Ril SR2008 09 PDF
Ril SR2008 09 PDF
Ril SR2008 09 PDF
TODAY.
Our new refinery, one of the most complex in the world, has the
capability of producing ultra low sulphur and environment-
friendly auto fuels.
11
We have a long and strong tradition of supporting the larger
communities that we connect with – from education, health,
drinking water, large-scale development of employable skills, to
assistance during natural calamities such as earthquakes and
cyclones.
Our sustainability strategy sets out the overall direction for us, to grow
and manage our businesses in order to deliver value to our stakeholders.
It emphasises the importance of partnership with our stakeholders,
transparency and mutual value creation which form the basis for the
culture we foster throughout the group.
We have a long and strong tradition of Though we have received several international
supporting the larger communities that we accolades for being an environmentally
connect with – from education, health, conscious and socially responsible company
drinking water, large-scale development of and are proud of our progresses, we will
employable skills, to assistance during natural continue to further embed sustainability in
calamities such as earthquakes and cyclones. our management decisions. We are well
positioned to transform the energy landscape
of India and remain highly optimistic about
our future.
Yours Sincerely,
Mukesh D. Ambani
Chairman & Managing Director
January 22, 2010
Crude Oil
LPG Motor Spirit Aviation Turbine Fuel High Speed Diesel Coke Sulphur Propane
Ethane/Propane
Polypropylene
Propylene Ethylene Benzene Butadiene
Acrylonitrile
Poly
Butadiene
Vinyl Chloride Ethylene Di-Chloride Rubber
Ethylene Oxide Butene-1
Monomer (VMC) (EDC) (PBR)
Paraxylene
Normal Paraffin
Acetic Acid
Purified Terephthalic Acid LAB
(PTA)
Polyethylene Terephthalate
(PET)
Fabrics
Apparel
We are India’s largest private sector company with footprints in exploration &
production of oil & gas, petroleum refining and marketing, petrochemicals
(polyester, fibre intermediates, polymers and chemicals), textiles, retail and special
economic zones (SEZ).
We are the first private sector company from India to feature in the Fortune Global
500 list of ‘World’s Largest Corporations’ and rank 117th amongst the world’s Top
200 companies in terms of profits. We rank 75th in the Financial Times’ FT Global
th
500 list of the world’s largest companies. We are rated as the 15 ‘Most Innovative
Company in the World’ in a survey conducted by the US financial publication-
Business Week in collaboration with the Boston Consulting Group (BCG).
We have been ranked as the 5th sustainable value creator globally by BCG in their
report on the Top 25 sustainable value creators that have been most successful at
attaining superior value creation over a longer period of time. Further, amongst
‘India’s 10 largest companies by market capitalisation’, International Finance
Corporation (IFC) [Word Bank Group] has rated our Sustainability Report’s
reporting quality as “good” – the highest rating given in this report, in 2009.
We operate two of the world’s largest and most complex refineries. With 1.24 million
barrels per day (MBPD) of crude processing capacity, we are the largest refiners at
any single location in the world. The addition of the new refinery has transformed
‘Jamnagar’ into the ‘largest refining hub of the world’. Further, we are among the
Top 10 private sector refining companies, globally, owning 25% of world’s most
complex refining capacity.
We are the largest producer of Polyester Fibre and Yarn, 4th largest producer of
Polypropylene (PP) and Paraxylene (PX), 6th largest producer of Purified
Terephthalic Acid (PTA) and 7th largest producer of Mono Ethylene Glycol (MEG).
For over three decades, VIMAL, our flagship brand enjoys the distinction of being
one of most trusted brands of premium textiles in the country. Our textile division
added clients in auto textiles and is now a significant supplier to major automobile
manufacturers in India. We continued with our foray in the defence, police, and
paramilitary services by supplying specialised fabrics for their applications.
For further information on company operations, products, services, brand and group and subsidiaries pl
refer RIL Annual Report for FY 2008-09, available on http://www.ril.com
Report Boundary
This report aims to provide reliable and balanced information on our sustaina-
bility performance for the FY 2008-09. The report covers our manufacturing
divisions located at Allahabad, Barabanki, Dahej, Hazira, Hoshiarpur, Jamnagar,
Jamnagar SEZ, Nagothane, Nagpur, Naroda, Patalganga, Silvassa and Vadodara;
Exploration and Production of Oil & Gas business; business divisions such as:
Chemical, Fibre Intermediates, Polyester, Polymers, Petroleum, Solar and Bio-fuels;
Supply & Procurement; Dhirubhai Ambani Foundation and Reliance Rural
Development Trust.
Inclusiveness
We have reported our triple bottom-line performance on the basis of our
sustainability strategy. Priority has been given to topics and indicators that are
material to us and are of particular interest to our stakeholders. We determined
the materiality of specific topics and indicators based on guidance in the GRI G3
Reporting Guidelines and taking into account a number of internal and external
considerations, including:
• United Nations Global Compact Principles on Environment, Human rights
and Corruption
• Challenges facing our sectors, identified through secondary research
• Our commitment to industry standards, such as International Petroleum
Industry Environmental Conservation Association (IPIECA)
• Our key sustainability challenges identified through our risk management
process
• Our core values and our sustainability policies
• Our internal management system
We believe the report will be of most interest to our employees and contractors,
shareholders, the financial community, our suppliers and customers, NGOs and
general public.
We value your suggestions and invite your feedback on this report. Please e-mail
your suggestions/views/opinions to Shri Rohit Rao at [email protected]
Forward-looking Statements
This report contains forward-looking statements, which may be identified by their use of words like ‘plans’, ‘expects’, ‘will’, ‘anticipates’, ‘believes’, ‘intends’,
‘projects’, ‘estimates’ or other words of similar meaning. All statements that address expectations or projections about the future, including, but not limited to
statements about the company’s strategy for growth, product development, market position, expenditures, and financial results, are forward-looking statements.
Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and
expectations are accurate or will be realised. The Company’s actual results, performance or achievements could thus differ materially from those projected in
any such forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis
of any subsequent developments, information or events.
Mission,
• Create value for all stakeholders
• Grow through innovation
• Lead in good governance practices
• Use sustainability to drive product
development and enhance operational
efficiencies
• Ensure energy security of the nation
• Foster rural prosperity
Values
Our growth and success are based on
the ten core values of Care, Citizenship,
Fairness, Honesty, Integrity,
Purposefulness, Respect, Responsibility,
Safety and Trust.
11
Dhirubhai-1, India’s first Floating Production Storage Offloading (FPSO) vessel,
located in the KG-D6 block of the east-coast of India.
Sustainability Strategy and Roadmap
Our sustainability strategy sets out the overall direction for us, to grow and
manage our businesses in order to deliver value to our stakeholders. It emphasises
the importance of partnership with our stakeholders, transparency and mutual
value creation, which form the basis for the culture we foster throughout the
Group.
For us, robust governance and the integration of sustainable development into
our strategy, business planning, risk management and day-to-day operations
allows us to minimise risks and seize opportunities to create value.
To achieve our strategy objectives and deliver value to our stakeholders over the
long term, our emphasis is on reducing risks. We believe that operating to leading
standards of health, safety and environmental management, contributing to the
development of sustainable communities and engaging with our stakeholders in a
two-way open dialogue, regardless of our location, offers us a source of real
competitive advantage.
DISCUSSION ON MATERIALITY
Securing energy supplies safely lies at the heart of our business. We are investing in
Energy Security technology and R&D to maximise yield fossil fuel resources, increase our renewable
energy portfolio and meet the ever increasing energy demand.
We are fully committed to improve our health and safety performance. Our board
Health and Safety sponsored HSE committee drives HSE improvement projects across manufacturing
locations. We are investing in our people and technology to improve safety performance
with a focus on behavioural and process safety.
Corporate We have a strong value system within the group and our board adheres to governance
Governance & principles of trust and transparency, among other things, and has over 50 percent
Transparency independent directors. Our risk framework includes major areas ranging from health and
safety to integrity and fraud reporting.
Our R&D efforts are aimed at improving quality of our products. We already have
Product innovative packaging solutions for agriculture produce and we are exploring the
Responsibility
possibility of using plastic waste as a supplementary fuel in cement kiln thereby
achieving effective management of plastic waste.
While securing energy supplies we understand that our carbon footprint is bound to
Climate Change inflate. We are investing in low carbon technologies and have implemented a robust
system to track flare gas emissions to achieve zero flare.
We remain committed to our “Waste to Resource” agenda. Our effort is to reduce our
Waste Management overall environment footprint. Key focus areas for us include water recycling and reuse,
reducing hazardous waste generation and increasing recycled input.
Energy security, a national imperative, We have an important responsibility We provide a great variety of afford-
is one of the pillars of our sustaina- towards the natural environment. We able and quality products, which
bility strategy. As an integrated energy recognise the challenges faced by our enhances lives: fuels for transporta-
company, we intend to secure energy industry, be it in terms of depleting tion, a wide range of plastics used in
supplies in the country. With the crude resources, climate change, or hundreds of products - from polyethy-
commissioning of KG-D6 Oil and Gas end of life of petroleum- based lene bags to fibre optic, affordable
field, we are helping India reduce the products. In FY 2008-09, we have fabrics etc. With KG-D6, we will
imported crude oil requirement and invested Rs. 3,367.40 million in provide an affordable and cleaner
lessen the impact of the vagaries of R&D. Our refineries at Jamnagar are energy source at the doorstep of
crude oil prices. We set the commen- able to process several types of crude, millions of households, and industry.
cement of gas production in a record including those with a rich-sulphur We strive to innovate and provide
time of six and a half years from the content, thereby pushing further the world-class quality and safety at afford-
time of discovery against an average limits of crude availability. We able rates and for this we believe
age of around nine years. We multiply the initiatives at the end of ‘technology’ is a great enabler.
augmented our acreage through life of our polymers and other
domestic and international acquisi- petrochemicals products, engage with The ‘RIL way’ is to develop its own
tions to touch 325,000 sqKMs and our B2B customers and their end- technologies in select areas besides
99,000 sqKMs respectively. customers and partner with regulators being an efficient user of available
to maximise the actual share of technologies. R&D and Technology
recycling of our products. We make development are integral to our innov-
cleaner fuels in India and also ation agenda for achieving growth,
investing in alternate energy sources business profitability, sustainability
such as solar, bio-fuels including and rural transformation.
Jatropha plantation.
We continue to give top priority to We produce a comprehensive range of Our business vision extends beyond
Health and Safety. Our objective is to petrochemicals comprising plastics our commercial interests. We believe
bring about a positive change and (PE, PP and PVC), olefins (ethylene in the philosophy of co-existence,
continual improvement in occupa- and propylene) and polyester (PSF, ‘Vasudhaiva Kutumbakam’ – the
tional health and safety practices at PFY and PET), fibre intermediates whole world is one family. Our
the workplace. For us, the most impor- (PX, PTA and MEG), aromatics Corporate Social Responsibility (CSR)
tant domain is focusing on behavio- (benzene, toluene and butadiene) and strategy is to have close and continu-
ural safety and our safety committees other chemicals. Our endeavour is to ous interaction with the people and
at each location ensure adequate design and deliver products and communities around our manufac-
awareness on industrial safety as well services with minimal impact to the turing divisions; the thrust is on imp-
as occupational health. All our manu- environment. We work towards this by roving their quality of life, especially
facturing units have a fully equipped adopting a life cycle approach and the underprivileged segment of
occupational health centre including a evaluating the impacts on environ- society.
full-time doctor, ambulance service ment across the value chain.
and necessary life-saving medicines. Our contributions are in the areas of
The cross functional teams established health, education, infrastructure deve-
A committee of directors monitors the to direct our efforts in this area, lopment (drinking water, improving
Health, Safety and Environment review and recommend on a wide village infrastructure, construction of
standards and practices. This range of product and process schools etc.), relief and assistance in
committee ensures that safety improvements, which include product the event of natural disaster and other
management systems are reviewed at safety, industry participation and social initiatives. The company’s aim
the highest level and are in-line with association, environment and safety is to provide comprehensive health
our ambitious goal of zero incidents at labelling, ease of handling and services covering preventive,
work place. It is our constant managing products, waste reduction, promotive and curative, and
endeavour to further strenghten our recycling and reuse, use of recycled community health care services.
safety management systems with the and recyclable packaging, energy
latest global best practices. conservation and environmental
protection.
Responsible governance is at the core of our value system driving our growth and
we have been practicing this mantra for over three decades. While adhering to the
regulatory requirements on corporate governance, we continually strive to adopt
emerging global practices guiding the management in strategy implemen-tation
and risk management and fulfilment of stated goals and objectives.
We are committed to meet the aspirations of all our stakeholders. This is demon-
strated in shareholder returns, high credit ratings, governance processes and an
entrepreneurial, performance focused work environment. Our customers have
benefited from high quality products delivered at the most competitive prices.
Our employee satisfaction is reflected in the stability of our senior management,
low attrition rate across various levels and substantially higher productivity. Above
all, we feel honoured to be an integral part of India’s social development.
We not only adhere to the prescribed corporate practices as per Clause 49 of the
listing agreement with stock exchanges in India but constantly strive to adopt
emerging best practices worldwide.
Board Composition
Our Board consists of 13 Directors, out of which 7 are Independent Directors.
Composition of the Board and category of Directors are as follows:
Non-Executive
Non-Independent Ramniklal H. Ambani
Director
For more information about our Corporate Governance and shareholder engagement process, please refer our Annual Report FY 2008-09;
available on RIL website: http://www.ril.com
Information Integrity
• Information captured at source and made available on robust enterprise wide
electronic network contributes to accuracy of information
• Consistency of business processes is ensured by ERP system SAP 4.6
• Well defined organisation structure, documented policy guidelines, predefined
authority levels and an extensive system of internal controls ensures optimal
utilisation and protection of resources, IT security, accurate reporting of financial
and sustainability performance and compliance with applicable laws and
regulations
• Internal controls ensure that the assets are safeguarded against loss from unautho-
rised use or disposition. Further, transactions are authorised, recorded, reported
and stored in a secured manner
Six Sigma
• Rs. 670 million financial (annualised) benefits
• 528 Black Belts and Green Belts are associated in Six Sigma projects at different sites
• ISO 9001 QMS contributes to the management systems approach of RIL on quality
Safety
• Company’s safety programme Reliance Safety Observation Process' (ReSOP)
focuses on the behaviour safety aspect of all personnel
• 'Process Safety Management' (PSM) is a key focus area with DuPont Safety
Resources as the strategic partner
• 'Process Hazard Analysis' at various plants was initiated to address and reduce the
process safety risks
• Management systems approach for safety is significantly guided by OHSAS 18001
Management Systems
Environment
• Management System approach on environment further upgraded with integration
of ISO 14001 EMS
• Environmental standards covering all major environmental aspects were released
during the year
• To ensure effective implementation of the environment standards, an exercise to
make independent audit protocol and site related standard operating procedures
was initiated
• Company has more than 95 'Trained Lead Auditors' for ISO 14001:2004. They
perform internal environmental audits at regular interval
cy
ren
Hea
Follow company values;
spa
Go Trans
lth a
Pa
an
ver par
rtn
Tr
nd S nd
nan enc
nd
with
Co policy; etc.
ea
ce a y
afet
mm
N
nc
GO
un th
y
ic
wi
rna
an ate a
so
ve
tin
nH
d t bo
ran ut ee
Go
IV
sp our M
are g
ral
/AI
nc ove
ne
DS
y p rn e
rac anc G s
tic e al er
Gov He es nu old
erna
nce
a lth
and Employees An areh
and sh :
Tran Safe bsite
spar ty r at e we il.com
enc po .r
y Cor ://www
NGO Shareholders http
Partner
with NG
Os in co
mmunit
y
sibility
Assess needs of programm
the local commu es Product Respon
nity
through surveys and interaction with
level
local administration at village Community
Customers
Carr
surveyyout custome
ives r satisfa
ity initiat ty Orga ction
Commun nise
ad Safe t custo
Health geme
n mer
Mana meet
Waste s
atory
egul ents Government & En
ble r m Pro ergy
p plica require rd Regulatory Bodies Suppliers
ce o
n a boa f du Sec
plian on eo d ct u
Com c tors s g me s
a res rity
dir
e
n u nfor sion s
po
n t o So nsi
end
e sis e i ci er ur bil
ba tak de ak arch ce ity
wh
ev
Co
r c
ef
e i
im spa urity
s u c i u l
o e r el
En e s prod
nd
ea
cy
vid d p dg op
sib
an g e
uc
me e
er n
c
fro
P ro
nae g ang
Tr y se
nt
le
ts
ts ry uttin m
up
lo
ch
du c
rg
ca
pli
an
In on
e a Ene
ate
th ls
er
i O rg an ise safety up
He
kw
me
nd
pl
Ma
or
alth
ie
Cl
eti
and
Pro vi de s a fe and
rna
Wa
ve
c le a n w o r k p l a c e
afe
Go
ty
Mee t regula rl y t o
a d dre s s gri evance and
c arry o ut a pp ropri at e
settlement
Stakeholder
Government
Customers & Regulatory Bodies
In our efforts to achieve excellence in our sustainability initiatives, we have shaped our short term and long term
plans under our sustainability roadmap.
Commitment Performance
Hoshiarpur Manufacturing Division bagged According to the Nielsen India Corporate Image
Punjab Safety Award for two consecutive years Monitor 2008, a study designed to measure people’s
2007-08 & 2008-09. perceptions of the image and reputation of India’s
leading companies, RIL is one of the most admired
Hoshiarpur Manufacturing Division won ‘Hong companies by stakeholders for its CSR initiatives.
Kong Green Level Certificate’ for its PET recycling
initiatives; the division recycled PET bottles of 30 Amongst ‘India’s 10 largest companies by market
tonnes per day. capitalisation’, International Finance Corporation
(IFC) has rated RIL’s Sustainability Report’s
Jamnagar Manufacturing Division received reporting quality as “good” - the highest rating
‘Platinum Award’ for excellence in environment given for this report, in 2009.
management in refinery and chemical sector,
respectively, from GreenTech Foundation, India.
Environmental Performance
Manufacturing Divisions
2008-09 2007-08 2006-07 2005-06 2004-05
HSE expenses (Rs. million) 998.96 908.96 536.37 483.90 456.54
Total Production (‘000 tonnes) 44,526.85 44,626.95 43,509.81 39,519.01 40,332.21
Material consumption
Raw material ('000 tonnes) 41,061.49 43,033.43 41,962.17 38,310.22 39,440.51
Associated material ('000 tonnes) 264.73 217.72 197.23 180.45 124.34
Intermediates ('000 tonnes) 29.99 34.78 31.60 31.09 48.60
Packaging material ('000 tonnes) 82.13 110.81 91.13 87.14 87.99
Material Recycled
Material recycled ('000 tonnes) 40.08 61.65 52.80 52.73 45.10
Material recycled (%) 0.0967 0.1421 0.1249 0.1366 0.1136
Direct energy consumption ('000 GJ)1 247,391.73 253,868.52 236,992.87 214,474.57 215,525.35
Renewable ('000 GJ) 324.84 276.93 236.57 188.67 137.34
2
Indirect energy consumption ('000 GJ) 1,572.23 1,707.05 1,642.10 1,385.49 941.60
Energy saved due to conservation ('000 GJ) 2,035.00 3,121.51 10,496.17 2,318.13 2,830.07
Total water withdrawal ('000 cu m) 97,172.64 97,788.41 95,686.43 89,856.64 85,957.62
Percentage of water recycled (%) 31.09 28.58 26.35 23.30 24.49
Total effluent discharged ('000 cu m) 20,105.38 23,774.00 24,920.44 24,106.89 23,334.36
Greenhouse gas emissions
3
Direct emissions ('000 tonnes of CO2 eq.) 16,591.74 16,889.57 16,410.80 15,534.50 15,927.32
Indirect emissions ('000 tonnes of CO2 eq.)4 369.37 368.22 367.42 312.71 211.62
Reductions in GHGs ('000 tonnes of CO2 eq.) 613.56 877.27 629.07 0.00 0.00
Emissions of ODS (tonnes of CFC-11 eq.) 11.65 30.70 27.72 18.91 19.71
Total air emissions
SPM ('000 tonnes/year) 3.60 3.64 3.52 3.36 3.99
SOx ('000 tonnes/year) 12.51 13.94 13.81 14.21 15.70
NOx ('000 tonnes/year) 18.41 19.07 18.87 17.01 17.79
5
VOCs ('000 tonnes/year) 19.94 19.91 19.67 18.50 18.97
Total amount of waste generated
Hazardous waste ('000 tonnes) 47.07 41.44 40.47 32.94 35.43
Non-hazardous waste ('000 tonnes) 35.91 44.87 41.81 23.69 26.79
E&P6
2008-09 2007-08 2006-07 2005-06 2004-05
HSE expenses (Rs. million) 115.46 17.02 10.47 11.92 8.16
7
Material consumption
8
Casings & Tubular (‘000 meters) 237.70 199.38 195.41 149.40 47.95
Chemicals-Solid (‘000 tonnes) 76.77 92.82 27.90 25.33 25.17
Equipments and accessories (‘000 each) 15,769.31 20,691.14 3,556.17 1.56 0.00
Chemicals – liquid (‘000 KL) 15.42 14.26 7.31 6.51 8.44
Direct energy consumption
Diesel (‘000 GJ) 2,763.73 2,352.70 1,305.04 1,167.06 650.62
Gas (‘000 MWH) 1,497.28 902.50 1,769.60 1,772.43 100.28
HFO (‘000 GJ) 0.9371 0.8636 1.29 2.00 2.19
Water consumption (‘000 cu m) 171.34 64.81 38.86 30.64 22.84
Hazardous waste (tonnes)9 3,018.54 909.01 463.99 165.82 118.02
Non hazardous waste (tonnes) 927.56 974.98 995.12 503.47 365.22
6
RIL is a joint operator with BG Exploration and Production India Limited (BG) and Oil&Natural Gas Corporation of India (ONGC) having a 30% interest in Panna-
Mukta-Tapti (PMT) and in-line with the best global sustainability reporting practice, we have considered 100% applicable value to PMT in Environmental and Social
Performance Review.
7
The material consumption values are related to consumables used in the E&P of O&G.
8
PMT information is not available.
9
The Hazardous Wastes Management and Handling Rules 2008, Schedule 1, item 2.1, 2.2 and 2.3 classifies drill cuttings containing oil, drill mud and other wastes and
sludge containing oil as Hazardous waste. As such, the total mud (sludge and slurry form) needs to be reported as Hazardous Waste.
E&P
2008-09 2007-08 2006-07 2005-06 2004-05
Safety Performance
Injuries (nos) 28 17 16 5 1
Injury rate (per 100 employees) 0.1008 0.0736 0.2145 0.1151 0.0393
11
Lost days (nos) 431 0 14 0 0
Lost day rate (per 100 employees) 1.55 0 0.1877 0 0
Man hours worked (million hours) 55.54 46.17 14.92 8.69 5.09
Fatalities (nos) 4 2 0 0 0
Training
Leaders (hours) 7,102.5 3,348 3,990 3,478 808
Managers (hours) 105,735 121,924 70,883 13,112 5,464
Executives (hours) 1072.5 704 384 864 448
11
As per global reporting practice, we have reported the number of lost days sans fatalities. As per Indian regulations, each fatality is equivalent to 6,000 lost days. The lost
days reported for FY 2008-09 also includes lost days from the blocks other than PMT which commenced the production in 2008-09. For the earlier years, the lost days
pertain only to PMT operations which are jointly operated by RIL, BG and ONGC.
Across RIL
Social Expenditure 2008-09 2007-08 2006-07
Rs. million Rs. million Rs. million
12
Education 167.54 709.73 104.74
13
Health 146.31 15.83 9.47
Community Development 171.73 91.38 39.68
Environment (Greening activities) 12.32 13.55 41.16
14
Others 488.99 73.04 92.02
Dhirubahi Ambani Foundation 354.70 145.50 82.80
Sir HN Medical & Research Society 7.65 7.50 7.70
RRDT 197.43 240.70 452.22
TOTAL 1,546.67 1,297.23 829.79
12
Education includes all education related aid, donation, scholarship and sponosrship across RIL locations including Jamnaben Hirachand Ambani Foundation,
Hirachand Goverdhandas Ambani Chairtable Trust.
13
Health includes medical aid & benefits extended across RIL locations including Sir HN Medical Hospital Research Centre and Drishti.
14
Others includes donations, sponsorship and awards instituted across RIL loactions including UAA-Dhirubhai Lifetime Achievement Award, RIL CNN IBN Real
Indian Heroes Award.
2005-06
2006-07
2007-08
2008-09
Employee Cost
1,282,423
1,216,411
India
1,050,289
782,221
637,226
201,457
115,849
138,031
108,913
Economic Value
Generated Distributed & Retained
Market Capitalisation is 6.1% of the total market capitalisation in India
Weightage in BSE Sensex is 13.6%
Weightage in S&P CNX Nifty Index is 11.1%
RPL merger with RIL: Value creation through scale Refining Hub of the World
and synergies We started our refinery in the Special Economic Zone (SEZ)
The merger of Reliance Petroleum Limited (RPL) with RIL has at Jamnagar, which is the most complex, super-sized refinery
enabled seamless integration of operational scale and built anywhere in recent years. The new refinery is the 6th
financial synergies that existed between the two companies. largest refinery in the world with crude oil processing
Assets and liabilities of RPL have been transferred to RIL with capacity of 580,000 barrels of oil per day (BPD).
effect from April 1, 2008, as per the approval granted by the
The new refinery catapults our company into the league of
Hon. High Courts of Mumbai and Gujarat. Shareholders
the largest refiners globally, both in terms of complex
of RPL received 1 share of RIL in lieu of every 16 shares of
refining capacity and earning potential. Jamnagar has since
RPL held by them, as per the scheme of merger.
emerged as the refining hub of the world with an aggregate
The merger creates a platform for reinforcing the Company's refining capacity of 1.24 MBPD of oil.
position as an integrated energy company on a global scale.
The merger enhances value for shareholders of both The new refinery has a Nelson Complexity Index of 14.0
Companies. enabling processing of heavy crudes and production of
superior products, which meet specifications exceeding
Through this merger, we consolidated our company’s position
as a world-class, complex refinery that complements its’ Euro IV standards. The refinery complex is now operating at
existing refining assets. We will additionally gain from full capacity.
reduced operating costs arising out of the combined
operations. The merger is expected to reduce the earnings
volatility for RPL shareholders as they participate in our Rating
integrated energy chain. Our financial discipline and fiscal prudence is reflected in
the strong credit ratings by leading international rating
agencies. We have been rated BBB and Baa2 by S&P and
RIL joins the league of global deep water oil and gas
operators Moody's respectively, a notch above India's Sovereign rating.
Our long term debt has been rated AAA by CRISIL and
We commenced production of hydrocarbons in KG-D6 'Ind AAA' by Fitch, the highest rating awarded by both
block in the Krishna Godavari basin with the production of
sweet crude of 420 API. The production of oil in KG-D6 Agencies and short-term debt has been rated P1+ by CRISIL,
block was commissioned in just over two years of its the highest credit rating assigned in this category. Following
discovery, making it the world’s fastest green-field deepwater the approval of merger by boards of RIL and RPL, Moodys,
oil development project. S&P, Fitch and CRISIL reaffirmed their respective ratings of
our company’s debt instruments.
We are enhancing India's energy landscape. We have
commenced gas production from KG-D6. Production from
the Dhirubhai 1 and 3 discoveries of the KG-D6 block will
result in a quantum leap towards achieving India's energy Note: The figures for the current year include figures of Reliance Petroleum
security as it will account for 40% of the country's current Limited (RPL), which is amalgamated with the Company with effect from
hydrocarbon production. This will reduce India's energy 1st April 2008 and to that extent not comparable to those of previous year.
dependence on external sources and help bring down For more information on our Economic Performance, please refer our
subsidies in the fertiliser, power and transportation sectors. Annual Report FY 2008-09 available on RIL website: http://www.ril.com
2005-06
2006-07
2007-08
2008-09
consumption
is an integral aspect of our work culture. Energy Cells at our manufacturing
divisions are responsible for the energy management of the division. The energy
cells work in conjunction with corporate energy cell to improve the energy
efficiency through process redesign, retrofitting and behavioural change. The
corporate energy cell is responsible for brainstorming new ideas for developing the
energy mix (grid vs own generation), fuel mix and benchmark performance using
Solomon and/or Shell energy index. Energy audit and accounting coupled with
Mega Joules Per Tonne regular management reviews for energy generation and utilisation ensures
of Production responsible energy management. Some of our manufacturing locations like
Jamnagar and Hazira have been rated top for specific energy consumption by
3.41
international benchmark studies.
4.77
5.44 The specific direct energy consumption for the current year has decreased from
6.21 5.68 to 5.55 GJ per tonne, and the specific indirect energy (electricity)
7.29
consumption has decreased from 0.0383 to 0.0353 GJ per tonne. Our conscious
Renewable Energy efforts to increase the renewable energy in our energy portfolio have resulted in
2004-05
2005-06
2006-07
2007-08
2008-09
Consumption increase of specific renewable energy consumption by 17.57% to 7.29 mega joules
per tonne. Our energy conservation efforts have helped us reduce our carbon
footprint. Various energy initiatives taken this year have culminated to a total
energy savings of 2.03 million GJ.
28.00
Ta r g e t
A c t u a l Energy Index
25.06
0. 0233
10.39
10.29
0. 0351
8.30
6.30
0. 0377
3.58
4.05
0. 0383
3.45
3.84
3.29
3.91
3.87
3.82
3.34
3.00
3.00
2.22
2.50
2.44
2.06
2.03
1.77
0. 0353
1.69
1.22
1.19
0.00
0.00
0.00
0.00
2004-05
2005-06
2006-07
2007-08
2008-09
Indirect Energy
Barabanki
Dahej
Dhenkanai
Allahabad
Kurrkumbh
Nagothane
Hazira
Naroda
Patalganga
Silvassa
Vadodara
Hoshiarpur
Jamnagar
Jamnagar
Nagpur
Consumption
(CEL)
(SEZ)
The energy security is a more compelling sustainability issue for India with the expected energy
demand to be 1.8 Btoe by 2032 considering an average GDP growth of 7.5%.*
*
Based on the Integrated Energy Policy of the Planning Commission of India
2005-06
2006-07
2007-08
2008-09
GHG Emissions
based on rice husk. A capital expenditure of Rs. 66.5 million was incurred in
purchase of boiler and civil construction. The biomass-fired boiler resulted in
reduction of GHG emission by 20,404 tonnes of CO2 per year and has a payback
period of less than 11 months. **Based on “World Energy Outlook 2008”
released by The International Energy Agency (IEA)
We provide millions of Indians with a great variety of intellectual capability to meet RIL’s business goals through
affordable and quality products which better their Life: fuels technology development and application.
for transportation, a wide range of polymers used in
In the refining business, the major technology focus is on
hundreds of products - from polyethylene bags to fibre
improving performance of Crude Unit, Fluidised Catalytic
optic, affordable fabrics, etc. With KG-D6, we will provide
Cracker (FCC), Cokers and also increasing propylene yield
an affordable and cleaner energy source at the doorstep of
in FCC among others. In the petrochemicals business, RTG
millions of households and Industry. We strive to innovate
supports Olefin Crackers, Polymers, Fibre Intermediates,
and provide world class quality and safety at affordable rates
Aromatics, LAB and Polyester. The focus areas in petro-
and for this we believe Technology is a great enabler.
chemicals at present and in future include asset utilisation,
The ‘RIL way’ is to develop its own technologies in select development of specialty materials from facilities designed
areas besides being an efficient user of available techno- for commodities; value addition to by-product streams and
logies. Research & Development (R&D) and Technology opportunities at the chemicals / oil interface.
development are integral to our innovation agenda for
We are also working in emerging technologies such as Fuel
achieving growth, business profitability, sustainability and
Cells, Solar, Bio-fuels and gasification of various feedstocks
rural transformation. The Company has consolidated
to improve the eco-system. To meet current and future needs
various research and process technology functions under
in a rapidly changing market environment, RIL is in the
one umbrella – ‘Reliance Technology Group’ (RTG). This
process of building technical capability in areas cutting
consolidation will act as a catalyst to foster innovation and
across various businesses of the Company.
enhance the interfaces in both, conventional and emerging
technological arenas. Some major ongoing / completed projects include:
We get external perspectives from members of the ‘Reliance • Heavy crude processing
Innovation Council’ (RIC) in shaping its innovation agenda • Alternative applications of FCC spent catalyst
and informed insights in specific technology activities. The
• Maximising propylene (PP) and LPG recovery from FCC
high-level organisational role for RTG includes Research &
products
Development (R&D), Process Engineering, Basic
Engineering, Process/Product Develop-ment, Laboratory • APC/RTO implementation in all RIL’s major
and Pilot Plant Operations at various sites, Technology manufacturing facilities
Sourcing Guidance, Technology Planning, Technical • On-purpose Hexene - 1 & Octene -1 catalyst development
Support to Manufacturing and Businesses and New • n-Hexane, n-pentane and other solvents production from
Business Development Support. existing facilities
We also act as an enabler for the de-bottlenecking of • A new polyethylene product (UHMWPE) process
manufacturing divisions for enhancing productivity and for development
improving the profitability, reliability and performance. • Advance generation PP catalyst and donor obial Polyester
Profit improvement plans and energy management capabi-
• Low cost antimony catalyst for polyester production
lities are also being enhanced at manufacturing divisions.
• Magic WrapZ using advanced polyester technology for
We aspire to be ‘the most innovative and globally- food/vegetable preservation
connected technology organisation in the businesses and
• Advance Reliance Spinning for increased capacity from
operations that the company is in; recognised by its business
partners and employees by creating unique opportunity and RIL’s polyester plants
value through technology’. This assures alignment with • More effective FDY finish-polyester
business and manufacturing partners to create physical and • Low pill fibre-polyester
The patent filing activity has increased substantially in recent years with 120 patent applications and 71 patents being granted.
Last but not the least, RIL is developing and implementing fit-for-purpose management systems, work processes and tools for
achieving technical excellence; and creating a high performance environment for people to innovate and contribute towards
organisational and individual growth.
Innovation
The contraction of the global economy and the demand strategist, Prof. George Whitesides, Harvard University,
destruction in markets saw many global corporates Prof. Jean-Marie Lehn, Nobel Laureate, Prof. Robert
struggling to survive. We, once again, demonstrated our Grubbs, Nobel Laureate and Mr. William Haseltine,
ability to innovate by developing initiatives seeking Venture Capitalist.
opportunity in adversity.
Our aim is to build the next generation of young innovation
The Reliance Innovation Council (RIC), a unique structure, leaders within the organisation; creating a robust system for
comprises global thought leaders under the chairmanship of innovation management; developing and integrating a
Dr. R. A. Mashelkar, one of India’s most eminent scientists comprehensive measurement system for innovation and
and a member of the company’s board. The eminence of the propagating our achievements internally and outside the
Council is enhanced by members such as Mr. Mukesh D. organisation.
Ambani, CMD, RIL, Prof. C. K. Prahalad, renowned global
Health and Safety are among the top most priorities at RIL. Our objective is to
bring about a positive change and continual improvement in occupational health
and safety practices at the workplace. For us, the most important domain is focus-
ing on behavioural safety and our safety committees at each location ensure adequ-
ate awareness on industrial safety as well as occupational health. All our manufac-
turing divisions have a fully-equipped occupational health centre including a full-
time doctor, ambulance service and necessary life-saving medicines.
A committee of directors monitor Health and Safety standards and practices. The
committee ensures that our safety management systems are reviewed at the highest
level and are in line with our ambitious goal of zero incidents at the work place.
We need to continuously fortify our safety management systems with the latest
local as well as global best practices.
We have recently completed a safety benchmark exercise at all our manufacturing
divisions. The exercise was spread over three months and the result of this study
will be used to further improve our safety and health practices. In addition, we
have regular inter-site benchmark exercises to encourage healthy competition
between our sites.
We are committed towards creating a safe environment and workplace and dedi-
cated investments in HSE ventures across all locations. The HSE expenditure per
employee for the FY 2008-09 is Rs. 45,156.
To ensure safety at the workplace, the following programmes are pursued: 22,142
45,156
• Comprehensive internal and external auditing system involving national and
2006-07
2007-08
2008-09
2005-06
2006-07
2007-08
2008-09
Injury Rate
being continuously achieved since 1999.
A key area that we are focusing on is ‘Process Safety Management’ (PSM). As part
of the strategic partnership with DuPont Safety Resources, we have built capabi-
lities within the company and developed in-house experts in various facets of PSM.
‘Process Hazard Analysis’ at various plants was initiated to address and reduce the
process safety risks. Further, we have developed and implemented various metrics
to monitor the process safety performance of company’s manufacturing divisions.
Per 100 Employees
2005-06
2006-07
2007-08
2008-09
Lost Day Rate identifying and addressing the safety issues requiring immediate attention.
As part of ‘Project Health Check’, learning from incidents has received enhanced
impetus. There have been several high profile incidents in some leading global
chemical and refining companies in the past few years. The least expensive way to
improve process safety is to learn from such incidents and incorporate the learn-
ings by way of improving the operating and maintenance procedures and doing
necessary hardware changes in the plant facilities. A well laid out mechanism is
now in place to gather incidents that have occurred within the group and in the
external world and incorporate the learnings into our day to day work.
Additionally, we have started looking at leading and ‘near miss’ metrics to improve
the process safety performance. Typically, companies look at lagging metrics -
metrics that show the past outcome. On the other hand, leading and near miss
metrics, when measured, tell us how we are progressing in each of the work
processes that form the back bone of the process safety management systems. A
beginning has been made to identify, collect and report leading metrics.
2004-05
2005-06
2006-07
2007-08
2008-09
Raw Material
products. We manufacture cleaner fuels in India and are active in the field of Consumption
Biofuels. We are aware of other milestones on this journey that are still ahead of us
and we acknowledge our responsibilities to continuously work towards minimising
our environmental foot print.
Resource Productivity
We focus our efforts towards resource conservation. Our backward integration
model helped us increase our control over the material and other resource Tonnes
consumption across the value chain of our products. The Jamnagar manufacturing
division provides the basic raw material for other manufacturing divisions through 45099
52726
cracking of crude oil. Most of the non-product materials derived during the 52800
process is recovered as by-products for internal consumption as intermediates. Our 61654
initiatives for optimum material consumption and use of recycled materials reduce 40081
our requirement for virgin materials. This year, our material intensity decreased to
2004-05
2005-06
2006-07
2007-08
2008-09
Use of recycled
0.9306 tonnes per tonne of production output from 0.9724 tonnes per tonne of material
product output in the previous year. We have reduced our recycled material use by
31.95% over the previous year.
Water
Water is a key resource requirement for our operations. Across manufacturing
divisions, we withdraw water from various sources like sea, river, bore well and Cubic Metre Per Tonne
municipal supply besides others. We try and minimise the environmental impact of Production
of water withdrawal by limiting the withdrawal to less than 5% of the annual 2.13
average volume of the respective water body. Our specific water withdrawal for FY 2.27
2008-09 was 2.18 cubic meter per tonne of production. Our approach to water 2.20
management is based on the ‘reduce-recycle-reuse’ principle. Many initiatives were 2.19
taken to recycle and reuse the water. We reduce the requirement for make-up water 2.18
in the process by increasing the recycled water content for the process and reusing
2004-05
2005-06
2006-07
2007-08
2008-09
Water
the remaining water after proper treatment. The total water recycled and reused as Withdrawal
percentage of water withdrawn has increased to 31.09% as compared to 28.58%
from last year.
Conservation of Bio-diversity
We assigned high priority to bio-diversity and take necessary actions for its
conservation. Our 11 manufacturing divisions are located either in a declared
industrial zone or in non-protected, non-sensitive area. We pro-actively monitor
the impact on eco-systems, wherever required and essential. At our Jamnagar
refineries, the right of way (ROW) for pipelines and the marine facilities are
Percentage located in between inter-tidal mud-flats, which is a protected marine ecosystem
24.49
under national legislation. To prevent any impact on the marine bio-diversity
23.30 following measure are taken at Jamnagar:
26.35
28.58
• Desalinated brine water is discharged in the sea away from the mud-flats
31.09 through a scientifically designed diffuser, which ensures that the brine attains
ambient temperature within 50m from diffuser
2004-05
2005-06
2006-07
2007-08
2008-09
Water Recycled
& Reuse
• Only segregated ballast tank (SBT) vessels are chartered for trading to the
marine terminal that is located away from the mud-flats
• Pumping of bilge water is strictly prohibited for ships that arrive for loading
Additionally, to ensure the pristine nature of sea water, we have engaged National
Cubic Metre Per Tonne Institute of Oceanography (NIO) to conduct periodic monitoring of sea water.
of Production
Green belt development activities commenced with plans for plantation of 10,000
0.5786 tree saplings of different fruit varieties covering an area of 100 acres. A mangrove
0.6100 nursery was developed with over 40,000 saplings raised and planted at Kakinada.
0.5728
With the involvement of MS Swaminathan Research Foundation, a 10-hectare
0.5327
degraded mangrove is being restored near an eco-sensitive zone at Kakinada. In
0.4515
order to propagate and conserve bio-diversity, we ensure that all locations have
developed green belts.
2004-05
2005-06
2006-07
2007-08
2008-09
Water
Discharge
We have laid more emphasis on rainwater conservation scheme with construction
of storm water retention ponds to collect all the rainwater from the Onshore
Terminal premises for reuse in the green belt. We use effluent treated water in the
plant for green belt development.
We have been extending our contribution in waste and environment management through Indian Centre for
Plastics in the Environment (ICPE), a nodal agency recognised by the Government of India to handle all
issues related to Plastics and Environment in the country. ICPE has been working with the Road
Engineering Department of Municipal Corporation of Greater Mumbai (MCGM) since 2005 for popularising
use of waste plastics for the construction of asphalt roads.
2004-05
2005-06
2006-07
2007-08
2008-09
Non Hazardous
cubic meter per tonne of production, a 15.30% decrease from the previous year waste
The total hazardous waste generated has increased from 0.9285 kgs per tonne of
output to 1.0572 kgs per tonne of output, while the non-hazardous waste
generated decreased from 1.0054 to 0.8066 kgs per tonne of output.
We successfully carried out a trial for the re-utilisation of Polyethylene Terephth-
Kgs Per Tonne of Production
alate (PET) waste into Polyester Fibre Fill (PFF) recycling plant at Hoshiarpur
Manufacturing Division. Vermi-compost of waste is being carried out at manufac- 0.8785
0.8335
turing divisions located at Vadodara, Hazira and Naroda. Of the total hazardous
0.9301
waste generated, more than 81.68% was either recycled or reused in-house or 0.9285
through approved recyclers, while the remaining was sent to secured landfill, stored 1.0572
on site or incinerated. Our intent is to maximise this recycle and reuse of hazard-
Waste Generation -
2004-05
2005-06
2006-07
2007-08
2008-09
ous waste. Of the total non-hazardous waste generated, more than 54.26% was Hazardous waste
either recycled or reused while the remaining was sent to a secured landfill.
2005-06
2006-07
2007-08
2008-09
Consumption of
nitrogen as per regulatory requirement. The Jamnagar division also monitors the zone depleting
substances
volatile organic compounds (VOC) in addition to above parameters. This year we
have witnessed a decrease in particulate matter to 0.0809 kg per tonne from
0.0815 kg per tonne the previous year. The sulphur dioxide emissions have
decreased from 0.3123 kg per tonne to 0.2811 kg per tonne and oxides of nitrogen
emissions have decreased to 0.4136 kg per tonne from 0.4272 kg per tonne. The
VOC emissions have increased from 0.4460 kg per tonne to 0.4480 kg per tonne
Kgs Per Tonne of Production
this year.
SPM Sox Nox VOC
turing divisions. The total spillage amounted to 3.65 cubic meters, which was 0.0815 0.3123 0.4272 0.4460
either recovered or disposed successfully. The total spillage from our E&P 0.0809 0.2811 0.4136 0.4480
operations amounted to 5.43 cubic meters, which was either recovered or disposed
2004-05
2005-06
2006-07
2007-08
2008-09
Air Emissions
off successfully.
We produce a comprehensive range of petrochemicals Some of our product initiatives during the year:
comprising PE, PP and PVC, olefins (ethylene and • Advance generation of PP donors development
propylene) and polyester (PSF, PFY and PET), fibre interme-
• Alternate catalyst evaluation for cost reduction and
diates (PX, PTA and MEG), aromatics (benzene, toluene
alternate supplies
and butadiene) and other chemicals. Our endeavour is to
design and deliver products and services with minimal • Fresca anti-microbial and anti-bacterial work wear apparel
impact to the environment. We work towards this endea- fabrics
vour by adopting a life cycle approach and evaluating the • Fire-retardant and water repellent tent fabrics
impacts on environment across the value chain. • Insect and mosquito repellent nets as per WHO standards
The cross functional teams established to direct our efforts • Production of ethanol from biomass
in this area, review and recommend on wide range of • Development of Carbon fibre.
product and process improvements, which include product
• Development of unique solar PV Products.
safety, industry participation and association, environment
and safety labelling, ease of handling and managing pro- • Development of high yielding varieties of biofuel crops
ducts, waste reduction, recycling and reuse, use of recycled like Jatropha, Pongamia, Calophyllum, Madhuka and
and recyclable packaging, energy conservation and Simarouba.
environmental protection. Petrochemicals and their derivative products are key
This year we introduced five new grades in the homo- enablers of sustainable solutions in areas like food security,
polymer and impact co-polymer segments. We are working water management, construction, textiles, healthcare,
with Bureau of Indian Standards for formulating standards transportation, lifestyle products, information technology,
for two of our product lines; leno bags and PPR pipes for communication and entertainment.
hot and cold water applications. On the rural transformation space, we have developed
Similarly, micro-irrigation techniques were widely promoted several solar PV products using innovative concepts and
in partnership with the Ministry of Agriculture in the technologies. ArushiTM lantern and R-LiteTM home power
Centre as well as in States. These initiatives were carried out system developed by Reliance Solar use high power LEDs
and provides better light output than similar products
through National Committee on Plasticulture Applications
available in the market. The charge controller in the pro-
in Horticulture (NCPAH). This partnership provided signi-
ducts has been developed in-house and has one of the
ficant economic gains for farmers, strong value proposition
highest efficiencies. Other value added features like mobile
for consumers, inclusiveness of small shopkeepers, an over-
charging and dimming of light have also been introduced in
arching physical distribution and logistics infrastructure and
the products. The products are made of poly carbonate, the
above all, greater rural prosperity.
strongest plastic material and are designed specially to
We have achieved certification of all our coloured products operate in rugged rural conditions. Generating electricity
allowing use of our products in the pipes used for city gas. from solar energy using PV technology has no green-house
We will be the first Indian company among 11 PVC gas emissions, no noise pollution and waste generation.
producers to be listed for resin/piping material at the Plastic Solar lanterns used as a substitute for kerosene lamps comp-
Pipe Institute (PPI). letely displace the emissions from kerosene lamps and also
avoid the heavy cross-subsidy provided by the Govt. for
Our business vision extends beyond our commercial interests. We believe in the
Female 4.74%
philosophy of co-existence, ‘Vasudhaiva Kutumbakam’ – the whole world is one
family. Our Corporate Social Responsibility (CSR) strategy is to have close and
continuous interaction with the people and communities around manufacturing
divisions; the thrust is on improving their quality of life, especially of the people
from the underprivileged segment of the society.
Our contributions are in the areas of health, education, infrastructure
development (drinking water, improving village infrastructure, construction of
schools etc.), relief and assistance in the event of a natural disaster and other social
initiatives. The company’s aim is to provide comprehensive health services Male 95.26%
covering preventive, promotive, curative and community health care services.
We invest in people and nurture talent inside and outside the organisation. Our Workforce Breakdown-Genderwise
vision is to develop future leaders to drive our sustainability agenda — transform
the energy landscape, improve social infrastructure and enhance life.
Human Resources
More than 50 years Less than 30 years
The economic scenario experienced globally was unprecedented from a business 14.42% 18.70%
context. The key challenge was undoubtedly on the ‘people’ front.
In such a scenario, our way of managing the balance between driving efficiencies
and staying on the ‘growth’ trajectory was a challenging act. The fact that we
managed to do both is testimony and reflection of the quality of human talent the
company has developed over the years. It is because of this human capital that our
company sails through the stormy times. A much brighter future now beckons!
30-50 Years
Our ‘human talent’ today is 24,679. This includes engineers, management 66.88%
Disputes Act. India, 1947. Any other changes are governed through the provisions
of applicable laws.
This year, the total spend on benefits extended to employees was Rs 4,840.20
million. This includes group medical employee insurance scheme, group personal Trainees Manager
accident insurance, employees’ pension scheme, provident fund scheme, gratuity 6.07% 31.86%
Extract from RIL’s Chairman & Managing Director, Shri Mukesh Ambani’s statement to the
shareholders at the 35th Annual General Meeting held at Mumbai on November 17, 2009.
The complete text of the statement is available on RIL website - http://www.ril.com
2004-05
2005-06
2006-07
2007-08
2008-09
Non Management
programme. Our relationship with IIM Bangalore goes beyond the MPRE Staff
programmes. We have tailor-made ‘Management Development Programmes’
(MDP) for the Company’s high growth managers – MDP Level I and Level II. 82
employees in three batches underwent training under this programme.
2004-05
2005-06
2006-07
2007-08
2008-09
performance review and discussion, universal access to every employee through the Management Staff
ESS (Employee Self Service) on-line portal to all policies and practices of the
company.
Several other initiatives that emerged from this exercise are being worked on and a
plan is being put in place for implementation. The key ones among them include-
career development model, supervisory development plan and programme and a
formal reward and recognition mechanism. All these initiatives are now integrated
into our corporate DNA.
EDUCATION
Education is one of the major thrust areas of RIL’s CSR interventions. A network
of 10 schools caters to over 14,000 students spread across geographies in India. To
encourage school children from neighbouring villages in their learning process,
CSR cells at our manufacturing divisions and E&P blocks work zealously, round
the year to support educational requirement of the community / schools in the
neighbouring region.
While a computer has become an integral part of our lives, it is still away from the
reach of students of Indian villages. We have taken a lead role in promoting
computer literacy programme at village level. We provide computers in numerous
schools and community halls in villages near its manufacturing divisions.
In partnership with a local NGO in Surat, we have developed a fully functional
Water Relief
Jamnagar district is a water-scarce area. We supply round the year drinking water to
Meghpar and Padana villages adjacent to the refinery through tankers. Drinking
water was also supplied to Moti Khavdi, Kanalus and Navania villages through
tankers during acute shortage of water in summer months in FY 2008-09.
Considering the problem of scarcity of drinking water being experienced by the
people of Gadimoga, drinking water was supplied through private water tankers
for the last four years. To offer a permanent solution to the people from Gadimoga
and Chinavalasala villages, we have constructed a summer storage water tank and
overhead reservoirs under Reliance Rural Water Supply (RWS) scheme.
Our Dahej Manufacturing Division continues to provide drinking water to its
neighbouring villages. It has undertaken a job of renovating reservoir at Luvara
village. The division in working with Water and Sanitation Management Organi-
sation (WASMO) of Gujarat Water Supply and Sewerage Department to create
drinking water distribution system through pipeline in neighbouring villages of
Dahej.
Heritage Care
Jamnagar unabatedly keeps on supporting the development at mythological town
of Dwarka. In order to further improve infrastructure and aesthetics at Dwarka, a
cement-concrete road and a befitting traffic circle were constructed. We gave
financial aid to Shardapeeth, Dwarka to support its spiritual and educational
activities.
Reliance Dhirubhai India Education Fund With improved infrastructural facilities, several high-
budgeted research projects of considerable relevance to the
RIL-Stanford Graduate School of Business announced the
community are on hand. Most of the studies have the
creation of the ‘Reliance Dhirubhai India Education Fund’
potential of translating into tangible benefits, which will
to support promising Indian students with financial need in
enhance humanity.
obtaining an MBA at Stanford in April 2008. Each year,
Stanford Business School may award up to five Reliance
Dhirubhai Fellowships. Reliance Dhirubhai Fellows will
receive full financial support for the two-year Stanford MBA
Programme.
KPMG was engaged by Reliance Industries Limited (RIL) to provide independent assurance of the RIL’s Sustainability
Report (‘the Report’) for the Financial Year (FY) 2008-09. Our responsibility is to provide “limited assurance” on the
report contents as described in the assurance scope.
Our conclusions
Based on our review, nothing has come to our attention that would cause us not to believe that the Report presents the
Company’s sustainability performance and includes statements and claims that reflect Company’s achievements and
challenges, as supported by both documentary evidences and internal records.
Maturity
l assessment of sustainability framework
- RIL has deployed a process for identification, selection and prioritization of the sustainability risks and
opportunities, which are presented in the report
- The performance management system for the environmental indicators is robust
- Social initiatives form the backbone of the existing sustainability framework
Our Approach
Our procedures selected depend on our judgment, including the assessment of the risks of material misstatements of
selected performance indicators and disclosures and our assessment of the internal controls relevant to the company’s
preparation and presentation of the sustainability information in the 2008-09 Report. Our procedures were designed to
gather sufficient appropriate evidence to determine that the selected performance information is not materially
misstated. Our work included the following procedures:
Testing
l of process and systems at corporate level and manufacturing division level to generate, collate, aggregate
and report the sustainable development performance indicators for the year
Visits
l to all manufacturing divisions mentioned above
Interviews
l with management, at the manufacturing divisions
A review
l of draft of the Report to ensure there are no disclosures that are misrepresented or inconsistent with our
findings
Key Observations
Without affecting the conclusions presented above, we would like to draw readers’ attention to the following:
RIL has
l a sustainability reporting framework in place through which sustainability performance is being reported
annually
The
l Report in its current form communicates RIL’s sustainability strategy and the strategy navigator in the content
page enhances the readability of the report
The
l Report establishes linkages with UNGC principles and API/IPIECA guidelines for Oil & Gas sector, besides GRI
framework
Responsibilities
The Management of RIL is responsible for preparing the Report and the information and statements within it.
Our responsibility is to express our conclusions in relation to the above scope. We conducted our engagement with a
multidisciplinary team including specialists in ISAE 3000, stakeholder engagement, auditing environmental, social and
financial information and with experience in similar engagements in the Oil and Gas sector. This report is made solely
to RIL in accordance with the terms of our engagement. Our work has been undertaken so that we might state to RIL
those matters we have been engaged for. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than RIL for our work, for this report, or for the conclusions we have reached.
Arvind Mahajan
Authorised Signatory
KPMG Advisory Services Private Ltd., India
January 25, 2010
2. Organizational Profile
2.1 Name of the organization. Contents Full
2.2 Primary brands, products, and/or services. RIL Annual
Report FY 2008- Full
09 (Pg 2- 6)
2.3 Operational structure of the organisation, including RIL Annual
main division, operation companies, subsidiaries and Report FY 2008- Full
joint ventures. 09 (Pg 166-170)
2.4 Location of organisation's headquarters. Contents Full
2.5 Number of countries where the organisation operates
and names of countries with either major operations 9 - 10 Full
or that are specifically relevant to the sustainability
issues covered in the report.
2.6 Nature of ownership and legal form. RIL Annual
Report FY 2008- Full
09 (Pg 72-73)
2.7 Markets served (including geographic breakdown, 9 - 10 Full
sectors served and types of customers/beneficiaries).
2.8 Scale of the reporting organisation. 9 - 10, 33 Full
2.9 Significant changes during the reporting period 32 - 33 Full
regarding size, structure or ownership.
2.10 Awards received in the reporting period. 26 - 27 Full
3. Report Parameters
Report Profile
3.1 Reporting Period ( e.g. fiscal/calendar year) for 10 Full
information period
3.2 Date of most recent previous report (if any). RIL Annual
Report FY 2008
-09; RIL Sustaina-
bility Report FY Full
2007-08 and Press
Releases available
on RIL website.
3.3 Reporting cycle (annual, biennial, etc.) Full Annual
3.4 Contact point for questions regarding the report or 11 Full
its contents.
3.8 Basis for reporting on joint ventures, subsidiaries, We continue to report on all domestic
leased facilities outsourced operations and other Full operations of RIL, downstream as well as
entities that can significantly affect comparability from upstream businesses including our
period to period and/or between organisations. upstream operations where we are 30 %
joint-operators.
Environment Indicators
EN1 Materials used by weight or volume. (Core) 28 Full
EN2 Percentage of materials used that are recycled 28 Full
input materials.(Core)
EN3 Direct energy consumption by primary energy 28, 34 Full
source.(Core)
EN4 Indirect energy consumption by primary source. (Core) 28, 34 Full
EN5 Energy saved due to conservation and efficiency 28 - 36 Full
improvements. (Additional)
EN6 Initiatives to provide energy-efficient or renewable
energy based products and services, and reductions 28, 34 Full
in energy requirements as a result of these initiatives.
(Additional)
EN7 Initiatives to reduce indirect energy consumption 28 - 36 Full
and reductions achieved. (Additional)
EN8 Total water withdrawal by source. (Core) 28, 41 Full
EN9 Water sources significantly affected by 28, 41 Full
withdrawal of water. (Additional)
EN10 Percentage and total volume of water recycled 28, 41 Full
and reused. (Additional)
EN11 Location and size of land owned, leased, managed
in, or adjacent to, protected areas and areas of 42 Full
high bio-diversity value outside protected areas. (Core)
EN12 Description of significant impacts of activities,
products, and services on bio-diversity in protected 42 Full
areas and areas of high bio-diversity value outside
protected areas. (Core)
EN13 Habitats protected or restored.(Additional) 42, 54 Full
EN14 Strategies, current actions, and future plans 42 Full
for managing impacts on bio-diversity. (Additional)
EN15 Number of IUCN Red List species and national No IUCN Red List species within area of
conservation list species with habitats in areas Full operations based on latest EIA Report.
affected by operations, by level of extinction risk.
(Additional)
EN16 Total direct and indirect greenhouse gas emissions 25, 28, 35 Full
by weight. (Core)
On account of spread of activities across
regions, data related to indirect GHG
emissions such as employee travel and
EN17 Other relevant indirect greenhouse gas emissions Not emissions saved by tele’ and video
by weight. (Core) Reported conferencing was not tracked and
captured. We are working on this and
intend to address in the next 2-3 years.
HR3 Total hours of employee training on policies and We do not have specific training modules
procedures concerning aspects of human rights that Full on human rights but our existing
are relevant to operations, including the percentage induction programmes cover the basics
of employees trained. of human rights.
HR4 Total number of incidents of discrimination and Full This year there was no incident of
actions taken. (Core) discrimination across our locations.
HR5 Operations identified in which the right to exercise This year there was no operation
freedom of association and collective bargaining may Full identified in which the right to exercise
be at significant risk, and actions taken to freedom of association and collective
support these rights. (Core) bargaining was at significant risk.
HR6 Operations identified as having significant risk for This year there was no operation
incidents of child labor, and measures taken to Full identified as having significant risk for
contribute to the elimination of child labor. (Core) incidents of child labour.
HR7 Operations identified as having significant risk for This year there was no operation
incidents of forced or compulsory labor, and Full identified as having significant risk for
measures to contribute to the elimination of forced incidents of forced or compulsory labour.
or compulsory labor. (Core)
HR8 Percentage of security personnel trained in the
organization's policies or procedures concerning 49 Full
aspects of human rights that are relevant to
operations. (Additional)
HR9 Total number of incidents of violations involving rights Full This year there were no incident of
of indigenous people and actions taken. (Additional) violation involving rights of indigenous
people across locations
Company Profile 09
Report Scope 10 - 11
Lessons Learnt 24
Performance on Commitments 25
Assurance Statement 56 - 57
Glossary 70 - 72
Refer
Annual
Capital Expenditure and ECO - 3, ECO A3 Report
Interest Payments FY 08-09
Pg. No.
100 - 101
The World Business Council for Sustainable Development (WBCSD) is a CEO-led, global association
of around 200 companies dealing exclusively with business and sustainable development.
On invitation to Shri Mukesh D. Ambani, Reliance Industries Limited became a Council Member of
WBCSD in 2007. Shri Ambani has been elected as Vice Chairman of the WBCSD Executive
Committee in 2008.
As a member of WBCSD, we work with a mindset beyond corporate philanthropy, to build inclusive
business models that create new revenue streams while serving the needs of the people of our country
through sound commercial operations. We have presented many such examples in this report that
clearly demonstrate a strong business case for sustainable development.
While developing this report we referred to WBCSD’s four focus areas viz; Energy and Climate;
Development; Business Role and Ecosystems.
• Energy and Climate has been identified as one of the material issues to us and we have taken
numerous initiatives to mitigate our GHG emissions and minimise the impact of our activities on
climate change.
• Our foundation focuses on Development area, and we have partnered with various NGOs and
initiated various community related programmes for inclusive growth and empowering people to
help them move into formal economic activities
• We aim to enhance to quality of life in society across the entire socio – economic spectrum through
our various initiatives and also seek to define the Business Roles we will play in tomorrow’s
society by actively engaging with stakeholders
• We believe that Ecological balance is one of the three pillars of sustainable development and
without it, business cannot function. Waste minimisation is one of the material issues and we have
taken various initiatives to minimise its generation. We are also investing in various initiatives that
will mitigate the impact on our ecosystem.
ROW,
in g TOMOR
Transform TODAY.
09
ility Rep or t 200 8-
Sustainab
To indicate that a report is GRI-based, report makers declare the level to which they have
applied the GRI Reporting Framework via the “Application Levels” system.
To meet the needs of beginners, those somewhere in between, and advanced reporters, there
are three levels in the system. They are titled C, B, and A. The reporting criteria at each level
reflect a measure of the extent of application or coverage of the GRI Reporting Framework.
5S Sort, Set in order, Shine, Standardise and CCT Cold Condensate Tank
Sustain. CDM Clean Development Mechanism
AAA One of the highest credit rating of financial CDU Crude Distillation Unit
instruments given by Rating Agencies;
reflects highest financial strength to meet CEO Chief Executive Officer
repayment obligations CERs Certified Emission Reductions
AC Air Condition CFC Chlorofluorocarbons
AFBC Atmospheric Fluidised Bed Combustion CFL Compact Fluorescent Lamp
AGM Annual General Meeting CHSEE The Centre for Health, Safety &
AHU of CP 11 Air Handling Unit of Continuous Environment Excellence
Polymerization Unit 11 CGSI Corporate Governance and Stakeholder
AIDS Acquired Immune Deficiency Syndrome Committee
AIF American India Foundation CII Confederation of Indian Industry
APH Air Pre Heater CIPP Cambridge International Primary Program
ARTI Appropriate Rural Technology Institute CO2 Carbon Dioxide
API American Petroleum Institute COMEE Centre of Maintenance and Engineering
Excellence
ART Centre Anti-Retroviral Treatment Centre
CP-6 Unit of Continuous Polymerization – 6
ASCI Advertising Standards Council of India
CPP Captive Power Plant
ASP Air Separation Plant
CRISIL Credit Rating Information Services of
ASTD American Society for Training & India Limited
Development
CRU Condensate Recovery Unit
ATU III Amine Treating Unit
CSIR Council for Scientific & Industrial Research
ATSE Australian Academy of Technological
Sciences and Engineering CTBD Cooling Tower Blow Down
BAA2 (Moody's) Moody's long-term obligation ratings are CSR Corporate Social Responsibility
opinions of the relative credit risk of fixed- cu m Cubic metres
income obligations with an original maturity
of one year or more. Obligations rated BAA DAIS Dhirubhai Ambani International School
are subject to moderate credit risk. They are DAF Dhirubhai Ambani Foundation
considered medium-grade and as such may DCS Distributed Control Systems
possess certain speculative characteristics
DGFASLI Directorate General Factory Advice Service
BBB Standard & Poor's (S&P) is a division of & Labour Institutes
McGraw-Hill that publishes financial
research and analysis on stocks and bonds. It DGH Directorate General of Hydrocarbon
is of the top three companies in this business, DMA Disclosure on Management Approach
along with Moody's and Fitch Ratings. BBB:
medium class companies, which Are DM Demineralized
satisfactory at the moment DMDS Di-methyl Di- Sulphide
BCG Boston Consulting Group DNA Deoxyribonucleic acid
BPD Barrels of oil per day DOTS Directly Observed Treatment Short-course
BG British Gas Group DSG Direct Steam Generation
BIW Business Information Warehouse E&P Exploration & Production
BMT Business Management Trainee EDC Ethylene Dichloride
BSC British Safety Council ELP Extended Learning Program
BSE Bombay Stock Exchange EMP Environmental Management Programmes
BSE SENSEX Index for 30 large companies based on the EPA Environmental Protection Agency
free float market capitalisation on the BSE EPC Engineering Procurement Construction
btoe Billion tons of Oil Equivalent ERP Enterprise Resource Planning
CAS Creativity, Action and Service ESS Employee Self Service
CASHe Change Agents for Safety, Health and ESOS Employee Stock Option Scheme
Environment
ETP Effluent Treatment Plant
CBFS Carbon Black Feed Stock
FCC Fluidised Catalytic Cracker
CBM Coal Bed Methane
FGRS Flare Gas Recovery System
CBSE Central Board of Secondary Education
FPSO Floating Production Storage and Offloading
CCDT Committed Communities Development Trust
FRP Fibre Reinforced Plastic
CCQC Chapter Convention on Quality Circle
GDP Gross Domestic Product
CCS Carbon Capture and Storage
GHG Greenhouse Gases
HNHRC Sir Hurkisondas Nurrotamdas Hospital MAPD Methyl Acetylene and Propadiene
and Research Centre MBPD Million barrels per day
HNMRS Sir Hurkisondas Nurrotamdas Medical MCGM Brihanmumbai Mahanagarpalika
Research Society (formerly known as Muncipal Corporation of
HRSG Heat Recovery Steam Generator Greater Mumbai)
HCTF Habitat Conservation Trust Foundation MITCICE Monitor, Inform, Transact, consult, Involve,
collaborate and impower
IB International Baccalaureate Diploma
MMKcal Million Kilo Calorie
ICPE Indian Centre for Plastics in the Environment
MNRE Ministry of New and Renewable Energy
ICSE Indian Certificate of Secondary Education
MP Medium Pressure
ID Induced Draft
MPRE Management Programme for Reliance
IFAC International Federation of Accountants Engineers
IFC International Finance Corporation MT Million Tonnes
IGCSE International General Certificate of MUICT Mumbai University Institute of Chemical
Secondary Education Technology
ILO Indian Labour Organization MW Megawatt
IOP Inter Offsite Plant MWH Megawatt hour
IIM Indian Institute of Management NAB National Association for the Blind
IIT Indian Institute of Technology NASI National Academy of Sciences, India
IMS Integrated Management System NCL The National Chemical Laboratory
IPA Isophthalic Acid NCQC-07 National Convention on Quality Circle – 07
IPIECA International Petroleum Industry NCPAH National Committee on Plasticulture
Environmental Conservation Association Applications in Horticulture
IPL Indian Premier League NCAER National Council of Applied Economic
IRIS Integrated Risk Information System Research
ISO International Organization for NELP New Exploration Licensing Policy
Standardization NMITLI New Millennium India Technology Initiatives
ISAE Indian Society of Agricultural Engineers NGOs Non-Government Organizations
ISAE – 3000 International Standard on Assurance NIO National Institute of Oceanography
Engagements 3000
Nox Nitrogen Oxide
ITI Industrial Training Institute
NPBD National Project on Biogas Development
IUCN International Union for Conservation
of Nature O&G Oil & Gas
JNCAR Jawaharlal Nehru Centre for Advanced ODS Ozone Depleting Substances
Scientific Research OHC Occupational Health Centre
KG-D6 Exploration Block in Krishna-Godavari Basin OHSAS Occupational Health and Safety Assessment
KMS Kilometers Series
OSHA Occupational Safety & Health Administration SAP Systemanalyse und Programmentwicklung
P.T. Clinic Purshottamdas Thakurdas Clinic SBT Segregated Ballast Tank
PBDIT Profit Before Depreciation, Interest and Tax SEBI Securities & Exchange Board of India
PBT Polybutylene Terephthalate SEZ Special Economic Zone
PE Polyethylene SGA Small Group Activity
PET Polyethylene Terephthalate SHG Self-Help Groups
PFF Polyester Fibre Fill Sox Sulphur Oxides
PFY Polyester Filament Yarn SPM Suspended Particulate Matter
pH A measure of chemical activity of Hydrogen SR Sustainability Report
in a solution used to express acidity or SRT Short Residence Time
basicity
SSC Secondary School Certificate
PGH – BZ Pyrolysis Gasoline Hydrogentation - Benzene
sq ]kms Square kilometers
PHC Primary Health Centre
SVADES Society for Village Development in
PMT Panna-Mukta and Tapti Petrochemicals Area
POY Partially Oriented Yarn SVNIT Sardar Vallabhbhai National Institute of
PP Polypropylene Technology
PPI Plastic Pipe Institute SWAT Internal team that implements best
PPP Public-Private Partnership maintenance practices across all existing
& future RIL manufacturing divisions
PPR Polypropylene Pipes
TA Terephthalic Acid
PRIA Patalganga Rasayani Industrial Association
TB Tuberculosis
PRU Propylene Recovery Unit
tCO2 Total Carbon Dioxide
PSF Polyester Staple Fibre
TPD Tonnes per day
PSM Process Safety Management
TLV Threshold Limit Value
PSF CP 11 Polyester Staple Fibre Continuous
Polymerization Unit 11 TMA Trimelletic Acid
PTA Purified Terephthalic Acid UAA UDCT Alumni Association
PV Photo Voltaic UDCT University Department of Chemical
Technology
PVC Polyvinyl Chloride
UICT University of Mumbai Institute of Chemical
PX Paraxylene Technology
QCC Quality Control Circle UHMWPE Ultra high molecular weight polyethylene
R&D Research and Development UNAIDS The Joint United Nations Programme on
RCEC Reliance Certified Engineering Course HIV/AIDS
ReSOP Reliance Safety Observation Program UNFCCC United Nations Framework Convention on
RIC Reliance Innovation Council Climate Change