Dear Fellow Shareowners,
I am delighted to write to you once again to update you on the
performance of Reliance Industries Limited. Reliance continues to set
new benchmarks and records despite a challenging global economic
scenario marked by volatile commodity prices, weak growth in certain
major economies and dollar appreciation against most major global
Reliance has always believed in investing in India and in businesses of
the future. FY 2014-15 was a landmark year for our company.
We have invested over $ 16 billion or over Rs. 1,00,000 crore in creating
growth engines for the future. This is the highest ever in the history
of our company and is a testimony to our project execution
This is also the highest by any Indian corporate in a single year and
is about 0.8% of India's GDP.
The global economy in FY 2014-15 saw a steep decline in oil prices,
which had significant impact on energy businesses. This coupled with
slowing growth in some of the leading global economies impacted
currencies. But, there was positive news in terms of
faster-than-anticipated economic growth recovery in the United States,
which provided momentum for the global economic recovery.
India's economy is in the midst of a recovery with lower fiscal and
current account deficit, lower inflation and weak commodity prices. Our
country's growth seems poised to return to a high-growth path.
It is in this context that Reliance continues its quest for sustained
growth. I am pleased to inform you that Reliance achieved its highest
ever consolidated net profits of Rs.23,566 crore ($ 3.8 billion) during
Both our energy businesses and consumer businesses continue to show
strong growth potential.
Our refining business delivered a record profit with a healthy gross
refining margin. Our Petrochemicals business margins improved on the
back of healthy polymer and polyeste deltas, partly offset by weak
fibre intermediate deltas.
Domestic upstream production was lower due to natural decline in the
producing fields. Reliance and its partners are trying to augment
production through interventions to partly offset the natural decline.
Our US shale business recorded its highest production and is a material
contributor to our earnings.
Reliance further strengthened its leadership position as India's
largest retailer. We have increased our presence to 200 cities.
Our efforts to provide 4G services across the country is gathering
momentum. During the year, based c our acquisition of additional
spectrur we have emerged as the largest holder of liberalized spectrum
in Indi; This will truly be a transformational initiative that will
once again validate Reliance's ability to conceive and execute large
projects across the country.
During the year, Independent Media Trust, of which RIL is the sole
beneficiary, acquired the control of Network18 and its subsidiary TV18.
This acquisition will enhance the offering to the customers by
integrating telecom, web and digital technologies.
REFINING & MARKETING
The world's largest refinery complex at Jamnagar maintained a high
operating rate of 110%, processing 67.9 MMT of crude oil during the
year. This is in comparison to the average refinery utilization rates
of 86.9% in North America, 80.7% in Europe and 83.5% in Asia. This is a
testimony to our operational excellence and world-class assets. The
high capacity utilization was supported by Reliance's ability to
process advantaged feedstock, flexibility to upgrade low value products
and place products in a dynamic market environment.
Our Refining business delivered record EBIT of Rs.15,827 crore and gross
refining margins of $ 8.6/bbl.
During the year, over 300 fuel retailing outlets were commissioned,
with plans to re-commission the entire network of 1,400 outlets by the
end of FY 2015- 16. Our focus is to ensure consistent and superior
customer experience through several technology-enabled initiatives.
Our petcoke gasification project, designed to convert low-value
petroleum coke into high value syngas is under execution. This will
enable increasing self-sufficiency in energy at Jamnagar and also
manufacture of other value-added chemicals.
This project will also significantly reduce energy costs for Jamnagar
refineries and make them competitive compared to the North American
refineries which are benefiting from the shale gas revolution.
The steep decline in global energy prices and increased supply from the
US led to sharp decline in petrochemical products and feedstock prices.
Our integrated operations and diversified feedstock slate coupled with
global cost competitiveness helped mitigate some of the risks.
RIL is creating significant capacities to further enhance its position
amongst the world's largest producers of petrochemicals, with global
scale capacities across the polymer and polyester chain. During the
year, our focus was on creation of new capacities with several new
plants being added and stabilizing the operations of the new
During the year, the operations of the new Polyester Filament Yarn
(PFY) facility at Silvassa were stabilized and this strengthened our
position as one of the global leaders in production of polyester fibre
In the current year, RIL started India's largest Styrene Butadiene
Rubber (SBR) Plant at Hazira with capacity of 150 KTPA. We also
expanded our Poly- Butadiene Rubber (PBR) capacity. This will help in
reaffirming our domestic leadership position in the elastomers segment.
RIL also started new 650 KTPA PET plant at Dahej, which is one of the
world's largest bottle grade PET resin capacity at a single location.
Our new PTA facility at Dahej with a capacity of 1,150 KTPA was also
Mukesh D. Ambani,
Chairman and Managing Director