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1
INTRODUCTION TO THE TOPIC
INTRODUCTION TO TELECOM
Ever since the evolution of man on this earth, he wanted to communicate with his fellow
human being. In that era, he used to communicate through signs and symbols. Gradually
with time, he started using words and today it is through mobiles, e-mails, fax etc through
which one communicates from one place to another.
The word Telecom (which is an abbreviated version of ' telecommunication) in real
sense refers to the Interaction & transfer of information between two distant points in
space. This meaning however, has been subjected to modifications in accordance with
further innovations made be the Telecom Industry.
SCENARIO OF INDIAN TELECOM INDUSTRY IN INDIA
In 1880, two telephone companies namely The Oriental Telephone Company Limited
and The Anglo-Indian Telephone Company Limited approached the Government of
India with the objective of establishing Telephone Exchanges across the country. Initially,
the Government denied the permission as it wanted to exercise its monopoly power over
the promising industry once it emerged. By the following year, it changed its decision and
finally on 28th January, 1882, license was granted to The Oriental Telephone Company
Limited of England for opening telephone exchanges at Kolkata, Mumbai, Chennai and
Ahmadabad.
CHAPTER ONE
2
The opening of exchanges was followed by further innovations and improvements in all
sections of the telecom industry. However, while telephones were introduced in the major
towns and cities across the country during the British period, total number of telephones
in India in 1948 were merely 80,000.The growth was negligible even after independence
and the telephone was used as a status symbol by the rich despite being an extremely
essential device of public utility. This sluggish rate of growth continued till 1991 when
the number of telephones was 5.07 million.
The period post 1975 saw resurgence in the India Telecom Market by virtue of a series of
fruitful decisions initiated by the Government which included:
The separation of Department of Telecom (DOT) From Post and Telegraph (P&T) in
1975.
The formation of Mahanagar Telephone Nigam Limited (MTNL) out of (DOT) to provide
telecom services exclusively to Delhi and Mumbai.
In the 1990s, the telecom sector was opened up by the Government for private investment
as a part of Liberalization-Privatization-Globalization Policy.
On 1/oct/2000, the Government corporative its operations wing under the name of
Bharat Sanchar Nigam Limited
(BSNL).
The Indian telecom industry is going through phenomenal growth. With 100 million
installed mobile subscribers, adding four million new subscribers every month, and the
cheapest mobile rates in the world at two cents per minute, it is not surprising that all the
telecom vendors are vying for a piece of this action. Major new trends unseen in previous
markets have emerged during the last five years.
3
Start-ups and established vendors involved in the telecoms eco- system need to take heed
and develop appropriate strategies in order to take advantage of this new high-growth
opportunity.
The telecommunications industry is at the forefront of the information age-delivering
voice, data, graphics and video at ever increasing speeds and in an increasing number of
ways. Whereas wire line telephone communication was once the primary service of the
industry, wireless communication services and cable and satellite program distribution
make up an increasing share of the industry. During the late 1990s, the
telecommunications industry experienced very rapid growth and massive investment in
transmission capacity. Eventually this caused supply to significantly exceed demand,
resulting in much lower prices for transmission capacity. The excess capacity and
additional competition led to either declining revenues or slowing revenue growth, which
has led to consolidation within the industry, as many companies merged or left the
industry.
The largest sector of the telecommunications industry continues to be made up of wired
telecommunications carriers. Establishments in this sector mainly provide telephone
service via wires and cables that connect customers premises to central offices
maintained by telecommunications companies. The central offices contain switching
equipment that routes content to its final destination or to another switching center that
determines the most efficient route for the content to take. While voice used to be the
main type of data transmitted over the wires, wired telecommunications service now
includes the transmission of all types of graphic, video, and electronic data mainly over
the Internet.
4
The telecommunications industry offers steady, year-round employment.
The business environment for Indias telecommunications industry is excellent. The
government policies have encouraged the growth, increased competition and high levels
of foreign direct investment (up to 74% foreign investment is now allowed). The Indian
governments goal is to provide an environment where service companies, handset
manufacturers and network companies will invest in India and use India for research and
development work (R&D).
The favorable business environment has attracted a number of foreign multinational firms
such as Hutchison, Vodafone, Nokia and Malaysia Telecom. In my opinion the real edge
for India will be the R&D facilities being setup there which can provide innovation for
next generation technologies - not only for India but for everywhere else as well.
Indian Telecom sector, like any other industrial sector in the country, has gone through
many phases of growth and diversification. Starting from telegraphic and telephonic
systems in the 19th century, the field of telephonic communication has now expanded to
make use of advanced technologies like GSM, CDMA, and WLL to the great 3G
Technology in mobile phones. Day by day, both the Public Players and the Private
Players are putting in their resources and efforts to improve the telecommunication
technology so as to give the maximum to their customers.
The telecom network in India is the fifth largest network in the world meeting up with
global standards. Presently, the Indian telecom industry is currently slated to an estimated
contribution of nearly 1% to Indias GDP.
5
INDIAN TELECOM STATISTIC AND MAJOR PLAYER
Total telephone subscriber 429.72 Over-all Tele-density 36.98% Fixed-line user base 37.96% Wireless user base 391.76
( GSM+CDMA+WLL) GSM Subscribers 288.36 CDMA Subscribers 103.4 Monthly new additions(wire line+wireless) 15.87%
In communication market Airtel capture 24% of share at the same time Reliance
communication have a market share 22 %. Reliance communication faces major
competitions from the Airtel and the other service providers. In a recent survey shows the
Indian telecom statistics.
6
SCOPE OF TELECOM INDUSTRY
The telecom industry is growing at a great pace and the growth rate is expected to double
with every passing year. There are many new developments in the telecomm sector,
including the ingress of 3G technology that the Indian market is witnessing
at present. Public and Private Players MTNL, BSNL, VSNL are the major Public Players,
whereas Airtel, Idea, Hutch, Tata, Reliance, BPL are the leading Private Players in the
country. Some of them are entering foreign markets as well.
OPPORTUNITIES IN INDIA
In the past 3 years has been surveyed by Indian Ministry of Communications and
Information Technology in New Delhi very recently. The telecom sector is one of the
leading contributors to India's flourishing economy. According to the report presented by
taking into account the statement of Indian Ministry of Communications and Information
Technology, the telecom opportunities in India has been growing by 20 to 40 % every
year since past 3 years.
The telecom services in India have been recognized as a world-class tool for the socio-
economic development in India. India is known to rank fourth in the telecom industry in
Asia after China, Japan, and South Korea and the telecom network in India is known to
stand in the eighth position across the globe and second among the emerging economies.
The world average percentage for the telecom industry as against the Indian average is
7.5 times while the Asian average against the same was 4.5 times. The current market
range of the telecommunication industry in India has been estimated to USD 8 billion and
this is expected to undergo an accretion by the end of 2012.
7
The growth witnessed by the telecom market in India has increased the number of
opportunities for the industry and this has been fueled by the growing mobile sector,
which has attained the consumer level of 10 million by the end of December 2002 that
was almost 100 percent in the year. Telecommunication Sector Opportunities in India
assures a transparent, safe, and secured ambiance for the telecom market. Around 300
million population of highly consumable middle-class status that is advantageous for the
industry surrounds the telecom sector in India. This is because, in some of the Indian that
possess land line telephones can be substituted by mobile phones that is very unlike the
developed countries. Therefore, it adds up to the growth in mobile sector in Indian
telecom industry.
Few more Telecommunication Sector Opportunities in India include introduction of
Internet telephony services, privatization of VSNL, and introduction of a number of
international long distance services sector. The opportunities in the Indian telecom sector
is increasing at a massive pace with the introduction of newer and innovative schemes in
various sectors and at present the telecom sector in India is claimed to be one of the major
contributors in India's flourishing economy.
Public Players have more than 60% of the market share
8
MAR KETING STRATEGIES OF RELIANCE INDIA
MOBILE.(RIM)
Rim target the rural India
The main targeted customers of Rim are from rural India. By offering cheap and light
mobile sets Rim attracts most of the customers Of small villages and towns.
Offering cheap handsets
Rim offers cheap and free connections to all costumers.
The cost for Rs-700\set and onward.
Free support and services
In every district and big towns rim opens its service centers to provide better support and
services.
Strong logistics and supply chain
Rim has a strong logistic and supply all over India. In every small town the potential
costumers can easily purchase the rim sets.
Targeting youngsters in metropolitans
Rim attracts youngsters by offering colorful handset at Very low prices.
9
Brand positioning by Rim
Market segmentation
Geographical segment (rural India)
Demographic segment - middle income groups
Target marketing
People living in small towns and villages.
Poor and middle income groups.
Youngsters in big cities.
Businessmen
Positioning
Creating brands
Ads and promotions
Marketing mix
Price : low price strategy
Place : maximum outlets and service centers
Product : varieties available for various groups
Promotion: various schemes for pre-paid and post-paid
Plan name Plan
1000
Monthly Plan
Charge (Rs.)
1000
Free Calls
Worth (Rs.)
1000
Rate per Call
Unit(Rs./Pulse)
1.00
Refundable
Deposit for ILD
(Rs.)
1000
Smart Office- Tariff plans OF RIM
Plan
1000
Plan
1500
Plan
2000
1000 1500
2000
1000 1500
2000
1.00 0.90
0.85
1000 1000
1000
10
11
Smart Office - Call charges
Call unit
Length(Pulse)
(Sec.)
Plan 1000 @
Re. 1.00 /
Pulse
Plan 1500 @
Rs. 0.90 /
Pulse
Plan 2000 @
Rs. 0.85 /
Pulse
Calls to
Fixed
lines
Local Calls
(including
Intra-
circle < 50
kms)
180 0.33 0.30 0.28
Intra-circle
> 50 kms 60 1.00 0.90 0.85
Inter-
circle
0 -
50
kms
90 0.67 0.60 0.57
> 50
kms 30 2.00 1.80 1.70
Calls to
RIM
Intra-circle 120 0.50 0.45 0.43
Inter-circle 60 1.00 0.90 0.85
Calls to
other
mobiles
Intra-circle 60 1.00 0.90 0.85
Inter-circle 30 2.00 1.80 1.70
12
Effective Rate/Min is indicative. Charging would be done on thebasis of Call Unit Length
(Pulse). Call Unit Length (Pulse) is theduration of a call after the expiry of which, a new
call starts. E.g. inPlan 1000 , a call to a local fixed line will be charged at Re. 1.00 fora
180 second call (or part thereof). Once you cross the 180 secondCall Unit Length (Pulse),
you will be charged another Re.1.00 whichwill allow you to talk for another 180
seconds.Note: Calls between Mumbai-Maharashtra, Chennai-Tamilnadu,
Kolkata-West Bengal, UP(East) - UP (West) will be treated as Intra-Circle calls.
13
International Long Distance Rates
International Long Distance
(ILD) Rates
Call Unit
Length
(Pulse) (Sec.)
Rates (Rs.)
Plan
1000
Plan
1500
Plan
2000
USA^, Canada & UK (Fixed) 60 6 5 5
UK (Mobile) & Rest of
Europe 60 7.5 7 6.5
South East Asian Countries
(Singapore, Hongkong,
Malaysia, Indonesia,
Thailand)
60 7.5 7 6.5
Rest of the world ** 60 10 9 8.5
Excluding the following countries - Cook Island, Cuba, Deigo Garcia, Guinea Bissau,
Nauru, Norfolk Island, Sao Tome, Sakhalin, Solomon Island, Tokelau, Tuvalu, and
Vanuatu. The ILD rates for these countries would be Rs.40/min.
For Alaska & Hawaii, call rates of "Rest of World" apply.
14
Call Rates to Satellite Phones
INMARSAT CALL RATES:
Region Call Unit
Length (Pulse) (Sec.) Rate (Rs.)
Atlantic Ocean East 1 5.83
Pacific Ocean 1 5.83
Indian Ocean 1 5.83
Call rates for other plans can be calculated based on the applicable Rate per Call Unit in
the chosen plan
15
Internet Usage Rates
Depicted for
Plan 1000
ISP
Charges
(Rs./Min.)
Call
Unit
length
(Pulse)
(Sec.)
Rate /
Call Unit
(Rs.)
Effective
Rate /
Min
(Rs.)
Total
Charges
Rs/ Hr.
Peak Hour
Rates on all
days(06:30 -
22:30)
0.10 450 1.00 0.13 14
Off-Peak
Hour Rates
on all days
(22:30 -
06:30)
0.10 900 1.00 0.07 10
16
Services provided by Reliance Infocomm.
mobile services with CDMA technology
fixed-line telephone services
Universal Internetworking
VoIP (Voice over Internet Protocol)
Interactive Television
Visual Communication
Broadband Portal
Telecommuting
Voice Services:
1. Centrex-
Salient Features Centrex (Smart Office)
It is a simple wire line digital phone which provides you a feature-rich telephone service
with NextGen Caller ID, Speakerphone and Mobile phone Features ensures maximum
convenience for you right from the first call. We call this product as smart office, because
it ensures to give your budget the maximum output at the minimum cost.
Direct Line for every user: Every user has a direct line and a direct number. The callers
dont have to go through an operator. Load on the operator is reduced, thus requiring
fewer operators.
17
Extension (intercom) number for every user: All users within Smart Office can call
each other by dialing short digit extension numbers. And of course calls made within the
Smart Office group are free.
Class of Service can be defined for every line such that it becomes possible to restrict
type of calls made from it. Various calling facilities are available Viz. Intra-Office calling
only, local + Intra-state long distance, Local + National long distance or Local + National
long distance + International long distance.
Attendant Console (Optional): An operator console can be set up to attend to the callers
who do not know the direct numbers. Calls coming
to the Attendant console are queued. This is a PC based console designed to efficiently
handle the incoming calls with standard Attendant console features. PC should be
provided by customer.
All standard PBX features are available with the Reliance Smart Office solution
Call Management features: You can keep an ongoing call on hold or transfer it as you
wish. You can set call forward rule Call Forward on Busy, Call Forward on No reply or
forward all incoming calls to any local Reliance number.
Absentee Subscriber Service: If you are out of office, this facility will play a message
saying so. And your callers will not have to keep trying your number.
Ten party conferences: Conferencing is no more limited to 3 or five parties. Up to 10
party conferencing is possible with the Reliance Smart Office solution.
18
Manager - Secretary Working: Allows secretaries to screen calls for managers before
transferring.
Call Pick up groups: Any phone ringing within the group can be picked up by another
phone in the same group by dialing a Call Pick up code. This allows fellow colleagues
within a department to receive calls for their colleagues (who are not on their desks)
without having to actually go to the ringing phone feature rich Speakerphone is provided
to every user within the Smart Office for dialing convenience and hands free talking.
The Reliance phone will ensure that a user will always know his caller since CLIP
(Calling Line Identification Presentation) facility is provided on every Reliance Smart
Office line. Additionally, in case of calls coming from PSTN (i.e. from outside Smart
Office group), Call Waiting CLIP is also available.
Features like Missed Call Information & Call forwarding: It ensure that you never
miss a call when you are away from your desk. Note: Current inter-connect rules permit
Call Forwarding to Local Reliance phones only.
A Phone Book: To store the telephone numbers along with the name of the person is also
available for the convenience of the user. The user can search by name within the Phone
Book.
The Delayed Hotline facility: It allows the user to get connected to a frequently dialed
preset number without having to dial it every time. This preset number gets automatically
dialed once the handset goes Off-hook and there is no activity for 7 seconds.
19
Value Proposition:
1. Carrier grade service
Unlimited scalability
Maintenance free
Obsolescence proof
Carrier grade service reliability
Self-healing fiber optic ring network
Uptime levels better than that of a hot standby duplex PBX
2. Outsourced solution with Zero Investment: Since you dont have to own any
equipment, your capital is free to be deployed in your core business.
3. The Reliance Phone Experience Feature-rich telephone service with NextGen Caller
ID, Speakerphone and Mobile phone Features ensures maximum convenience for you
right from the first call.
4. Digital PBX functionality
Direct Inward Dialing (DID)
Intercom
Attendant console (Optional)
5. Shared Commitment Plans You need not worry about not being able to consume
your Free Calls on some lines. Your monthly commitment is set off against combined
usage of all the lines put together i.e. free call worth of all lines is pooled together
20
SWOT ANALYSIS
The SWOT Analysis template is normally presented as a grid, comprising four sections,
one for each of the SWOT headings: Strengths, Weaknesses, Opportunities and Threats.
The free SWOT template below includes sample questions, whose answers. Note that
many of the SWOT questions are also talking points for other headings use them as you
find most helpful, and make up your own to suit the issue being analysis, because a
SWOT analysis is a perspective of one thing, it a company, a product, a proposition, and
idea, a method, or option, etc.
STRENGTH
WEAKNESS
Low Entry Cost Branding Image
Commission Structure Distribution problem
Fast Activation Process Limited product portfolio- Only Mobile
Network
Lack of Competitive Strength
Connectivity Limited Budget
Data GPRS
21
OPPORTUINTY
THREATS
Preference of GSM over CDMA
Political destabilization.
New Specialist Application
New Entrants
Rural Telephony
IT Development
New Market, Vertical, Horizontal
Market Demand
22
COMPARISON
Additional Entry Cost Comparison
Reliance Airtel Advantages of
Reliance
Activation Fee
Rs.150-330 Rs.250-500 Lower
activation fee
Deposit Nil Rs.250-500 No STD
deposit
Total Entry
Cost
Rs.150-330 Rs.500-1000
Reliance have the lowest overall entry cost when compared with the competition.
There is zero deposit for STD calls even for individual retail customer.
In the case of Airtel deposit waiver is granted only to high value corporate / SME
clients.
23
SME Plan Comparison
Competition Competition
Proposition
Our Counter Advantages
Airtel Ambuja plan-Rs.199
rental-local calling
30p/80p & STD
Rs.1.25
NJ 199 SOHO- Rs.199
rental; Rs.150
talktime free; local
calls-50p/1 & STD-
2.5/min.
Free local off
net calling
available &
free CUG
Idea SME plan-Rs.199
rental - local calling
30p/80p & STD
Rs.1.25
NJ 199 SOHO- Rs.199
rental; Rs.150
talktime free; local
calls-50p/1 & STD-
2.5/min.
Free local off
net calling
available &
free CUG
VODAFONE SME plan-Rs.225
local calls 50p/1 &
STD Rs.1.5; CUG @
10p/min.
NJ 199 SOHO- Rs.199
rental; Rs.150
talktime free; local
calls-50p/1 & STD-
2.5/min.
Free local off
net calling
available &
free CUG
24
Reliance Hello Plans Comparison
BSNL (wire line)
One
India
General Economy Special
Activation fee 500 500 500 500
Securitydeposit 1000 1000 1000 1000
NLD deposit 2000 2000 2000 2000
Fixed cost 180 180 300 475
Free talk time 30 50 200 500
Call rates
On net 1/3
min.
1.2/3min. 1.2/3min. 1.1/3min.
Mobile 1/min. 1.2/min. 1.2/min. 1.1/min
Landline 1/min. 1.2/min. 1.2/min. 1.1/min
NLD on net 1/min. 1.2/30sec. 1.2/30sec. 1.1/30sec.
NLD mobile 1/min. 1.2/30sec. 1.2/30sec. 1.1/30sec.
NLD landline 1/min. 1.2/30sec. 1.2/30sec. 1.1/30sec.
25
BSNL has hidden entry charges-security & NLD deposit
TATA
One India H2M 125 City 299 Silver 499
Activation fee 561 561 561 561
Securitydeposit Nil Nil Nil Nil
NLD deposit 500 500 500 500
Fixed cost 180 175 299 499
Free talk time 50 0 155 470
Call rates
On net 1/3 min. 1.2/3min. 0.5 min. 1.1/3min.
Mobile 1/min. 1.2/min. 0.5/min. 1.1/1 min
Landline 1/min. 1.2/min. 1.2/min. 1.1/min
NLD on net 1/min. 1.2/3min. 1.2/3min. 1.2/3min.
NLD mobile 1/min. 2.4/min. 2.4/min. 2.4/min.
NLD landline 1/min. 2.4/min. 2.4/min. 2.4/min.
26
ADVANTAGES
Over Airtel
R Connect The Reliance CDMA 20001X technology and pan India coverage
enables to get online from almost any location in India.
People can use the data card from Reliance with your laptop or the USB modem
with your desktop or laptop.
Speed up to 144 kbps.
Significantly faster then dial-up connections & not restricted to the home / office
like wired broadband.
Use across India in more then 5700 villages. Not limited to major cities like GPRS
& EDGE.
The true definition of mobility
27
ADVANTAGES
Over TATA
Reliance has the wider coverage area & hence its range of usage is better in both
cities as well as rural areas.
Reliance is the only operator that provides internet access via data card/USB
modem in prepaid format as well.
Customer have facility to recharge with low denomination vouchers &
subsequently use top ups thereby lowering access cost.
28
Top Players (Based on subscribers): (09/10)
Rank Company No. of
Circle
Subscribers (in mn) Growth
(in %)
Market
Share (in
%)
FY 08-09 FY 09-10
1 Bharti Airtel 23 19.58 37.14 89.7 23.7
2 BSNL 21 18.45 27.93 51.4 17.8
3 Reliance 23 17.31 27.85 60.9 17.7
4 Hutch 22 15.36 26.44 72.1 16.8
5 Idea 11 7.37 14.01 90.1 8.9
6 TTSL 20 4.85 11.43 135.7 7.3
7 Aircel 23 2.61 5.51 111.1 3.5
8 MTNL 2 1.99 2.75 38.2 1.8
9 Spice 2 1.93 2.73 41.5 1.7
10 BPL (Mumbai) 1 1.34 1.07 -20.1 0.7
11 HFCL infotel 1 0.06 0.07 16.7 0.0
Total 150 90.88 156.97 72.7 100.0
29
Top Players (Based on Revenue):
Rank Company No. of
Circle
Revenue (in crore) Growth
(in %)
Market
Share (in
%)
FY 08-09 FY 09-
10
1 Bharti Airtel 23 8,239 13,431 63.0 23.9
2 Reliance 23 6,673 10,728 60.8 19.1
3 Hutch 22 6,837 10,565 54.5 18.8
4 BSNL 21 6,467 9,400 45.4 16.7
5 Idea 11 2,990 4,335 45.0 7.7
6 Tata
Teleservices
20 1,878 4,092 117.9 7.3
7 Aircel 23 977 1,507 54.2 2.7
8 Spice 2 671 783 16.7 1.4
9 BPL (Mumbai) 1 655 505 -22.9 0.9
10 MTNL 2 573 807 40.8 1.4
11 HFCL infotel 1 22 20 -9.1 0.0
Total 150 35,994 56,183 56.1 100.0
30
COMPANY PROFILE
FOUNDER OF COMPANY
Few men in history have made as dramatic a contribution to their countrys economic
fortunes as did the founder of Reliance, Sh. Dhirubhai H Ambani. Fewer still have left
behind a legacy that is more enduring and timeless.
As with all great pioneers, there is more than one unique way of describing the true
genius of Dhirubhai: the corporate visionary, the unmatched strategist, the proud patriot,
the leader of men, the architect of Indias capital markets, the champion of shareholder
interest. But the role Dhirubhai cherished most was perhaps that of Indias greatest wealth
creator. In one lifetime, he built, starting from the proverbial scratch, Indias largest
private sector enterprise.
Reliance Communications is the outcome of the late visionary Dhirubhai Ambani's
(1932-2002) dream to herald a digital revolution in India by bringing affordable means of
information and communication to the doorsteps of India's vast population.
CHAPTER TWO
31
"Make the tools of communications available to people at an affordable cost, they will
overcome the handicaps of illiteracy and lack of mobility", Dhirubhai Ambani charted out
the mission for Reliance Communications in late 1999. He saw in the potential of
information and communication technology an once-in-a-lifetime opportunity for India to
leapfrog over its historical legacy of backwardness and underdevelopment.
Reliance Communications is Indias largest information and communications service
provider with over 30 million subscribers. The company is the realization of our
founders dream of bringing about a digital revolution that will provide every Indian with
affordable means of communication and a ready access to information.
The flagship company of the Reliance ADA Group, Reliance Communications began
operations in 1999 and has over 30 million subscribers today. It offers a complete range
of integrated telecom services. These include mobile and fixed line telephony, broadband,
national and international long distance services, data services and a wide range of value
added services and applications aimed at enhancing the productivity of enterprises and
individuals.
When Dhirubhai embarked on his first business venture, he had a seed capital of barely
US$ 300 (around Rs 14,000). Over the next three and a half decades, he converted this
fledgling enterprise into a Rs 60,000 crore colossusan achievement which earned
Reliance a place on the global Fortune 500 list, the first ever Indian private company to
do so.
Dhirubhai is widely regarded as the father of Indias capital markets. In 1977, when
Reliance Textile Industries Limited first went public, the Indian stock market was a place
patronised by a small club of elite investors which dabbled in a handful of stocks.
32
Undaunted, Dhirubhai managed to convince a large number of first-time retail investors
to participate in the unfolding Reliance story and put their hard-earned money in the
Reliance Textile IPO, promising them, in exchange for their trust, substantial return on
their investments. It was to be the start of one of great stories of mutual respect and
reciprocal gain in the Indian markets.
Thoughts Of The Legend-Late. Dhirubhai Ambani
33
Chairman's Profile
Anil Dhirubhai Ambani Regarded as one of the foremost corporate leaders of
contemporary India, Anil Dhirubhai Ambani is the Chairman of all listed Group
companies, namely: Reliance Communications, Reliance Capital, Reliance Energy and
Reliance Natural Resources Limited. Till recently, he also held the post of Vice Chairman
and Managing Director in Reliance Industries Limited (RIL), India's largest private sector
enterprise.
Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally
involved in every aspect of the company's management over the next 25 years.
He is credited with having pioneered a number of path-breaking financial innovations in
the Indian capital markets. He spearheaded the country's first forays into the overseas
capital markets with international public offerings of global depositary receipts,
convertibles and bonds. Starting in 1991, he directed Reliance Industries in its efforts to
rise over US$ 2 billion. He also steered the 100-year Yankee bond issue for the company
in January 1997.
34
He is a member of:
Wharton Board of Overseers, The Wharton School, USA
Central Advisory Committee, Central Electricity Regulatory Commission
Board of Governors, Indian Institute of Management, Ahmedabad
Board of Governors Indian Institute of Technology, Kanpur.
In June 2004, he was elected for a six-year term as an independent member of the Rajya
Sabha, Upper House of India's Parliament a position he chose to resign voluntarily on
March 25, 2006.
Awards and Achievements:
Conferred the 'CEO of the Year 2004' in the Platts Global Energy Awards
Rated as one of 'India's Most Admired CEOs' for the sixth consecutive year in the
Business Barons - TNS Mode opinion poll, 2004
Conferred 'The Entrepreneur of the Decade Award' by the Bombay Management
Association, October 2002
Awarded the First Wharton Indian Alumni Award by the Wharton India
Economic Forum (WIEF) in recognition of his contribution to the establishment
of Reliance as a global leader in many of its business areas, December 2001
Selected by Asia week magazine for its list of 'Leaders of the Millennium in
Business and Finance' and was introduced as the only 'new hero' in Business and
Finance from India, June 1999.
35
BUSINESS
Reliance Communications will offer a complete range of telecom services, covering
mobile and fixed line telephony including broadband, national and international long
distance services, data services and a wide range of value added services and applications
that will enhance productivity of enterprises and individuals. Reliance India Mobile, the
first of Reliance Communications' initiatives was launched on December 28, 2002, the
70th birthday of the Reliance group founder, Shri. Dhirubhai H. Ambani.
This marks the beginning of Reliance's dream of ushering in a digital revolution in India
by becoming a major catalyst in improving quality of life and changing the face of India.
It aims to achieve this by putting the power of information and communication in the
hands of the people of India at affordable costs.
Reliance Communications will extend its efforts beyond the traditional value chain to
develop and deploy telecom solutions for India's farmers, businesses, hospitals,
government and public sector organizations.
36
NETWORK
Telecommunication networks are the infrastructure for provisioning Communications
services. All businesses today are dependent on telecom to continue their day-to-day
operations. The range and quality of services that can be provisioned is determined by the
quality of the network deployed.
The Reliance Communications network consists of 60,000 kilometers of optical fiber
cables spanning the length and breadth of India. These cables can carry thousands of
billions of bits per second and can instantly connect one part of the country with another.
This physical network and its associated infrastructure will cover over 600 cities and
37
towns in 18 of the country's 21 circles, 229 of the nations 323 Long Distance Charging
Areas (LDCAs) and broadband connectivity to over 190 cities. This infrastructure will be
backed by state-of-the-art information management systems and a customer-focused
organization.
An interesting aspect of the network is the manner in which these fibers are
interconnected and deployed. Reliance's architecture is so fault-tolerant that the chances
of failure are virtually nil.
Reliance's ring and mesh architecture topology is the most expensive component to
implement, but assures the highest quality of uninterrupted service, even in the event of
failure or breakage in any segment of the network. Reliance has 77 such rings across the
country with at least three alternative paths available in metros. Connected on this
topology, the service has virtually no chance of disruption in quality performance.
Reliance's objective is to create value for our customers. Reliance will innovate
ceaselessly so that state-of-the-art technology can be leveraged to create products and
services that are affordable.
Access networks determine the services that can finally be delivered to customer. Our
network has wire line access technologies based on fiber as well as copper. Fiber in the
access network makes broadband services easy to deploy. The wireless access network
deployed for CDMA 1X is spectrum efficient and provides better quality of voice than
other networks and higher data rates. CDMA 1X also provides an up gradation path to
future enhancements.
38
RELIANCE - ADA Group
39
R-Com Increases the business with diversified means.
Reliance Communications has established a pan-India, high capacity, integrated (wireless
and wire line) and convergent (voice, data and video) digital network, to offer services
spanning the entire Communications value chain - infrastructure, services for enterprises
and individuals, applications and consulting.
The Business Units of Reliance Communications comprises of six main groups.
Wireless business of Reliance Communications consists of Reliance India Mobile, R
World, Wireless POS for Credit Card transaction processing, Wireless ATM's, Mobile
VPN, Vehicle Tracking System and R Connect. This pan India wireless network runs on
CDMA2000 1x technology, which offers superior voice and data experience compared to
other competing technologies.
Wire line business of R-COM uses leading edge technologies in the fields of Fiber
Optics, Ethernet, and Microwave radios, Switching, Routing, Digital Compression and
Encoding.
Home Net way is a revolutionary concept, which heralds a breakthrough in the worldwide
research and development for providing television on telecommunication infrastructure.
40
Reliance Web World is a countrywide network of retail outlets offering a host of state-of-
the art communication and information services along with food and beverages in a
modern ambience. It probably is also the world's largest network of public access
broadband centers. All Web World outlets have three components: Customer
Convenience Centre, Broadband Centre and Gourmet Caf Reliance is India's largest
Internet Data Centre (IDC) service provider, hosting business critical applications of
Indian and foreign blue chip companies, financial institutions and other important
organizations.
Reliance Communications is also a National Long Distance (NLD) and International
Long Distance (ILD) Service Provider. This business involves the bulk sale of our
Communications capabilities (bandwidth) to carry voice and data traffic for other Service
Providers.
The Reliance Anil Dhirubhai Ambani Group is among Indias top three private sector
business houses on all major financial parameters, with a market capitalization of
Rs.325,000 crores (US$ 81 billion), net assets in excess of Rs.115,000 crores (US$ 29
billion), and net worth to the tune of Rs.55,000 crores (US$ 14 billion) Across different
companies, the group has a customer base of over 100 million, the largest in India, and a
shareholder base of over 12 million, among the largest in the world.
Through its products and services, the Reliance - ADA Group touches the life of 1 in 10
Indians every single day. It has a business presence that extends to over 20000 towns and
4.5 lakhs villages in India, and 5 continents across the world. The interests of the Group
range from communications (Reliance Communications) and financial services (Reliance
Capital Ltd), to generation, transmission and distribution of power (Reliance Energy),
infrastructure and entertainment.
Reliance Communications Limited
telecommunication company headquartered in Nevi Mumbai, Indian. It is the 16
operator in the 128 million subscribers. RCOM, founded by Dhirubhai H Ambani(1932
2002), is the flagship company of the Relianc
Reliance Anil Dhirubhai Ambani Group currently has a net profit in excess of
crore (US$13.6 billion), cash flows of
8,400 crore ($1.8 billion). The Equity Sha
Exchange Limited and National Stock Exchange Limited.The Global Depository Receipts
and Foreign Currency Convertible Bond are listed on Luxembourge Stock Exchange and
Singapore Stock Exchange respectively.
Type Public
(NSE:
Industry Telecommunications
Founded 2004
Headquarters Navi Mumbai
Key people
Anil Ambani
(Chairman
Satish Seth
(MD)
Capital Ltd), to generation, transmission and distribution of power (Reliance Energy),
infrastructure and entertainment.
Reliance Communications Limited (commonly called RCOM
telecommunication company headquartered in Nevi Mumbai, Indian. It is the 16
operator in the 128 million subscribers. RCOM, founded by Dhirubhai H Ambani(1932
2002), is the flagship company of the Reliance Anil Dhirubhai Ambani Group. The
Reliance Anil Dhirubhai Ambani Group currently has a net profit in excess of
crore (US$13.6 billion), cash flows of 13,000 crore ($2.8 billion), and a net profit of
8,400 crore ($1.8 billion). The Equity Share of RCOM are listed on Bombay Stock
Exchange Limited and National Stock Exchange Limited.The Global Depository Receipts
and Foreign Currency Convertible Bond are listed on Luxembourge Stock Exchange and
Singapore Stock Exchange respectively.
Public
: RCOM, BSE: 532712)
Telecommunications
Navi Mumbai, Maharashtra, India
Anil Ambani
Chairman)
Satish Seth
41
Capital Ltd), to generation, transmission and distribution of power (Reliance Energy),
RCOM) is a major Indian
telecommunication company headquartered in Nevi Mumbai, Indian. It is the 16th largest
operator in the 128 million subscribers. RCOM, founded by Dhirubhai H Ambani(1932-
e Anil Dhirubhai Ambani Group. The
Reliance Anil Dhirubhai Ambani Group currently has a net profit in excess of 64,000
13,000 crore ($2.8 billion), and a net profit of
re of RCOM are listed on Bombay Stock
Exchange Limited and National Stock Exchange Limited.The Global Depository Receipts
and Foreign Currency Convertible Bond are listed on Luxembourge Stock Exchange and
Products
Wireless
Telephone
Internet
Television
Data Cards
Recharge Vouchers
VC
Revenue $4.774 billion
Net income $1.061 billion
Total assets $20.559 billion
Total equity $9.776 billion
Employees 30,974
Parent Reliance Anil Dhirubhai Ambani Group
Subsidiaries
Reliance Telecom Limited
Reliance Globalcom Limited
Reliance Tech Services
Reliance Communications Infrastructure Limited
Reliance Big TV Limited
Reliance Infratel Limited
Wireless
Telephone
Internet
Television
Data Cards
Recharge Vouchers
4.774 billion (2010)[1]
$1.061 billion (2010)[1]
$20.559 billion (2010)[1]
$9.776 billion (2010)[1]
30,974 (2010)[1]
Reliance Anil Dhirubhai Ambani Group
Reliance Telecom Limited
Reliance Globalcom Limited
Reliance Tech Services
Reliance Communications Infrastructure Limited (RCIL)
Reliance Big TV Limited
Reliance Infratel Limited
42
(RCIL)
43
Website Reliance Communications
1. Reliance Group of 15
2. of 15 Reliance communication Ltd. Type Public (BSE: RCOM) Founded 2004
Headquarters Navi Mumbai, India Key people Anil Ambani , Chairman and Managing
Director [1] , Vice-Chairman Reliance-ADA Group S. P. Sukula CEO - Personal
Business & Director - Reliance Telecom Industry Telecommunications Products CDMA
service, GSM service, Broadband Internet Service Revenue US$ 4 Billion [2] Employees
33,000 Website www.rcom.com
3. Reliance Communications
o Largest integrated communications company in the private sector in India
o Serving over 40 million individual and corporate customers on a global basis
o More than 14,000 Towns covered.
o Strategic presence in all high growth segments - wireless, global and broadband
o One of the largest Next Generation Networks in the world and only one in India
o Investment of USD 5 billion
o Market Cap of about USD 40.00 billion approx.
of 15 Indias fastest customer additions since launch
4. Reliance Communications
o Worlds largest network roll-out covering almost a billion people in India
o Worlds largest IP enabled optic fiber cable network - 230,000 Rkms
o Pioneered wireless affordability in India
44
of 17 Submarine cable assets Of 110,000 Rkms Terrestrial fiber cable metro & intercity
Handset prices down from >$ 50 to 10 cents to
45
o Reliance IPTV
o Enterprises
o BlackBerry
o Office Centrex E1DID
o One Office Duo
o Audio Conferencing
o Reliance PCO
o Toll-Free
o ITFS
o Broadband
o Business Broadband Internet
o Leased Line IPLC VPN
o Video Conferencing
o Internet Data Center (IDC)
o Common Service Center of 15
8. Leading position across multiple segments
o Largest in Enterprise data service ->50% market share
o Largest carrier of Wireless data
o Largest private Public Call Office (PCO) operator >50% Market share
o Carrier of International Long Distance (ILD) voice >40% market share
o US-India retail voice carrier 40% market share
o Internet Data Center (IDC) services 50% market share
o Largest retailer of wireless handsets of 15 1 # and of course leading wireless
customer base in India
46
9. Only Operator to Dimension Network Ahead of Exponential Growth of 15 Coverage at a
Glance 54.66% % of Total Population Covered 6,000 Number of Towns Covered 80
million Customer Capacity 500000 Number of Villages Covered 93.19% % of Railway
Covered 95.00% % of National Highway Covered 67.00% % of Rural Population
Covered 98.25% % of Urban Population Covered Reliance- At a glance By group 6, Gsba
(G. Noida)
10. Robust Infrastructure to Support Customers
o 23,000 towers by March 2009 in 23 circles with capacity of 4014,000 towers co-
tenants.
o Broadband access in 42 Indian cities with 727,000+ buildings connected directly to
network serving over 901,000 access lines
o Deploying Broadband and WiMax network in top 10 cities in the country to cover 4
million SMEs.
Telecom Infrastructure
o 140 acre plot ten acres lush green lawns and eight acre lake
o 5.4 million sq. meter area; 14 buildings ; 12,000 personnel
o Several food courts, banks, ATMs & guesthouses
o Eco-friendly zero discharge facility ; 2252 parking slots; helipad
o Own HVAC and power distribution system
Dhirubhai Ambani Knowledge City
11. Robust Infrastructure to Support Customers
o Largest and most advanced NOC in the world
47
o 300,000 sq ft of data centre space 4x the nearest competitor6 World class Level 3
Data Centers at Mumbai &Bangalore measuring 2.6L Sq.Ft.
o Hosting 9000+ Server Racks and 1400+ TB of storage capacity
o Expansion at Delhi, Chennai, Hyderabad &Kolkata resulting in an additional
capacity of over 800,000 - Sq. ft.
Network Operations and Data Centers
o 2,000 exclusive Reliance World and Reliance Express stores 700+ Indian cities.
o Largest chain of digital entertainment centers in the country
o 5 lakh+ retailers sell connections or recharge of prepaid mobile and FWPs in our
coverage footprint.
o 2nd largest retailer of handsets - with throughput capacity for over 24 million
handsets per annum
Retail Presence
12. Robust Infrastructure to Support Customers
o Comprehensive range of service applications
o Popular across all user demographics and geographies
o Over 200 content partners and over 10,000 content items
o Credit Card on the Mobile
Reliance Mobile World Suite
8,000-employee, multi-lingual contact centre facilities at Navi Mumbai &
Chennai.
48
5L + customers serviced per day through with 10,000 users during peak hours.
Operates on 24x7 basis with online integration with other IT systems in
RCOM.
Contact Centers
13. Robust Infrastructure to Support Customers
More than 1500 Million CDRs per day
More than 1.5 million eRecharge per day
More than 1,800 TB data storage
IT support in more than 6,000 towns for over 60,000 IT users
Data ware house growth : more than 160 GB a day
More than 7 lakh emails a day across group
IT Operations New Products & Services
DTH services to provide DVD quality picture & better viewing experience
IPTV to provide interactive TV & Video services, movies & music on demand,
interactive program guide and gaming
14. Black Berry
o BlackBerry 8703e Best integrated e-mail and phone for travelling executives. of
15 Black Berry 8830
15. Audio Conferencing
o Virtual Audio Bridge Service
o Reservation Based Conference Bridge Service
o Global Event Call Service of 15
49
16. Video Conference of 15
17. Business Broadband Internet of 15 Business Broadband Internet
18. Leased Line
o The most efficient and cost-effective way to connect two offices is a leased line;
o it provides a clear and continuous channel between two end points. Little wonder
that most large enterprises use leased lines for connectivity.
o Reliance's 'end-to-end leased line' is delivered through its state-
of-the-art optic fiber network with its unique self-healing survivable architecture.
o With its 'fiber-to-building' approach, Reliance has reduced the last mile
to just a few meters of in-building copper cabling. of 15 VPN
R eliance virtual private network (VPN) is a private communications network
that can meet all the connectivity and remote access needs of an organization.
VPN is the most effective way to achieve convergence of voice, video and data
on a managed network.
19. Thank you [email_address]
20. Looking back, looking forward
21. Reliance Anil Dhirubhai Ambani Group, an offshoot of the Reliance Group founded
by Shri Dhirubhai H Ambani (1932-2002), ranks among Indias top three private
sector business houses in terms of net worth. The group has business interests that
range from telecommunications (Reliance Communications Limited) to financial
services (Reliance Capital Ltd) and the generation and distribution of power (Reliance
Infrastructure Limited).
22. Reliance ADA Groups flagship company, Reliance Communications, is India's
largest private sector information and communications company, with over 100
50
million subscribers. It has established a pan-India, high-capacity, integrated (wireless
and wireline), convergent (voice, data and video) digital network, to offer services
spanning the entire infocomm value chain.
23. Other major group companies Reliance Capital and Reliance Infrastructure are
widely acknowledged as the market leaders in their respective areas of operation.
51
ORGANIZATION CHART
Regional CEO
CEO
Country head
Regional head
Cluster head
BM (branch manager)
MSD (manager service delivery)
TFM RM relationship PFM CEM (Teller service (relationship manager (personal (customer Manager) manager) (GFG) financial experience Manager) manager)
CSE CST
52
BOARD OF DIRECTORS
Board of Directors of Reliance Industries Limited
Shri Mukesh D. Ambani
Chairman & Managing Director
Shri Nikhil R.
Meswani
Executive Director
Shri Hital R. Meswani
Executive Director
Shri PMS Prasad
Executive Director
Shri P.K.Kapil
Executive Director
Shri Ramniklal H.
Ambani
Shri Mansingh L.
Bhakta
53
Shri Yogendra P.
Trivedi Dr. D. V. Kapur
Shri M. P. Modi
Prof. Ashok Mishra Prof. Deepak C Jain Dr. R. A. Mashelkar
54
HISTORY
1-At the age of 17 Dhirubhai Ambani went to Aden and worked for A. Besse S Co.
Ltd.
2-The year 1958 he returned to Mumbai and started his first company, Reliance
Commercial Corporation, a commodity trading and export house.
3-In the year 1966, a first step in Reliances highly successful strategy of backward
integration, he started the textile mill Ahmadabad.
4-In the year 1975 a technical team from the World Bank certified that the reliance
textile plant was EXCELLENT BY DEVELOPED COUNTRY STANDARDS.
5-In the year 1977, the company went public, credited with a number of financial
innovations in the Indian capital markets.
55
Mission & Vision of RELIANCE Telecom
MISSION OF THE COMPANY
We will create world-class benchmarks by:
Meeting and exceeding Customer expectations with a segmented approach.
Establishing, re-engineering and automating Processes to make them customer
centric, efficient and effective.
Incessant offering of Products and Services that are value for money and excite
customers
Providing a Network experience that is best in the industry.
Building Reliance into an iconic Brand which is benchmarked by others and leads
industry in Intention to Purchase and Loyalty.
Developing a professional Leadership team that inspires, nurtures talent and
propagates RCOM Values by personal example.
56
VISION OF THE COMPANY
To build a global enterprise for all our stakeholders, and
A great future for our country,
To give millions of young Indians the power to shape their destiny,
The means to realize their full potential.
By 2015, be amongst the top 3 most valued Indian companies,
providing Information, Communication& Entertainment services, and being the
industry benchmark in
Customer Experience, Employee Centricity and Innovation.
57
VALUES TO THE COMPANY
Shareholder Interest
We value the trust of shareholders, and keep their interests paramount in every business
decision we make, every choice we exercise
People Care
We possess no greater asset than the quality of our human capital and no greater priority
than the retention, growth and well-being of our vast pool of human talent
Consumer Focus
We rethink every business process, product and service from the standpoint of the
consumer so as to exceed expectations at every touch point
Excellence in Execution
We believe in excellence of execution in large, complex projects as much as small
everyday tasks. If something is worth doing, it is worth doing well.
Team Work
The whole is greater than the sum of its parts; in our rapidly-changing knowledge
economy, organizations can prosper only by mobilizing diverse competencies, skill sets
and expertise; by imbibing the spirit of thinking together -- integration is the rule,
escalation is an exception
58
Proactive Innovation
We nurture innovation by breaking silos, encouraging cross-fertilization of ideas &
flexibility of roles and functions. We create an environment of accountability, ownership
and problem-solving based on participative work ethic and leading-edge research
Leadership by Empowerment
We believe leadership in the new economy is about consensus building, about giving up
control; about enabling and empowering people down the line to take decisions in their
areas of operation and competence
Social Responsibility
We believe that organizations, like individuals, depend on the support of the community
for their survival and sustenance, and must repay this generosity in the best way they can
Respect for Competition
We respect competition because theres more than one way of doing things right. We
can learn as much from the success of others as fro.
59
The Company has developed the following strategies to achieve its
objectives
strategic objective:
Focus on maximizing revenues and margins;
Capture maximum telecommunications revenue potential with minimum geographical
coverage;
Offer multiple telecommunications services to provide customers with a "one-stop
shop" solution;
Position itself to tap data transmission opportunities and offer advanced mobile data
services;
Focus on satisfying and retaining customers by ensuring high level of customer
satisfaction;
Leverage strengths of its strategic and financial partners; and
Emphasize on human resource development to achieve operational efficiencies.
60
CORPORATE SOCIAL RESPONSIBILITY
Organizations, like individuals, depend for their survival, sustenance and growth on the
support and goodwill of the communities of which they are an integral part, and must pay
back this generosity in every way they can...
This ethical standpoint, derived from the vision of our founder, lies at the heart of the
CSR philosophy of the Reliance ADA Group.
While we strongly believe that our primary obligation or duty as corporate entities is to
our shareholders we are just as mindful of the fact that this imperative does not exist in
isolation; it is part of a much larger compact which we have with our entire body of
stakeholders: From employees, customers and vendors to business partners, eco-system,
local communities, and society at large.
We evaluate and assess each critical business decision or choice from the point of view of
diverse stakeholder interest, driven by the need to minimize risk and to pro-actively
address long-term social, economic and environmental costs and concerns.
For us, being socially responsible is not an occasional act of charity or that one-time
token financial contribution to the local school, hospital or environmental NGO. It is an
ongoing year-round commitment, which is integrated into the very core of our business
objectives and strategy.
Because we believe that there is no contradiction between doing well and doing right.
Indeed, doing right is a necessary condition for doing well.
61
COMPANIES OF RELIANCE GROUP
62
RELIANCE CAPITAL
Reliance Capital is one of Indias leading and fastest growing private sector financial
services companies, and ranks among the top 3 private sector financial services and
banking companies, in terms of net worth.
The company has interests in asset management and mutual funds, life and general
insurance, private equity and proprietary investments, stock broking and other
activities in financial services.
Reliance Capital
o Reliance Capital
o Reliance Life Insurance
o Reliance General Insurance
o Reliance Mutual Fund
o Reliance Money
o Reliance Consumer Finance
o Reliance Asset Reconstruction
63
RELIANCE COMMUNICATIONS LIMITED
The flagship company of the Reliance ADA Group, Reliance Communications Limited,
is the realization of our founders dream of bringing about a digital revolution that will
provide every Indian with affordable means of communication and a ready access to
information.
The company began operations in 1999 and has over 50 million subscribers today. It
offers a complete range of integrated telecom services. These include mobile and fixed
line telephony, broadband, national and international long distance services, data services
and a wide range of value added services and applications aimed at enhancing the
productivity of enterprises and individuals.
Reliance Communications
o Reliance Globalcom
o Reliance BPO
64
RELIANCE INFRASTRUCTURE LIMITED
Reliance Infrastructure Ltd is not only Indias largest private sector enterprise in power
utility but also the largest private sector player in many other infrastructure sectors of
India. In the power sector we are involved in generation, transmission, distribution and
trading of electricity and constructing power plants as EPC partners. In the infrastructure
space the company is focused on roads, Urban infrastructure which includes MRTS,
Sealink and Airports, Specialty Real Estate which includes business districts, trade
towers, convention centre and SEZ which includes IT & ITES SEZ and non IT SEZ as
well as free trade zones.
65
RELIANCE HEALTH
In a country where healthcare is fast becoming a booming industry, Reliance Health is a
focused healthcare services company enabling the provision of solution to Indians, at
affordable prices. The company aims at providing integrated health services that will
compete with the best in the world.It also plans to venture into diversified fields like
Insurance Administration, Health care Delivery and Integrated Health, Health Informatics
and Information Management and Consumer Health.
Reliance Health aims at revolutionizing healthcare in India by enabling a healthcare
environment that is both affordable and accessible through partnerships with government
and private businesses.
66
RELIANCE BIG ENTERTAINMENT
India is standing on the threshold of an experience and entertainment economy. It is at the
cross roads of an exciting phase that will shape its cultural and social framework forever.
Reliance Big Entertainment has evolved out of the groups vision of meeting young
India's aspirations and assuming a leadership position in communications, media and
entertainment. Reliance Big Entertainment is geared to create a significant presence in
businesses across various vectors of content, internet, broadcast and retail services and
platforms for distribution. The company strives to create converged services and
platforms for masses to access innovative, cutting-edge content. Key content initiatives
include production and strategic collaboration in areas such as gaming, movies,
animation, music, broadcast, DTH and user-generated content, amongst others.
The Reliance ADA Group and the principals of Dreamworks director Steven Spielberg
and CEO Stacey Snider have inked a deal to form a $1.2 billion studio, reports WSJ. Of
this amount, the ADA Group will invest $500 million in equity, and $700 million in
debt through JP Morgan Chase. The ADA Group, according to the Hollywood Reporter
(THR), will have a 50 percent stake in the deal.
67
The deal has been struck through Reliance Entertainment, according to Business
Standard. In 2005, Reliance ADAG had acquired 51 percent stake in Adlabs Films, which
produces films, and also owns multiplex theatres. Last year, they acquired Pune based
animation company Anirights, which has been rebranded as BIG Animation.
The studio will produce around six films a year. Dreamworks reportedly intends to strike
a deal with Time Warner for HBO, and the films may be distributed by Universal
Pictures. There are, however, expected to be a few teething troubles: Dreamworks was
sold to Viacom in 2006, and Spielberg and Snider have had disagreements with
Paramount Pictures. Dreamworks is expected to negotiate for rights to keep one or more
projects that they were working on with Paramount, for the new company. That, it is
expected, will come at a price. There are around 150 Dreamworks executives currently
with Paramount, and while David Geffer, Spielberg and Snider had exit clauses, the rest
will need Paramounts permission.
68
BIG Cinemas, India's largest domestic and international cinema chain, a division of
Reliance Media Works Ltd and a member of Reliance ADA Group,has hit its 500 screen
milestone with the opening of its newest multiplex at Kedah, Malaysia.Following the
Reliance ADA Group acquiring the controlling stake in Reliance Media Works in 2005,
BIG Cinemas has witnessed a CAGR (Compound Annual Growth Rate) of 100% in the
scale of its operations.
In a little over three years BIG Cinemas has grown to establish a dominant presence in the
Indian domestic market securing 240 screens across 75 Indian cities. Similarly, BIG
Cinemas has made huge strides internationally, with more than half of its screens located
in 40 cities outside India covering the USA, Malaysia and the Netherlands.
Through its incredible three year growth period, BIG Cinemas has refurbished properties
including landmark heritage properties such as Metro in Mumbai and Odeon in New
Delhi; fitting them with state of art facilities and opulent interiors that blend today's
audience requirements with the theatre's heritage.
69
BIG Cinemas has also developed brand new premium cinemas across the globe including
BIG Cinemas-Golf Glen which is a five screen multiplex in Chicago with a premium bar
and lounge.
The Indian Diaspora overseas has a strong affinity to Indian movies and BIG Cinemas has
aggregated a 24 city cinema network across East Coast, Midwest and West coast in US
that now regularly screen Hindi, Tamil, Telugu and Punjabi movie features, in addition to
Hollywood.
Additionally, BIG Cinemas has become the third-largest cinema chain in Malaysia
playing Hollywood features as well as Chinese, Malay and Tamil films which cater to the
1.5 million people of Indian origin. Meanwhile targeting Europe, BIG Cinemas has
partnered with Path Theatres to begin screening Indian movies in the Netherlands.
The company is proposing to scale up BIG Cinemas' network with plans to add a further
100 screens over the next year.
Commenting on the development, Anil Ambani, CEO, Reliance MediaWorks Ltd. said,
"Hitting the historic milestone of 500 BIG Cinemas screens worldwide is hugely
significant. This expansion underscores our attempts to build scale, quality, innovation
and pioneering formats which improve the movie going experience for audiences the
world over. There is a great opportunity in exhibition infrastructure worldwide and while
domestic expansion continues to be an area of thrust for us, we are also fully committed
to expanding our global footprint.
70
Reliance BIG Entertainment
o Internet & New Media
BIGFlix.com
BIGADDA.com
Zapak
Jump Games
BIG Pictures
Reliance Media Works (formerly Adlibs)
Reliance Media Works (formerly Lowry Digital)
BIG Cinemas
BIG Animation
BIG Music & Video
BIG ND Studio
BIG Synergy
BIGOYE.com
o Broadcasting
BIG 92.7 FM
BIG Broadcasting
o Others
BIG Street
BIG Live
BIG Reach
BIG Events
71
Reliance's oil and gas discovery
In 2002, Reliance found natural gas in the Krishna Godavari basin off the coast of Andhra
Pradesh near Vishakhapatnam. It was the largest discovery of natural gas in world in
financial year 2002-2003. On 2 April 2009, Reliance Industries (RIL) commenced natural
gas production from its D-6 block in the Krishna-Godavari (KG) basin.
The gas reserve is 7 trillion cubic feet in size. Equivalent to 1.2 billion barrels (165
million tones) of crude oil, but only 5 trillion cubic feet are extractable.
On 2008 Oct 8, Anil Ambani's Reliance Natural Resources took Reliance Industries to the
Bombay High Court to uphold a memorandum of understanding that said RIL will supply
the natural gas at $2.34 per million British thermal units to Anil Ambani.
Reliance Retail
Reliance Retail is the retail business wing of the Reliance business. Many brands like
Reliance Fresh, Reliance Footprint, Reliance Time Out, Reliance Digital, Reliance
Wellness, Reliance Trendz, Reliance Autozone, Reliance Super, Reliance Mart, Reliance
I Store, Reliance Home Kitchens, and Reliance Jewel come under the Reliance Retail
brand.
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Environmental Record
Reliance Industry is the worlds largest polyester producer and as a result one of the
largest producers of polyester waste in the world. In order to deal with this large amount of
waste they had to create a way to recycle the waste. They operate the largest polyester
recycling center that uses the polyester waste as a filling and stuffing. They use this
process to develop a strong recycling process which won them a reward in the Team
Excellence competition.
Reliance Industries backed a conference on environmental awareness in New Delhi in
2006. The conference was run by the Asia Pacific Jurist Association in partnership with
the Ministry of Environment & Forests, Govt. of India and the Maharashtra Pollution
Control Board. The conference was to help bring about new ideas and articles on various
aspects of environmental protection in the region. Maharashtra Pollution Control Board
invited various industries complied with the pollution control norms to take active part in
the conference and to support as a sponsor. The conference proved effective as a way to
promote environmental concern in the area.
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PRODUCTS & BRANDS BY RELIANCE IND. LTD.
The Company expanded into textiles in 1975. Since its initial public offering in 1977, the
Company has expanded rapidly and integrated backwards into other industry sectors,
most notably the production of petrochemicals and the refining of crude oil.
The Company from time to time seeks to further diversify into other industries. The
Company now has operations that span from the exploration and production of oil and gas
to the manufacture of petroleum products, polyester products, polyester intermediates,
plastics, polymer intermediates, chemicals and synthetic textiles and fabrics.
The Company's major products and brands, from oil and gas to textiles are tightly
integrated and benefit from synergies across the Company. Central to the Company's
operations is its vertical backward integration strategy; raw materials such as PTA, MEG,
ethylene, propylene and normal paraffin that were previously imported at a higher cost
and subject to import duties are now sourced from within the Company. This has had a
positive effect on the Company's operating margins and interest costs and decreased the
Company's exposure to the cyclicality of markets and raw material prices. The Company
believes that this strategy is also important in maintaining a domestic market leadership
position in its major product lines and in providing a competitive advantage.
The Company's operations can be classified into four segments namely:
Petroleum Refining and Marketing business
Petrochemicals business
Oil and Gas Exploration & Production business
Others
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The Company has the largest refining capacity at any single location.
The Company is:
Largest producer of Polyester Fibre and Yarn
4th largest producer of Paraxylene (PX)
5th largest producer of Polypropylene (PP)
7th largest producer of Purified Terephthalic Acid (PTA) and Mono Ethylene
Glycol (MEG)
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Wired to win
The successful rolling out of real broadband services across the nation marks the second
chapter of Reliance Communications commitment to usher in a digital revolution in India.
Reliance Communications is setting new standards for the world to follow through
inventive use of cutting-edge technologies in the field of fibre optics, Ethernet,
microwave radios, switching, routing, digital compression & encoding.
The mass roll out of broadband being carried out by Reliance Communications across the
length & breadth of the country, offering speeds of up to 155 Mbps to millions of users,
in it is a technological marvel.
The uniqueness of Reliance Communications broadband initiatives lies in the fact that our
entire nation wide network is being conceptualized & built from ground zero. Our
network is designed to deliver an affordable quality education, drive governance,
transform healthcare, enhance efficiency in business & finally, generate new job
opportunities for millions of unemployed Indians.
Reliance Communications broadband service is set to revolutionize Indian society by
removing the traditional bottlenecks of development including a lack of capital & a weak
infrastructure & help tide over the challenges of distribution in a vast country like India.
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Integrated Enterprise Solution
Reliance Communications integrated solution offering is currently being rolled out in
30cities across India. It consists of an integrated voice, data & video solution. Our target
is to expand its service to cover the entire country eventually.
For Indian enterprises, our convergent voice-data-video solution framework, delivered
through fibre-to-the-building (FTTB) architecture introduces true broadband connectivity.
Our enterprise broadband is delivered using Metro Ethernet technology. However, based
on specific customer requirement other high-end technologies including Digital
Subscriber Line, Local Multipoint Distribution Services (LMDS) & integrated service
digital network (ISDN) are also being deployed.
As per specific requirements of enterprises we provide customized solutions be it a
simple voice solution or complex data solutions that involves nation wide networking of
all branches, sales & field executives, vendors, suppliers & customers at data speeds
scalable from 64 Kbps to 155 Mbps. Reliance Communications core broadband products
include MPLS based VPN, leased lines, Gigabit Internet connectivity, video conferencing
& video telephony.
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OBJECTIVE OF THE STUDY
Every organization has to achieve its organization goals. For this it is very essential for an
organization to know about the view of consumers and their competitive products. This
survey research may be also aimed as to estimate potential buyer for the product. The
objective of the study is as under: -
To know customer perception about the reliance communication.
To find out the problems faced by customer.
To find out the satisfaction level of consumers from Reliance Communication
compared to other service providers.
To know the impact of advertisement and promotion on consumer buying
behavior.
CHAPTER THREE
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RESEARCH METHODOLOGY
RESEARCH METHODOLOGY is a way to systemically solve the research problem. It
may be understood as a science of studying how research is done.
Research Design
Exploratory Research
An exploratory research has been carried out to study the behavior of customers. To meet
the research objective a research formats, to collect information from the respondents was
made & the information was collected using scientific method as per the questionnaire
samples elements have been chosen by observation techniques.
Research was conducted to know the scope of Reliance Communication, so it was
designed as analytical
1. Survey of the city- VARANASI
2. Survey of the area- MAHAMURGANJ
CHAPTER FOUR
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SAMPLING TECHNIQUE
Sample Design
Data for this study has been collected from primary sources. For the collection of data
CONVENIENCE SAMPLING has been used.
Sample Size
Sample size for the study was 100 for the universe of the urban area of
Varanasi(Mahamurganj).
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TYPE OF DATA AND DATA COLLECTION TECHNIQUES
Primary Data
The primary data is collected directly either from respondent or source of information
.these data are new in nature. Data for this study has been collected by conducting
personal interview with questionnaire responses.
Primary data was collected with the help of:
Questionnaire: In this method a detailed questionnaire is prepared by the
job analyst and is distributed among the workers. The workers answer the
questions to the best to their knowledge and belief. Employees co-
operation can more easily be achieved by explaining the entire program
fully in detail to the representatives of employees Assistance of
supervisors can also be sought.
Personal Interviews: Job analyst uses interview as a prime method of
data collection. He contacts the workers and the supervisor concerned and
asks questions regarding the various jobs performed by them for collection
the information
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DATA ANALYSIS & INTERPRETAION
Q1-What is your age?
Age Group No. of Respondent 18-24 54 24-32 26 32-40 13 40+ 7
Interpretation:there are maximum 54% i.e there are 54 respondent belongs 18-24 age section.
54%
26%
13%
7%
0
10
20
30
40
50
60
18-24 24-32 32-40 40+
age group
age group
CHAPTER FIVE
Q2-What is your income level?
Interpretation:In te above graph the maximum no. of people belongs to 20000
income group.
22%
18%
What is your income level?
Income No. of Respondent5000-20000 27
20000-35000 33 35000-40000 22
40000+ 18
n te above graph the maximum no. of people belongs to 20000
27%
33%
18%
Income
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No. of Respondent
n te above graph the maximum no. of people belongs to 20000-35000
5000-20000
20000-350000
35000-40000
40000+
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Q3- Which companys service you are using?
Companys Service No. of Respondent
VODAFONE 20
RELIANCE 24
AIRTEL 39
BSNL 17
Interpretation:In the above chart there are 39% user of airtel which is very good to
others which is shown in chart. After airtel the reliance communication have 24% user.
RELIANCE
24%
BSNL
17%AIRTEL
39%
VODAFONE
20%
companys service
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Q4. Do you know about Different services of Reliance?
No. of Respondent yes 75 No 25
Interpretation:As shown in pie chart 75% customers known about the services but 25%
customers do not know about different services of Reliance.
yes
no
75%
25%
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Q5. If yes, through which medium you know? Medium No. of Respondent
News 25
Sales person 15
Advertising 45
Friends 15
Interpretation:25% Customers come to know about Reliance through Newspaper, 15%
through salesperson, 45% through advertisement,and 15% customer came to know
through their friends.
medium
news
sales person
advertising
friends
15%25%
45%
15%
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Q6. Are you using reliance mobile services?
MOBILE USE
No. of Respondent
Valid YES 68
NO 32
Interpretation:From the above Table, it is inferred that majority of the respondents
(68%) were using Mobile phones while (32%) were not using Mobile phones.
MOBILE USE
YES
NO
32%
68%
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Q7. Which type of connection do you have ?
Connection No. of Respondent
Prepaid 75
Postpaid 25
Interpretation: the above graph seemed 75% user using prepaid & 25% using postpaid
services of RCOM.
connection
prepaid
postpaid
75%
25%
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Q8. Which type of technology you are using ?
Technology No. of Respondent
GSM 45
CDMA 55
Interpretation: the above graph seemed 55%user using CDMA & 45% using GSM
services of RCOM.
technology
GSM
CDMA
55%45%
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Q9. Are you using broadband & landline services of reliance communication ?
No. of Respondent
Valid Broadband user 55
Landline user 45
Interpretation: The above chart seemed the 55% user using Broadband & 45% using
landline services of RCOM .
BROAD BAND
LAND LINE
Internet services
55%
45%
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Q10. Are you, satisfied with reliance services?
No. of Respondent
Satisfied 40
Unsatisfied 50
Cant say 10
Interpretation: 50% customers were satisfied but 40% customers were unsatisfied &
10% cant say anything.
0
10
20
30
40
50
60
SATISFIED UNSATISFIED CAN'T SAY
SATISFACTION WITH RELIANCE
SATISFACTION WITH AIRTEL
50%
40%
10%
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Q11. if not satisfied than why?
Interpretation: 15 customers were not satisfied due to feel the bill related problem
and 10 customers feel the network problem and 10 customers feel the ineffective bill plan
and 5 customers faced the other problem.
REASON OF NOT SATISFIED
Bill related problem
Network problem
Ineffctive Bill Plan
Other pleasr spcify
15
10
10
5
No. of Respondent
Bill related problem 15
Network Problem 10
Ineffective Bill Plan 10
Other please specify 5
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Q12. What are the problems related to bill?
Interpretation: 8 Customers say that bill format not properly and 5customers say the
bill not timely delivery and 2 customers say other problem
PROBLEMS RELATED TO BILL
Bill format not proper
Bill not deliver at time
Other
8
5
2
No. of Respondent
Bill format not proper 8
Bill not deliver at time 5
Other 2
Total 15
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Q13. How satisfied are you with the reliance tariff plans?
TARIFF
Interpretation: From the above Table, it was inferred that majority of the respondents
(44%) were Quite Satisfied with a special regards to the reliance Tariff Plan, while the
least (2%) number of respondents were Very Dissatisfied with respect to the reliance
Tariff Plan.
TARIFF
Very satisfied
Quite satisfied
Neutral
Quite dissatisfied
Very dissatisfied
37%
44%
10
7%2%
No. of Respondent
Valid Very satisfied 37
Quite satisfied 44
Neutral 10
Quite dissatisfied 7
Very dissatisfied 2
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Q14. How satisfied are you with the network of reliance?
NETWORK
No. of Respondent
Valid Very satisfied 53
Quite satisfied 32
Neutral 5
Quite dissatisfied 6
Very dissatisfied 4
Interpretation: As the Table depicts, a good majority of respondents (53%) were Very
Satisfied with the Network of reliance, while the least (4%) were Very Dissatisfied
with the Network of reliance.
NETWORK
Very satisfied
Quite satisfied
Neutral
Quite dissatisfied
Very dissatisfied
53%
32%
5%
6%
4%
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Q15 . How satisfied are you with the customer care of reliance?
CUSTOMER CARE
No. of Respondent
Valid Very satisfied 28
Quite satisfied 30
Neutral 19
Quite dissatisfied 11
Very dissatisfied 12
Interpretation: From the above Table, it was inferred that majority of respondents (30%)
were Quite Satisfied with the Customer care of reliance, while the least number of
respondents (11%) were Quite Dissatisfied with reliance Customer care.
CUSTOMER CARE
Very satisfied
Quite satisfied
Neutral
Quite dissatisfied
Very dissatisfied
28%
30%
19%
11%
12%
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Service Provider Graph
Interpretation: The above graph shows a slice of 50%. These are the total no. of people
who are using Airtel. It seems that people are more aware of Airtel than any other brand.
The next popular brand is RELIANCE. The next popular brand was Idea. 15% people had
Idea connections. As it came very late in the market when Airtel had established itself
very well. So, that could be one of the reasons of such a low percentage. The remaining
5% had trump connections.
50%
35%
15%
5%
SER