Reliance Industries and BP India today announced the start of their new Indian fuels and mobility joint venture, Reliance BP Mobility Limited (RBML).
Last August the companies had announced their plan to create a new joint venture company that will be owned 51% by RIL and the remainder by BP. RIL had said BP will pay about ₹7,000 crore for acquiring a 49% stake in its existing petrol pumps and aviation turbine fuel network.
“Operating under the Jio-BP brand, the joint venture aims to become a leading player in India’s fuels and mobility markets.,” BP said in a press statement adding that it will leverage Reliance’s presence across 21 states and its millions of consumers through the Jio digital platform.
BP will bring its extensive global experience in high-quality differentiated fuels, lubricants, retail and advanced low carbon mobility solutions.
RBML has received the marketing authorization for transportation fuels, amongst other necessary regulatory and statutory approvals. The joint venture will begin selling fuels and Castrol lubricants with immediate effect from its existing retail outlets, which will be rebranded to “Jio-bp” in due course.
India is expected to be the fastest-growing fuels market in the world over the next 20 years, with the number of passenger cars in the country estimated to grow almost six-fold over the period.
RBML aims to expand from its current fuel retailing network of over 1,400 retail sites to up to 5,500 over the next five years.
This will require a four-fold increase in staff employed in service stations – growing from 20,000 to 80,000 in this period. The joint venture also aims to increase its presence from 30 to 45 airports in the coming years
“Reliance is expanding on its strong and valued partnership with bp, to establish a pan-Indian presence in retail and aviation fuels. RBML will aim to be a leader in mobility and low carbon solutions, bringing cleaner and affordable options for Indian consumers with digital and technology being our key enablers,” said Mukesh Ambani, Chairman and Managing Director, RIL.
The new joint venture aspires to provide consumers with advanced fuels with lower emissions, electric vehicle charging and other low carbon solutions over time. RBML is also committed to the decarbonization of its own operations as well as that of its wider ecosystem.
Bernard Looney, BP chief executive officer, said, “This new venture is a unique opportunity to build a leading, fast-growing business that can help meet India’s demands and create exciting new digital and low-carbon options for the future.”
News source: Livemint