About Reliance Industries Limited
Reliance Industries Limited is India’s leading multinational conglomerate company. It is headquartered in Mumbai, Maharashtra, and run by the owner, chairman, and managing director, Mukesh Ambani.
Its motto is ‘Growth in life’ which is reflected in the way it has grown from textiles to various sectors like refining and marketing, retail, petrochemicals, digital services, oil and gas, and media.
Reliance Industries Limited is one of the largest employers in India and continues to employ people as it looks into starting new ventures in various fields. Reliance Foundation spends about ₹1022 crores to empower lives through Corporate Social Responsibility (CSR) activities. It dabbles in various philanthropic initiatives such as health, sports, and education.
Now that you know about the company, let us start analyzing the business model of Reliance Industries Limited.
Business Model Of Reliance Industries Limited
A business model is a company that is the blueprint of its core operations strategy in order to earn profit. Models typically include information such as the items or services that the company intends to sell, target markets, and any expected costs. Let’s dissect the business model of Reliance Industries in detail by understanding their product offerings.
Business Model Of Reliance Industries – Product Offerings
A product could be a service, object, or innovation that a company sells. With about 94 subsidiaries, Reliance Industries Limited offers a variety of products in different sectors and under different brands. let us first take a look at the product offerings.
Some of the categories of products are listed below:
- Refining and Marketing
- Refining
- Petroleum Retail
- Petrochemicals
- Polymers
- Chemicals
- Polyester & Fibre Intermediates
- Oil and Gas Exploration and Production
- Retail
- Textiles
- Media and Entertainment
- TV Channels
- Filmed Entertainment
- Content Asset Monetization
- Digital Content
- Digital Commerce
- Publishing Business
- Allied Business
Let’s now dive into the target audience of Reliance Industries Limited below.
Business Model Of Reliance Industries – Target Audience
With a vast range of items available throughout its retail outlets and services ranging from telecom to gas stations, Reliance Industries as a brand caters to the demands of a diversified range of consumer categories.
The company uses a combination of demographic, geographic, and psychographic segmentation characteristics including occupation, gender, age, economic class, behaviour, and geography, among others.
To reach its target market, the brand uses a differentiated, targeted, and aggressive pricing strategy.
After understanding the target audiences of Reliance Industries, let us take a closer at their market share.
Business Model Of Reliance Industries – Market Share
Reliance Industries Limited is India’s largest retailer and mass-market leader. It has about 6.44 billion shares in the market of which approximately 49% is owned by the Ambani family and the remaining are owned by the public shareholders.
In the year 2019-2020, Reliance has seen a 5.4% increase in consolidated revenue from consumer business. It has seen a huge increase in the number of subscribers and consequently higher revenue generated especially in the digital sector.
With this, the target audience of Reliance Industries gets conclude. If you want to learn the marketing strategy of Reliance, read IIDE’s Reliance Marketing Strategy.
Another important aspect of a business model is competitor analysis. Let us understand the business model of Reliance Industries in contrast with its competitors.
Business Model Of Reliance Industries – Competitor Analysis
With a company as large and varied as Reliance Industries Limited, it is only fitting that it has a large number of competitors in all sectors. It is one of India’s largest companies, has a strong brand name that helps it establish a trustworthy reputation among its clients.
The brand’s positive image among investors and many stakeholders is aided by several accolades, an excellent financial position, strong profitability, and a strong focus on holistic expansion, as well as participation in CSR initiatives.
The main competitors are as follows:
- ONGC and Indian Oil for oil and gas
- Vi and airtel for Telecommunication
- Flipkart, Amazon, Big Bazaar for Retail
Reliance Industries is a giant and has its fingers in all industries of the nation, especially the core ones and hence is competing with hundreds of brands and companies on different fronts.
