Think Big, Think Reliance

ON OIL, INFOCOMM AND COMING SOON BROADBAND

Introduction
Infrastructure, Telecommunication and Broadband

Value Creation is possible through effective management of

technology, building competencies around people and placing
trust in them Hital R. Meswani, executive director

The center of attention - Jamnagar Refinery

 Infrastructure- Jamnagar Refinery

The Jamnagar Refinery is a private sector

crude oil refinery owned by Reliance
Industries in Jamnagar, Gujarat, India.

RPL refinery has enabled Jamnagar to emerge

as a Refinery Hub, housing the world's
largest refining complex with an aggregate
refining capacity of 1.24 million barrels
(197,000m3) of oil per day, more than any
other single location in the world.
 Infrastructure- Jamnagar Refinery

The entire complex as of 2013; consisting of

manufacturing and allied facilities, utilities,
off-sites, port facilities and a township (415
acres of land) with housing for its 2,500
employees, results in over 7,500 acres.
The Beginning

A Refinery would be the next logical step but we had to think

outside of the box- Meswani

Refineries had return on capital of only 6% to 8% while the cost

of capital was 12%

Swim against tide / go against the flow

The Beginning

Total Investment $6 billion

3 years 4500 engineers and 80,000 construction worker to

complete facility

Ratio of workers needed to be trained = 1:4. Hence a large scale

training program to train 3,20,000 underwent.

These people now employed in Middle East, earn India valuable

foreign currency.
Who says Elephant cant fly

Draw Knowledge from around the world.

Eliminated time delays for clarification from home office by

providing field design cells.

Challenge law margin business

Developed to make a variety of products

Who says Elephant cant fly

Paranoid about productivity

Lost money can be regained but lost time is lost forever

Built training center

Ecological concerns
From Floods to Cyclones

In size it is third largest in the world after Venezuela and South

Korea

Crucial to engage all stakeholder

Use three dimensional computer modeling package which was

the worlds largest modeling effect

During Cyclone they proved that Indians can create world class
assets in India if they are given opportunities, challenges, trust
and motivation.
Key Features

Largest single investment ever in Indian corporate history

Total structural steel is sufficient to construct nineteen Eiffel
towers
Total cement concrete used is sufficient to create ten buildings
like the empire state building
Total length of pipelines adequate to link the Northern and the
Southern tips of India or Seattle with Miami
Total length of power cables about 14000 kilometers could link
the Eastern and the western parts of India six times over or cover
the coastlines of the USA
Key Features

All roads in the complex would connect Mumbai with Pune, a

distance of 150 kilometers
A 50 million tones per year port terminal, the largest in India,
representing a quarter of Indias port capacity
500 MW captive power plant
12 million gallons per day sea water desalination plant
4 million tones of tankage capacity
10 million tones per year product dispatch road and rail terminals
The Challenge: Manpower & Material

About 8000 crores worth of materials and equipment produced in

just six months
Resorted to an unprecedented globetrotting exercise to secure
sourcing
Procurement personnel in London had task of planning fairly in
advance high value and long delivery purchase orders
About 220 million man hours of construction had to completed in
24 months
Skilled manpower for construction was big bottleneck.
Machinery

Rs. 150 crores invested in four pipe line spool fabrication shops
Automated welding used first time in India
Virtual transfer of drawing
Rs. 700 crores in construction equipment to have full control over
construction schedule.
Organize heavy lift capability of up to 1600 metric tones for
equipment erection
Heaviest equipment weighed 1500 tones
Financing

Major Challenge
Enormity of the task increased because of slowdown in financial
market in India
90% of the project cost through Indian financial market
2.2 million individual Indian shareholders funded the project in
excess of rupees 2000 crores of equity
Lead Contractor

Construction work carried out by L&T, GDC, Dodsal, Punj Llyod,

Reunion, ICB, Trafalgar House and Simplex
After Jamnagar: The Telecom revolution

Company began its movement into communications with mobile

sector for which India was the highest priced market in world
Reliance approved to the new initiative on the basis of making
the cost to call anywhere in India lower than the price of sending
a post card.
Reliance chose CDMA over GSM
Developed GIS to assist in network planning and engineering in
Jamnagar
Built 65000 kilometer fiber optic network across India and 50,000
laborers were working on the project
 Reliance Jios subscriber base has crossed 10 crore
Reliance Jios average revenue per user (ARPU) may be higher than the
industry average of around Rs 150.
Competitors of Reliance Jio are trembling with fear, and as per market
rumors, Bharti Airtel and Idea collectively lost Rs 12,250 crore during the
45 minute speech of Mukesh Ambani. As per the stock exchange data, such
were the tremors of the speech, that Bharti Airtel lost 6.4% of the market
share; while Idea had to lose 10.7%.
If more than 50% of the existing subscribers choose to stick with Jio, it will
have serious repercussions for other telecom players. Even Jio customers
who retain plans from other companies may reduce usage, impacting their
ARPU, says Ambani. It will become difficult for Airtel, Vodafone, Idea, etc.
to grow their user base as Jio aggressively adds customers at their
expense.
THE END