Patient Care, for Orthopedics, Neurology, Urology and Digital Solutions.
• Mid-Day Health & Wellness Icons 2022 recognised Sir H. N. Reliance Foundation Hospital as Best Multispecialty Hospital, Best Hospital for Oncology, Best Hospital for Transplant Medicine, Best Hospital for Patient Safety & Satisfaction, Best Hospital for Orthopedics & Joint Replacement.
• Times Health Leaders Awards 2022 recognised Sir H. N.
Reliance Foundation Hospital as Excellence in Multi-specialty Hospital, Excellence in Multi Organ Transplant, Excellence in Onco Sciences, Excellence in Patient Safety & Satisfaction, Excellence in Cardiac Sciences, Excellence in Minimally Invasive & Bariatric Surgery.
• Midday Maharashtra Gaurav Awards 2023 recognised Sir H. N. Reliance Foundation Hospital as the Best Multi-Specialty Hospital, Best Hospital for Multi-Organ Transplant in India.
• Elets Global Healthcare Summit & Awards 2023, Dubai recognised Sir H. N. Reliance Foundation Hospital as Excellence in Multi-Specialty Hospital in India, Excellence in Quality & Patient Satisfaction, Excellence in Robotic Surgery, Excellence in Multi Organ Transplant.
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ATTENTION INVESTORS
- Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
- KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
- No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Risk Disclosure on Derivatives
- 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
- On an average, loss makers registered net trading loss close to Rs. 50,000.
- Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
- Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
We are ISO 27001:2013 Certified.
This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.