9th Jul 2020 17:03
(Correcting that BP paid USD1 billion for its stake in the joint venture)
(Alliance News) - UK oil major BP PLC and Indian conglomerate Reliance Industries Ltd on Thursday announced the start of their new Indian fuels and mobility joint venture, called Reliance BP Mobility Ltd.
BP has paid USD1 billion to Reliance for a 49% stake in the joint venture, while Reliance holds the other 51%.
Operating under the "Jio-bp" brand, the joint venture will leverage Reliance's presence across 21 states and its millions of consumers through the Jio digital platform, which is part of Reliance.
"Reliance's digital capabilities, technical expertise and reach complement our international fuels and service offers," said BP Chief Executive Bernard Looney.
The two company's said they expect the venture to grow rapidly to help meet India's fast-growing demands for energy and mobility.
Looney added: "India is a country that will require more energy for its economic growth and, as it prospers, its needs for mobility and convenience will accelerate."
Reliance BP 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 at service stations, from 20,000 to 80,000.
The joint venture also aims to increase its presence from 30 to 45 airports in the coming years.
Reliance Chair and Managing Director Mukesh Ambani said: "Reliance is expanding on its strong and valued partnership with bp, to establish a pan-Indian presence in retail and aviation fuels.
"Reliance BP 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."
Reliance BP 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.
Bp shares closed down 4.4% at 290.00 pence on Thursday in London. Reliance shares closed 1.6% higher at INR1,826.75 in Mumbai.
By Greg Roxburgh; [email protected]
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