Scheme of Demerger

The year 2005-06 was a landmark year in the history of RIL. It marked a new strategic decision to unlock value for its shareholders by reorganizing RIL’s business through a process of demerger.

In this process, RIL’s investments in power generation and distribution, financial services and telecommunication services were demerged in to 4 separate entities.

RIL’s shareholders received shares in the new entities in the same proportion of their equity holdings in RIL.

The successful implementation of the largest demerger process in Indian corporate history has demonstrated RIL’s ability to seed new businesses, gain leadership in each of these businesses which are large enough to be independent and thereby create value for RIL’s shareholders.