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Reliance. History of Reliance & How big is Reliance Company?

Reliance| Reliance is the biggest Company of India. Reliance company has their reach in almost every sector of market. Reliance is best know for it's telecom networking. Reliance is nowadays signing many deals with many big company such as Facebook, Google to make full debt free Company. So in this topic we will discuss  little history and the size of Reliance Company. So let's start :

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Origins/History of Reliance :

The business all starts in the 1960s in the textile trade. Dhirubhai Ambani moved to Yemen from India as a young man to look for work, after a few years pumping petrol for an oil company he moved back to Mumbai and hope to use a few connections in Yemen to create an import/export business. The aim was to bring polyester into India and sends biases to Yemen. However his business partner who was also his second cousin had a very different approach. Ambani was a natural risk-taker unlike his cousin, so eventually the pair went their separate ways and Ambani founded Reliance textile industries in 1966. The business really took off with the creation of the Vimal brand. With this Reliance textiles will no longer just a material supplier having their own line of clothing made all the difference. At first Ambani got his clothing into the stores by producing it as cheap as possible but once the Vimal brand was up and running, he began a franchise model of his eye and the Vimal stores began to spread. An advertising campaign in the late 1970s was the establishment of the only Vimal brand. This brand became synonymous with young fashion for both men and women for decades to come. Ambani was ready to put the company on the public stock exchange with their initial public offering. However he took an interesting and new route at the time stocks and shares were far removed from the average person and Ambani wanted to change this, so he got the public excited for the company's IPO and put up about 2.8 million shares. The public took notice and the IPO was extremely successful. In India this is known as the start of the equity cult, where the general public became far more engaged in the stock market. Even today Reliance has millions of shareholders. On the back of the IPO and the wildly success of the only formal clothing brand Reliance continued to grow and then diversified. In 1986, Reliance Capital was established, this subsidiary offers financial services such as loans stock broking and n insurance. Reliance Capital is currently one of the largest financial companies in India. Continuing on Reliance would merge with another textile business at the end of the 1980s and bought their way into the petrochemical industry. This was a way to expand in the polymers that they were already producing. But soon the company had their eyes set on the oil fields themselves they quickly grew into India's largest petroleum company. At the end of the 1990s they built a refinery in Jamnagar, it is still the largest oil refinery in the world. It doesn't stop there though Reliance Infrastructure has been providing power construction and defense since 2002. Reliance Defense build ships has projects and offshore engineering and although politically controversial in 2018 partnered with the French government to produce 36 Rafale plans for India. And then was reliance retail which has 45 subsidiaries including mobile phones, jewelry, electronics, apparel and groceries. More on all of that later but I think one of the strangest ventures of Reliance to Israeli cord this is the storage of Umbilical cord blood it's an amazingly diverse business so far. The drama was soon to follow in 2002, Reliance's original founder Dhirubhai Ambani died, but the thing was he never wrote a will before he passed away. So his eldest son Mukesh was put in charge as chairman and managing director while his younger brother Anil became vice chairman.

Dhirubhai Ambani

Fight for Business :

Just like to Dhirubhai when he was selling textiles in the early days with his cousin, the two heirs to the reliance company had very different approaches and disagreements about the direction of the company. The dispute spilled out into the public in late 2004 and in something almost never seen before in corporate history their mother had to step in to settle the dispute. Her idea was to split the businesses the following year to put it simply the older brother Mukesh got the oil and gas business under the name Reliance Industries and Anil took the telecommunications finance and infrastructure part under the name reliance group. It was highly unusual and more of a family arrangement than a traditional business deal. But the conflicts continued after the split Anil was expecting Mukesh to sell him gas at a lower rate to use for his power plants but the deal was vetoed by the government and Anil suspected that his brother had talked them into it. At the same time and Hill was also failing in his telecommunications business. The fight became such a matter of public interest that the Indian Minister of Finance requested that they settle this dispute. It was the case that the company was so huge that these arguments were harming the Indian finance market what a situation. So how did it all work out as the family feud continued or has it settled down after 13 years?

Money, Business, Life, Finance, Crises, Investment

Reliance in Present :

Well today it's pretty clear that Mukesh has emerged as the victor. Anil was forced to sell Reliance Communications to his brother about a year ago to avoid insolvency. So the total score is this : Anil’s reliance group market cap stands at 13.8 billion dollars, while Mukesh's Reliance Industries total assets are valued at 130 billion. For comparison Tata Group another huge Indian conglomerate is currently worth about 126 billion dollars. So let's leave the brothers to squabble for now and look at how important reliance is for India right now.

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How Big is reliance Today?

They have the largest market cap in India as well as the largest private contributor to GDP. They also have the world's largest data network and are still the biggest polyester producer globally, so I guess some of their original businesses are still going. So as mentioned earlier reliance retail has 45 divisions some including reliance fresh which has fresh produce like fruits and vegetables and also online groceries and reliance smart which has apparel footwear as well as food. Reliance digital is a consumer electronics branch that has over 650 retail stores. Reliance lyF which is shortened for life is a 4g mobile phone manufacturer established in 2015. Reliance retail also does travel services energy entertainment and leisure health and well-being products as well as educational products and services. They have a total of over 3,800 stores which combined cover an area of over seventeen point seven million square feet across seven hundred and fifty cities. Reliance retail brings in an annual revenue of over 10 billion US dollars.

Front view of Departmental Store - Reliance Fresh Images, Zirakpur Ho, Chandigarh - Departmental Stores

Jio is a mobile network subsidiary of Reliance. Just one month after their official launch on the 5th of September 2016 they had already acquired 16 million subscribers. This is the fastest adoption of any mobile network operator anywhere in the world. It took them 83 days to get 50 million subscribers and by February 2017 they had over a hundred million people subscribed to their network. Jio strategy was essentially this give away the data for free for three months and then charge over 30 times cheaper than the competition. This absolute price slashing technique quickly brought 4G into every Indian home and single-handedly changed the data consumption habits of an entire country. Combined with cheap reliance mobile phones now even those in rural areas all those of modest means like farmers, students and entrepreneurs can finally have the tools they need to participate in the modern economy. Some analysts suspect that reliance Jio alone could boost the Indian economy by over five percent. In 2018, Reliance Jio is ranked as the number one firm to change the world by Fortune magazine. Reliance also owns the largest TV network in India network 18, which includes an Indian version of CNBC. Some commentators speculate that this is to control the news and public opinion about the company within the country. The company also offers 500 free-to-air channels under its reliance big TV subsidiary.

Jio - Wikipedia

Some Facts About Reliance :

1. Reliance Industries has Asia's largest mango orchard. It’s aim is to control the pollution caused by the reliance refinery. There's over 100,000 mango trees covering 600 acres of land with 127 varieties of mangoes.

2. The reliance foundation. It was set up in the year 2000 and supplies funds for education, health care and has the goal of ending poverty.

Reliance Foundation - Wikipedia

3. In contrast to the last fact Mukesh Ambani the winner of the feud between the two brothers and the one that owns Reliance Industries is now worth 44 billion dollars. He owns a 27 storey house to accommodate his family of five. There's a staff of 600 workers who maintained it 24/7. It is the world's most expensive private residence valued at over 1.3 billion dollars. It has ten elevators parking space for 168 cars, 3 helipads and an artificial snow room and of course countless other features.

So that is the story of Reliance including Reliance group and Reliance Industries and all of the widespread subsidiaries. It is amazing to think that reliance was started just by one man who worked at a petrol station in Yemen before selling textiles beginning on a bicycle in India. Another fun fact when it all began he only had 300 US dollars to start with. Now they're one of the most widespread companies in existence. I guess it just goes to show that you really can't predict where life will take you. You could start with nothing and literally build an empire.

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