RIL's staff base more than doubles in 2 years

Mukesh Ambani-led Reliance Industries has more than doubled its employee base in the past two fiscal years to over 25,000 people.

Besides, in its efforts to make the employees part of its growth story, RIL disclosed having granted close to three crore stock options to over 14,000 employees, estimated to be worth about one billion dollar at the grant price and about $1.9 billion at the current share price.

Its head count rose to 25,487 at the end of 2007-08, up from 12,540 employees two years ago as on March 2006.

However, during the fiscal 2007-08, the head count rose by just about 800 employees from 24,696 as on March 2007, while the company's employee cost rose by about Rs 25 crore (Rs 250 million) during the year, according to RIL's latest annual report to the shareholders.

The company has seen its workforce swelling for four consecutive years now. Prior to that, the head count had fallen in 2003-04 by more than 1,500 employees. While in 2002-03, it rose by close to 50 employees, it had fallen for four straight years between 1998-99 and 2001-02.

RIL said in its annual report that its employee cost rose to Rs 2,119 crore (Rs 21.19 billion) in FY'07-08, up from Rs 2,094 crore (Rs 20.94 billion).

The previous year's figure includes Rs 376 crore (Rs 3.76 billion) towards expenditure incurred on Voluntary Retirement Scheme/Special Separation Scheme in the erstwhile IPCL's Vadodara unit.

The company, which has become the first private sector company in India to have a cash profit of over Rs 25,000 crore (Rs 250 billion), said that one of the 'key' reasons for the exponential growth of Reliance is undoubtedly its "people". RIL figures among 25 largest employers in India. 

RIL said that given the right environment and nurturing that is provided, time and time again seemingly 'ordinary' people has surprised the company with 'extraordinary' results, adding this has been the cornerstone of its success.

"Reliance with its subsidiaries continues to build its workforce, which today is in excess of 48,000 strong with a diverse background of individuals - essential for the kind of organisation that Reliance is," the report noted.

Its employee base includes more than 200 doctorates, 10,000 plus engineers, 3,000 plus management graduates, 1,000 plus accountants and over 1,000 other professionals.

The company said about half of its workforce is below 40 years of age and the average age is of around 34 years, which continues to move downward.

RIL said that it hired over 1,500 engineers last fiscal, while it got on board and trained over 1,700 employees at Jamnagar. Besides, it has also introduced an annual BMT (Business Management Trainee) Scheme and has hired over 30 people from IIMs in last two years under an annual programme.

The company said its Employee Stock Option Scheme has become one of the widest programmes of its kind in the Indian corporate sector, covering over 14,000 employees.

RIL disclosed having granted 2,97,63,000 options, each convertible into one equity share. These options, based on the exercise price on the day of grant, are estimated to be worth about Rs 4,000 crore (Rs 40 billion). At the current share price of Rs 2,602 per share, these options would be worth about Rs 7,700 crore (Rs 77 billion).

"Keeping in view the Organisations value and belief of creating Owner Managers, this programme has helped achieve that vision in no uncertain terms with not just giving the people higher order responsibilities but returns as well to go with it," RIL said.