A recent deal signed between Reliance Industries Limited (RIL) and UK’s BP Plc. Is likely to bring RIL out of huge debt levels and strengthen its brand image in the country. The synergy between both the companies is expected to take the fuel retailing in India to the next level. This deal worth INR 70 Billion, would give the European oil major a 49% stake in RIL’s fuel retail business in the country.
The controlling share would still be held by RIL with 51% stake in the JV. Considering some terms signed in MoU, both parties jointly agreed to form a joint venture that will take over 1,400 retail fuel stations run by RIL. The deal also includes RIL’s aviation fuel operations at over 30 airports in the country.
The JV targets to expand to over 5,500 fuel retailing networks by 2024. Castrol lubricants would also be made available across the venture’s network. India expectantly being the fastest-growing fuel markets in the world over the next decade and with the growing number of passenger cars in the country, this transaction is likely to be complete by first quarter of FY2021 and take the long-standing partnership between both the companies to new heights.