SEGMENT REVIEW

• Refining and Marketing – Revenue (including inter segment transfers) increased by 28.7% y-o-y to `3,93,988 crore (US$57 billion) primarily on account of higher crude prices during the year. Segment EBIT decreased by 19.8% to `19,868 crore (US$2.9 billion), impacted by significantly higher crude prices, weak product cracks, lower light-heavy differential and unplanned shutdown of Fluid Catalytic Cracking (FCC) Unit. GRM for FY 2018-19 stood at US$9.2/bbl, outperforming Singapore complex margins by US$4.3/bbl.
• Petrochemicals – Revenue (including inter segment transfers) increased by 37.3% y-o-y to `1,72,065 crore (US$24.9 billion), primarily due to higher prices and volumes, which reflected full benefits of ROGC and Paraxylene capacity expansion projects. Petrochemicals segment EBIT increased sharply by 51.9% to its highest ever level of `32,173 crore (US$4.7 billion).
• Oil and Gas – Revenues decreased by 3.8% y-o-y to `5,005 crore. Volumes from domestic upstream fields and US shale were lower on account of natural decline and slowdown in development activity. Segment EBIT was at `(1,379) crore as against `(1,536) crore in the previous year. For the year, domestic production (RIL share) was at 58.9 Bcfe, down 25.4% y-o-y and in US Shale (RIL share) business was 94.5 Bcfe, down 32.4% y-o-y basis.
• Organised Retail – Revenues grew by 88.7% y-o-y to ` 1,30,566 crore. Business PBDIT for FY 2018-19 grew by 145.2% y-o-y to ` 6,201 crore. EBITDA margins improved 100 bps to 4.7% boosting operating profitability. Reliance Retail further consolidated its leadership position and is India’s largest, most profitable and fastest growing retailer.
• Digital Services – The business recorded revenues of `46,506 crore, with year-end subscribers base at 306.7 million. Reliance Jio reported strong financial performance for the year. Segment EBIT was at `8,784 crore for the year, with EBIT margin of 18.9% as against 13.3% in previous year.

OTHER FINANCIAL HIGHLIGHTS
Other Income before exceptional item
was lower at `8,635 crore (US$1.2 billion) as against `8,862 crore in the previous year, primarily on account of adverse yield movement.

Finance Cost was at `16,495 crore (US$2.4 billion) as against `8,052 crore in the previous year. The increase was primarily on account of commencement of digital services business, petrochemical projects at Jamnagar and higher loan balances.

Depreciation (including depletion and amortisation) was higher by 25.3% to `20,934 crore (US$3.0 billion) as compared to `16,706 crore in the previous year, primarily on account of commencement of wireless service business in Reliance Jio. Higher depreciation also reflected the capitalisation of new projects in the petrochemicals business.

Basic Earnings Per Share (EPS) for the year ended March 31, 2019 was at `66.8 as against `60.9 in previous year.

The Board of Directors of the Company has recommended dividend of `6.5/- per fully paid up equity share of `10/- each, aggregating `4,641 crore (US$671 million), including dividend distribution tax.

Reliance’s fixed assets (excluding goodwill) stood at `5,65,840 crore (US$81.8 billion) as on March 31, 2019. This includes RIL Standalone's fixed assets of `3,14,745 crore and balance of `2,51,095 crore in its subsidiaries mainly Reliance Jio, Reliance Holding USA and Reliance Retail.

Capital Expenditure for the year ended March 31, 2019 was `1,32,445 crore (US$19.2 billion), including exchange rate difference. Capital expenditure was principally on account of the digital services business, projects in the petrochemicals and refining business and in the organised retail business.

Reliance’s Gross Debt was at `2,87,505 crore (US$41.6 billion). This includes standalone gross debt of `1,61,720 crore and balance in key subsidiaries, including Reliance Jio (`67,018 crore), Reliance Holding USA (`34,848 crore), Reliance Retail Group (`12,832 crore), Independent Media Trust Group (`3,045 crore), Hathway Cable and Datacom Limited (`1,973 crore), Reliance Gas Pipelines Limited (`1,379 crore) and Recron Malaysia (`1,170 crore).

Cash and Marketable Securities were at `1,33,027 crore (US$19.2 billion) resulting in net debt at `1,54,478 crore (US$22.3 billion).

RIL’s standalone Revenue from Operations for FY 2018-19 was `4,00,986 crore (US$58 billion), an increase of 27.2% on y-o-y basis. Profit after tax was at `35,163 crore (US$5.1 billion) an increase of 4.6% against `33,612 crore in the previous year. Basic EPS on standalone basis for the year was `55.5 as against `53.1 in the previous year.

Petroleum B2B Business

• A) HSD – Direct
• Bulk Diesel registered a y-o-y growth of 5.1% in spite of the concerns around growing electrification. During the year, RIL registered a y-o-y volume growth of 21.7% increasing market share to 8.5% despite difficult market conditions and competition led margin pressure. Non-railway business registered an impressive 34% y-o-y growth.
  
  Alongside strengthening railway business, RIL has also created a strong foothold in the second largest sector in the direct HSD segment through the foray in State Transport Undertaking (STU). Mines, infrastructure and fisheries have all showed promising growth on the back of focused sector specific operating strategy.
  
  Growth in HSD – Direct sales volume would be driven by getting higher volume share in STUs, designing unique operating models for fisheries and mines along with strengthening presence in the Southern markets.

Reliance petro retail outlet

• B) Aviation Turbine Fuel (ATF)
• With a double digit growth for over 50 consecutive months, at a growth rate of 18.6% in 2018, India is the fastest growing domestic aviation market in the world for the 4th consecutive year. Demand for aviation fuel grew at 9.1% y-o-y in FY 2018-19. RIL achieved y-o-y Volume growth of 9.3% to its airline partners.
  
  In addition to the best in class service standards and end-to-end automation, RIL continues to be the only OMC offering unique turnkey solutions to its airline partners for cost reduction across its network. Having the highest market share at 20% of the operating airports reinforces customer’s trust in Reliance Aviation.
  
  To leverage the soaring Indian aviation market, RIL has enhanced its network of Aviation Fuel Stations to 30 in FY 2018-19 and working on adding another 10 locations in the near term.

• C) Facilitating Nation’s Energy Security
• More than three quarters of RIL’s production of transportation fuels was absorbed in the Indian market during FY 2018-19. In addition to selling through own retail network and HSD – Direct segment, the absorption was achieved by bridging the product deficit of all the major Public Sector Oil Marketing Companies in India.
  
  RIL is also partnering with Government in meeting their vision of abolishing indoor pollution to improve the health of rural women. Significant share of the household cooking LPG demand of the Public Sector OMCs is met by RIL.

JAMNAGAR SUPERSITE HAS COMPLEXITY INDEX OF 21.1
Complexity index (CI) designates the capabilities of a refinery to upgrade lowest quality crude to the highest quality refinery products, including fuels and petrochemicals. Complexity index of Jamnagar supersite, as per KBC, a global refinery consultant, has increased from earlier 12.7 to 21.1 or a 66.1% boost with the start-up of Jamnagar expansion projects, including ROGC and downstream units, Paraxylene complex and Petcoke Gasification complex. RIL’s Jamnagar supersite ranks 1st in the world in complexity barrels, aided by best-in-class Refinery and Petrochemicals integration.

OIL TO CHEMICAL
Reliance has developed a future-ready Oil-to-Chemical strategic vision to, progressively, transform the Jamnagar refinery from a leading producer of fuels to chemicals.

The fundamentals of the Jamnagar oil-tochemical strategy, are to employ advanced molecule management to upgrade the refinery intermediate streams, by value. The Jamnagar oil-to-chemical objectives are to preserve as well as upgrade existing refinery margins, while maximising asset utilisation, for a sustainable competitive cost of chemicals.

RIL has developed a disruptive technology innovation, a Multizone Catalytic Cracking (MCC) process, which converts a wide range of feedstock to high value propylene and ethylene in a single riser. This technology, protected by Reliance’s IP, shall underpin Jamnagar’s oil-to-chemical mission. The oil-to-chemical programme is a roadmap implemented over a long time horizon, based on market outlook and price triggers for refinery fuel products. The ultimate goal is to achieve greater than 70% conversion of crude refined in Jamnagar, to competitive chemical building blocks of olefins and aromatics.

The Jamnagar refinery product slate, at the culmination of oil-to-chemical transition, shall be only jet fuels and petrochemicals. All refined products priced below crude shall be eliminated for chemicals at initial stage. Final fuel de-risking shall target elimination of gasoline, alkylate and diesel, synchronised to the global evolution of E-mobility and transport fuel demand decline.

In summary, the Jamnagar supersite shall continue to maintain a pre-eminence in Reliance’s revenues and earnings, with the oil-to-chemical growth plan.

Market outlook
With expectations of global petrochemicals demand growing at a faster rate as compared to transportation fuels in longer term, some companies are investing to integrate refinery to petchem to maximise yields of petrochemicals from every barrel of oil processed. This can possibly lead to significant cost savings through economies of scale and improve competitiveness of companies undertaking such projects. New complexes in Asia and the Middle East have announced projects with 25-40% crude to chemical conversion. A Leading Middle Eastern NOC in collaboration with technology providers has undertaken research to maximise oil to chemical conversion to 70%.

R&M PLATFORM
The R&M business has already embarked on Journey of Platform Based Ways of Working. Also single unified source (Datalake) for all the organisation data, is established. Advanced analytical models along with visualisation, are being developed and delivered to business users in phase wise manner. These initiatives are helping business users with insights for informed decision making.

Crude oil prices saw high volatility during the year. The prices touched near 4-year high amid geo-political concerns and production cut by OPEC. In the later part of the year, prices moderated due to global economic concerns, crude stock build-up in the US and weaker energy demand growth projection. Average naphtha prices in Asia were up by 16% y-o-y in FY 2018-19 amidst strong crude price and sustained petrochemical demand. Ethylene prices in Asia marginally softened by 3% due to lower downstream PE prices amid new capacity additions in the US. Propylene prices in Asia strengthened by 12% with healthy downstream PP demand growth and seasonal turnaround of crackers in North East Asia.

PP and PVC prices remained well above 5-year average during FY 2018-19 with healthy demand supply scenario. However, polymer margins weakened due to high feedstock prices. On y-o-y basis, PP, PE and PVC margins corrected by 17%, 14% and 20%, respectively. PE prices weakened amid increased supplies as first wave of new ethane-based capacities came online in the US. PVC margins weakened due to high Ethylene Dichloride (EDC) prices led by a weak caustic price environment.

Polyester and Fibre Intermediates
The polyester market remained volatile during FY 2018-19 with overall weakness due to sluggish downstream demand. Initial strength was followed by gradual weakness in polyester sales, which further weakened as demand remained lacklustre even after Chinese National holidays.

INTEGRATED BUSINESS MODEL

TRANSFORMING RIL PETROCHEMICAL BUSINESS, BUILDING A CUSTOMER CENTRIC ORGANISATION

Flagship products
R|Elan^TM Kooltex used in making activewear apparels

R|Elan^TM FreeFlow used in manufacturing sarees and dress material, western and ethnic wears

R|Elan^TM SuperSoft used in shirting

R|Elan^TM GreenGold, the textile made out of the greenest fibres in the world, manufactured by recycling used PET bottles that finds its way in trousers and denim

R|Elan^TM SuperBlack used in suiting

Widespread
acceptance In line with RIL’s B2B2C focus, R|Elan^TM directly connects with brands and retailers who know their target consumers. R|Elan^TM has been gaining overwhelming acceptance from domestic and global brands across all apparel segments.

Committed to a larger purpose
R|Elan^TM is committed to a circular economy in fashion industry and is one of the world’s 'greenest' recycler of PET bottles into fabric, thereby helping reduce pollution and carbon footprint.

In order to support circularity in fashion and catalyse waste reduction in the fashion industry, R|Elan^TM has launched the ‘Circular Design Challenge’ through its ‘Fashion for Earth’ initiative together with the UN Environment in India and Lakme Fashion Week of IMG-Reliance.

RECRON® CERTIFIED

Developing a unique consumer brand
Fifteen years ago, Reliance identified the under-served ‘sleep and dream’ product category as an opportunity area and developed Recron® Certified, a unique consumer brand franchise-based business. Since then, Recron® Certified has consolidated its position as a true-value, high-quality home-comforts product brand and has become the largest selling pillow brand in the country. Owing to the depth of its merchandise and wide-spread reach, Recron® Certified is a brand appealing to both the value-seeking mass segment and the premium class-seeking segment.

Focus areas

• Strengthen its portfolio further by penetrating deeper into the home comfort segment
• Extend consumer trust from pillows to mattresses, leveraging brand strength, category expertise and quality emphasis. It aims to enhance customer comfort during sleep and become a leading mattress brand in the chosen segment

RECRON® CERTIFIED – HELPING MILLIONS SLEEP BETTER
Pan-India presence through an extensive channel network comprising Authorised Licensee manufacturers, Distributors and Retailers (both traditional as well as modern retail formats)

100% quality control – Committed to offering products with highest quality standards as per the existing RIL standards, and consistent across all the markets, using the ‘Zero Defect Principle’

75% products made using ‘green fibres’, thereby making them environmentally friendly, generating societal value and promoting a circular economy

ADVANCE MATERIAL
Reliance is developing a new business vertical in the Advance Material domain. Material properties and material engineering coupled with design, provides a development platform that will add value to Reliance’s current and new product offerings and enable Reliance to deliver compelling solutions to customers. RelWoodTM is one such advance material, replacing wood across categories.

Reliance has already ventured into Fibre-Reinforced Composites as part of its Advance Material strategy, which helps in light weighting and rendering superior properties. It has the potential to reduce steel usage in infrastructure projects.

Reliance is also working on two dimensional nanomaterials such as graphene, which when added to the existing polymer portfolio, would deliver new formulated materials that will provide exceptional value to the customers.

RELWOOD^TM – ONE MATERIAL, ENDLESS POSSIBILITIES
The consumption of wood in India has risen with the growth of construction industry at about 10% y-o-y. However, for nearly a century, there has been no path-breaking innovation in the wood material industry in India, except for the advent of plywood. Reliance identified an opportunity in this space and innovated RelWood^TM, a natural fibre polymer composite. RelWood^TM is the result of a disruptive technology that combines the aesthetics and warmth of wood with a focus on sustainability.

Made with patented German technology, RelWood^TM is 100% waterproof, termite-proof, UV-resistant and fire-resistant, but is virtually indistinguishable from wood by look or touch. It can also be thermoformed to create unique shapes and designs.

RELX^TM COMPOSITES AND CARBON FIBRE
RIL acquired the assets of Kemrock Industries in FY 2017-18, which is now launched as Reliance Composite Solutions (RCS) under the trademark RELX^TM. RCS has a state-of-the-art manufacturing facility spread across 198 acres, having composites processing units consisting of 3 feedstock and 7 finished goods plants. RCS will provide solutions to markets like mass transport and railways, renewable energy, infrastructure, automotive, defence and aerospace. RCS leverages in-house designing and development capabilities to deliver new applications and solutions, tailor made as per customer requirements.

RelWood furniture

ReleX^TM Applications

3D PRINTING TECHNOLOGY
Additive Manufacturing, commonly known as 3D printing, is gaining acceptance rapidly with increase in number of proven applications in end-use parts in various industries. RIL has developed capabilities to design and print prototypes as well as end-use parts for Oil and Gas, Medical, Electronics and Industrial Tooling industries. RIL is also working on developing 3D-printable materials out of RIL’s downstream products such as PP and PE.

DIGITAL INITIATIVES AND PLATFORM

DIGITAL CUSTOMER EXPERIENCE

• Enhancing user experience and enabling Sales and Collection transactions on smart devices
• E2E tracking of Order Fulfilment is enabled on mobility Platform
• Machine Learning enabled Chatbot for customers, agents and transporters
• Delivery tracking through IOT enabled Vehicle Tracking System is implemented for dedicated fleet
• Collaborative planning through CRM platform to effectively manage customer demand
• Mobility apps like approvals, account management, customer visits to empower Sales Force for better customer service
• Predictive analytics on demand forecast integrated for accurate planning to serve customers better
• Customer interface for fabric certification and brand management for R|Elan brand was built on open source, microservices based platform architecture

PROCESS AUTOMATION AND ENHANCED DECISION MAKING

• Robotic Process Automation (BOT) for automating repetitive processes like E-way bill, e-BRC, B2B order processing etc.
• No touch sales order processing based on auto allocation through system
• Block chain platform integrated with electronic Bill of Lading (eBL) to issue and manage eBL. Blockchain enabled LC transaction through a consortium led by HSBC
• “Business Command Center” system of role based dashboards that leverages information for collaborative operations and enhanced decision making
• Data Science and Predictive Analytics deployed for Price forecasting, Customer Credit risk management and freight cost analysis

DIGITAL SUPPLY CHAIN

• Warehouse Management (EWM) operated on smart devices simplifies complex logistics, optimises inventory tracking, distribution operations, multi-channel fulfilment, and more, all real time
• Ensure distribution safety through 'Emergency Response Center' on IoT enabled Vehicle Tracking System integrated with biometrics and voice box
• Automation through EDI (Electronic Data Interface) with major ports and shipping lines
• ePOD mobile app for drivers to capture electronic proof of delivery and auto service certification for transporters
• Integrated Business Planning and Optimisation implemented with objective to maximise contribution rate
• Cloud based systems for digital settlement of commercial contracts, eBL and road freight management

RELIANCE’S APPROACH TO CIRCULAR ECONOMY
Plastics play a major role in improving the quality of life and help in tackling number of societal challenges. Plastics directly aid in achieving the UN’s SDGs by reducing food waste (increasing shelf life of food), helping reduce resource consumption (current alternatives use more energy and water in production) and providing raw materials for life saving medical instruments. Through innovative solutions/ applications, plastic products help in improving process efficiency, thereby reducing overall GHG emissions particularly in automotive and construction industries.

Unfortunately, due to unchecked littering, plastics as a whole get maligned. The benefits of plastics need to be acknowledged by encouraging proper collection, segregation and education. This will ensure our smooth transition, as a society, towards a circular economy.

For Reliance, ‘Sustainability’ is not just a buzz word, it is about how Reliance operates. RIL strives to promote Circular Economy and deliver Societal Value. Reliance’s approach is to innovate, collaborate and educate communities to help end plastic waste in the environment:

• Innovate through circular business models: Reliance continues to be one of the largest recyclers of the post- consumer PET waste and converting it into value added, branded products like R|Elan™ and Recron® Certified. During FY 2018-19, RIL recycled about 2 billion waste PET bottles, converting it to products like Recron® GreenGold – one of the lowest carbon foot-print globally.
• Educate (Communication and Awareness): Reliance continues to engage with internal and external stakeholders to educate and improve consumer awareness. During FY 2018-19, the Company carried out awareness sessions across the manufacturing sites and also carried out awareness at major schools in Mumbai.
• Collaborate: Reliance engages and collaborates with governments, businesses and consumers to drive effective solutions. For instance, RIL led participation of Indian Industry at UNEA-4 Nairobi

INITIATIVES HIGHLIGHTS

• Reliance has 3 plastic-to-roads projects underway on pilot basis. These initiatives have helped create solution for disposal of non-recyclable postconsumer plastic waste. As a first pilot, 1.2 tonnes of plastic waste has already been used for construction of 2,600m² of road in Reliance Corporate Park. Further, about 50 tonnes of plastic waste will be used at Nagothane Manuacturing Division for construction of 40 km of road

BEFORE

AFTER

RIL worked with Afroz Shah’s team to clean up the Versova beach in Mumbai. RIL sponsored the BobCat to expedite retrieval of solid waste off the beaches and from the oceans. This one-of a kind solution has replaced the need for manual clean-up drives by volunteers. It has resulted in a more efficient and systematic cleanup recovering about 1.5 Million Kgs. of solid waste in 180 days – that much less waste in the oceans

Circular Design Challenge

BUSINESS STEWARDSHIP
In keeping with the motto of ‘Chemistry for Smiles’, Reliance continues to produce eco-friendly products such as GreenGold (made from recycled PET bottles using renewable energy, with one of the lowest carbon footprints globally), R|Elan™ (a fabric with increased breathability, anti-odour benefits, and excellent drape) among others. Additionally, the Company continues to be one of the largest recyclers of PET bottles in India.

OIL AND GAS PORTFOLIO

Notes
1: Post default of Cash Call, RIL-BP issued Default notice to NIKO on October 16, 2018. Since the dues are not cured by NIKO, RIL-BP has issued notice to NIKO to withdraw from Joint Operating Agreement (JOA) and PSC and assign their Participating Interest (PI) to RIL-BP. NIKO has served a notice of arbitration in response to the withdrawal notice. The arbitration tribunal has been constituted and proceedings to commence.
2: Reliance and BP sold their stake in onland Block CB10 to Sun Petro.

Coal Bed Methane Station

FINANCIAL AND OPERATIONAL PERFORMANCE*

*Consolidated basis

FY 2018-19 revenues for the Oil and Gas segment decreased by 3.8% y-o-y to `5,005 crore. Volumes from domestic upstream fields and US shale were lower because of natural decline and slowdown in development activity. Segment EBIT was at `(1,379) crore as against `(1,536) crore in the previous year. For the year, domestic production (RIL share) was at 58.9 Bcfe, down 25.4% y-o-y and in US Shale (RIL share), business was 94.5 Bcfe, down 32% y-o-y basis.

OPERATIONAL PERFORMANCE – DOMESTIC
Production Performance

KG D6
KG D6 gas production declined by 46% for the year to 36.4 BCF due to natural decline of D1D3 field and cessation of MA Field in September 2018. KG D6 operations continue to achieve field uptime of 100%, which continues to be the global standard for deepwater facilities. Despite challenges associated with substantial reservoir depletion and sand and water influx, the focus remains on sustaining production until future projects are commissioned.

Panna-Mukta-Tapti
Panna-Mukta field produced 4.1 million barrels of crude, a reduction of 24% on y-o-y basis and 51.1 BCF of natural gas, a reduction of 18% on y-o-y basis. The fall in production is due to natural decline and increasing water cut in the field, shut in of wells due to integrity issues and unplanned field shutdown due to tilting of single buoy mooring facility by water ingress in July 2018. Loss in production was partially offset by better production optimisation and successful revival of a few wells, which were shut in due to integrity issues.

The Production Sharing Contract (PSC) for Panna-Mukta Block is expiring on December 21, 2019 and necessary preparations are in progress for handover of the assets to the Government (i.e. GoI nominee) on expiry of the PSC.

The ‘Decommissioning Plan for Tapti Part B Facilities’ is approved by GoI and the contract for Engineering Preparation Removal and Disposal (EPRD) has been awarded. The decommissioning activities are scheduled to be completed by end 2021.

CBM (Sohagpur East and Sohagpur West)
RIL commenced production from its Coal Bed Methane (CBM) block SP (West)–in March 2017. More than 200 wells are on production, with production averaging 1 mmscmd this year. As CBM Reservoirs are initially 100% saturated with water, the wells go through ‘Dewatering Phase’ during initial years of production. In the dewatering phase of CBM production, water is pumped out continuously to increase the gas saturation in the reservoir, resulting in ramp up of gas production from these wells. Dewatering process in RIL’s fields is underway for achieving further production ramp-up.

Reliance Gas Pipeline Limited, a subsidiary of RIL, operates the 302 km Shahdol-Phulpur Pipeline from Shahdol (MP) to Phulpur (UP). This pipeline connects the CBM Gas fields with the Indian Gas Grid.

NORTH AMERICAN SHALE GAS OPERATIONS
Production Performance

Business Performance
Reliance is restructuring its Shale Gas assets through cross-border merger of RHUSA with RIL, integrating the US gas resources with the Indian market, as done with ethane for petrochemicals. This will allow shale gas assets to benefit from the expected upcycle in commodities.

The Company continued to focus on value maximisation of remaining two JVs through production stabilisation, well design improvements reflecting latest completion designs and improving well inventory through development plan optimisation and acreage consolidation.

BIO-CBM
To increase recovery from CBM fields, Reliance is engaged in R&D efforts in addition to the established methods. Current focus of this research is Bio-CBM.

In CBM, methane gas which is adsorbed and trapped naturally in coal seams is produced. Bio-CBM technology uses microbe injection to produce in-situ methane where either the coals are devoid of methane or conventional CBM extraction is uneconomical.

Currently, this technology is in the nascent stage and the initial lab tests have shown encouraging results with respect to methane production potential. Future work is planned to establish the ability of this technology to scale up to a commercial operation.

Umbilical Installation at Live Platform (CRP)

Deepwater Pipeline Installation Pipes being welded at welding stations

Several microbial consortia were isolated from various locations within India, screened for methane production potential and the best consortium is being optimised.

RIL is leveraging its infrastructure (advance laboratories), requisite diverse inter-disciplinary technical skills, CBM production expertise, CBM fields and knowledge of regulatory requirements to give impetus to the Bio-CBM research.

UPDATE ON ARBITRATION AND OTHER LEGAL ISSUES
KG D6 COST RECOVERY ARBITRATION

Arbitration claim commenced by the Company in November 2011 seeking declaration that it is entitled to recover 100% of its contract costs under the Production Sharing Contract for the KG D6 Block (KG D6 PSC). Parties have filed their respective pleadings before the Arbitral Tribunal and are in the process of completing the arbitration proceedings.

PUBLIC INTEREST LITIGATIONS
Three Public Interest Litigations (PILs) were filed before the Supreme Court against the Company in relation to the KG D6 PSC, seeking reliefs in the nature of disallowance of cost recovery, quashing GOI’s decision to approve certain gas price formula and termination of PSC. The Company has submitted that the underlying issues in the PILs are already subject matter of ongoing arbitrations relating to the KG D6 Block. Matter is still pending in the Supreme Court.

PMT ARBITRATION
Arbitration was initiated by BG Exploration and Production India Limited and RIL (together the Claimants) against the Government on December 16, 2010 under PSCs for Panna – Mukta and Tapti blocks due to difference in interpretation of certain PSC provisions between Claimants and Government. The Arbitral Tribunal by majority issued a final partial award (FPA), and separately, two dissenting opinions in the matter on October 12, 2016. Claimants challenged certain parts of the FPA before the English Courts, which delivered its judgment on April 16, 2018 and remitted one of the challenged issues back to the Arbitral Tribunal for reconsideration. The Arbitral Tribunal decided in favour of the Claimants in large part vide its final partial award dated October 1, 2018 (‘2018 FPA’). The Government has filed an appeal before the English commercial court against this 2018 FPA. The Claimants have also filed an appeal against the 2018 FPA on limited aspects of the 2018 FPA, which were not decided in favour of the Claimants. Arbitral Tribunal is yet to schedule recomputation of accounts and the quantification phase of the arbitration, which will take place post determination of Claimants’ request for increase in cost recovery limit under the PSCs. The Government has also filed an execution petition before the Hon’ble Delhi High Court under sections 47 and 49 of the Arbitration and Conciliation Act, 1996 and Section 151 of the Civil Procedure Code, 1908 seeking enforcement and execution of the FPA.

DISPUTE WITH NTPC
NTPC filed suit for specific performance of contract for supply of natural gas of 132 trillion BTU annually for a period of 17 years. This suit is still pending adjudication in the Bombay High Court and the Company’s fact witnesses in the suit are to be cross examined by NTPC.

Fabrication of Subsea Structure

Subsea Structure Foundation Installation

RELIANCE RETAIL OPERATING MODEL

BUYING
VENDOR ECOSYSTEM
Comprehensive network of vendors from farmers to large enterprises

MOVING

• Efficient and seamless supply: Direct delivery to stores from chain network, fleet of vehicles and logistic partners
• Direct delivery to stores from suppliers in select cases

SELLING
CHANNEL ECOSYSTEM
Providing anytime, anywhere, shopping experience through stores, e-com, connected kiosks and catalogue sales; after sales service through ResQ and dedicated customer care

MARKET OVERVIEW
India’s retail market is estimated at around US$700 billion in 2017 and is expected to grow at a CAGR of approximately 12% over the next 4 years to reach around US$1,100 billion by 2021. The penetration of organised retail market is estimated at 9% in 2017 and is expected to grow to 13% by 2021. The organised retail market is estimated at around US$67 billion in 2017 and is expected to grow at a CAGR of approximately 21% over the next 4 years to reach around US$145 billion by 2021.

Food and grocery, apparel and accessories, jewellery and consumer electronics together contribute 88.8% of organised retail market in 2017. Reliance Retail has established large presence across these categories to serve market opportunity and transform the retail landscape in India.

The strategy and business model of Reliance Retail has consistently helped it outpace the growth of organised retail and it is fully geared up to be able to continue this growth momentum in future.

BUSINESS OVERVIEW
Reliance Retail is engaged in the business of retailing products and services across five key consumption baskets: a) Fashion and Lifestyle, b) Consumer Electronics, c) Grocery, d) Petro Retail and e) Connectivity. Under each consumption basket, Reliance Retail operates multiple customer centric store concepts that provide superior customer experience, focused assortment, attractive price value proposition and best quality products. Reliance Retail operates one of the most extensive retail store networks in the world backed by committed and well trained manpower, robust infrastructure backbone and an integrated value chain. Reliance Retail has created an ecosystem that connects producers and manufacturers to consumers seamlessly in over 6,600 towns and cities of India through its 10,415 stores.

FASHION AND LIFESTYLE
The organised apparel, accessories and footwear market is estimated at around US$16 billion in 2017 and is expected to more than double to around US$35 billion by 2021. Organised retail penetration in apparel and accessories category is estimated at approximately 24% and in footwear category, it is estimated at approximately 27%. This is expected to grow to in the range of 37% and 31%, respectively by 2021.

Reliance Retail is the largest fashion retailer in India with 1,769 stores across 350 cities. Reliance Retail operates multiple speciality store concepts, which cater to all income segments ranging from value to mid segment and premium to luxury.

Trends is Reliance Retail’s flagship fashion concept positioned in the value segment and built on the principle of democratising fashion for aspiring Indian consumers. It is India’s largest apparel destination with over 670 stores across 350 cities. Trends stores are spread across malls, high streets and city centres connecting with customers in best settings. Trends is a multi-brand store concept offering national and international brands. Trends has developed a strong portfolio of in-store brands such as Avaasa, DNMX, Netplay, Performax, Teamspirit, etc. to cater to the diverse tastes and preferences of customers. Many of these brands have shown tremendous acceptance with customers and have grown up to match in size and scale equivalent to established national brands. In-store brands contribute over 70% to Trends revenues.

The ability of Trends stores to cater to an ever increasing number of customers comes from its vertically integrated operating model which, allows it to control the entire fashion value chain. Trends has set up in-house design studios, which, supplemented with international design houses, generates new designs on a regular basis. Trends sources its own fabric and gets the designs manufactured through hundreds of vendor partners across India and international markets. This translates into fresh fashion across stores on a regular basis.

Reliance Footprint is a leading multi-brand footwear chain offering over 50 prominent international, domestic and in-store brands. The store provides offers wide collection of products across footwear, luggage, handbags and accessories. The stores offers high quality products at attractive value proposition, making it a destination for all footwear and travel needs.

‘Project Eve’, is a unique and first of its kind experiential store concept that caters to the entire fashion and lifestyle needs of women. Positioned in the mid to premium segment, the store offers apparel, beauty and cosmetics, accessories, footwear, in-store salon and a café, all under one roof to address entire fashion needs of a woman. Since its launch in July 2017, Project Eve has now scaled to 20 stores across major cities.

Curated Fashion and lifestyle

Reliance Jewels is a leading premium jewellery chain, offering a wide range of fine jewellery. It offers exquisitely crafted gold, diamond, bridal jewellery, ornaments for special occasions as well as daily wear with a profuse mix of traditional and contemporary designs. The stores provide a delightful customer experience guaranteed by a promise of 100% purity in quality and transparency in prices. Reliance Jewels has an inhouse design team and a dedicated production facility enabling it to exercise complete control over superior crafted jewellery sold through its stores.

Reliance Brands works with international brands in the premium to luxury segment with a focus on apparel, footwear and lifestyle categories. With a portfolio of over 40 revered international brands, Reliance Brands operates the largest portfolio of premium and luxury brands in India. Over the years, Reliance Brands has emerged as a partner of choice for best international brands. Reliance Brands operates the largest store network of international retail brands in India with over 400 stores.

AJIO is a curated fashion platform offering the trendiest and most unique styles from across India and the world. It features over 500 national and international brands alongside an in-store brand collection under the name ‘AJIO’. AJIO operates a digital ecosystem and democratises fashion for consumers across India. AJIO operates on an omni-channel model by providing anytime anywhere shopping to consumers. It leverages many of its partner brands’ network of stores to serve consumers through kiosks, fulfil orders, facilitate returns, replacement and refund. AJIO delivers products across 17,800 PIN codes.

CONSUMER ELECTRONICS
The organised consumer electronics market is estimated at US$11 billion in 2017 and is expected to more than double to US$26 billion by 2021. Organised retail penetration in the consumer electronics category is estimated at 27% and is expected to grow to in the range of 35% by 2021.

Reliance Digital–Personalising Technology

Reliance Retail operates Reliance Digital, the largest consumer electronics speciality retail chain in India with 357 stores across 166 cities. Reliance Digital offers a wide range of technology products and consumer electronics from mobiles, laptops, cameras to large appliances such as UHD TVs, Air Conditioners, Washing Machines and much more. Reliance Digital stores are located on high streets and malls, serving technology needs of all age groups, including millennials to Generation Z and income strata across households.

Personalising technology for every Indian, Reliance Digital is transforming the way India shops for technology products and consumer electronics by providing product experience zones, wide range of assortment across 200 national and international brands, quality service through ResQ, supported by trained and knowledgeable staff and much more.

Reliance Digital has a wide portfolio of in-store brand products under 'Reconnect', 'JioPhone' and 'LYF' brands. The brands are built on the premise of product innovation, unmatched user experience, superior quality and give customers a wider choice of products that serve their needs.

ResQ is Reliance Digital’s service arm and India’s only ISO 9001 certified electronics service brand. ResQ provides multi-brand, multi-product service, including installation, repairs, maintenance and comprehensive ResQ care plans to consumers, thereby providing a one stop solution to consumers.

Jio Store is a small store concept offering range of mobility, connectivity and smaller sized tech products such as mobiles, laptops, cameras, memory cards, etc. It acts as an interface for providing Jio’s connection, recharge services and resolving customer concerns. These stores are located in high traffic areas such as high streets, commercial complexes, etc. across 6,600 plus towns and cities in India. Jio Stores leverage this deep-rooted reach by depicting, demonstrating and selling Reliance Digital’s catalogue of consumer electronics and technology products to consumers. Nearly 10% of Jio Stores’ revenues come through catalogue sales. Thus, it fills the much needed demand-supply gap for consumers based in remote pockets of India, thereby enabling the ease of living for every Indian.

GROCERY
The organised food and grocery market is estimated at US$16 billion in 2017 and is expected to more than double to US$41 billion by 2021. Organised retail penetration in the food and grocery category is estimated at 3% and is expected to grow to in the range of 6% by 2021.

Reliance Fresh is India’s leading chain of neighbourhood stores with 378 stores across 57 cities. Rated as India's Most Trusted Grocery Brand by Brand Trust Report 2018, Reliance Fresh offers fresh fruits and vegetables, staples, cereals, and items of daily needs to consumers at attractive prices with a focus on providing quality produce.

Reliance Fresh stores are placed in residential neighbourhood catchments, which gives it the ability to reach out to a set of customers and serve them for their daily needs.

Reliance SMART is the destination supermarket store, dealing in fresh foods, staples, items of daily needs, home and personal care items, apparel and general merchandise with attractive price-value proposition. Reliance SMART operates 154 stores across 96 cities.

Reliance SMART stores are operated across key cities in high traffic areas such as residential catchments, city centres, malls, etc. with a focus to serve every household’s recurring food and non-food consumption. The stores operate on an everyday low-price strategy and promises 365 day savings with a minimum 5% discount on maximum retail price (MRP) of the products, attractive promotions and a wide variety of products to choose from.

Reliance Market is the largest chain of cash and carry stores serving thousands of kirana, hotel, restaurants and catering (HORECA), small and medium institutional partners and households across fresh foods, FMCG products, staples, non-food and general merchandise items. It operates 46 stores across 42 cities.

The core business model of Reliance Market is to serve all kinds of small / large market participants across the trading value chain through efficient sourcing and distribution, including last mile distribution to member partners.

With a focus to provide quality produce to consumers at affordable prices, Reliance Retail has developed in-store brands, which provide a wide range of offerings across various categories such as staples, food, FMCG, home and personal care and general merchandise. Best Farms, Good Life, Masti Oye, Kaffe, Enzo, Mopz, Expelz, Home One, Graphite, RelGlow, etc. are some of the brands that have developed a strong liking by consumers. These brands are available across Reliance Fresh, Reliance SMART and Reliance Market stores.

Reliance Retail operates on a farm-to-fork grocery value chain. It directly partners with a large number of farmers and small vendors, which ensures and enhances quality of produce through ground level support, reduction in wastages and quicker movement of produce to consumers, thereby benefiting all.

Reliance SMART

PETRO RETAIL
Reliance Retail operates 516 owned Petro Retail outlets. These outlets are spread across India with a focus on serving highway corridors between major cities.

Reliance Petro Retail outlets yield significantly higher volumes than industry average led by efficient processes, technology backbone and well-trained employees. It offers diesel, petrol and LPG to its customers with a focus on serving clean and pure fuel.

CONNECTIVITY
Reliance Retail works as the Master Distributor for Jio connectivity services. The distribution network comprises over 7,600 Jio stores. These in turn work with over 1 million retailers across the country for new customer acquisition and recharges.

INTEGRATED VALUE CHAIN
Behind all of Reliance Retail’s stores and omni-channel initiatives is its integrated value chain that connects farmers, small producers, manufacturers, national and international brands to consumers through its pan-India presence of stores, B2B ecosystem and service network.

KEY PERFORMANCE INDICATORS

KEY 10 YEAR HIGHLIGHTS

VALUES AND BEHAVIOUR
The Company’s success relies on the continued support of its vastly diverse human capital. To bring consistency in approach and behaviour Reliance places emphasis on aligning its people with a strong value system, which is underlined by six core values, viz Customer value, Respect, Ownership mindset, Excellence, One team and Integrity.

RIL has been recognised as an employer of choice, and has been ranked 10th in the 2019 'LinkedIn Top Companies: Where India Wants to Work Now' list, the only non-tech / non-IT company to make it to the top 10 companies in the list.

RIL fosters a culture that is performanceoriented, meritocratic and transparent. RIL focuses on holistic development of employees’ well-being at a professional and personal level. Through engagement initiatives, learning platforms, wellness and safety programmes, and sustainability initiatives, the employees across businesses and geographies are connected to each other and the Company – RIL is ‘connecting everyone, everywhere’.

CREATING EMPLOYMENT OPPORTUNITIES
The Reliance Group is one of the biggest private sector employers in India that has created employment for more than 1.9 lakh individuals. With the help of a robust, consistent and meritocratic HR framework, Reliance continues to maintain a progressive people environment, where purpose driven talent is attracted and engaged.

RIL’s entrepreneurial culture aims to motivate the young generation to play an integral role in the Company’s growth.

PEOPLE BREAKDOWN FOR RIL
As on March 31, 2019, Reliance Industries Limited employee strength was 28,967 and total number of female employees was 1,671.

FOCUS ON HIRING MILLENNIALS
Reliance strongly believes in its millennial employees and encourages them to be a vital part in the Company’s growth and development. The cadre building programmes such as Reliance Emerging Leaders Programme (RELP) and Graduate Engineering Trainee (GET) Programme are the key routes through which high potential entry level talent is hired to help

build a young talent pipeline for all the businesses. With an increased focus on summer internship hiring, the Company is steadily establishing Reliance Summer as the primary route of hiring young talent. Reliance visits premier B-Schools and Engineering institutes including Indian Institutes of Management (IIMs) and Indian Institutes of Technology (IITs) to ensure intake of high-quality talent.

Further, engagements with institutes like the Aspire Leadership Connect Series, Alumni Connect sessions, online quizzes and social media engagement have positioned Reliance as an aspirational brand and a preferred talent destination.

TALENT MANAGEMENT
RIL endeavours to identify and develop high potential talent within the organisation and provide them with accelerated learning and growth opportunities. There are various initiatives taken by the organisation to achieve the same, including on-the-job training, digital learning, coaching and workshops. Some of the prominent ones are:

TALENT REVIEWS
Talent Reviews are conducted annually for all employees at the leadership level. The process helps identify, assess and develop people to meet the leadership roles.

CAREER ACCELERATION PROGRAMME (CAP)
Initiated in 2014, CAP is one of the flagship cadre development programmes for middle level managers and provides them with multi-faceted learning, development and mentorship opportunities. It grooms them for senior level leadership roles.

SAPPHIRE COACHING PROGRAMME The programme provides focused and customised development opportunities to people managers in the manufacturing business. It emphasises on 2 key tenets of being a successful leader, i.e. Delivering Performance and Developing People. It uses the Growth, Self-Awareness, Authenticity (GSA) Development Model of Leadership Excellence. The fifth batch of Sapphire was kicked-off in 2018.

STEP-UP PROGRAMME
A highly focused programme was introduced in 2015 to prepare high potential employees to be skill-ready for their transition into next level leadership roles in the organisation. Over the last 4 years, around 300 employees have benefitted from this programme.

DIVERSITY AND INCLUSION
The employees at RIL represent diverse nationalities, culture, gender, abilities, generations and experiences. The Company strives to create a comprehensive workplace environment and leverages its rich and diverse human resource with a sustainable competitive advantage where each one is provided with an opportunity to participate, contribute and grow.

Diversity and Inclusion (D&I) at Reliance is fully integrated into its people strategy and broadly focuses on three areas – Gender, Ability and Generation. RIL recognises the intersection among these three areas and others such as work and life experiences and socio-economic context. RIL constantly works towards making its policies inclusive for all.

Based on specific needs of women employees, the Company has developed a maternity support programme along with reasonable adjustments such as reserved parking, specific learning sessions and Employee Resource Group (ERG) for new parents. The leave policies include 182 days of Maternity Leave followed by 6 months of half day leave policy for new mothers, 84 days leave policy for adoptive parents and commissioning mothers respectively. RIL also provides 5 days of Paternity Leave. Reliance undertakes pro-active measures such as 24*7 toll free helpline for women, D&I related learning interventions and self-defence workshops on a regular basis.

Jio’s D&I programme was launched by Ms. Isha Ambani. The first phase focused on training employees on unconscious bias, diversity sensitisation and nurturing gender diversity along with a series of initiatives such as Fireside Chat with accomplished women, Meet and Greet sessions with leaders of Jio, Tech Talks for women in technology, etc.

Reliance Employees

KEY ILLUSTRATION

The Ultimate Pitch 4.0

The Ultimate Pitch has been recognised as the 5th Most Prestigious B-School Competition by Dare2Compete Awards.

EMPLOYEE ENGAGEMENT
RIL has conceptualised and has regularly implemented multiple initiatives to enhance employee engagement, thereby leading to a more productive work environment.

BRING YOUR FAMILY TO WORK
Bring Your Family to Work (BYFW) is an initiative that fills employees’ family members with pride and brings both home and work families together. This year’s BYFW event witnessed around 15,000 colleagues and their family members, participating in a plethora of activities and awareness initiatives. ‘Mitra’ robot marked more than 6,000 unique interactions, and kiosks of RelWood and R|Elan received over 1,000 queries expressing interest to buy Reliance products in the market. More than 2,000 saplings and 9,000 recycled bags were given as souvenirs to raise environmental awareness. The event also garnered over 5 lakh impressions on LinkedIn, Facebook and Twitter.

RELIANCE FAMILY DAY (RFD)
Reliance Family Day (RFD) is one of the biggest corporate celebrations in India, reflecting the spirit of ‘One Reliance’. Every year, RFD is celebrated to commemorate the birth anniversary of Shri Dhirubhai Ambani. A host of indoor and outdoor activities, before and during the event, were planned for employees and their families as part of the celebrations of RFD ’18. In addition, several awareness campaigns were carried out and blood donation camps were organised to urge employees to donate blood.

LEARNING AND DEVELOPMENT
RIL’s expansion into diversified segments requires specialised skill sets. The emphasis lies on progressing and building a learning environment which is accessible, automated and available for all. During FY 2018-19, Reliance imparted 66.93 Lakh hours of training to its people across the Group.

Learning and Development at Reliance supports in building capabilities both for individuals and the organisation at large. Towards this end, it envisages that:

• Learning becomes a way of life in RIL (democratisation of learning)
• Learning becomes a strong business enabler
• R-University becomes a well respected brand
• The future of learning fully integrates technology solutions and HR Platforms
• Employees are reskilled and upskilled to meet challenges of the future

Bring Your Family to Work Week 2019

The organisation focuses on both technical or functional capability building and behavioural or managerial capability building.

Bring Your Family to Work Week 2019

LEARN ANYTIME, ANYWHERE
In keeping with RIL’s philosophy of providing learners the ability to learn anytime, anywhere and on any device, the Learning function aims to develop 'Best-in-Class' digital learning solutions in partnership with the 'Learn and Grow' Platform. Using technology, RIL also offers employees a highly interactive, collaborative and device-agnostic social learning platform

ILLUSTRATION

LEARNING WEEK
Spectrum is a week-long initiative aimed at strengthening the learning culture at Reliance. In its third edition in 2018, the initiative witnessed around 30,000 employees participating in a plethora of learning activities, where one could learn anything right from how to play the flute to using the collaborator quotient, to how to beat pollution.

Spectrum was intended to empower the academies to plan and execute learning interventions, and create heterogeneous teams to sustain the learning interventions across the Company. Other highlights of this unique and engaging learning intervention include:

Training workshop

TRAINING TO ENSURE RELIABLE AND SAFE OPERATIONS–CAS
To ensure reliable operation delivery and safety competence among frontline staff, RIL has deployed a comprehensive Competency Assurance System (CAS) in which manufacturing teams have established area specific job competency profiles and competency-based learning content to train and develop all job appointees in asset facing roles. As part of the CAS process, employees go through robust self and managerial assessments followed by assurance through online quizzes and field task tests. Over 8,500 customised quizzes and task tests for each job role and work area have been defined.

Over 6,200 asset facing employees had enrolled into this programme in the past year. Over 4,000 employees have been fully certified for their role specific competencies and many more are in advanced stages of the assurance process.

ILLUSTRATION

KEY PERFORMANCE INDICATORS

KEY HIGHLIGHTS

KEY PERFORMANCE INDICATORS

KEY HIGLIGHTS - RIL STANDALONE

STAKEHOLDER ENGAGEMENT
Stakeholder's views, concerns and key expectations have been elemental in calibrating RIL’s business strategy. The Company maintains an open and constructive dialogue with all its key stakeholders, namely, Investors and Shareholders, Employees, Customers, Suppliers, Trade unions, Government and Regulatory authorities, Local communities and NGOs.

Internal and external stakeholders are mapped based on the analysis of topics which have the potential or actual impacts on the Company’s activities. RIL believes that engaging with stakeholders in a transparent manner helps in understanding their societal needs and expectations, leading to sustainable decision making and enhanced stakeholder value creation. In this regard, the first step is to identify the key priorities of the Company’s most pertinent stakeholders. For further details on the process, please refer to the RIL’s sustainability report at www.ril.com.

JIOGENNEXT: A UNIQUE STARTUP ECOSYSTEM
JioGenNext has quickly established itself as one of the leading corporate accelerators in India since its inception in September 2014. Over the years, it has played a pivotal role in catalysing the entrepreneurial ecosystem by assisting numerous early-stage technology startups to achieve exponential growth through mentorship, industry connect and strategic partnerships. JioGenNext supports startups on various areas of business such as stakeholder development, product road map, go-to-market strategy, customer acquisition and engagement, talent hiring, pitching and fund raising. Under the guidance of the RIL leadership, it became the preferred platform for exceptional founders to launch their startup in the Jio ecosystem.

While Talent, Technology and Trust remain the three key pillars of JioGenNext, it is now incorporating a new framework of ASSURED, which stands for Affordability, Scalability, Sustainability, Universal, Rapid, Excellence and Distinctiveness. ASSURED is a tool or a framework given to every startup in the cohort. As they check off on each parameter, the startup’s success gets ASSURED and they tackle every possible risk that could lead to their potential downfall.

Each parameter when observed closely will ensure that a startup grows sustainably in the ecosystem while also ensuring that it meets the ultimate objective of a Digital India roadmap laid out by the Chairman.

KEY METRICS

Jio-GenNext enables inclusive innovations to meet the needs of everyone. One of the challenges Digital Services aims to overcome is the poor and inadequate educational infrastructure by delivering high-quality education and skill trainings to schools, colleges and universities across the country through digital platforms. Once this is done, India will have one of the most digitally enabled education systems in the world. This has been the guiding principle behind the numerous EdTech startups. These entrepreneurs are providing unique educational solutions to an array of learners from different walks of life. Some of them are as below:

• Avaz (FreeSpeech) is the perfect app for anyone who is learning the English language, especially for the ones with special needs, such as autism, dyslexia and hearing impairments . It is also useful for anyone who is trying to make sense of English grammar.
• Guvi’s mission is to make technical education available to all in their native languages. Guvi offers technical video courses like Android, Python, Java, C, C++, Machine Learning, Big Data, MongoDB in vernacular languages, which are created by working professionals . These courses are available in various native languages like Tamil, Telugu, Hindi, Kannada, Bengali, etc.
• MadGuy Labs offers mobile-based exam test preparation services for government job aspirants in vernacular languages such as Kannada, Telugu, Marathi and Hindi, apart from English.
• Plowns is a platform for parents to store and share all the amazing things created by children like paintings, clay models, etc.
• Utter has built the world’s first mobile platform that enables English and Workplace Skills training for fresher’s and digital blue-collar workers. Powered by multilingual chatbots and expert tutoring, the platform has over 2 million learners so far.

These are few of the outstanding startups that were part of JioGenNext – Summer 2018 programme. Moving away from its sector-agnostic approach, JioGenNext launched thematic cohorts in 2018 with platform focus to go inch-wide and mile-deep in terms of startup engagement. JioGenNext conducted two Jio-centric market access days to showcase curated list of startups; ‘Cultivate’, for exceptional AgriTech startups that are transforming the food & agriculture value chain in India using digital technologies and ‘Jio Access’, for innovative Indian startups in the AI Voice and Vision space.

The other notable startup alumni included the following:

• Akasa Labs offer solutions in the areas of contracting, payments, traceability and tokenization for organisations with complex supply-chain networks, eventually creating value for end users.
• COSGrid Networks provide Software Defined Wide Area Network (SD-WAN) solutions that enable nimble operations for next generation IoT enabled enterprises.
• DataCultr Data Streaming platform enables enterprises to connect and control their data and devices in real-time, helping them take their IoT solutions quicker to market.
• Fabulyst leverages Computer Vision, AI and NLP to create virtual personal stylist for fashion commerce.
• LeanAgri aims to increase incomes of farmers by increasing farm yields through systematic implementation of scientific techniques, providing essential resources and regular monitoring.
• Signzy currently offers a digital on-boarding solution for banks, NBFCs and other financial institutions in adherence to the regulatory compliance.
• BigHaat is agri inputs marketplace platform providing a wide choice of quality inputs to farmers at their doorstep.
• Kritsnam is in the field of IoT with focus on water resources management.
• Proximal Soilsens Technologies brings affordable technologies for precision farming.
• FRS Labs is a technology company specialising in customer on-boarding (KYC), authentication and fraud prevention solutions for businesses.
• PiOctave creates video enabled interactive security smart devices and solutions.
• Slang is a Voice to Action platform, which can be used to quickly add a multi-lingual voice interface to any mobile app.

ILLUSTRATION

RESPONSIBILITY TOWARDS SUPPLIERS
Suppliers are an integral part of the RIL’s business performance. They are the key drivers for development, manufacturing and reliability of products, helping the Company meet evolving customer expectations. The Company’s supplier base includes top performing engineering/ supervision companies, construction companies, installation and commissioning service providers, joint ventures and consortia. Most of them have their own sustainability programmes and disclose their sustainability initiatives publicly.

In order to strengthen its relationship with suppliers, RIL has a board approved Supplier Code of Conduct and takes a formal acceptance from them for abiding by this Code of Conduct during the vendor registration process. It reflects RIL’s belief in its suppliers to achieve and adhere to its core values, and comply with labour, human rights, health and safety, environmental protection, business integrity and confidentiality laws and standards. Consequently, Reliance conducts a comprehensive sustainability assessment and rigorous screening process for registration and evaluation of all suppliers. The procurement team also conducts regular surveillance audits at suppliers’ sites to assess performance.

Supporting local economy has always been one the focus areas for RIL. The Company is continuously exploring the potential for development of suppliers hailing from socially and economically backward communities. The Company has procured goods and services (noncrude/ non feedstock) worth over `18,566 crore from indigenous suppliers. As the Company continues to grow its operations, it encourages suppliers to indigenise and expand their capabilities and increase their economic value.

RIL regularly engages with local villagers and small businesses around its areas of operation in productive employment, especially through vehicle hiring, material handling, housekeeping waste-handling and horticulture contracts, thus expanding its direct and indirect economic impacts. Through sustained investment in mega projects and operations, RIL has developed India’s chemicals and engineering supplier base and majority of the suppliers and contractors are based in India.

SUSTAINABLE SOURCING
The five focus areas of RIL’s sustainable sourcing strategy are aimed at social progress, economic development and mitigation of environmental impacts. The focus areas are:

• Energy management
• Environmental responsibility
• Product stewardship
• Occupational health and safety
• Social institution building

RIL’s sustainable sourcing ethos focuses on nine key parameters:

• Green packaging
• Environmental protection
• Regeneration/Safe disposal
• Contract worker care
• Community support
• Supplier collaboration
• Make in India and development of India’s engineering talent
• Learning through P&C academy
• Digitally stitched Procedure to Pay (P2P)

All of RIL’s suppliers and contractors operate in compliance to applicable laws and regulations, and labour laws. In order to effectively manage activities like manufacturing, distribution and the use of chemicals in the products, RIL has adopted RC-14001, an international environmental management system. The Company has sourced REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) compliant materials for improving human health impacts and the protection of environment. As part of this, even Tier 1 suppliers of the Company are required to procure REACH-compliant materials.

Apart from this, local vendor engagement, digital invoicing, contractor care and supplier query redressal are some of the Company’s other sustainable sourcing practices. RIL’s determination to reinforce local manufacturing, will help bridge the gap between robust domestic consumption and constrained supply, thereby leading India to become self-sufficient.

CUSTOMER ENGAGEMENT
Reliance drives customer value through its product innovation for customers, application and service levels, ability to deliver a consistently high consumer experience and its overall reputation and brand promise in the markets it operates in. To achieve this goal, Reliance has undertaken various engagement strategies to understand the voice of the customer. RIL Petrochemical business is shifting from traditional B2B business model to a B2B2C model. R|Elan™ and Recron® Certified are the brands that solely function on the B2B2C model. By engaging directly with brands and retailers who are well aware of their target consumers, RIL is able to offer unique and specialised solutions to cater to the growing demand. This helps RIL stay relevant in the fast-paced consumer driven market. Retail business is leveraging consumer insights through the use of technology-enabled tools and enhancing its core capabilities. Various channels have been implemented across all store concepts for capturing customer feedback. These include feedback forms, customer feedback registers, message services to customers and online portals such as ROMA, Litmus and Happy Calling. In Digital Services business, customer engagement begins right at the on boarding stage. Customer feedback is taken at various stages, including on-boarding, usage of services and post resolution of customer queries. Apart from this, calls from contact centre, SMS and web links are also used as feedback channels.

PARTNERSHIPS FOR CHANGE
GOVERNMENT AND OTHER GLOBAL INSTITUTIONS
RIL is a member of several business and industrial associations such as The World Economic Forum, The American Chemistry Council (ACC), Indian Chemical Council (ICC), The Chemicals and Petroleum Manufacturer’s Association (CPMA), Gulf Petrochemicals and Chemicals Association (GPCA), World Business Council for Sustainable Development (WBCSD), European Petrochemicals Association (EPCA), American Fuel and Petrochemical Manufacturers (AFPM), Association of Oil and Gas Operators in India (AOGO), Federation of Indian Chambers of Commerce and Industry (FICCI), Confederation of Indian Industry (CII), Associated Chambers of Commerce and Industry of India (ASSOCHAM), Association of Synthetic Fibre Industry (ASFI), Synthetic and Rayon Export Promotion Council (SRTEPC), and The Synthetic and Art Silk Mill’s Research Association (SASM IRA).

The Company is cognisant of the importance of stakeholder interaction for preserving and protecting the environment. In a unique partnership with the Ministry of Environment, Forests and Climate Change (MoEFCC), the Government of India (Gol) and the Gujarat Ecological Commission (GEC), the Company actively contributed to the setup of India’s first Centre of Excellence (CoE) for the study of the coastal biodiversity of Jamnagar. This centre is known as the National Centre for Marine Biodiversity (NCMB).

Business Partnerships
Hydrocarbon
RIL has forged an strategic partnership with BP that aims to combine Reliance’s exceptional project management and operations expertise with BP’s deep-water exploration and development capabilities in the Krishna-Godavari Basin. With a focus on US shale oil, RIL has two joint ventures with Pioneer Natural Resources and Chevron for drilling and completion activities. With a focus on Industrial Internet of Things (IIoT) strategy and the digital manufacturing platform, RIL is exploring partnerships with industry leaders such as GE, Honeywell, Siemens, Emerson, Schneider Electric, among others.

Retail
Reliance Retail is setting up long term exclusive partnerships with reputed retailers from across the globe. In categories such as food, fashion, toys and much more, Reliance retail has partnered with Disney to develop and market co-brand SKU’s. In the premium denim segment, Reliance Brands has ventured with Replay jeans. To bring popular retail concepts like Pottery Barn, Pottery Barn Kids and West Elm to India, Reliance Brands has announced partnership with Williams-Sonoma. The company has further extended its presence by acquiring stakes in Mothercare, British kids-wear brand and Salvatore Ferragamo, an Italian luxury brand.

Digital Services
With a focus on customer service and engagement, Digital Services has entered into a series of partnerships with a number of organisations. Reliance has made strategic investments in Hathway Cables, Datacom Limited and Den networks in order to provide global standard wireline infrastructure and services in India. Through group affiliates, the Company has invested in Grab-a-grub (logistics), C-Square (software), Netradyne (AI, logistics), Reverie (language as a service platform), Tech Media (new age journalism), SkyTran (transportation technology), Radisys (5G, IoT), EasyGov (e-governance), Sankhyasutra (simulation services) and Haptik (chatbot solution). In the sports category, Reliance Jio has entered into an agreement with Star India for the telecast of all cricket matches on the JioTV platform. Jio has also tied up with Zee to make available 37 TV Channels to Jio subscribers on the JioTV platform. To contribute to the education sector in India, Reliance has acquired a majority equity stake in Indiavidual Learning Pvt Ltd. (Embibe), a leading AI-based education platform leveraging data analytics to deliver personalised learning outcomes to students.

Academic partnership
To build and attract a pool of fresh talent and next generation engineers in the organisation, Reliance has collaborated with various universities and colleges across India and the globe. Some such universities with academic partnerships are Indian Institute of Science, Bangalore; Indian Institute of Technology (IIT) – Mumbai, Delhi, Kharagpur, Kanpur, Madras; Institute of Chemical Technology (ICT), Mumbai; Tata Institute of Fundamental Research (TIFR), Mumbai; Florida State University; Massachusetts Institute of Technology and Washington University in St. Louis Louisiana State University.

Social Stewardship
Jio has reached 306.7 million subscribers and provides transformative, quality and affordable access of end-to-end digital services for every Indian. Impacts of Reliance's products, services and community investment activities on society at large is mentioned under the Human capital, Natural capital, CSR report and case studies sections of the Report. Reliance's strategy is driven by employee and societal value, which aims to foster inclusive growth through job creation and community development. Reliance seeks to focus strategically on discrete social problems, all aimed at enabling lives and livelihoods. The Company is in the process of conducting evaluation of its social aspects using the Social and Human Capital Protocol published by the Social and Human Capital Coalition. Reliance adopts rigorous processes to identify the impact of its social initiatives created on primary stakeholders. It establishes baseline values of key indicators that describe the status of stakeholders at the beginning of the intervention and periodically assesses the status of stakeholders with reference to the baseline.

RESPONSIBILITY TOWARDS COMMUNITIES
DISASTER RESPONSE
As a responsible business, Reliance swiftly and effectively responds to disasters that endanger human lives and livelihoods by directly engaging with affected communities. During FY 2018-19, the Company promptly helped communities affected by floods and cyclone in Andhra Pradesh, Kerala, Gujarat, Odisha, Uttar Pradesh and Tamil Nadu. For more details, please refer Report on Corporate Social Responsibility on page no. 182.

CLEANLINESS DRIVE - PROJECT VERSOWAH!
Reliance worked extensively with Mr. Afroz Shah and team for the clean up of Versova beach in Mumbai and sponsored BobCat for easy retrieval of solid waste off the beaches. For more details, please refer Management Discussion and Analysis on page no. 117.

Enabling the Fourth Industrial Revolution