Reliance Industries Limited Case Study

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INTRODUCTION It is a well known fact that the way to growth is either through Greenfield expansions leading to organic growth in one’s own unit, or brownfield expansions leading to inorganic growth. Since the world is moving at a rapid pace and corporate are in a hurry to expand, restructuring through inorganic growth is an ideal medium. Corporate restructuring is the name of the game all over the globe. Indian companies too, have learnt that this is a faster mechanism of intensification. Restructuring through Amalgamations and acquisitions, if suitably chosen and implemented, can permit a organization to leapfrog into a novel orbit of markets, customers, products and technologies almost overnight. On the other hand, it may well take more than…show more content…
As a result , Indian companies have been steadily restructuring themselves through amalgamations, divestitures, Leveraged buyouts (LBO’s), sell-offs, spin-offs etc., especially, post liberalization. The corporate world today is witnessing a sudden surge of M&As sweeping across all the industries, which has totally restructured the Indian corporate environment. This paper tries to Study and Analyze Corporate Restructuring with reference to Reliance Industries Limited (RIL), India. Introduction Restructuring is the corporate management term for the act of rearranging the legal, ownership, operational, or other structures of a organization for the rationale of making it more beneficial, or better structured for its current needs. Other reasons for restructuring include a change of ownership or ownership structure, demerger, or a response to a crisis or chief alteration in the business such as insolvency, repositioning, or buyout. Restructuring may also be described as corporate restructuring, debt restructuring and financial restructuring. Rising competition, breakthrough technological and other changes, rising stock market volatility, major corporate accounting aspects have increased the responsibility to managers in order to deliver superior performance and enhance market value to…show more content…
However, this paper has tried to study the corporate restructuring of one Indian company which immensely enhanced the shareholders’ market value and fortified their aggressive edge in recent times i.e Reliance Industries Limited (RIL).For example, the acquisition, merger, and demerger of Reliance Industries Ltd. like their acquisition of IPCL mergers of Reliance Petrochemicals Ltd., and the recent demergers of four entities like Reliance Communication Ventures Ltd., Reliance Energy Ventures Ltd., Re-liance Natural Resources Ventures Ltd., and Reliance Capital Ventures Ltd. which spun off from Reliance Industries Ltd. (RIL), and were perhaps the most well-known restructurings in current times. RIL forayed into the telecom sector in the year 2000. The company also applied for open offers to take control of BSES stocks and took over BSES in 2002. It also intended to combine its finance company with another subsidiary Reliance Petrochemicals Ltd. (RPL). In March 2002, RPL amalgamated with RIL. RIL also bagged a 25 percent share of IPCL in the same year. After the RIL patriarch Dhirubai Ambani passed away ,RIL branched out further into the areas of biotech, life sciences, mining, and insurance. 4. Division of Reliance RIL split in June 2005 due to issues between the two successors. The RIL struggle was not only a conflict of titans, but it was also about wealth in the area of

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