1

Reliance Industries Limited

Financial Presentation Q1 FY 2001-02

July 31, 2001

2

Background

Operating Environment

Financial Performance

Business Review

Reliance Petroleum

Reliance Infocom

Summary

Contents

3

Background

4

Rs. crores $ bn Rank

Sales 60,000 12.8 1

Exports 9,000 1.9 1

Cash Flow 7,000 1.5 1

Net Profit 4,700 1.0 1

Assets 55,000 11.8 1

Market Cap 56,000 11.9 1

Reliance is the largest, fastest growing, and the most valuable business group, in India - just 23 years young

India’s No. 1 Group

5

Reliance and the Indian Economy

Reliance group’s leadership position in the Indian

economy, is reflected in its all-round contribution:

- 3% of India’s GDP

- 5% of India’s total exports

- Nearly 10% of government’s indirect tax

revenues

- 2.3% of the gross capital formation in the

country, in the last 5 years

Reliance Reliance

makes makes

significant significant

contributions contributions

to the Indian to the Indian

economy on economy on

various various

parametersparameters

6

Leadership in the Corporate Sector

Reliance group’s pre-eminent role in the Indian corporate sector:

- 30% of the total profits of the private sector

- 10% of the profits of the entire corporate sector

- over 12% of total market capitalisation

- weightage of 22% in the Sensex

- weightage of 19% in the Nifty

- 1 out of every 4 investors in India is a Reliance shareholder

RIL and RPL are now the top 2 companies in India on all major RIL and RPL are now the top 2 companies in India on all major

financial parametersfinancial parameters

7

* Date of first IPO; all figures are for RIL & RPL

Consistent Track-Record of Profitable Growth

Compounded Annual Rate of Growth (%)

Since 1977* 10 Year 5 Year

Sales 33 40 50

Net Profit 41 42 26

Cash Profit 40 36 31

Assets 36 34 27

Market Cap 43 41 41

EPS 21 23 20

Record high levels of compounded double digit growth rates on

all major parameters, across all timeframes

8

Corporate Philosophy

World scale, and world class

State-of-the-art technologies

Global competitiveness

Leadership in chosen areas of business

Superior Project Execution

Financial Conservatism

Highest standards for Health, Safety and Environment

Consistent overall shareholder value enhancement

Reliance Reliance

benchmarks benchmarks

itself with itself with

global best global best

practices practices

in all aspects in all aspects

of its of its

operationsoperations

9

Financial Objectives

Emphasis on capital productivity, and returns, to generate

attractive spreads over cost of capital

Targets of minimum 20% ROE, and 20% 5 year EPS CARG,

across business cycles

Conservative gearing - maintain top end credit ratings

New investments based on achievement of hurdle rates of 20%

ROCE, and low gestation period to further enhance ROE

Strong and conservative financial discipline in place

10

Operating Environment

Q1 FY 2001-02

11

Operating Environment

Operating margins for the global petrochemicals industry were

under considerable pressure in Q1

Significant capacity additions in the petrochemicals industry in

the Middle East and Asia, and the US slowdown……

…….caused a sharp decline in international and domestic selling

prices of major petrochemicals products

In addition, continuing volatility in crude oil prices led to volatility

in prices of the principal petrochemicals feedstock, naphtha

The global petrochemicals industry is witnessing amongst the most challenging conditions in its history

12

Change in feedstock and product prices

% change in international prices Q1 FY’02 over Q1 FY’01

Selling Prices of Products (US$/MT) PE -12% PP -10% PVC -29% POY -9% PSF -14% PTA -9% MEG -21% PX -1%

…..but international selling prices of products declined sharply

Raw Material Costs

Crude oil ($/bbl) -1%

Naphtha Prices ($/MT) 0%

Average naphtha prices in US$ terms remained flat Q-on-Q …...

13

% change in domestic prices Q1 FY’02 over Q1 FY’01

Selling Prices of Products (Rs/kg) PE -8% PP 0% PVC -10% POY +3% PSF -9% PTA -6% MEG -11% PX +6%

……. but domestic selling prices of

most products also declined

Raw Material Costs

Crude oil ($/bbl) -1%

Naphtha Prices (Rs.kg) -1%

Naphtha landed prices in rupee terms marginally lower Q-on-Q

Change in feedstock and product prices

14

RIL’s Q1 Performance Highlights

Plants operated at average capacity utilisation rate of 103%

Production volumes increased 7% to record 2.8 million tonnes

Domestic market sales accounted for nearly 90% of total sales

Exports stood at US$ 159 million (Rs. 749 crores) – exports

were Rs. 86 crores per annum just 5 years back

Market shares were 55% for polyester, 77% for polyester

intermediates, and 50% for polymers

RIL has maintained its track record of strong operational performance despite challenging industry conditions

15

Financial PerformanceFinancial Performance

Q1 FY 2001-02Q1 FY 2001-02

16

Q1 FY 2001-02 Q1 FY 2000-01 % ChangeRs.crs. $ mn. Rs.crs. $ mn.

Sales 6,390 1,358 6,136 1,373 4%

Trading Sales - - 479 107

EBITDA 1,302 277 1,235 275 5%

Interest 257 55 298 67 -14%

Depreciation 396 84 366 82

Tax 30 6 28 6

Deferred Tax 1

Net Profit 618 131 543 122 14%

Cash Profit 1,045 222 937 210 12%

RIL Income Statement for Q1 FY 2001-02

Net Profit increased 14% in a difficult operating environment

17

Q1 FY 2001-02 Q1 FY 2000-01 % ChangeRs.crs. $ mn. Rs.crs. $ mn.

Gross Sales 15,255 3,243 12,598 2,820 21%

EBITDA 2,235 475 1,866 418 20%

Interest 500 106 470 105

Depreciation 595 126 501 112

Tax 66 14 52 12

Net Profit 1,074 228 843 189 27%

Cash Profit 1,735 368 1,396 313 24%

RIL+RPL Income Statement for Q1 FY 2001-02

RIL and RPL have combined cash flows of Rs. 1,670 crores (US$ 355 mn) in Q1

18

Q1 FY 2001-02Rs.crs. $ mn.

RIL’s EBITDA 1,302 277Income from Associates 243 52 and SubsidiariesInterest 258 55

Depreciation 396 84

Tax 30 6Deferred Tax 1 -Net Profit 860 183

Proforma Consolidated RIL Income Statement for Q1 FY 2001-02

The true picture of RIL’s profitability is reflected by the proforma consolidated income statement, which includes financials of subsidiaries, RPL, RCL, RIIL and BSES

19

Elements of RIL’s Net Profit Growth

High capacity utilisation rates leading to volume growth

Higher proportion of sales in domestic market

Increased share of speciality products, contributing higher

margins

Productivity improvements and cost reduction

Interest cost savings, owing to lower debt and refinancing

Dividends of only Rs. 16 crores (US$ 3.4 mn) from RPL

accounted in Q1 on pro-rata basis – total dividends on Reliance’s

64% stake for full year Rs. 153 crores (US$ 33 mn)

Profit growth arising from successful twin business strategies of improving sales realisations and lowering costs

20

Composition of 4%

Sales Revenue Growth

Impact of volume growth 6%

Impact of price changes -2%

RIL - Elements of Sales Growth

Production volume up 7% to 2.8 million tonnes

Overall average capacity utilisation rate – 103%

Polymers capacity utilisation rate 110%, polyester 95% and

polyester intermediates 105%

21

RIL Profitability Ratios

RIL has amongst the highest Returns on Equity (ROEs) amongst the top petrochemicals companies globally

Q1 FY 2001-02 Q1 FY 2000-01

OPM % 18.4% 17.4%*

NPM % 9.7% 8.9%

ROE % 18.3% 16.4%

EPS - Rs. ($) 23.4(0.50) 20.4 (0.46)

Cash EPS - Rs($) 38.5(0.82) 34.3 (0.77)

* excluding FX gains

22

Proforma consolidation of financials, to include income from subsidiaries, RPL, RCL , RIIL and BSES, reflects the true picture of returns on RIL’s investments

Q1 FY 2001-02

NPM % 13.5%

ROE % 25.2%

EPS - Rs. ($) 32.6(0.69)

Proforma Consolidated Profitability Ratios

23

RIL Liquidity Ratios

RIL’s financial strength is reflected by its conservative liquidity ratios and top end credit ratings

Q1 FY 2001-02 FY 2000-01

Debt : Equity 0.83 0.72

Gearing 44% 41%

Interest Cover 3.5x 3.3x

Total Debt/Cash Flow 2.0 1.8

24

Conservative Financial Management

AAA credit ratings from CRISIL and FITCH for domestic debt

International debt rated BB (Stable outlook) from S&P and Ba2

from Moody’s – constrained by sovereign ceiling

Weighted average maturity of foreign exchange denominated

debt of US $ 1,300 mn (Rs. 6,000 crores) is 21 years

Annual forex denominated interest liability covered more than 7

times by US$ denominated exports, and oil and gas revenues

Reliance’s strong financial position provides a high degree of financial flexibility to capture future opportunities

25

Reliance is India’s Largest Exporter

Reliance is India’s largest exporter with group exports of US$ 2

bn (Rs. 9,370 crores) in FY 2001

Individually too, RIL and RPL are India’s top 2 exporters

RIL’s manufactured exports declined 10% to US$ 159 mn (Rs.

749 crores) in Q1

RIL exports products to over 100 countries, including to the

most quality conscious customers in the US and Europe

RIL recently became India’s first manufacturing entity to receive

the status of Golden Super Star Trading House

Reliance’s high exports demonstrate the international quality of its products, and its ability to compete against global leaders

26

Consistent Growth in Exports Revenues

Exports still represent only 10% of total sales even after 8 times increase in absolute terms over the last 5 years

86 107 366 685 1,478 2,960

7,786 8,730

13,40414,533

19,968

25,731

0

5000

10000

15000

20000

25000

30000

35000

95-96 96-97 97-98 98-99 99-00 00-01

Exports Total Sales

Rs.crores

27

Business ReviewBusiness Review

28

Product Mix

Composition of RIL’s sales

Petrochemicals businesses dominate RIL’s portfolio, with an 86% share of sales – share of oil and gas business likely to increase

Chemicals10%

Plastics & Int.32%

Fabrics1%

Polyester22%

Fibre Int.32%

Oil & Gas3%

29

Oil & Gas - Review

RIL is India’s largest private sector E&P operator in India

Number of properties increased from just 2 to 25 over the last 2

years

Four new exploration blocks awarded in Q1, in second round of

bidding under New Exploration Licensing Policy (NELP)

100 strong team currently manning operations

Fiscal incentives to enhance overall returns from this business

RIL’s E&P investments are expected to enhance overall feedstock integration levels and generate attractive returns

30

Reliance’s Production Q1 FY’02 Q1 FY’01 %Change

Oil (in kT) 100 92 8%

Gas (in kTOE) 165 157 6%

Oil and Gas - Existing Production

• Output from the 2 currently producing oil and gas fields of Panna-Mukta and Tapti (PMT) has further increased in Q1

• The 3% share in RIL’s revenues by Oil and Gas is from the 2 PMT fields alone – the 23 new exploration blocks are still to make any contribution

31

Reliance’s Oil & Gas PropertiesSHALLOW WATER BLOCKSBLOCK 1 : Kutch OffshoreBLOCK 2 : SaurashtraBLOCK 3 : Saurashtra *BLOCK 4 : Mumbai OffshoreBLOCK 5 : Mumbai OffshoreBLOCK 8 : Kerala-KonkanBLOCK 18 : Krishna GodavariBLOCK 19 : Krishna GodavariBLOCK 20 : Krishna GodavariBLOCK 25 : North East CoastDEEP WATER BLOCKSBLOCK D4 : Krishna GodavariBLOCK D5 : Kerala Konkan *BLOCK D6 : Krishna GodavariBLOCK D7 : Kerala Konkan *BLOCK D10 : MahanadiONSHORE BLOCKSBLOCK 17 : Assam *NON-NELP BLOCKSGK-1 : Kutch OffshoreSR-2 : SaurashtraTULLOW BLOCKST1 : Krishna GodavariT2 : Kutch OffshoreT3 : Kutch OffshoreT4 : Kutch OffshoreT5 : Cambay

* Recently awarded under NELP - II

OnlandDeep Water

NELP - I

Legend

Deep WaterShallow Water

Earlier Awarded Exploration Blocks

Shallow WaterNELP - II

Tullow Blocks

Mukta

Tapti

Panna

25

D1020

D6

D4

T1

18

19

8D7

D5

54

3SR2

2GK1

T31T2

T4T5

17

Well balanced portfolio of 25 deep and shallow water, offshore and onshore E & P blocks, aggregating over 1,75,000 square kilometers

32

Polyester - Background

Leading global rankings, and lowest cost positions:

- 2nd largest producer of PSF/POY

- 3rd largest producer of PX

- 4th largest producer of PTA

Strong demand potential in domestic markets - per capita consumption amongst the lowest in the world

High tariff protection removed - import duties already at resting point of 20%, as per the WTO bound rates

Anti dumping duties imposed on POY exports from leading regional producers, to counter unfair competition

The Indian polyester market has witnessed compounded double digit annual demand growth rates over 2 decades

33

Polyester - Review

Present capacity of POY, PSF and PET 900,000 tonnes per year

to be increased 33% to 1.2 million tonnes per year, in next 2 years

Capacity expansion planned through attractive acquisition deals,

and building cost competitive facilities at existing sites

RIL is the only player making investments to capture future growth

opportunities in polyester in India

RIL’s market share of POY, PSF and PET has grown to 55% -

reflecting acquisitions of 250,000 tonnes over the past few years

Demand fundamentals point to sustainable double digit growth rates for polyester in India in the medium to long term

34

Polyester - Existing Production

Industry Reliance

(Production in Q1 Q1 % Q1 Q1 %

‘000 tonnes) FY’02 FY’01 change FY’02 FY’01 change

Polyester 370 349 6% 205 178 15%

(PFY, PSF, PET)

Intermediates 880 891 -1% 681 728 -6%

(PTA, MEG, PX)

Polyester demand growth of 6% quarter-on-quarter

35

Polymers - Background

Reliance amongst the top 10 players globally in polymers

India the world’s fastest growing polymers market

Likely to be the world’s third largest market within this decade

RIL’s major polymer, PP, accounting for 60% of production,

witnessed demand growth of over 19% this year

Import tariffs already down to 35% - gradual further reduction by

5% per year over the next 3 years

RIL enjoys a leading 50% share in the rapidly growing polymers market in India

36

Polymers - Existing Production

Industry Reliance

(Production in Q1 Q1 % Q1 Q1 %‘000 tonnes) FY’02 FY’01 change FY’02 FY’01 change

Plastics 837 707 18% 416 387 8%

(PE, PP, PVC)

Polymers demand growth of 16% quarter on quarter

Higher industry production growth rate reflects impact of capacities of new players operating at higher rates compared to the last year

37

POY 26% 750 - 12,000 2% - 27%

PSF 59% 2,800 - 10,200 5% - 19%

PE 21% 665 - 6,655 1.8% - 18%

PP 20% 330 - 3,330 1% - 10%

Emphasis on Higher Margin Speciality Grades

Speciality as % Premium over

of Total Volume Commodity

Q1 FY’02 (Rs./MT) (%)

Speciality grades yield premium pricing and contribute to higher margins, product differentiation, and relative insulation from commodity cycles

38

Reliance PetroleumReliance Petroleum

39

Capacity of 540,000 b/d comparable to US and European supersites

World’s largest greenfield refinery and 7th largest in the world

Complexity at top end of global range

– Capability to produce higher value products from lower cost, heavier grade crude

RPL - World class refinery

• US supersites refer to a sample of refineries with capacities of at least 225 kbpd and complexities of at least 9.5• European supersites refer to a sample of refineries with capacities of at least 245 kbpd and complexities of at least 6.5• Certain US and European supersites include petrochemical facilities Sources: RPL, Wood Mackenzie

• US supersites refer to a sample of refineries with capacities of at least 225 kbpd and complexities of at least 9.5• European supersites refer to a sample of refineries with capacities of at least 245 kbpd and complexities of at least 6.5• Certain US and European supersites include petrochemical facilities Sources: RPL, Wood Mackenzie

ComparisonsComparisons

kb/d

0

100

200

300

400

500

600

RPL US supersite European supersite

0

2

4

6

8

10

12

14

Com

plex

ity

Inde

x

Shell Singapore

Reliance Jamnagar

US supersite European supersite

Shell Singapore

16

RILPetrochem

plants

RPL refinery

40

RPL - Peer comparisons

Source: Study by Solomon Associates, Inc. on RPL (March 1999)1. Indian peers refer to seven Indian refineries that participated in the 1996 study by Solomon Associates, Inc.2. Asian peers refer to four refineries that are among the better refineries in Asia according to Solomon Associates, Inc. 3. US pacesetter refineries represent a group of seven refineries located in the U.S. and Canada, which have achieved first or second quartile rankings in all of the major indicators in the past three or four studies by Solomon Associates, Inc.4. Europe pacesetter refineries refer to a group of six refineries located in Europe which have achieved similar rankings as the US pacesetter

refineries

Source: Study by Solomon Associates, Inc. on RPL (March 1999)1. Indian peers refer to seven Indian refineries that participated in the 1996 study by Solomon Associates, Inc.2. Asian peers refer to four refineries that are among the better refineries in Asia according to Solomon Associates, Inc. 3. US pacesetter refineries represent a group of seven refineries located in the U.S. and Canada, which have achieved first or second quartile rankings in all of the major indicators in the past three or four studies by Solomon Associates, Inc.4. Europe pacesetter refineries refer to a group of six refineries located in Europe which have achieved similar rankings as the US pacesetter

refineries

Total cash operating costsTotal cash operating costs Energy intensity indexEnergy intensity index

Crude sulfurCrude sulfur Crude gravityCrude gravity

05

10152025303540

Indian peers Asian peers Europepacesetters

USpacesetters

RPL

US cents / Utilized Equivalent Distillation CapacityUS cents / Utilized Equivalent Distillation Capacity

0

20

40

60

80

100

120

Indian peers Asian peers Europepacesetters

USpacesetters

RPL

0.0

0.5

1.0

1.5

2.0

2.5

Indian peers Asian peers Europepacesetters

USpacesetters

RPL

Weight %Weight %

26

28

30

32

34

36

38

Indian peers Asian peers Europepacesetters

US pacesetters RPL

Degree APIDegree API

41

– Complexity

– Good product fit

RPL - Higher GRMs

– Low crude delivery cost

– Favorable tariff environment

Drivers of high refining margins

– Fiscal benefits

0

1

2

3

4

5

6

7

Apr-June'00 July-Sep'00 Oct-Dec'00 Jan-Mar'01 Apr-June'01

RPL

US Gulf Coast

Mediterranean

Rotterdam

Singapore

$ /

bb

l

42

RPL – Consistent Increase in Operating Rates

RPL’s record capacity utilisation rate of 108% is far ahead of the average 85% for other refineries in India and Asia Pacific region, 86% for Europe, and 92% for North America

Integration with group’s downstream operations and ability to tap exports markets significantly contribute to high operating rates

86%

101% 101%

95%

108%

80%

85%

90%

95%

100%

105%

110%

Q1 FY'01 Q2 FY'01 Q3 FY'01 Q4 FY'01 Q1 FY'02

43

RPL - Income Statement for Q1 FY 2001-02

RPL is India’s largest company in terms of sales and is second only to RIL in terms of net profits, net worth, and assets

Q1 FY 2001-02 Q1 FY 2000-01 % ChangeRs.crs. $ mn. Rs.crs. $ mn.

Gross Sales 8,865 1,884 5,983 1,339 48%

EBITDA 933 198 631 141 48%

Interest 243 52 172 39

Depreciation 199 42 135 30

Tax 35 7 24 5

Net Profit 456 97 300 67 52%

Cash Profit 690 147 459 103 50%

44

Elements of RPL’s Net Profit Growth

High capacity utilisation rates of 108% leading to 26% volume

growth from 5.8 to 7.3 million tonnes

Increased processing of heavier and relatively less expensive

varieties of crude oil

Improved product mix to take advantage of niche opportunities

Import tariff rationalisation in October, 2000, as well as in March

and April, 2001, leading to higher effective import tariff differentials

Ongoing productivity gains and cost reductions

Strong volume growth and superiority of RPL refinery’s configuration have contributed significantly to net profit growth

45

RPL - Profitability Ratios

RPL’s ROE ranks amongst the highest in refining companies globally

Q1 FY 2001-02 Q1 FY 2000-01

OPM % 10.3% 10.3%

NPM % 5.1% 5.0%

ROE % 21.4% 20.8%

EPS - Rs. ($) 3.8 (0.08) 2.8 (0.06)

CEPS - Rs. ($) 5.5 (0.12) 4.1 (0.09)

46

RPL - Liquidity Ratios

AA+ rating from CRISIL and FITCH – a unique achievement for a company of this scale in just over a year of operations Recently concluded India’s largest syndicated loan facility for US$ 750 mn (Rs. 3,500 crores) – enhancing financial flexibility

Q1 FY 2001-02 FY 2000-01

Debt : Equity 0.89 0.86

Gearing 47% 44%

Interest Cover 3.3 2.9

Total Debt / Cash Flow 2.2 2.3

47

RPL - India’s Largest Exporter

RPL is India’s largest exporter with exports of US$ 1,375 mn (Rs.

6,410 crores) in FY 2001

Q1 exports of RPL’s products have increased 200% to US$ 306 mn

(Rs. 1,440 crores)

Exports to the US and other discerning markets reflect:

– global competitiveness

– international quality of products

– operational flexibility

– world class logistics capabilities

RPL’s ability to deliver international quality products provides a significant competitive edge in a decontrolled environment

48

Integration with Marketing

RPL proposes to enter the business of retail marketing of controlled products in India, in line with government policies

RPL is currently evaluating a multi-pronged strategy, encompassing:

- potential joint ventures and alliances

- acquisitions of marketing and distribution assets, and/or

- development of its own distribution and marketing infrastructure

RPL’s Memorandum Of Understanding with Indian Oil Corporation

for formation of a JV for marketing, and the company’s participation in

the process for disinvestment of IBP, reflect this strategy

RPL’s entry into marketing will enhance integration and provide opportunities for generating attractive returns

Reliance TelecomReliance Telecom

50

Reliance Telecom - Review

165% growth in cellular subscriber base over last one year–

double the industry growth rate of 87%

Current subscriber base of over 236,000 with services in 113

cities across 15 states

Leading market shares in all 7 circles

Pre paid account for 90% of cellular revenues – low risk strategy

Strength of Reliance Mobile brand and expertise in building retail

consumer franchise demonstrated

Reliance’s existing mobile operations span 1/3rd of India’s geographical area and cover nearly 400 million people

Reliance InfocomReliance Infocom

52

Reliance Infocom to be the holding company for all infocom and

related businesses of Reliance group

Reliance Infocom to invest up to Rs. 25,000 crores (US$ 5 bn)

over the next 5 years

Project proposed to be financed with 2:1 debt:equity

RIL is the lead investor with 45% equity stake

Reliance Infocom - Review

Reliance is leveraging its superior project execution capabilities and successful experience in telecom business

53

First company to receive licences for providing fixed line services

in 16 circles – national footprint excluding Tamilnadu and J&K

Fixed line licences also enable tapping of mobile segment through

low cost WiLL services – in addition to existing GSM business

First company to receive National Long Distance (NLD) licence

Work on 60,000 route kms, world class IP backbone on schedule

– project on target for completion by end 2002

Participating in process for disinvestment of VSNL, India’s

monopoly international long distance carrier

Reliance Infocom - Update

Reliance Infocom’s comprehensive business model targets opportunities in high growth voice and data markets

54

Plans announced for Indian telecom markets by several domestic

and international players scrapped

Consolidation of telecom industry in India gathers pace

Significant reduction in equipment and fibre costs owing to global

telecom slowdown and cancellation of large number of projects

Phased approach by Reliance towards infocom investments,

based on:

– strong cash flows

– attractive IRRs

– low payback period

Reliance Infocom - Update

Reliance Infocom is building amongst the lowest cost integrated communications networks in the country

SummarySummary

56

India’s Top 5 Wealth Creators in 2000-01

(Rs.crs) (US$ mn) (Rs.crs) (US$ mn)

RIL 41,191 8,835 8,051 1,727

ITC 19,988 4,287 1,948 418

HDFC 6,490 1,392 1,947 418

BPCL 5,717 1,226 1,765 379

Nestle 4,879 1,047 1,270 272

Total 78,265 16,788 14,981 3,213

Mkt. Cap on31-Mar-01

Addition in2000-01

RIL is the No. 1 wealth creator in the year 2000-01 - wealth creation exceeds the next company by a factor of 4 times

57

RIL’s Superior Share Price Performance

RIL shares have consistently outperformed the broad market over all time frames

% changePeriod RIL Sensex Nifty

Year to date -8% -17% -16%

1 year -8% -23% -20%

2 year 76% -28% -19%

3 year 129% 2% 14%

5 year 204% -5% 5%

Since 1994* 53% -24% -

10 year 257% 100% - * Last equity placement from RIL

58

Returns from RIL to Financial Institutions Amount (Rs. crores)

Private placement in October 1994 945Current value of RIL shares (4.9 crore shares @Rs. 313) 1536Income from dividends including reinvestments 150Total profit earned by FIs till date 741

Profit from an equivalent investment in Sensex -148(including dividends and reinvestments)Total returns over market returns 889

• UTI, LIC, and GIC have earned total returns of Rs. 889 crores over

market returns, on their original investment of Rs. 945 crores

• RIL stock price has appreciated 53% from its placement price,

outperforming the Sensex by 77% over this period

Reliance Industries Ltd.

59

Price Performance of Leading Index Movers

% changePeriod RIL HLL ITC

Year to date -8% 6% -14%

1 year -8% -8% 3%

2 year 76% -20% -22%

3 year 129% 27% 22%

5 year 204% 160% 170%

The RIL stock is the best performing index heavyweight over virtually all time frames

60

RPL’s Superior Share Price Performance % change

Period RPL Sensex Nifty

1 year -9% -23% -20%

2 year 49% -28% -19%

3 year 152% 2% 14%

5 year 260% -5% 5%

RPL shares have outperformed the broad market over all time frames, creating superior value for both RPL and RIL shareholders

61

Summary Production volumes in existing petrochemicals business likely to

cross 11 million tonnes in the current year

Global petrochemicals operating margins likely to remain under

pressure during the current year

RIL’s investment in RPL now generating attractive returns

RIL’s future investments in Oil and Gas and infocom to generate

significant returns in the medium to long term

RIL’s proforma consolidated EPS of Rs. 32.6 (US$ 0.69)

reflects the true picture of returns on its overall investments

RIL will endeavour to maintain its demonstrated and consistent track record of shareholder value enhancement

62

Reliance Industries Limited

India’s World Class Corporation