Reliance Industries Ltd (RIL), the most valued company in India and one of the 50 most valued companies in the world, in terms of market capitalization held its 43rd Annual General Meeting (AGM) on July 15, 2020.
As usual, the event witnessed several ambitious announcements, including a plan to introduce low cost smartphone, mixed reality Jio Glass, developing products and solutions for 5G technology, digital healthcare platforms etc.
This newsletter examines the company’s export performance and its recent initiatives to support micro, small and medium enterprises (MSMEs) during 2019-20, based on the information provided in its annual report.
With a total shipment of Rs. 2.02 lakh crore or USD 26.8 billion, RIL accounts for more than 9% of India’s merchandise exports during 2019-20. The company exports refined petroleum products, polymers and polyesters, besides other products to around 109 countries globally. As of July 2020, RIL has engaged with more than 100 banks and financial institutions, besides 14 Export Credit Agencies (ECAs) globally – the highest number for any corporate entity in the world.
Before the COVID outbreak, exports accounted for 20% of the total business; However, after the outbreak of this crisis, the company rapidly increased the share of exports to 80% of overall business because of slowdown in domestic demand.
Supporting MSMEs
RIL has developed a robust vendor ecosystem for procuring goods and services, required for its business operations. The company procures goods and services worth more than Rs 15,371 crore from indigenous suppliers, which includes engineering companies, raw material and industrial goods suppliers. RIL has contributed to India’s chemical and engineering supplier base as a result of its continuous investments in mega projects and operations.
According to its Annual Report for 2019-20, the Group supports and encourages its suppliers to indigenise and to expand their capabilities and increase their economic value. The Report mentions that RIL supports its suppliers to update their entity status with MSME registration / UAN details in order to ensure compliance with the MSMED Act.
RIL adopts a rigorous screening process for registration and assessment of all suppliers. The company promotes adoption of sustainable business practices among its supplier base by developing Supplier Code of Conduct, which emphasizes on labour and human rights, health and safety, environmental protection, ethical conduct, business integrity, among other values.
More importantly, RIL has taken various steps in recent times towards digital transformation of MSMEs. Specifically, RIL’s Jio Platforms works with Facebook Inc to digitally enable and empower India’s 60 million MSMEs, 120 million farmers, 30 million small merchants and millions of SMEs in the informal sector. Last year, the company partnered with Microsoft to support MSMEs adopt data analytics, Artificial Intelligence (AI), cognitive services, Blockchain, Internet of Things (IoT), and edge computing.
More information can be accessed from the Annual Report of RIL in the following weblink:
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