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Reliance Industries Limited

Financial Presentation

April-December 2000

2Reliance Industries Ltd.

• The recent earthquake in Gujarat is the most severe to hit the Indian subcontinent in the last 50 years - 8.46 a.m. 26th Jan, 2001 - 7.9 on Richter scale

• Last severe earthquake in the Gujarat area was in the year 1819 (also measuring 7.9 on Richter scale)

The Worst Earthquake affecting India in last 50 years

3

National Calamity of Unprecedented Proportions

Unprecedented loss of life and property

Loss of life running into tens of thousands of people

Death toll still climbing - large numbers currently “missing /

injured”

Initial estimates of damage to property in the state of Gujarat

exceed Rs.15,000 crores (US$ 3.3 bn)

The Gujarat earthquake tragedy represents the biggest calamity to hit India in recent times

Reliance Industries Ltd.

4

Reliance Deploys its Entire Resources for Relief Operations

Reliance has initially allocated a sum of Rs. 15 crores (US$ 3.3 mn) for earthquake relief measures in Gujarat Rs. 5 crores (US$ 1.1 mn) already contributed to the Prime Minister’s Relief Fund Reliance has placed all available human and material resources at the disposal of the state government and the army / air force authorities, for rescue and relief operations Reliance actively engaged in rescue and relief operations in Ahmedabad, Jamnagar, Bhuj, and surrounding areas Reliance has fully adopted the village of Anjar, for rescue, relief and reconstruction activities - located 40 kms from Bhuj, population estimated at 80,000

- second most affected area, with most structures completely flattened

Reliance is committed to deploying all resources for relief of affected people in Gujarat


5

More than 3,000 construction workers, and hundreds of vehicles (including dumpers, trucks, tempos) pressed into service for round-the-clock relief work

Over 60 heavy equipments and machinery (cranes, bull-dozers, etc) mobilised for removal of debris / rescue work

Continuously distributing food rations and water supplies to about 15,000 people

Several medical centres opened including a very large makeshift hospital, with over 50 medical and paramedical staff, and over 200 other personnel, on round-the-clock duty

Reliance is working round-the-clock and providing all possible support to help the affected areas


Round-the-Clock Efforts to Alleviate Suffering

6

20 DG sets provided in Bhuj, the worst affected area for

restoration of emergency power

Communication links opened in several areas with satellite

telephones

Direct wireless links set up between Anjar and Jamnagar

Helicopter sorties are being flown to bring in people, materials,

supplies and to evacuate the most seriously injured persons

Emergency supplies of food, clothing and materials are being rushed from all over the country to the control rooms set up at Mumbai and Jamnagar to coordinate the relief work


Serving the People Devastated by the Tragedy

7

Reliance Operations Normal within Days

Superior design and technology of Reliance’s world class complexes ensured there was no loss of life or property

Automated safety procedures achieved safe shutdown of the Hazira and Jamnagar complexes within moments of the tremors

Power systems and other utilities fully restored within hours of the earthquake - phased start-up of plants activated the same day

Most plants already operating normally - the balance following progressively, in accordance with safe start-up procedures

All product evacuation infrastructure safe and intact - jetty, pipelines, rail and road loading terminals

The entire Reliance team responded to the occasion, and ensured operations were normalised within hours of the incident


8

Operating Environment

Financial Performance

Current Business Outlook

Reliance Petroleum

Reliance Infocom

Shareholder Value Enhancement

Summary and Outlook

Index

9

Operating EnvironmentOperating Environment

10

Increased Feedstock Costs and Declining Product Selling Prices ...

The petrochemicals

industry globally

faced difficult times

in Q3, owing to

increased

feedstock costs,

and declining

product selling

prices

Crude oil prices touched record highs in $35 to $40 range - 65% rise from April 2000

Key feedstock, naphtha, soared from $ 210 in April 2000 to $ 310+ in Q3 - rise of 50%

Decline in product selling prices, with bunching of new capacities

Reliance’s strategy - focus on productivity, efficiency, and cost reduction

Increasing emphasis on speciality products, to improve pricing power and enhance margins


11

….leading to pressure on operating margins

Raw Material Costs

Crude oil ($/bbl) +25%

Naphtha Prices ($/MT) +5%

Naphtha Landed (Rs.kg) +15%

Naphtha prices were significantly higher in Q3...


change in average prices for Q3 2000-01 over Q3 1999-2000

Domestic Selling Prices of Products (Rs./kg) PE +1% PP -1% PVC -2% POY +1% PSF -5% PTA +10% MEG -10% PX +2%

… with product prices trending flat to lower - negative impact on margins

12

Increase in Product Selling Prices for first 9 months has lagged increase in Feedstock Costs

Raw Material Costs

Crude oil ($/bbl) +46%

Naphtha Prices ($/MT) +17%

EDC Prices ($/MT) +7%

Naphtha Landed (Rs./Kg) +24%

The increase in naphtha prices...


change in prices April-December, 2000 over April-December, 1999

Domestic Selling Prices of Products (Rs./kg) PE +11% PP +7% PVC +14% POY +0.5% PSF +6% PTA +21% MEG +12% PX +9%

… is higher than the increase in product selling prices

13

Future Margin Outlook dependent on Several Macro Variables

Feedstock

prices have

come off their

recent highs,

but several other

variables may

have an impact

on margins

International crude oil prices have come off significantly from their Q3 highs - volatility in energy prices continues

Longer term impact of recent output cuts by OPEC suppliers to be awaited

The impact of a slowdown in the US economy on global demand growth is also an important variable

Depreciation in the value of regional Asian currencies relative to the US$ and the Indian rupee may impact regional prices


14

Financial PerformanceFinancial Performance

15

Interest 699 161 925 699 Depreciation 705 162 1,018 218 Tax - - - -

Net Profit 1,749 402 2,106 451 20%

Gross Sales 13,707 3,151 21,564 4,619 57%Gross Sales(excl. 13,707 3,151 19,287 4,132 41%RPL exports)Net Sales 8,204 1,886 13,526 2,898 65%

Cash Profit 2,454 564 3,124 669 27%

Income Statement for first 9 months

EBITDA 3,153 725 4,049 867 28%

Apr-Dec 1999 Apr-Dec 2000 % ChangeRs. crs. $ mn.$ mn.Rs. crs.


Production volumes increased 24%to 7.9 million tonnes

16

Indian GAAP US GAAP Rs. crs. $ mn Rs. crs $ mn

US GAAP Reconciliation

The differences are largely on account of foreign exchange variations and deferred taxation


Net Profit 2,106 451 1,754 376

Difference (352) (75)

17

Composition of 41 %

Sales Revenue Growth

Impact of volume growth 32 %

Impact of price increases 9 %

Elements of Sales Growth


Volume growth contributed significantly to the revenue growth as

a result of commissioning of Jamnagar Petrochemical complex

18

Profitability Ratios

Apr-Dec1999

Apr-Dec2000

OPM * % 20 20

NPM % 13 11

RONW% 23 21

EPS – Rs. ($) 21.8 (0.50) 26.6 (0.57)

Cash EPS – Rs. ($) 30.8 (0.71) 39.5 (0.85)

* Excluding RPL Exports

Healthy profitability ratios reflect global competitiveness and sound business strategies


19

31 Dec 99 31 Dec 00

Gross Debt : Equity 0.96 0.76

Net Debt: Equity 0.57 0.72

Net Gearing (%) 36% 42%

Net Interest Cover 5.9 5.6

Net Debt / Cash Flow 1.8 2.0

Liquidity Ratios

Conservative liquidity ratios underscore inherent financial strength


20

Interest 276 63 294 63Depreciation 258 59 353 76Tax - - - -

Net Profit 627 144 759 163 21%

Gross Sales 5,034 1,157 6,555 1,404 30%

Net Sales 2,933 674 4,439 951 51%

Cash Profit 885 203 1,112 238 26%

Income Statement for Q3

EBITDA 1,161 267 1,406 301 21%

Oct-Dec 1999 Oct-Dec 2000 % ChangeRs. crs. $ mn.$ mn.Rs. crs.


Quarter-on-quarter sales and profit growth for 43 consecutive quarters

21

Exponential Growth in Exports

Combined exports of RIL and RPL have grown 8 times to US$ 1.5 bn (Rs.7,000 crs) during the nine month period, making Reliance the largest manufacturer exporter from India

RIL’s exports grew 200 % to US$ 491 mn (Rs.2,292 crs) while RPL’s exports were US$ 1,024 mn (Rs.4,714 crs)

Exports comprised 12 % of RIL’s total sales, 20 % of RPL’s total sales, and 16 % of their combined sales, during this period

High exports reflect superior product quality, diversification of markets, and optimal utilisation of installed facilities

Strong growth in exports achieved while retaining thrust on domestic markets - 84 % of combined revenues coming from sales within India


22

Conservative Financial Management

Top end domestic AAA credit rating

– international ratings constrained by sovereign ceiling

RIL’s cash flows for approximately 2 years sufficient to extinguish its net debt

External debt of $ 1.3 billion has weighted average maturity of 22 years

RIL’s exports are more than 5 times its annual FX denominated interest liability, providing adequate risk management

Dollar revenues from oil and gas provide additional cover

RIL has achieved

quantum growth in

the scale of its

operations, while

pursuing

conservative

financial policies


23

Current Business OutlookCurrent Business Outlook

24

Business Mix

Fabrics1%

Polyester21%

Oil and Gas3%

Chemicals14%

Plastics & Int.

33%

Fibre Int.28%

Break-down of RIL’s sales - excluding exports of RPL’s products


Balanced exposure to polyester and plastics contributes to stability in margins

25

Business Review - Oil and Gas

The oil and gas operations are progressively becoming more significant in Reliance’s overall business profile


Oil ( in KT) 256 307 +20 %

Gas (in KTOE) 506 516 +2 %

Apr-Dec Apr-Dec %

1999 2000 change

Reliance’s Production

26

Oil and Gas - Plans and Outlook

RIL is India’s No.1 private sector E&P player with 100,000 sq. kms in exploration acreage

Oil and Gas production from existing fields is growing at 5%-10% per year

Potential to increase gas production by 3 times

14 exploration blocks recently awarded under attractive new policy regime, with fiscal and other benefits - will participate in next round

Enron’s 30% stake in PMT venture under sale process - Reliance reviewing options

Reliance is

generating

attractive dollar

denominated

revenues from

its growing oil

and gas

business


27

Business Review - Polyester

The sharp increase in fibre intermediates production reflects the commissioning of the new paraxylene facilities at Jamnagar


Polyester 1036 1083 5% 481 560 16% (PFY, PSF, PET)

Fibre Intermed. 1710 2713 59% 1503 2182 45% (PTA, MEG, PX)

Industry Reliance Apr-Dec Apr-Dec % Apr-Dec Apr-Dec % 1999 2000 change 1999 2000 change

(Production in ‘000 tonnes)

28

Polyester (PFY, PSF and PET)

Reliance is now the 2nd largest, and the lowest cost, producer of polyester in the world, as per latest industry rankings

Reliance is also the 3rd largest producer of PX, and the 4th largest producer of PTA, in the world

Demand growth forecast to outpace capacity additions in India, in Asia, and globally, over the next few years

Reliance is the only player making investments in the Indian polyester sector, to capture future demand growth

Import tariffs already at resting point of 20%, as per the WTO bound rates

Reliance is ideally positioned to benefit from an improvement in long term industry fundamentals, with its global scale and cost leadership


29

Global polyester demand growth in each of the next 3 years is forecast to exceed capacity additions


Global Forecast Capacity Additions

POY 0.8 0.8 0.8 2.4

PSF 0.5 0.6 0.7 1.8

POY+PSF 1.3 1.4 1.5 4.2

Global Forecast Demand Growth

POY 1.1 1.0 1.0 3.1

PSF 0.5 0.7 0.6 1.8

POY+PSF 1.6 1.7 1.6 4.9

(MMT)Global Polyester Demand Growth to Outpace Additions

2001 2002 2003 Total 2001-03

Source: PCI World Synthetic Report

30

Positive Global Demand Supply Fundamentals

0

5

10

15

20

25

1990 1997 1998 1999 2000 2001 2002 2003 2004 2005 2010

M. M

T

76

80

84

88

92

96

%

Capacity Demand

Operating Rate

1990 1997 1998 1999 2000 2001 2002 2003 2004 2005 20100

2

4

6

8

10

12

14

16

M. M

T

76

80

84

88

92

96

%

Capacity Demand

Operating Rate

POY

PSF

Global

operating rates

are forecast

to steadily

climb to

historically high

levels of 95% +

in this

decade

31

Positive Regional Demand Supply Fundamentals

POY

PSF

0

2

4

6

8

10

12

14

16

18

1990 1997 1998 1999 2000 2001 2002 2003 2004 2005 201080

84

88

92

96

%

Capacity Demand

Operating Rate

0

1

2

3

4

5

6

7

8

9

10

1990 1997 1998 1999 2000 2001 2002 2003 2004 2005 2010

M. M

T

78

82

86

90

94

98

%

Capacity DemandOperating Rate

M. M

TRegional

operating rates

are likewise

expected to

increase

consistently

over the

next

few years

32

Polyester - Indian Demand Supply Situation

0

500

1000

1500

2000

2500

3000

90-91 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 09-100

20

40

60

80

100

120

140

160

180

200Available Capacity DemandOperating Rate

Deficit 1.3 million tonnes

(assuming no new capacity additions)


Room for creating 1.3 mn tonnes additional capacity in this decade - Reliance is well poised to capture this growth

KT

Demand exceeds capacity in every year beginning from the current year

(%)

33

Business Review - Polymers

• Demand for RIL’s polymers increased 15 % during the nine month period

• Demand for PP, which accounts for nearly 60% of RIL’s polymers production, increased 25% during the nine month period


Polymers 1650 2224 34% 917 1187 30%(PE, PP, PVC)

Industry Reliance Apr-Dec Apr-Dec % Apr-Dec Apr-Dec % 1999 2000 change 1999 2000 change

(Production in ‘000 tonnes)

34

Polymers (PP, PE and PVC)

India is the world’s fastest growing polymers market

Global industry demand supply fundamentals will improve, over the next 3 years, with demand growth exceeding capacity additions by 6 million tonnes

Reliance will benefit from these trends, with its world scale capacity, and cost leadership, in the Indian polymers markets

Limited room for further import tariff cuts over next few years - rupee depreciation provide cushion

The global demand supply balance is expected to improve from 2002, with the Indian markets offering the highest growth opportunities


35

Global demand growth over the next 3 years will exceed capacity increases by 6 MMT - by comparison, in 1999 and 2000, capacity had outpaced demand by 3 MMT, leading to the current imbalance


Global Forecast Capacity Additions (MMT)

PE 4.2 1.7 1.9 7.8PP 2.2 1.6 2.1 5.9PVC 0.7 0.2 0.3 1.2PE+PP+PVC 7.1 3.5 4.3 14.9Global Forecast Demand Growth (MMT)

PE 3.0 2.9 3.3 9.2PP 2.4 2.1 2.5 7.0PVC 1.6 1.4 1.5 4.5PE+PP+PVC 7.0 6.4 7.3 20.7

Global Polymer Demand Supply to Improve Significantly2001 2002 2003 Total 2001-03

Source: Chemsystems

36

Emphasis on Speciality Products leads to Important Competitive Advantages

Wider product choice to customers

Product differentiation from commodity producers

Enhanced margins due to premium pricing of speciality grades

Enabling expansion into new markets, including the most discerning and quality conscious export markets

Reliance is ahead of competition in introducing specialty grades

Part insulation from volatility of commodity product prices

Reliance is able to deliver superior overall value to its customers with its increasing thrust on speciality products


37

POY 10% 19% 3,000-15,000 5%-25%

PSF 41% 63% 500-14,000 1%-28%

PE 13% 25% 500-4,500 1%-11%

PP 17% 19% 500-4,500 1%-12%

Growing Emphasis on Speciality Products

Speciality as % Premium over

of Total Volume Commodity

1999-2000 Apr-Dec’00 (Rs./MT) (%)

Reliance is the only producer of many fast growing speciality products in India - leading to higher value added product portfolio and superior competitive position


38

Reliance PetroleumReliance Petroleum

39

Reliance Petroleum - Overview

RPL operates the largest, and most complex, refinery in India,

with over 25% of total domestic capacity

World’s largest grassroots refinery, with capacity of 27 mn tpa -

the 7th largest refinery in the world at any single location

30% + capital cost advantage, over global peer group

Flexibility in crude processing and product mix

Capacity utilisation of 101% achieved in the second and third

quarters of operations - a unique achievement in the global context

RPL and RIL are now India’s top 2 private sector companies


40

Significant Q3 Highlights

Capacity utilisation of 101% in Q3 - compares with Indian sector average of 93%, Asian average of 99%, and US average of 91%

Exports of HSD, gasoline, and naphtha for the first time from India - products meet the most stringent international norms

India’s largest manufacturer exporter with exports of US$ 1.02 billion (Rs. 4,714 crs.) in the first nine months of the current financial year

CRISIL upgraded rating of RPL’s debt from BBB+ to AA, indicating high safety of timely payment of interest and principal

The first Indian refinery to perform risk management under the new government policies for hedging price and margin risks


41

RPL - Income Statement

Interest 727 156 271 58 Depreciation 469 100 172 37Tax - - - -

Net Profit 1,167 250 441 94

Gross Sales 23,457 5,025 9,149 1,960

Cash Profit 1,636 350 613 131

EBITDA 2,363 506 884 189

Apr-Dec 2000 Oct-Dec 2000Rs. crs. $ mn.$ mn.Rs. crs.


RPL has generated cash profits of Rs.1,636 crores (US$ 350 million) in the first nine months of operations

42

Apr-Dec 2000 Oct-Dec 2000

OPM % 9.4 8.9

NPM % 5.0 4.8

ROE % 24.1 23.4

ROCE % 13.3 13.9

Annualised EPS (Rs.) 3.3 3.7

Annualised CEPS (Rs.) 4.6 5.1

Profitability Ratios

Healthy profitability ratios reflect global competitiveness and efficiency of operations


43

Current Marketing Arrangements

RPL’s margins are determined by international market related prices, even under the current regulatory environment

RPL is required to sell 5 controlled products (gasoline, diesel, kerosene, LPG, ATF) to oil PSUs

Market determined import parity prices received for controlled products

Payments received directly from oil PSUs normally within 10 days - not linked to the OCC pool mechanism

All other products marketed directly by RPL - 20%-30% output consumed by group companies

Complete flexibility in sourcing of crude oil, and determining product mix


44

Consumption

Per Capita (kgs. p.a.) Total (MMT)

India 98 95

China 165 200

North America 2,610 1,047

World Average 585 3,462

Petroleum Product Demand to Grow Manifold

China consumes more than double the quantity of petroleum products than India


45

Conservative and Strong Financial Profile

Healthy operating

cash flows and

strong balance

sheet provide

ability to pursue

attractive future

growth

opportunities

Low debt: equity ratio of 0.83 : 1

High interest coverage of 2.39

Foreign exchange debt exposure limited to US$ 130 million in an over US$ 3 billion project

Strong cash flows

Large shareholder family of over 2 million - stable base of retail investors reduces share price volatility

Weightage of 10.3% in Sensex and 9.1% in Nifty Index


46

Future Growth Opportunities for RPL RPL intends participating in marketing of all petroleum products -

has applied for direct marketing rights

Marketing rights likely to be granted during the course of the year - APM to be dismantled by March, 2002, as per current schedule

RPL already has dedicated product evacuation infrastructure to support full-fledged marketing activities for its entire production:

- Port and jetties

– Rail despatch terminal

– Road loading facilities

– Pipelines


RPL is pursuing growth opportunities for generating attractive returns and enhancing competitiveness

47

Future Growth Opportunities for RPL RPL is also making investments for creating distribution

infrastructure for petroleum products across the country

RPL has a 10% stake in Petronet India, the holding company, responsible for setting up pipeline networks in the country

RPL to invest Rs. 500 crores (US$ 110 mn) for 26% stake, in Central India Pipeline Ltd. (CIPL), implementing a 1615 km pipeline reaching markets in the central/southern parts of India

RPL has a 13% stake in the already operational, 113 km Vadinar Kandla pipeline, connecting Jamnagar to the high growth Northern markets through the Kandla Bhatinda pipeline


New pipelines being set up in the country will open up new markets and lead to increased consumption of petroleum products

Reliance TelecomReliance Telecom

49

Reliance Telecom - Cellular Operations

Rapid growth in coverage and subscriber base, currently over 150,000 subscribers in over 75 cities

Reliance’s cellular subscriber base has grown 115% during April-Dec 2000, compared with industry growth rate of 65%

Average revenue per user (ARPU) of over Rs. 1,000 per month - in line with trend in metros

Cellular operations have already become cash positive

Reliance’s licensed area covers 13 states, 1/3rd of India’s geographical area, and 380 mn population

India’s largest network, and the growing presence in large contiguous areas, fits in perfectly with the group’s infocom plans


Reliance InfocomReliance Infocom

51

Overview

Reliance to offer full bouquet of voice, data, image, and value-added services, and high quality end-to-end connectivity, on a nationwide basis

A nationwide, terabit bandwidth, 60,000 route kilometer broadband network, connecting India’s top 115 cities

Build-up of last mile connectivity and roll-out of services based on market revenue potential - initial focus on high revenue business segment

Targeting leading positions in all major segments of the voice markets initially

Reliance’s

low-cost

communications

infrastructure,

and integrated

approach, will

provide a lasting

competitive edge


52

Reliance’s Voice Offerings

Voice services to provide end-to-end connectivity, to customers on a nationwide basis

Leading presence targeted in all segments of the voice market:

- Local

- National Long Distance

- International Long Distance

- Mobile

Reliance has already filed applications for basic services licences in 11 circles

Reliance will

provide all voice

services on a

nationwide basis,

thereby delivering

superior service

to a large

customer base


53

Reliance’s comprehensive offerings strategy will reduce risk, and generate attractive returns even in an intensely competitive scenario


Reliance’s Data and Other Value Added Services

Reliance Infocom’s Reliance Infocom’s communications communications

infrastructureinfrastructure

Bandwidth selling/ tradingBandwidth selling/ tradingServing ISPs/ ASPs/ Serving ISPs/ ASPs/ content and other service content and other service providersproviders

Media-castingMedia-casting

E-E-commercecommerce

Secure VPNsSecure VPNs

Managed Managed software software servicesservices

ColocationColocation Web-hostingWeb-hosting

Call centresCall centres

Internet data centresInternet data centres

54

An ‘Old’ Economy Approach to a ‘New’ Economy Business

Speed and efficiency of execution

Lowest cost provider of services

Integrated service offerings

Capturing value across the entire chain

Investments based on traditional financial criteria, including:

- Positive Cash Flows

- Attractive IRRs

- Low payback period

- ROE Enhancing

Reliance is

implementing its

infocom project

with a

traditional return

based philosophy

to maximise

value


55

Open Door Policies to encourage entry of new players

Unlimited entry for new players in fixed line services in all circles at attractive terms

Limited mobility (WiLL) by fixed line operators approved - mobile telephony at lower costs

Entry of fourth operator in all cellular circles through bidding process

– Multi-stage process, existing players can not bid in their own circles

– Graded payment to eliminate unrealistically high bids

– Introduction of WiLL leading to lower tariffs and licence valuations

Unlimited entry for new players in long distance at reasonable terms

A suitable A suitable

framework for framework for

Reliance to Reliance to

create a create a

national national

telecom telecom

footprintfootprint


56

Reliance Infocom - Progress

Backbone presently being implemented in 13 states - Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, Gujarat, Rajasthan, Delhi, Haryana, Uttar Pradesh, Madhya Pradesh, Orissa, W. Bengal and Kerala

Over 35,000 strong construction force at work

Fast growing team of highly qualified and experienced industry professionals from all over the world

Rollout of services based on market revenue potential

Fibre being sourced internationally - 100% in-house project management

The nationwide backbone to be completed by end 2002Reliance will rollout its services and offerings in a phased manner, starting in the next financial year


57

Reliance Infocom - Corporate Structure

Reliance Infocom will be the lead company for undertaking/

promoting all future telecom/ infocom initiatives of the Reliance group

Capital outlay, excluding licence fees, presently estimated at Rs.

15,000 crores (US$ 3.3 billion) - 2:1 debt: equity being considered

RIL to hold 45% of equity, balance to be held by employees,

Reliance promoters, and other Reliance group companies

International listing of Reliance Infocom at an appropriate time over

the next 2-3 years, to unlock value for RIL shareholders


Proposed corporate structure targets the optimal risk/ return balance for RIL shareholders

58

Shareholder Value EnhancementShareholder Value Enhancement

59

RIL share’s superior price performance

The RIL stock price has consistently outperformed the broad market indices over all time frames


% ChangeRIL Sensex Nifty

YTD 15% 10% 9%

Year 2000 45% -20% -14%

1 year 16% -18% -14%

2 year 194% 32% 43%

3 year 160% 36% 43%

5 year 345% 50% 63%

10 year 700% 345% -

60

Top Sensex Performer for Calendar Year 2000

RIL is the best performing Sensex stock in the calendar year 2000


45%35%

-7% -8% -8% -10% -14%-20% -21% -23% -26% -27% -29%

-37%

-52% -56% -59% -64%-74%-80%

-60%

-40%

-20%

0%

20%

40%

60%

61

RIL Best Performer Amongst Leading Global Petrochemicals Stocks

RIL is amongst the best performing petrochemicals stocks globally, measured even in US$ terms


20%

2%

-8% -12%-17% -22% -25% -26% -31% -32% -34% -36%

-44%

-63% -66% -71%

35%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

RIL

Lyon

dell

East

man

Mille

nnium

DSM

Dow IC

I

Form

osa Ch

em

DuPo

nt

Form

osa Plas

tics

Yizh

eng Ch

em

Solvay

Shan

ghai Pet

ro

Nan Ya

Plast

ics

Hona

m Pet

ro

Far E

aste

rn Tex

tiles

LG Che

m

62

Valuation Upside from RPL Stake

RIL’s investment

in RPL has

rapidly created

significant

shareholder

value, in a

business

regarded as

having long

gestation

RIL will consolidate RPL’s financials, from the year 2001-02

–- adding approximately 40% to RIL’s bottomline

– contributing additional Rs. 10 EPS

– reflecting consolidated ROE of 28%

RPL will pay a dividend this year - contributing to RIL’s cash flows

The value of RIL’s stake in RPL translates into over Rs. 200 per share - unrealised capital gains on this account over Rs. 13,000 crs. (US$ 3 bn)

RIL exploring various options for unlocking value in its RPL stake for the benefit of RIL shareholders


63

Summary

RIL gives exposure to major growth sectors

of the Indian economy

Significant hidden values in RIL’s interests

in oil and gas, shareholding in Reliance

Petroleum and Reliance Telecom, and the

infocom initiative

Reliance is the demonstrated leader in

identifying and capturing attractive market

opportunities in India

RIL is amongst the best performing larger

Indian stocks since the past several years

A world class

enterprise, at the

intersection of the

‘old’ and the ‘new’

economy


64

Reliance Industries Limited

India’s World Class Corporation

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