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Scaling New Heights – BW Businessworld

Scaling New Heights – BW Businessworld

Rank 6- Reliance Industries 

Mukesh Ambani, Chairman 

Overall Avg. Score: 2.97 

Revenue: Rs 5,02,653 crore 

Trustworthy leadership, financial returns and growth plans — are the three parameters on which RIL scored high.  

As a result, it managed to gain one place over the previous ranking and is placed in the sixth position in the BW Businessworld Most Respected Companies (MRC) list for 2021.  

Undoubtedly, Reliance Industries (RIL) is the undisputed numero uno company in India having reported the biggest turnover (total assets + total income) of Rs 18.23 lakh crore in 2020-21. It was also ranked second in the annual list of BW 500 companies for FY21.  

Company no. 1 

RIL is not just India’s largest and most profitable private sector company, it is also the country’s largest company by market capitalisation (Rs 13,15,998 crore), revenue (Rs 539,238 crore), and profitability (Rs 53,739 crore). RIL also boasts of being one of the largest contributors in terms of exports (Rs 1,45,143 crore), job creation (more than 75,000 during the year), and CSR spend (Rs 1,140 crore). 

In his letter to the shareholders, Mukesh Ambani, Chairman, RIL described FY21 thus: “In a volatile environment, Reliance generated an EBITDA of Rs 97,580 crore ($13.3 billion), which is 4.6 per cent lower than last year. Diversified earnings stream and resilient consumer businesses helped the company navigate through the unprecedented pandemic headwinds.”  

RIL also successfully completed India’s largest ever rights issue of Rs 53,124 crore (oversubscribed 1.59 times), which is also the largest in the world by a non-financial institution in the last 10 years.  

Record capital raise 

During FY21, Jio Platforms and Reliance Retail raised Rs 152,056 crore and Rs 47,265 crore, respectively, from strategic and financial investors, including Facebook and Google. BP invested Rs 7,629 crore for a 49 per cent stake in RIL’s fuel retailing business. Strong operating cash flow and largest ever capital raise further strengthened the company’s balance sheet, enabling RIL to deleverage and meet its net-debt zero commitment ahead of stated timeline.  

During the year, RIL made pre-payment of $7.8 billion of long-term foreign currency debt, with requisite approvals from the RBI. This is the highest ever pre-payment of debt undertaken by any corporate borrower in India, Ambani noted.  

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Reliance Retail opened 1,456 new stores taking the total store count to over 12,700 stores across the country. Reliance Jio became the first telecom company in India and the second in the world to cross 400 million subscribers in FY21. 

RIL was also at the forefront of fighting the Covid-19 pandemic. Reliance Foundation (RF) set up India’s first dedicated Covid-19 hospital in Mumbai in just two weeks after the pandemic reached India. In response to the sudden surge in Covid-19 cases in the city, Reliance Foundation rapidly scaled up its Covid operations to create 875-bed facilities dedicated to Covid care. It is the largest contribution by a philanthropic organisation to Covid care in Mumbai, Ambani said. “RF has also set up fully equipped 1,000-bed Covid care facilities in Jamnagar. Overall, Reliance is supporting the set-up and management of over 2,300 beds across various locations,” he added.  

Last year, Reliance established a manufacturing unit in Silvassa to mass produce high quality PPE kits for the frontline warriors. It became the largest producer of high-quality PPEs in India. This year, in response to the urgent need for medical oxygen across the nation, Reliance repurposed its plants in Jamnagar to produce medical-grade oxygen. Since the beginning of the pandemic, Reliance has supplied over 55,000 mt of medical grade liquid oxygen across the country. 

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