Reliance

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Reliance

"Growth as a way of life"

One of Reliance Industries' main growth strategies is backward vertical integration. The organisational structure was always in a state of flux, as it was often expanding.

Selling fabrics and yarn in the 1960s, Ambani used the export replenishment licence to import rayon into India and sell them at a premium. When nylon started getting popular in India, he began exporting rayon and importing nylon in exchange. In the 1970s, polyester was becoming more popular and the government allowed the import of polyester to be made against the export of polyester. Ambani took advantage of this straight away.

In 1977, Dhirubhai decided to take his firm public.

Reliance was always upgrading its technology, which enabled it to surpass competitors. It then began to open its own retailing outlets, shortening the supply chain. It opened hundreds of stores, as Ambani did not believe in doing things by halves.

Advertising came next, as the firm splashed out on various media. It also set up fashion shows to support its brand.

Like Bajaj, in the 1980s Reliance faced capacity constraints, due to government restrictions, so it sourced its grey fabrics to powerlooms nearby, processed them at its textile facility and sold them under its brand name.