Decoding the Reliance-Aramco Deal

Decoding the Reliance-Aramco Deal

Great Lakes Institute of Management, Gurgaon, student Surya Jain talks about his opinions on the Reliance-Aramco deal.

An investment in Reliance Group, rather the biggest one in its 53-year history, might just result in one of the largest ever foreign investment by any overseas company into India. This investor is none other but Saudi Aramco, which is not only the world’s largest and lowest cost-per-barrel producer of crude oil but also the most profitable company in the world [1]. This company is in talks to invest a handsome amount in the largest private-sector corporation in India.

Great Lakes Institute of Management, Gurgaon, PGDM 2019-21 student Surya Jain talks about his opinions on the Reliance-Aramco deal.

The relationship between Saudi Aramco and Reliance Industries has already been a long one, 25 years to be specific. Saudi Aramco has already supplied 2 billion barrels of crude oil for processing at RIL’s refinery at Jamnagar till date. A potential 20% stake in the Oil-to-Chemical division comprising of Refining, Petrochemicals and Fuel Marketing Business of Reliance Industries carries an Enterprise Value of US $75 billion [2]. This deal will also result in Saudi Aramco supplying 5,00,000 barrels of Crude oil per day to Jamnagar refinery on a long-term basis [3].

However, the deal didn’t really have a great start. It fell apart on multiple occasions with Reliance demanding a higher valuation which, indeed, they were able to command with a much higher multiple than industry standards. As a part of the deal, Reliance industries will carve its oil-to-chemicals division and will become an independent entity in 5 years. However, for the first 5 years, Saudi Aramco will not directly own shares in the business division, though it will get a chance to appoint a key business leader, tentatively the COO, to oversee it [4]. Apart from this, Saudi Aramco has been on an acquisition spree and making other major investments in Asia to bolster its presence, building refineries in Indonesia, South Korea, China, and Malaysia.

PGDM student from Class of 2019-21 at Great Lakes Institute of Management, Gurgaon, Surya Jain, talks about his opinions on the Reliance-Aramco deal.

To put things in perspective, Saudi Arabia’s oil export to the US was ~2,62,053 BPD in July 2019, nearly 62% down from 6,87,946 BPD as compared in August 2018, as a result of the US becoming self-reliant than ever [5]. This has resulted from the US Shale Oil Revolution and has been one of the major reason of OPEC production cut in 2017, resulting in reduced supply to the largest, transparent and timeliest market – The US. At the same time, according to a report by Wood Mackenzie, India will surpass China to become the second-largest oil demand growth center in 2019 remaining only behind the US and helping them offset a slowdown elsewhere through growth in Indian markets [6].

On the backdrop, this deal seems to be a perfect solution for Saudi Aramco to maintain stronghold and grip on the fastest-growing oil market in the world (bolstered by the swelling middle class) where it is facing stiff competition. By competition, we also mean the US, which is ramping up shale exports, and Russia who is looking for new customers and trying to making inroads

Suppliers of Crude Oil to India
Source : Ministry of Petroleum and Natural Gas

Stepping into Mr. Mukesh Ambani’s shoes and understanding the story from his perspective, the deal will provide Reliance with the much-required cash to de-leverage its balance sheet, bring net debt to zero by March 2021, and fund the Jio and Digital business [7]. This is part of the company’s larger effort to expand its consumer-facing business including its retail chain, and its effort to move into the technology sector and internet services by diversifying from its core oil refining and petrochemical business. This deal seems to be a perfect synergy between the interests of the world’s largest oil producer and the ambitions of one of India’s largest conglomerates.

Great Lakes Institute of Management, Gurgaon, PGDM class of 2019-21 student Surya Jain talks about his opinions on the Reliance-Aramco deal and how it would benefit Mukesh Ambani's conglomerate and the world's largest corporation.

Written by: Surya Jain – PGDM “Apache” Class of 2021

Great Lakes Institute of Management, Gurgaon

Great Lakes Institute of Management, Gurgaon, PGDM class of 2019-21 student Surya Jain talks about his opinions on the Reliance-Aramco deal and how it would benefit Mukesh Ambani's conglomerate and the world's largest corporation.

References

[1]: https://www.linkedin.com/feed/news/the-worlds-most-profitable-company-4984378/

[2]:  https://www.bloomberg.com/news/articles/2019-08-14/saudis-defending-coveted-indian-oil-market-with-reliance-tie-up

[3]: https://www.vccircle.com/reliance-to-sell-20-stake-in-oil-to-chemicals-business-to-saudi-aramco

[4]: https://economictimes.indiatimes.com/industry/energy/oil-gas/ril-to-hive-off-oil-to-chemicals-business-into-separate-company-in-five-years-rils-pms prasad/articleshow/70651943.cms?from=mdr

[5]: https://www.cnbc.com/2019/08/15/saudi-arabia-dramatically-changing-its-oil-exports-to-china-and-the-us.html

[6]: https://economictimes.indiatimes.com/industry/energy/oil-gas/india-to-surpass-china-to-become-2nd-largest-oil-demand-centre-in-2019/articleshow/67641257.cms?from=mdr

[7]: https://www.financialexpress.com/industry/reliance-industries-agm-live-updates-mukesh-ambani-jio-giga-fiber-jio-phone-3-ril-stock-price-reliance-plan-12-aug-2019/1672964/

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Breathing Life into a Brand

Breathing Life into a Brand

GREAT LAKES GUEST LECTURE SERIES – Mr AVIK CHATTOPADHYAY

Co-FOUNDER – EXPEREAL INDIA

27th July 2018:

Fridays at Great Lakes, Gurgaon, generally mean a session with a seasoned industry expert. Dressed in our formal best, armed with laptops and notepads, the Great Lakes’ PGDM batches, Aztecs and Jaguars, were ready to welcome Mr Avik Chattopadhyay for an interactive session focused on Branding. Being a marketing enthusiast, I was eagerly looking forward to this session.

Mr Avik Chattopadhyay: He is the founder of a brand consultancy firm, Expereal India. The firm deals with building strategy for several brands. He possesses extensive experience of more than a decade in Branding for the automobile industry and has previously worked with giants like Volkswagen, Maruti Suzuki, Apollo Tyres, Peugeot, to name a few, in leadership roles.

The interactive session majorly focused on the characteristics of a brand that keeps it relevant in the long run. Mr Chattopadhyay explained that at the heart of each and every brand, lie some core values and characteristics which derive its purpose and are in-sync with the hearts of the consumers. If a brand cannot connect with its audience, it is eventually and inevitably going to phase out.

He further added that the idea of a brand is applicable to everything, from products and services to organizations, teams and even individuals. In order to substantiate his words, he offered examples of prolific standings like that of the Nalanda University – standing for knowledge, the Pyramids – standing for their engineering marvel, and the Himalayas – standing for both tranquillity and as a symbol of challenge. While these can be perceived as products from a marketing perspective, there are individuals like Elon Musk, Christopher Nolan and Steve Jobs who are nothing short of a brand in themselves.

He explained that in today’s context, a brand is something that is highly misunderstood and many a time is just equated to a bunch of tangibles like a logo, slogan, advertising or maybe a Facebook page. A brand in its entirety is way more than that and is reflected by “what it stands for.” It is something that is promised and delivered consistently.

Having worked with some of the most reputable brands – Maruti Suzuki and Apollo Tyres – he then took the students for a Case Study ride to showcase how these two companies came out from a series of troubles and bad market standing and how they were able to turn around the brand image to what it stands for today.

In the case of Maruti Suzuki, he described the worst couple of years in the company’s timeline i.e. from 2000 to mid-2002 and how that was a major motivation to introduce a product which entirely revolutionised the Indian automobile market. The product was Maruti Suzuki Swift. While Swift was built for a newer target market and was designed as per it, the entire project remained true to the brand idea of Maruti Suzuki, which is – democratization of mobility.

A similar case of Apollo Tyres was discussed. While Maruti Suzuki had a very inside-outside approach to solve its problem, Apollo did just the opposite and succeeded too. He laid out the importance of setting and adhering to benchmarks along with devising a long a term strategy to be truly successful.

The session turned out to be more enlightening than any of us imagined and that was evident by the storm of questions Mr Chattopadhyay received from the knowledge-hungry Great Lakers. To conclude, this was one of the sessions which will be in the memory of everyone who aspires to make a career in Branding.

Author: S SnehanshN

PGDM, Class of 2019, Great Lakes, Gurgaon

The Joy of Giving: Karma Yoga Session 1

The Joy of Giving: Karma Yoga Session 1

July 7th, 2018

“Don’t give to get. Give to inspire others to give.”

~ Simon Sinek

One such choice we made is to explore the side of our personality which allows us to be generous in giving, without expecting anything in return.

We, the students of PGPM 2019 – NINJAS, started our journey on 7th July 2018 with the same mission in mind. Red walls, lush green compound, enthusiastic students in the uniforms planting trees, joyful teachers; these are the visuals which welcomed us to the Primary Government School of Fazalwas, Haryana. It was euphoria all around; innocent faces, wide smiles, genuine conversations. We were elated by seeing the school kids deeply involved with themselves and maybe this is what it is called “being in present” or “mindfulness”.

After a quick introduction, we were pleased to witness various performances by students such as dancing, singing, and mimicry. Post the icebreaking session, we were quick in executing our plans for the day. Teaching tables through Vedic mathematics technique, unleashing the talent hidden in the students by asking different questions about their likes and interests, engaging them by playing games with them. We clapped, danced and laughed along with them and got lost in the moment forgetting all the worries, assignments or projects. There was a sense of belonging and blissfulness in those tiny classrooms with minimum facilities. It gave us immense pleasure to have connected with these kids when they were over the moon sharing with us their fantasies, friends, and little playful fights they had amidst strong bonding. At that moment, we felt there is a lot of selfishness in giving back to society which is the immense satisfaction and happiness you experience in the process.

Giving back to society not only makes us generous, it also adds purpose to our life and happiness in doing something for others who need it more. Giving back to society is de-stressing too, it helps us to realize our own self and manage our inner relationships to make us live a more balanced life, allowing us to keep a balance between our daily chaos and our need to become a more responsible citizen and an individual.

Seeing the sheer joy and happiness on the kids’ face and knowing that we have been a small reason behind those smiles has been an unparalleled experience. And we are forever in debt to the Karma Yoga initiative of Great Lakes, Gurgaon for introducing us to such joy.

“At the end of the day, it’s not about what you have or what you’ve accomplished. It’s all about who you’ve lifted up, who you’ve made better. It’s about what you’ve given back.”

~ Denzel Washington

Author: Urvi Sehrawat

PGPM, Class of 2019, Great Lakes, Gurgaon

Life @ Great Lakes Institute of Management, Gurgaon

Life @ Great Lakes Institute of Management, Gurgaon

“Memories are the Timeless Treasures of the Heart….”

The Initiation

It seems as if it was just yesterday when I received an offer letter from Great Lakes and now, in just a blink of an eye, this beautiful journey has come to an end. The Gladiators (PGPM 2017-18 batch) are now well equipped with paramount insights and knowledge to enter the corporate life again with a new and improved outlook. I remember the day when I anxiously stepped into the campus for the first time, feeling like a pond fish that has crossed rivers to land up in a mighty ocean, wondering how I will adjust to this new environment.

Offsite – Rishikesh

The thought of living in a hostel at an entirely alien place with 120 unfamiliar faces gave me jitters. But the ice-breaking offsite trip to Rishikesh, organized by the institute along with Prof. S.K. Palhan, completely erased all my inhibitions. In a matter of just three days, the entire batch of 120 strangers formed an indestructible bond of friendship. All due credits to white water rafting, rappelling and various other team building exercises of which we all were a part of during our trip.

The Fabulous Faculty

Entering a classroom after working for 3+ years was a grilling experience, to say the least, but with less than 365 days on our Great Lakes calendar, there was no rest for the wicked. And thankfully, the faculty did a brilliant job at educating us with their extremely innovative and interactive teaching methods and techniques.

From Professor Umashankar’s quirky and witty marketing classes to learning the concepts of balance sheets and P&L statements with Dr Preeti, the months just flew by. Dr Poornima made the HR classes fascinating by adding a gaming element with lifelines and it was mandatory to go through pre-reads before entering Dr Jones’ classes which coupled with countless other assignments and projects felt exhausting at that time but helped grasp the key concepts in an effortless manner.

Lectures

Being from a software development background, I never imagined I’ll have anything to do with economics in my entire life but our esteemed Dr VP Singh made its concepts clear as a crystal by helping us create a small start-up and run the same in college for 20 days. The exercise turned the entire campus into a carnival. Everyone had their businesses up and running ranging from serving Nimbu-Pani and Bhel-Puri to Gaming zones and grocery delivery units. Later on, we analysed the revenue generated, break-even points etc.

Walking with the Giants

There was more than just classroom learning to Great Lakes as the industry interactions and CXO talks kept us busy throughout the weekends as well. People with extensive industry experience visited the campus and a lot of synergy took place. Being in the same room and interacting with some of the most celebrated names of the corporate world was like a dream come true for us.

Mr Pramod Sadarjoshi – Senior Director, HCM Strategy & Transformation, Asia- Pacific, ORACLE

Though inside the campus but never separated from the business world, we got ample opportunities to discuss the latest upcoming technologies and changes in the global framework of organizations. We participated in various conclaves related to SMAC, Human Resource, Marketing, operations and Finance where we had panel discussions among CXOs of different organizations to get an in-depth knowledge of the industry.

Committees, Clubs & Chaos

During the committee interviews, the entire campus was in chaos. We were all trying to find our strengths and decide where we fit in. Whether we’ll be a good fit for guiding prospective students for admissions or strengthening the brand of our institute? Whether organizing events was our cup of tea or assisting the institute with placements?

Admissions and BPR Committee

With a lot of preparation and cracking a grilling interview, I ended up in the Admissions and BPR committee. I was actively involved in the branding of the institute, writing blogs, handling the social media channels, volunteering for the admission process, answering queries of prospective students on Quora, guiding new admits under the flagship of Buddy Program and travelling to different locations for the same. This has given me a lot of exposure, and today, I am a completely changed and confident personality altogether.

Annual Events

We, as students, were responsible for organizing the events like TEDx, Crest (annual management fest), Sapience (annual management conclave), Foundation Day, Alumni Meet, and Dr Bala’s Birthday etc. Moreover, as a part of the Great lakes family, we also celebrated all the festivals from Onam, Lohri and Ganesh Chaturthi to Independence Day, Christmas and Holi with the same zeal and enthusiasm. Moreover, there were DJ nights, Fresher’s party, Halloween and a lot more parties which were organized to perfection by our student council.

TEDx GLIM Gurgaon

The Endgame

Lastly, not to forget, the point we all were here for – The Placement Process. The CCS team along with Placecom put in a lot of efforts in terms of interview preparation, GDs, resume review etc. Personal effectiveness sessions were conducted and mentors were allocated to students to have a smooth process. The proud feeling of getting placed and celebrating the placements of our friends was priceless.

This journey has been fantabulous and completely phenomenal amidst sleepless nights, group projects, assignments, exams, co-curricular activities and much more. The guidance and mentorship provided by faculty members and the staff paved our way for a better tomorrow. All of us have made friends, who will last a lifetime. The beautiful impressions will stay in our hearts forever. I would sum up this beautiful journey by saying,

“I’m really gonna miss this place, I am gonna miss my college days”

 

Author: Sakshi Khurana

PGPM, Class of 2018, Great Lakes, Gurgaon

What does Great Lakes Institute of Management look for in a Candidate

What does Great Lakes Institute of Management look for in a Candidate

“Do I possess the qualities required to get into a top B-School?”

This is the question that goes through the minds of all professionals a few years into their careers. Great Lakes Institute of Management goes through thousands of applications each year and only a select few get accepted.

So, what differentiates the selected applicants from the rejected ones?

Before answering this question, one must understand the fact that entrance exams like CAT, XAT, GMAT, etc. are just the tools for primary filtration. If a good test score is the only weapon in your arsenal then you’re in for a surprise as the final selection depends on a candidate’s performance in the subsequent stages that include PI, essays, group discussions etc. The basic idea behind such a rigorous admission process is that a candidate must be able to justify his/her test score with something more substantial.

The Great Lakes admissions committee is always on the lookout for that one factor in the applicants which makes them stand out from the crowd and if you possess even one of the following qualities, you’ll gain a significant advantage over rest of the applicants.

Potential to drive Business Impact through Leadership

Leadership potential is the top box to check when you apply to Great Lakes. We want to invest in an applicant who’ll go out and make an actual difference in the real world. Therefore, you will have to demonstrate that you possess what it takes to be a leader either in your work experience, academic life, extracurricular activities or elsewhere.

Demonstrated Track Record of Achievement

We keenly seek applicants who have a demonstrable record of achievement. We truly believe that achievement can manifest in many forms, from academic excellence to college extracurricular activities to professional accomplishments, to personal wins.

We value demonstrated achievement irrespective of its scale and sphere; whether you’ve started up a company, headed a project at work, captained a sports team or organized a relief fund, we consider all these as examples of achievement.

Interpersonal and Communication Skills

As an MBA Grad, you’d be expected to not just be good at what you do but also effectively portray that you are good. You need to be able to market yourself and effective communication and interpersonal skills are the key to do that. If you are a brilliant professional but can’t make a pitch for your ideas and opinions or can’t convince others about your potential, then you probably aren’t ready for the big leagues. The essays and personal interviews are the stages of the admission process where you can showcase your communication skills.

Relevant Work Experience

Work experience of minimum 24 months is a mandatory eligibility criterion for applying to the PGPM program. But more than your career choice, you’ll be assessed on the basis of the progress you made professionally vis-a-vis your earlier self. The factors that make you stand out are the consistent upward movement of our career graph, roles & responsibilities on the job, team-building, managerial tasks and proactive approach.

Thought Clarity & Career Aspirations

When you’re applying to Great Lakes, you must have a few choices to help you lay down a foundation. Whether you wish to achieve a leadership role or switch careers or become an entrepreneur post your graduation, you must be able to clearly communicate it to the Admissions Committee. Remember, it’s not just about securing a place in a B-school, it is more about what difference you want to make in the real world and neither is possible without aspirations and ambitions.

Right Fit with the Program

All MBA programs have a personality. For example, the PGPM at Great Lakes is best suited for professionals who have proved their mettle in the industry and are now looking for an accelerated growth. The PGDM, on the other hand, has a completely different approach as it prepares the individuals to face the real world business challenges for the first time. In order to secure a place in Great Lakes or any other B-School, you’ll have to effectively justify that you’re not just compatible with the program but with the culture of the school as well.

We at Great Lakes are looking forward to meeting you. So, Good Luck and May the odds be ever in your favour.

 

Team Admissions

Sitting in the Hall of Fame

Even at the age of 80, Dr Bala V. Balachandran, is an inspiration to many and a motivation to many more. His energy, enthusiasm, knowledge and, most importantly, wit are the key traits that make him so loved and respected by all.

Having an opportunity to attend his class was truly a blessing. After interacting with this great gentleman, I often kept wondering what is it like to be successful at the age of 80? What keeps him going?

When asked the same, Uncle Bala said, it’s the enthusiastic students and their never ending thirst of knowledge. Seeing, interacting, teaching and always being surrounded by people in their twenties make him feel twenty at heart and the love and respect that he receives from then is what encourages him to achieve more and do more for them. Well, this is ‘attitude being gratitude’ at its finest and speaks volumes about the character of this phenomenal person. It is in my personal opinion, that it’s not just being successful but doing it the right way is what differentiates the men from the boys.

So, what was it like to attend his class? The aura of the class comprising of the enthusiasm of the students and the respect that he commanded were among the first oblivious things that can be observed. The constant humour, witty one-liners, the command and expertise over the subject (duh! he is the pioneer of the subject) and his constant real-time illustrations are the composition of his class.

The key take away for a student from Uncle Bala’s class are the real life experiences shared, industry specific problems defined and the strategic methods implemented to solve the same which are in correlation with your academic subjects helping you bridge the gap and connect the dots.

In his short stay of 3 days and 10 hours of classes, he has given us much to cherish and the impression that he has left on us students will be everlasting.

Author: Ashwin AN

PGPM, Class of 2018, Great Lakes, Gurgaon

The Great Lakes Bike Squad – Roadtrip #1 – AGRA

It was the Sunday of the penultimate week of term 1 when the examination schedule arrived and noticing that we have a 2 day holiday post exams, was enough to lift our spirits after the 7 weeks of rigorous classes, assignments, quizzes and projects. Being the kind of travel enthusiast and an adventure junkie that I am, I immediately started planning a road trip.

Post extensive deliberations and discussions, “The Squad” decided that Agra was the best place to visit in this limited span of time.

Introducing the squad:

 

 

With the exams done and dusted, we nut heads, Chinmay, Rishi and I (Ashwin) were super pumped up for this trip. We got our bikes washed and fueled them up for the ride.

The Kickstart: Day 1: Saturday

We started our journey early in the morning at 6 AM and were greeted by foggy clouds, slight drizzle and curvy roads. As we cruised through the countryside with cool breeze caressing our bodies and ruffling our hair, a kind of indescribable euphoria took over.

The benefit of starting at 6 in the morning is that we covered good ground in no time and by the time we reached the National Highway, we were starving. After devouring a few parathas, we were on our way to our first major stop, Mathura, the birth place of ‘Lord Krishna’. We explored the town for a while and then made our way to Vrindavan to seek the Lord’s blessings. Following which, it was now time to head towards Agra and the gorgeous Yamuna Expressway, with its scenic beauty, embraced us with open arms.

 

Yamuna Expressway was a full-throttle adrenaline rush!!! Cruising at 120 KMPH and pushing our vehicles to their limits, it was an amazing feeling altogether. Post all that adventure, we stopped for our mandatory photo shoot and reached Agra at 2PM. Later in the evening, we explored the former capital of India gazed at the beauty of the TAJ in awe.

Day 2: Sunday – TAJ, definitely worth every superlative description out there

Being the early birds that we are, we visited Taj at 6AM and it was truly a feast for the eyes. After gazing endlessly upon the monument of love in a peaceful environment devoid of any noisy tourists, we started our journey to Fatehpur Sikri and reached there by 11 AM, visited all the historic monuments and by 3 PM we were back on the road.

Within a span of 48 hours, we covered a distance of 500 KMS and reached our campus safe and sound by 7 PM.

With this adventurous trip behind us, we realised that this was first official Bike Squad of Great Lakes. The three of us mutually agreed to carry forward this tradition of road trip whenever the opportunity presents itself and keep on adding more members to The Squad in the future.

 

Author: Ashwin AN

PGPM, Class of 2018, Great Lakes, Gurgaon