Ad Here  
Realising double digit growth in Tamil Nadu Adding Zest to Scooty ALL – truck industry is recovering from degrowth People Flow Day- Safety Gem of social service... Economic issues take a back seat at G20 summit Investor friendly Japan Durga - India’s largest blast furnace; now operational Holiday Inn opens in OMR Chennai Techies trip to India TiE applauds innovative entrepreneurs Is Indian telecom industry heading for a monopoly? Bridging the skill deficit in pharma industry Chennai Port is at last decongested! Time to fast-pace the logistics sector Sun Edison launches solar pumps Research needs more funding Hero Motocorp - smooth ride TCS’ revenues cross Rs 100,000 crore The new look- 4s Verna ALL-two launches in a row Climate change may change the way businesses work... Chola MS launches motor app - Auto test tracks launched at GARC Oragadam campus Economic, business and social sustainability Indigo stays leader with 40 per cent share Applauding enterprise... AirAsia India infuses funds to fight out competition Carrefour’s quick exit Hyundai excites again IFCI to raise NCDs upto Rs 2000 crore Steel loses its sheen Connecting the unconnected Scoot offers just Rs.13,500 to ANZ... Pharma market dozes Tata Steel commence operations at Kalinganagar More gensets and diesel engines from TAFE A global plastic event in India Waste, a gold mine Airlines wage price war ALL to launch electric busses Strategy war escalates between Hero and Honda TVS Logistics – another acquisition to sharpen the business model Striking cords for 25 years… Backpack laboratory Illicit markets a concern to growing economy Nothing to hide... TII-challenging year with flat growth Curbing steel imports will hurt small business... Brand leaders come forward... Make way for the new and dynamic railways TN budget pragmatic and moderate on fiscal deficit When Centre visits the state On the ‘milky’ way Digital retail transactions stabilise at higher level… Housing Innovation Challenge, 2015 Veritas Finance- financing the unfinanced Placing the right shoe forward... Well-refined – RIL’s refinery margins zoom Apple maps – finding its way Blue Star plans a new plant in south Celebrating 180 years of relevance SumInfra- corridor based development... Chola MS net crosses 100 crores Inclusive and forward moving... WABCO’s second Chennai plant Schwing Stetter India joins hands with US-based Gomaco Chennai to get a roundabout Metro STFC raises money World labour laws at a glance Indian Bank – global businesses crosses Rs 3 lakh crore... Business Breif TII’s single largest investment at Thiruthani Purdue and IIT-M sign the dotted line Towards peace of mind Nigeria comes nearer European crisis is a global crisis! Secured NCDs from Shriram City Dynamic e-commerce scenario Four daughters and a proud father Automotive Vision Plan II... TOP 10 CEO Compensation LVB gears to become a financial supermarket Changing dynamics in human resource management CUB: towards card-less withdrawal ISRO's 100th mission Big-ticket investments march towards Punjab Reality bytes Focus on self-certification and third party inspection BRICS development bank An aerospace-defence cluster in Tamil Nadu… Murugappa- a year of consolidation Smart controls for cooling large multi-zone spaces ... Rating of states to be released soon Flexible labour laws… Innovation that helped Chennai port Chennai will soon get its World Trade Centre An American alliance in the chemical industry? Ridley marathon to India Creating Tamil Nadu Banana brand Need to focus on ease of doing business... Realty sector takes a break... Downsizing spree... Industry-well poised to invest on expansion Three more leather clusters… Celebration time at MS Chola ECGC expands operations Business Briefs OBO Bettermann for better lightning protection
Well-refined – RIL’s refinery margins zoom

Of the several out-of-the-box innovations of Dhirubhai Ambani, the one that seems to have contributed so richly to Reliance Industries’ top line and bottom line appears its foray into refining. For decades, the mindset was on building refining capacity to meet the growing domestic demand. The first 30 million tonne refinery at Jamnagar, the largest at that time, was conceived to meet this. Alongside, Reliance also aggressively set up hundreds of retail outlets with swanky exteriors. There were great expectations on the liberalisation of marketing petroleum products ushering a game-changer biased towards the consumer. When the government continued with its old socialist prejudice and denied the private marketers – RIL, Essar and Shell – the benefit of subsidy, RIL boldly looked out for opportunities in the global market. It seized these quickly and invested more handsome amounts on doubling refining capa-

city at Jamnagar, which is presently around 65 million tonnes. RIL dedicated the entire produce for exports with fantastic gains for the country. In quick time petroleum product exports topped our export basket!

RIL’s consolidated financial results for 2015-16 showed a turnover at Rs 296,091 crore, a decline of 23.8 per cent due to fall in crude and product prices. But net profit increased by 17.2 per cent to Rs 27,630 crore (including Rs 423 crore of exceptional items).

Unlike most other exports, petroleum product exports seem to be quite profitable. The report on RIL’s performance mentions gross refining margins rising to a record $ 10.8 a barrel in the fourth quarter since 2007. Net profit was also a record Rs 7398 crore since 2007. These despite a drop in total revenue for the quarter by 8.9 per cent to Rs 64,569 crore. This could be understood in the context of the steep drop in crude prices and the consequent decline in price of petroleum products.

A matter for concern is the continuing fall in production of gas and oil from the KG Basin. The results reported a 35 per cent fall in revenue during the quarter due to lower prices and volumes.

Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236