Insights into Mission and Vision of Reliance Infrastructure Ltd

About Reliance Infrastructure Ltd:

Reliance Infrastructure Ltd, previously known as Reliance Energy Limited, incorporated in 1989, is a fully integrated utility engaged in the generation, transmission and distribution of electricity. It ranks among India’s top listed private companies on all major financial parameters, including assets, sales, profits and market capitalization.

A constituent of the Reliance –Anil Dhirubhai Ambani Group, Reliance Infrastructure Ltd is not only India’s largest private sector enterprise in power utility but also the largest private sector player in many other infrastructure sectors of India. In the power sector they are involved in generation, transmission, distribution and trading of electricity and constructing power plants as EPC partners. In the infrastructure space the company is focused on roads, Urban infrastructure which includes MRTS, Sea link and Airports, Specialty Real Estate which includes business districts, trade towers, convention centre and SEZ which includes IT & ITES SEZ and non IT SEZ as well as free trade zones.

Power Utility: Reliance Infrastructure distributes more than 28 billion units of electricity to cover 25 million consumers across different parts of the country including Mumbai and Delhi in an area that spans over 1, 24,300 sq. kms. They also generate 941 MW of electricity, from our power stations located in Maharashtra, Andhra Pradesh, Kerala, Karnataka and Goa.

Infrastructure: They are the largest developer of road and highway projects for the National Highways Authority of India under the build, own, transfer (BOT) scheme.

They are also the country’s first and only private sector builder and operator for Metro Systems. They are already into construction of the first line of Mumbai’s Metro system stretching 12 kms from Versova to Ghatkopar.

They are also the country’s first and only private sector builder to build India’s first 100 storeyed building, a trade tower and business district in 80 acres of land in Hyderabad, The total investment for this project is Rs 6,500 crores.

They are also developing over 180 mn sq ft of SEZ for IT/ITES, retail hospitality in Mumbai and Noida with an investment worth Rs 31,000 crores.

Vision:

To be amongst the most admired and most trusted integrated utility companies in the world, delivering reliable and quality products and services to all customers at competitive costs, with international standards of customer care –thereby creating superior value for all stakeholders.

To set new benchmarks in standards of corporate performance and governance through the pursuit of operational and financial excellence, responsible citizenship and profitable growth.

Mission – excellence in energy:

• To attain global best practices and become a world-class utility.
• To provide uninterrupted, affordable, quality, reliable and clean power to millions of customers.
• To achieve excellence in service, quality, reliability, safety and customer care.
• To earn the trust and confidence of all customers and stakeholders and by exceeding their expectations, make the company a respected household name.
• To work with vigor, dedication and innovation, with total customer satisfaction as the ultimate goal.
• To consistently achieve high growth with the highest levels of productivity.
• To be a technology driven, efficient and financially sound organization.
• To be a responsible corporate citizen, nurturing human values and concern for society, the environment and above all, people.
• To contribute towards community development and nation building.
• To promote a work culture that fosters individual growth, team spirit and creativity to overcome challenges and attain goals.
• To encourage ideas, talent and value systems.
• To uphold the guiding principles of trust, integrity and transparency in all aspects of interactions and dealings.

Insights into Vision statement:

Reliance and Reliance infrastructure, share a common destiny that did not start just in the year 2008, but goes a long way back. It was way back in 1988-89 that Reliance first acquired a small equity stake in BSES. That first step, nearly 20 years ago, was the first glimpse of the vision of Reliance's founder Chairman, Shri Dhirubhai H. Ambani, for the power sector. At a time when we lived in a controlled economy, and economic reforms were nowhere on the horizon, Dhirubhai visualised a future when the private sector would one day be welcomed as a partner in the growth of the power sector in India.

Dhirubhai recognized power is at the heart of every aspect of our day-to-day lives. He realized that the need for quality and reliable power flows through every sector of the economy - manufacturing, services and agriculture. He realized that it is power that drives economic growth. And, he identified BSES as the organization for achieving his dreams in the power sector. In fulfillment of Dhirubhai's vision, after being the single largest private sector shareholder in BSES for over a decade, Reliance made 2 open offers for acquisition of BSES. These open offers were made in a fair and transparent manner, in accordance with the provisions of the SEBI Takeover Code. As a result, Reliance's stake in BSES increased to over 58%, and they acquired management control of the company in January 2003.

Today Reliance Infrastructure is spearheading Reliance's foray to emerge as India's leading integrated infrastructure company with great customer value. It has emerged as a utility of global scale and standing - one that has matched up to Dhirubhai's expectations in every aspect.

Insights into mission statement:

Global best practices: Reliance Energy Ltd. believes that the welfare of consumers is best served by economic competition. They believe in and strive to protect the free enterprise system. They are committed to the maintenance of an efficient, free and competitive market structure. They compete fairly and ethically for all business opportunities.

Commitment to excellence: Reliance Infrastructure Ltd. is committed to total customer satisfaction in terms of quality and services for the entire range of their products. Their continued commitment to excellence and innovative efforts help them to stay ahead as market leader.

Financial Excellence: Reliance Infrastructure has also been able to keep up with the mission statement of performing well financially. With the net profit of 11403 million (in Rs.) And Net Sales of 82948.40 million (in Rs.), company has shown a great improvement in both the spheres. There has been 22% and 36% rise in the net sales and the net profit of the company respectively which is a very good sign keeping in mind the movement of the Indian market.

World class services to customers: Reliance Infrastructure’s mission is to deliver world-class products and services to its customers at competitive costs, with international standards of customer care. Anticipating customer needs and fulfilling them is the center of their business beliefs. They have taken various initiatives to reach out to their consumers. To list a few - Fully computerized customer care centers, 24X7 Power Help number for any kind of queries and complaints, Interactive website wherein you can view all the billing details, Multiple payment options, which include more than 2000 collection points all over the city at convenient locations, Easy payment procedures like ECS, VDS and online bill payment.

Concern for environment: The Company continuously strives towards its commitment to protect and promote the environment. It has a well-defined Environment Policy. All its plants have environmental management system in place. Dahanu Power station continues to perform well beyond the stringent environmental norms prescribed by the Maharashtra Pollution Control Board and continues to receive prestigious awards for its excellent performance. The Power station continued its drive towards forestation with plantation work in the neighborhood villages.

Dahanu Thermal Power Station is a prime example of how proper planning and implementation of environmental measures can result in a positive impact on the environment.

CSR / Community Development: The Dahanu Power station is a significant contributor to the betterment of the community at Dahanu. It promotes and supports many programs that help the community in terms of education, employment and other aspects. As a responsible corporate citizen DTPS has undertaken various Community initiative and social activities in and around Dahanu Taluka; a predominant Tribal area. There are focused activities in the field of Education, Health and other community needs. Regular, Permanent and Service projects are carried out for supporting the mass community. Few projects are also jointly taken up with local NGO's like Lions Club and Rotary Club. The projects are implemented with dedicated team from REL with planned year wise programme and allocated budget. So far company has spent more than 3 crores of rupees as a part of CSR activities.

Transparency: Reliance Infrastructure Ltd. and all its employees undertake to conduct all the business transactions and take all decisions which are relevant to their function, in a transparent and reasoned manner keeping in mind, the established norms of confidentiality and secrecy which are necessary to protect the business and competitive interests of Reliance Infrastructure Ltd.

Reliance is always strict to ensure that there is no room for improper or fraudulent accounting, documentation or financial reporting contrary to company's policies and intentional wrong accounting / misclassifications and miscalculations. The company has established internal control standards and procedures to ensure that assets are protected and properly used and that financial records and reports are accurate and reliable.

Conclusion:

Based on the achievements of Reliance Infrastructure ltd. since its inception, it has been a landmark performance by the company in this sector. This company has shown exponential growth which has made difficult for its competitors to catch hold of this company. Apart from all the achievements made, there has some diversions from the mission statement of Reliance Infrastructure Ltd. Based on the various cases being filed against the Company, it can summarized that Company is finding it tough to carry out their business by being transparent.

References:

http://www.rinfra.com/
http://en.wikipedia.org/wiki/Reliance_Energy
http://www.rel.co.in/Rel/investorrelations/transcript.jsp
http://www.theequitydesk.com/forum/forum_posts.asp?TID=952&PN=4
http://economictimes.indiatimes.com/News/News_By_Industry/Energy/Rel_Energy_to_be_renamed_Reliance_Infrastructure/articleshow/2853132.cms
http://www.thaindian.com/newsportal/business/reliance-energy-is-now-reliance-infrastructure_10026049.html

About the author:

Parag Bhattacharya is an MBA from IBS, Pune and an engineering graduate from Bengal College of Engineering & Technology, Durgapur. He is a marketing professional with broad experience in manufacturing and financial services marketing.

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