Impact of Lockdown Due To Coronavirus Pandemic On The Performance of Reliance Industries LTD

PRESENTED BY
AISHWARYA AMRITKAR (MMS 012002)

JANAKIDEVI BAJAJ INSTITUTE OF MANAGEMENT STUDIES (JDBIMS)
Impact of Lockdown due to Coronavirus Pandemic on the

Performance of Reliance Industries Ltd.
About the RELIANCE INDUSTRIES LTD.
Reliance Industries Limited (RIL) is an Indian Multinational Conglomerate company. Reliance is
one of the most profitable companies in India, the largest publicly traded company in India
by market capitalization.
The company is ranked 106th on the Fortune Global 500 list of the world's biggest corporations
as of 2019. It is ranked 8th among the Top 250 Global Energy Companies by Platts as of 2016.
Reliance continues to be India's largest exporter, accounting for 8% of India's total merchandise
exports with a value of Rs 147,755 crore and access to markets in 108 countries. Reliance is
responsible for almost 5% of the government of India's total revenues from customs and excise
duty. It is also the highest income tax payer in the private sector in India. In 2019, Reliance
Industries become the first Indian firm to cross Rs 9 lakh crore market valuation mark. It has
become the first ever Indian company to cross Rs 10 lakh crore market capitalization
About Industry
Reliance Industries Limited
Type Public
BSE: 500325
Traded as
NSE: RELIANCE
LSE: RIGD
BSE SENSEX Constituent
CNX Nifty Constituent
ISIN INE002A01018
Industry Conglomerate
Founded 8 May 1973; 46 years ago
Founder Dhirubhai Ambani
Headquarters Mumbai, Maharashtra,
India
Area served Worldwide
Key people Mukesh Ambani
(Chairman & MD)
Products Petroleum
Natural gas
Petrochemicals
Textiles
Retail
Telecommunications
Media
Music
Banking
Revenue ₹622,809 crore (US$87 billion) (2019)
Operating income ₹92,656 crore (US$13 billion) (2019)

Net income ₹39,588 crore (US$5.6 billion) (2019)
Total assets ₹1,002,406 crore (US$140 billion) (2019)
Owner Mukesh Ambani (47.35%)
Number of employees 194,056 (2019)
Subsidiaries Reliance Jio

Reliance Retail
Reliance Petroleum
Jio Payments Bank
JioSaavn
Network 18
Hathway
DEN Networks
Website www.ril.com
Outlook of Reliance industries ltd and its subsidiaries during Lockdown
Reliance Retail, the retail arm Mukesh Ambani-led Reliance Industries Ltd, is keeping all its
grocery stores, except those in the malls, open from 7 am to 11 pm, even as many cities have
closed down following the coronavirus crisis.
It has augmented its supply chain process to ensure stocks of all essentials and their
replenishments across all grocery stores.
The retail major has provided hand sanitisers for employees at all its stores, and have educated
them of the importance of frequently washing hands with soap and water.
Reliance Retail will ply vehicles with essential items in certain areas for sale to customers at
their doorsteps during the complete lockdown.
Reliance Petroleum, firm's petrol pumps will remain open to customers to ensure there is no
shortage of fuel. Reliance will provide free fuel for all emergency service vehicles used to
transport Covid-19 patients and quarantined people
Reliance Jio, Its broadband service, JioFiber will provide 10 Mbps of connectivity, wherever
geographically feasible, without any service charges, for the lockdown period.
Jio will also provide home gateway routers with a minimum refundable deposit. Jio will provide
double-data across its 4G data add-on vouchers.
It will also bundle non-Jio voice calling minutes in these vouchers at no additional cost, to meet
the increased need of these services.
Reliance Jio recently rolled out an online tool that helps people self-assess their symptoms in
order to map their risk of contracting Covid-19.
The self-test is a list of questions at the end of which the AI-driven tool figures out the test
taker’s risk level, from high to low.
Reliance Industries Limited (RIL) has announced a slew of measures to fight the
deadly coronavirus (COVID-19) including setting up India’s first dedicated COVID-19 hospital,
special quarantine facilities, importing additional test kits and enhancing its production
capacities to produce 1,00,000 face-masks per day.
Within two weeks, Sir H.N. Reliance Foundation Hospital in collaboration with the
Brihanmumbai Municipal Corporation (BMC), has set up a dedicated 100 bedded centre at
Seven Hills Hospital, Mumbai, for patients who test positive for COVID-19.
Reliance Life Sciences is importing additional test kits and consumables for effective testing. RIL
has also built a fully-equipped isolation facility in Lodhivali, Maharashtra and handed it over to
the district authorities.
Reliance Foundation will provide free meals to people across various cities in partnership with
NGOs to those whose livelihood has been impacted by the current crisis.
RIL also promised that they will continue to pay contract and temporary workers, even if work
has halted due to this crisis.
The company has moved most of its employees to its work-from-home platform except for
those who are manning critical roles in maintaining the Jio network for nearly 40 crore
customers and for providing uninterrupted supply of fuel, grocery and other essential items of
daily consumption.
Besides, RIL has announced an initial support of ₹5 crore to Maharashtra Chief Minister’s Relief
Fund.
Impact of Lockdown on outlook of Reliance industries ltd and its subsidiaries

Positive:
 During Lockdown, Reliance Industries Ltd. and its subsidiaries companies like
Reliance Jio,
Reliance Retail,
Reliance Petroleum,
Reliance Life Sciences and
Reliance Foundation are creating demand and supply in the market by providing
essential services, retail services, hospitality services, broadband services and by
producing testing kit, equipment , face mask, etc. to fight against deadly coronavirus.
 RIL contributing monetary support to state and central government’s Relief fund.
Negative:
 The company's business has been affected by coronavirus outbreak and has lost Rs 4.4
lakh crore market value over the last three and a half months, a fall of 44 per cent since
it crossed the market capitalisation of Rs 10 lakh crore in November last year.
 The potential revenue loss due to the shutdown of Reliance’s retail network (except
grocery), given the ongoing lockdown in India, is estimated at ~50 per cent in first
quarter FY21E with monthly cash burn of around Rs 7.6 billion. Recovery is expected to
be slow with potential EBITDA cut of ~60 per cent/30 per cent for FY21/FY22E.
 India's 21-day lockdown will hit demand for liquid fuels, crimp refinery runs and reduce
demand for imported crude, possibly for the next few months will hit Reliance Refining
and Petroleum Industries, which largely supply export markets, are reducing runs too.
 The ongoing lockdown should have limited impact on RJio as telecom companies are
expected to see recharge upgrades given the increase in data consumption. For
FY21/FY.
Correlation Table between returns on BSE indices (x) & returns on company’s
share price (y)
Column x Column y
Column x 1
Column y 0.91418745 1
Above table values indicate strong positive correlation between x & y

It means increase in value of y with increase in value of x
Conclusion
 Above report is about the impact of lockdown on performance of Reliance Industries
Ltd.
 I analyzed the impact through various perspectives, also studied its negative and
positive impact on outlook of Industry.
 Due to outbreak of COVID-19 India is in lockdown so Reliance Industries Limited has

various subsidiaries companies dealing in various sectors like retail, Life sciences,
broadband and hospitality are doing well by creating demand and supply during this
lockdown but at the same time some other subsidiaries of RIL like refining & petroleum,
fashion and textiles are facing difficulties as demand falling due to lockdown.
 Further analyzed BSE Indices and Reliance Industries Limited Share’s price, by finding
correlation between the returns on BSE indices and returns on RIL’s share price.
 Correlation Table tells that there is strong correlation between x & y which means
values of y increase with increases in values of x.
 Also upward sloping correlation graph indicates direct relationship between x & y.
References
https://www.argusmedia.com/en/news/2090374-indias-lockdown-to-hurt-crude-imports-runs-demand
https://economictimes.indiatimes.com/markets/stocks/recos/buy-indusind-bank-target-price-rs-630-
emkay-globalnbsp/articleshow/74964044.cms
https://www.forbes.com/sites/anuraghunathan/2020/03/25/indian-industry-leaders-step-up-with-
donations-and-free-services-amid-sweeping-covid-19-lockdown/#c33deb66fe13
https://www.businesstoday.in/videos/news-reel/ril-chairman-mukesh-ambani-gears-up-to-fight-
coronavirus/398585.html
https://www.bseindia.com/indices/IndexArchiveData.html

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PRESENTED BY

AISHWARYA AMRITKAR (MMS 012002)

Impact of Lockdown due to Coronavirus Pandemic on the

Reliance Industries Limited

Founded 8 May 1973; 46 years ago

Founder Dhirubhai Ambani

Revenue ₹622,809 crore (US$87 billion) (2019)

Operating income ₹92,656 crore (US$13 billion) (2019)

Total assets ₹1,002,406 crore (US$140 billion) (2019)

Owner Mukesh Ambani (47.35%)

Number of employees 194,056 (2019)

Subsidiaries Reliance Jio

Impact of Lockdown on outlook of Reliance industries ltd and its subsidiaries

Above table values indicate strong positive correlation between x & y

 Due to outbreak of COVID-19 India is in lockdown so Reliance Industries Limited has

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