1. Reliance Industries Limited
Financial Presentation
April-December 2000
1

2. The Worst Earthquake affecting India in last 50 years
• 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)
Reliance Industries Ltd.
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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.
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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
Reliance Industries Ltd.
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5. Round-the-Clock Efforts to Alleviate Suffering
 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
Reliance Industries Ltd.
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6. Serving the People Devastated by the Tragedy
 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
Reliance Industries Ltd.
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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
Reliance Industries Ltd.
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8. Index
Operating Environment
Financial Performance
Current Business Outlook
Reliance Petroleum
Reliance Infocom
Shareholder Value Enhancement
Summary and Outlook
8

9. Operating Environment
9

10. Increased Feedstock Costs and
Declining Product Selling Prices ...
Crude oil prices touched record highs in $35 to The petrochemicals
$40 range - 65% rise from April 2000
industry globally
Key feedstock, naphtha, soared from $ 210 in
faced difficult times
April 2000 to $ 310+ in Q3 - rise of 50%
Decline
in Q3, owing to
in product selling prices, with bunching
of new capacities increased
Reliance’s strategy - focus on productivity, feedstock costs,
efficiency, and cost reduction
and declining
Increasing emphasis on speciality products, to
product selling
improve pricing power and enhance margins
prices
Reliance Industries Ltd.
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11. ….leading to pressure on operating margins
change in average prices for Q3 2000-01 over Q3 1999-2000
Raw Material Costs Domestic Selling Prices of
Products (Rs./kg)
Crude oil ($/bbl) +25% PE +1%
PP -1%
Naphtha Prices ($/MT) +5%
PVC -2%
Naphtha Landed (Rs.kg) +15% POY +1%
PSF -5%
PTA +10%
MEG -10%
PX +2%
Naphtha prices were significantly … with product prices trending flat to
higher in Q3... lower - negative impact on margins
Reliance Industries Ltd.
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12. Increase in Product Selling Prices for first 9
months has lagged increase in Feedstock Costs
change in prices April-December, 2000 over April-December, 1999
Raw Material Costs Domestic Selling Prices of
Products (Rs./kg)
Crude oil ($/bbl) +46% PE +11%
Naphtha Prices ($/MT) +17% PP +7%
PVC +14%
EDC Prices ($/MT) +7%
POY +0.5%
Naphtha Landed (Rs./Kg) +24% PSF +6%
PTA +21%
MEG +12%
PX +9%
The increase in naphtha prices... … is higher than the increase in
product selling prices
Reliance Industries Ltd.
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13. Future Margin Outlook dependent
on Several Macro Variables
International crude oil prices have come off
significantly from their Q3 highs - volatility in Feedstock
energy prices continues prices have
Longerterm impact of recent output cuts by come off their
OPEC suppliers to be awaited
recent highs,
The impact of a slowdown in the US economy
on global demand growth is also an important but several other
variable variables may
Depreciation in the value of regional Asian have an impact
currencies relative to the US$ and the Indian
rupee may impact regional prices on margins
Reliance Industries Ltd.
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14. Financial Performance
14

15. Income Statement for first 9 months
Apr-Dec 1999 Apr-Dec 2000 % Change
Rs. crs. $ mn. Rs. crs. $ mn.
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%
EBITDA 3,153 725 4,049 867 28%
Interest 699 161 925 699
Depreciation 705 162 1,018 218
Tax - - - -
Net Profit 1,749 402 2,106 451 20%
Cash Profit 2,454 564 3,124 669 27%
Production volumes increased 24%to 7.9 million tonnes
Reliance Industries Ltd.
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16. US GAAP Reconciliation
Indian GAAP US GAAP
Rs. crs. $ mn Rs. crs $ mn
Net Profit 2,106 451 1,754 376
Difference (352) (75)
The differences are largely on account of foreign exchange
variations and deferred taxation
Reliance Industries Ltd.
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17. Elements of Sales Growth
Composition of 41 %
Sales Revenue Growth
Impact of volume growth 32 %
Impact of price increases 9%
Volume growth contributed significantly to the revenue growth as
a result of commissioning of Jamnagar Petrochemical complex
Reliance Industries Ltd.
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18. Profitability Ratios
Apr-Dec Apr-Dec
1999 2000
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
Reliance Industries Ltd.
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19. Liquidity Ratios
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
Conservative liquidity ratios underscore inherent financial
strength
Reliance Industries Ltd.
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20. Income Statement for Q3
Oct-Dec 1999 Oct-Dec 2000 % Change
Rs. crs. $ mn. Rs. crs. $ mn.
oss Sales 5,034 1,157 6,555 1,404 30%
Sales 2,933 674 4,439 951 51%
EBITDA 1,161 267 1,406 301 21%
Interest 276 63 294 63
Depreciation 258 59 353 76
Tax - - - -
Net Profit 627 144 759 163 21%
Cash Profit 885 203 1,112 238 26%
Quarter-on-quarter sales and profit growth for 43 consecutive quarters
Reliance Industries Ltd.
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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
Reliance Industries Ltd.
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22. Conservative Financial Management
 Top end domestic AAA credit rating
RIL has achieved
– international ratings constrained by
sovereign ceiling quantum growth in
 RIL’s cash flows for approximately 2 the scale of its
years sufficient to extinguish its net debt
External operations, while
debt of $ 1.3 billion has weighted
average maturity of 22 years pursuing
 RIL’s exports are more than 5 times its
annual FX denominated interest liability, conservative
providing adequate risk management
financial policies
 Dollar revenues from oil and gas provide
additional cover
Reliance Industries Ltd.
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23. Current Business Outlook
23

24. Business Mix
Break-down of RIL’s sales - excluding exports of RPL’s products
Oil and Gas Chem icals
3% 14%
Fibr e I nt .
28%
Plast ics &
Polyest er Fabr ics I nt .
21% 1% 33%
Balanced exposure to polyester and plastics contributes to
stability in margins
Reliance Industries Ltd.
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25. Business Review - Oil and Gas
Reliance’s Production Apr-Dec Apr-Dec %
1999 2000 change
Oil ( in KT) 256 307 +20 %
Gas (in KTOE) 506 516 +2 %
The oil and gas operations are progressively becoming more
significant in Reliance’s overall business profile
Reliance Industries Ltd.
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26. Oil and Gas - Plans and Outlook
RIL is India’s No.1 private sector E&P player Reliance is
with 100,000 sq. kms in exploration acreage
generating
Oil and Gas production from existing fields is
attractive dollar
growing at 5%-10% per year
denominated
Potential to increase gas production by 3 times
revenues from
14 exploration blocks recently awarded under
attractive new policy regime, with fiscal and its growing oil
other benefits - will participate in next round and gas
Enron’s 30% stake in PMT venture under sale business
process - Reliance reviewing options
Reliance Industries Ltd.
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27. Business Review - Polyester
Industry Reliance
(Production in Apr-Dec Apr-Dec % Apr-Dec Apr-Dec %
‘000 tonnes) 1999 2000 change 1999 2000 change
Polyester 1036 1083 5% 481 560 16%
(PFY, PSF, PET)
Fibre Intermed. 1710 2713 59% 1503 2182 45%
(PTA, MEG, PX)
The sharp increase in fibre intermediates production reflects the
commissioning of the new paraxylene facilities at Jamnagar
Reliance Industries Ltd.
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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
Reliance Industries Ltd.
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29. Global Polyester Demand Growth to Outpace Additions
(MMT)
2001 2002 2003 Total
2001-03
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
Source: PCI World Synthetic Report
Global polyester demand growth in each of the next 3 years is
forecast to exceed capacity additions
Reliance Industries Ltd.
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30. Positive Global Demand Supply Fundamentals
25 96
Capacity Demand
Operating Rate
20 92
P Global
M. MT
O 15 88
operating rates
%
Y 10 84
are forecast
5 80
0 76
to steadily
1990 1997 1998 1999 2000 2001 2002 2003 2004 2005 2010
16 Capacity
Operating Rate
Demand 96 climb to
14
12
92 historically high
P
M. MT
10
S
88 levels of 95% +
%
8
F 6 84
in this
4
2
80
decade
0 76
1990 1997 1998 1999 2000 2001 2002 2003 2004 2005 2010
30

31. Positive Regional Demand Supply Fundamentals
18
Capacity Demand
16 Operating Rate 96
14 Regional
12 92
operating rates
P 10
M. MT
%
8 88
O 6
are likewise
Y 4 84
expected to
2
0
1990 1997 1998 1999 2000 2001 2002 2003 2004 2005 2010
80
increase
10 Capacity Demand 98
Operating Rate
9 consistently
8 94
P 7 over the
M. MT
6 90
S
%
5 next
F 4 86
3 few years
2 82
1
0 78
1990 1997 1998 1999 2000 2001 2002 2003 2004 2005 2010 31

32. Polyester - Indian Demand Supply Situation
3000 200
Available Capacity Demand
Operating Rate 180
2500
Demand exceeds capacity 160
Deficit
in every year beginning 1.3
140 million
2000 from the current year
KT
120 tonnes
1500 100
(%)
(assuming no
80 new capacity
1000 additions)
60
40
500
20
0 0
90-91 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 09-10
Room for creating 1.3 mn tonnes additional capacity in this decade -
Reliance is well poised to capture this growth
Reliance Industries Ltd.
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33. Business Review - Polymers
Industry Reliance
(Production in Apr-Dec Apr-Dec % Apr-Dec Apr-Dec %
‘000 tonnes) 1999 2000 change 1999 2000 change
Polymers 1650 2224 34% 917 1187 30%
(PE, PP, PVC)
• 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
Reliance Industries Ltd.
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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
Reliance Industries Ltd.
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35. Global Polymer Demand Supply to Improve Significantly
2001 2002 2003 Total
2001-03
Global Forecast Capacity Additions (MMT)
PE 4.2 1.7 1.9 7.8
PP 2.2 1.6 2.1 5.9
PVC 0.7 0.2 0.3 1.2
PE+PP+PVC 7.1 3.5 4.3 14.9
Global Forecast Demand Growth (MMT)
PE 3.0 2.9 3.3 9.2
PP 2.4 2.1 2.5 7.0
PVC 1.6 1.4 1.5 4.5
PE+PP+PVC 7.0 6.4 7.3 20.7
Source: Chemsystems
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
Reliance Industries Ltd.
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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
Reliance Industries Ltd.
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37. Growing Emphasis on Speciality Products
Speciality as % Premium over
of Total Volume Commodity
1999-2000 Apr-Dec’00 (Rs./MT) (%)
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%
Reliance is the only producer of many fast growing speciality products
in India - leading to higher value added product portfolio and superior
competitive position
Reliance Industries Ltd.
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38. Reliance Petroleum
38

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
Reliance Industries Ltd.
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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
Reliance Industries Ltd.
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41. RPL - Income Statement
Apr-Dec 2000 Oct-Dec 2000
Rs. crs. $ mn. Rs. crs. $ mn.
Gross Sales 23,457 5,025 9,149 1,960
EBITDA 2,363 506 884 189
Interest 727 156 271 58
Depreciation 469 100 172 37
Tax - - - -
Net Profit 1,167 250 441 94
Cash Profit 1,636 350 613 131
RPL has generated cash profits of Rs.1,636 crores (US$ 350
million) in the first nine months of operations
Reliance Industries Ltd.
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42. Profitability Ratios
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
Healthy profitability ratios reflect global competitiveness and
efficiency of operations
Reliance Industries Ltd.
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43. Current Marketing Arrangements
 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
RPL’s margins are determined by international market related prices,
even under the current regulatory environment
Reliance Industries Ltd.
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44. Petroleum Product Demand to Grow Manifold
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
China consumes more than double the quantity of petroleum
products than India
Reliance Industries Ltd.
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45. Conservative and Strong Financial Profile
Low debt: equity ratio of 0.83 : 1 Healthy operating
High interest coverage of 2.39 cash flows and
Foreign exchange debt exposure limited to strong balance
US$ 130 million in an over US$ 3 billion project
sheet provide
Strong cash flows ability to pursue
Large shareholder family of over 2 million - attractive future
stable base of retail investors reduces share
growth
price volatility
opportunities
Weightage of 10.3% in Sensex and 9.1% in
Nifty Index
Reliance Industries Ltd.
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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
Reliance Industries Ltd.
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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 Industries Ltd.
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48. Reliance 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 Industries Ltd.
49

50. Reliance Infocom

51. Overview
 Reliance to offer full bouquet of voice, data, Reliance’s
image, and value-added services, and high quality
end-to-end connectivity, on a nationwide basis low-cost
 A nationwide, terabit bandwidth, 60,000 route communications
kilometer broadband network, connecting India’s infrastructure,
top 115 cities
and integrated
 Build-up of last mile connectivity and roll-out of
services based on market revenue potential - initial approach, will
focus on high revenue business segment provide a lasting
 Targeting leading positions in all major competitive edge
segments of the voice markets initially
Reliance Industries Ltd.
51

52. Reliance’s Voice Offerings
 Voice services to provide end-to-end Reliance will
connectivity, to customers on a nationwide
basis provide all voice
 Leading presence targeted in all segments of services on a
the voice market:
nationwide basis,
- Local
thereby delivering
- National Long Distance
- International Long Distance superior service
- Mobile to a large
 Reliance has already filed applications for customer base
basic services licences in 11 circles
Reliance Industries Ltd.
52

53. Reliance’s Data and
Other Value Added Services
Internet data centres
Colocation Web-hosting
Secure VPNs
Reliance Infocom’s Managed
E- communications software
commerce infrastructure services
Media-casting
Serving ISPs/ ASPs/
Bandwidth selling/ trading content and other service
Call centres providers
Reliance’s comprehensive offerings strategy will reduce risk, and
generate attractive returns even in an intensely competitive scenario
Reliance Industries Ltd.
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54. An ‘Old’ Economy Approach
to a ‘New’ Economy Business
 Speed and efficiency of execution Reliance is
 Lowest cost provider of services implementing its
 Integrated service offerings
infocom project
 Capturing value across the entire chain
with a
 Investments based on traditional financial
criteria, including: traditional return
- Positive Cash Flows based philosophy
- Attractive IRRs to maximise
- Low payback period
value
- ROE Enhancing
Reliance Industries Ltd.
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55. Open Door Policies to encourage
entry of new players
 Unlimited entry for new players in fixed line A suitable
services in all circles at attractive terms
 Limited mobility (WiLL) by fixed line operators framework for
approved - mobile telephony at lower costs
 Entry of fourth operator in all cellular circles Reliance to
through bidding process
– Multi-stage process, existing players can not bid in their create a
own circles
– Graded payment to eliminate unrealistically high bids national
– Introduction of WiLL leading to lower tariffs and licence
valuations telecom
 Unlimited entry for new players in long distance
at reasonable terms footprint
Reliance Industries Ltd.
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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 2002
Reliance will rollout its services and offerings in a phased manner,
starting in the next financial year
Reliance Industries Ltd.
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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
Reliance Industries Ltd.
57

58. Shareholder Value Enhancement
58

59. RIL share’s superior price performance
% Change
RIL 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% -
The RIL stock price has consistently outperformed the broad
market indices over all time frames
Reliance Industries Ltd.
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60. Top Sensex Performer for Calendar Year 2000
60% 45%
35%
40%
20%
0%
-7% -8% -8% -10%
-20% -14%
-20% -21% -23%
-26% -27% -29%
-40% -37%
-60% -52% -56%
-59% -64%
-80% -74%
C
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IT
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as
ax
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fo
va
nb
RIL is the best performing Sensex stock in the calendar year 2000
Reliance Industries Ltd.
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61. RIL Best Performer Amongst Leading
Global Petrochemicals Stocks
60%
35%
40%
20%
20% 2%
0%
- 20% -8% -12%
-17% -22%
-25% -26%
- 40% -31% -32% -34%
-36%
-44%
- 60%
-63% -66%
- 80% -71%
IL
Pl r o
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an
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em
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em
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um
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e
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o
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ai
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RIL is amongst the best performing petrochemicals stocks globally,
measured even in US$ terms
Reliance Industries Ltd.
61

62. Valuation Upside from RPL Stake
 RIL will consolidate RPL’s financials, from the
RIL’s investment
year 2001-02
in RPL has
–- adding approximately 40% to RIL’s bottomline
rapidly created
– contributing additional Rs. 10 EPS
significant
– reflecting consolidated ROE of 28%
shareholder
 RPL will pay a dividend this year - contributing
to RIL’s cash flows value, in a
business
 The value of RIL’s stake in RPL translates into
over Rs. 200 per share - unrealised capital gains regarded as
on this account over Rs. 13,000 crs. (US$ 3 bn) having long
 RIL exploring various options for unlocking value gestation
in its RPL stake for the benefit of RIL shareholders
Reliance Industries Ltd.
62

63. Summary
 RIL gives exposure to major growth sectors A world class
of the Indian economy
enterprise, at the
 Significant hidden values in RIL’s interests
in oil and gas, shareholding in Reliance
Petroleum and Reliance Telecom, and the intersection of the
infocom initiative
‘old’ and the ‘new’
 Reliance is the demonstrated leader in
identifying and capturing attractive market
opportunities in India economy
 RIL is amongst the best performing larger
Indian stocks since the past several years
Reliance Industries Ltd.
63

64. Reliance Industries Limited
India’s World Class Corporation
64