Reliance Industries and British Petroleum (BP) on Friday, announced the start of their Indian fuels and mobility joint venture (JV) namely, Reliance BP Mobility Limited (RBML).
Under the terms of the JV agreement, BP has paid RIL a total consideration of US$ 1 billion for 49 per cent stake in the venture, with Reliance holding 51 per cent.
Operating under the ‘Jio-BP brand, the joint venture aims to establish a pan-India presence in retail and aviation fuels, aiming to become a leading player in India’s fuel and mobility market. It will leverage on Reliance’s presence across the country and its millions of customers through Jio digital platform. On the other hand, BP will bring to the table its differentiated fuels, lubricants, retail and advanced low carbon mobility solutions.
The joint venture, RMBL has received the marketing authorisation for transportation fuels and other necessary regulatory and statutory approvals. It will begin selling fuels and Castrol lubricants with immediate effect from its retail outlets, which will be rebranded to Jio-BP in due course, the company stated in a press release to the exchanges.
India expects to be the fastest-growing fuel market in the world over the next 20 years, with the number of passenger cars in the country expected to expand by around six-fold over this period. Thus, this venture holds the opportunity to build a fast-growing business to cater to the Indian market.
The stock of Reliance Industries was trading at Rs 1,840 at 11.30 am on Friday, up by 0.84 per cent or Rs 15.40 per share. The 52-week high is recorded at Rs 1,870 and the 52-week low is Rs 867.82 on BSE.