On February 23, Reliance Industries Limited confirmed it’s conversion of oil to chemical business into an independent subsidiary.
Moreover, RIL will have 100 percent management control of the new subsidiary.
Further, the oil-to-chemical (O2C) business unit holds Reliance’s oil refinery and petrochemical assets and retail fuel business.
However, it does not include upstream oil and gas producing fields such as KG-D6 and textiles business.
The promoter group will possess 49.14 percent stake in the O2C business post the reorganization.
For the first time, RIL reported integrated earnings of the O2C business in its third quarter financial results.
The O2C business aims to reflect new strategy as well as management matrix.
This will facilitate holistic and agile decision making as well as pursue attractive opportunities for growth with strategic partnerships.
As per the company, all of its refining, marketing and petrochemical assets will be transferred to the O2C subsidiary.
The reorganization will proffer sustainable and affordable energy and materials solutions to meet India’s growing needs.
Currently, the O2C business is valued at USD 75 billion.
Theworld’s largest crude exporter Saudi Aramco is in talk for sale of a 20 per cent interest.
Meanwhile, the O2C unit also houses the firm’s Singapore and the UK-based oil trading subsidiaries and marketing subsidiary.
It houses Reliance Ethane Pipeline Limited that operates a pipeline between Dahej in Gujarat and Nagothane in Maharashtra.
In fact, there’s a 74.9 per cent stake that Reliance holds in the joint venture with Sibur.
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