Saudi Aramco to invest $75 billion in Reliance, BP to propel petro-retail business: Ambani
Mumbai (Maharashtra) [India], Aug 12 (ANI): Chairman and Managing Director of Reliance Industries Ltd Mukesh Ambani on Monday said Saudi Aramco will invest 75 billion dollars in the conglomerate and have 20 per cent stake in its oil to chemicals (O2C) business.
ANI
Aug 12, 2019 11:57 IST
Mumbai (Maharashtra) [India], Aug 12 (ANI): Chairman and Managing Director of Reliance Industries Ltd Mukesh Ambani on Monday said Saudi Aramco will invest 75 billion dollars in the conglomerate and have 20 per cent stake in its oil to chemicals (O2C) business.
"Saudi Aramco and Reliance have agreed to form a long-term partnership in our oil to chemicals division. Saudi Aramco will invest for a 20 per cent stake in Reliance's O2C division at an enterprise value of 75 billion dollars," he said at the 42nd annual general meeting (AGM).
"This is the biggest foreign investment for Reliance and one of the largest for India. The partnership with Saudi Aramco to cover Reliance's refining and petro-chemicals assets, including 51 per cent of the petroleum retail joint venture."
In another significant new initiative, BP acquired 49 per cent stake in Reliance's petro-retail business. Reliance will get Rs 7,000 crore from BP for this transaction, Ambani said.
"As the world moves towards renewable energy sources and electric vehicles, Reliance has positioned itself far ahead of the curve to create new value," he said. "Our Prime Minister has set the goal of making India a five trillion dollar economy by 2022. I fully endorse the idea. In fact, I see India becoming a 10 trillion dollar economy by 2030. The slowdown in some sectors of the economy is temporary. India's fundamentals are very strong."
As India is getting transformed into New India, Reliance will also transform itself into New Reliance, said Ambani while pointing towards new businesses like Jio and consumer retail.
Jio has not only become the largest operator in India but the second-largest operator in the world, Ambani asserted, adding that Reliance has put Rs 3.5 lakh crore in the investment cycle.
"We can upgrade Jio into 5G with minimum incremental costs. Jio Fiber Services will be launched on commercial basis on September 5 -- on the third anniversary of Jio's launch. We plan to reach 20 million residences and 15 million business establishments in 1,600 towns," he said. (ANI)
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