Reliance chairman Mukesh Ambani, while addressing shareholders at the 43rd annual General Meeting of Reliance Industries Limited, told that they are going to spin off their oil-to-chemicals (O2C) business into a separate business entity and introduce strategic partners.
Mr Ambani announced that they “will approach NCLT with our proposal to spin off our O2C biz into a separate subsidiary to facilitate multiple partnership opportunities. We expect to complete this process by early 2021”. He said that their oil-to-chemical business has performed exceptionally even in such a challenging environment, accounting for about 50 per cent of India’s exports. He also stated that Reliance industries has been approached by strategic investors regarding petrochemicals business and further added that they have received interest from investors regarding investment in Reliance Retail.
Mr Ambani said, “The year gone by, was the most challenging for global refining and petrochemical industries, even in this uncertain and volatile environment. Our oil-to-chemical business outperformed the sector, and delivered an EBITDA of Rs. 55,394 crores. In the first two quarters this year, business and consumer activity had come to a halt in the energy market, leading to unprecedented demand destruction”.
In August 2019, Aramco, the Saudi Arabia state-owned oil refiner – one of world’s largest – had agreed to buy 20 percent take in the Reliance Industries’ oil-to-chemical business for 15 billion US dollars.
While this reliance-Aramco deal was being signed, Mr Ambani said that “We at Reliance have enjoyed a long and fruitful relationship with the Kingdom of Saudi Arabia for many decades. From Oil Economy, this relationship is now moving to strengthen India’s New Oil (Data-driven) Economy, as is evident from PIF’s investment into Jio Platforms. I have greatly admired the defining role PIF has played in driving the economic transformation of the Kingdom of Saudi Arabia”.