New India fuel and mobility joint venture begins operations BP and Reliance Industries Limited (RIL) today announced the start of their new India fuel and mobility joint venture, Reliance BP Mobility Limited (RBML).
- Following the initial agreements of 2019, the BP and RIL teams have worked closely together in recent months in a difficult environment to complete the transaction as planned.
- BP paid RIL $ 1 billion for a 49% interest in the joint venture, with 51% RIL. Operating under the brand name “Jio-bp”, the joint venture aims to become a leading player in the fuel and mobility markets in India.
- It will benefit from Reliance’s presence in 21 states and its millions of consumers via the Jio digital platform. BP will bring its vast global experience in high quality differentiated fuels, lubricants, retail and advanced low carbon mobility solutions
- BP and RIL expect the company to grow rapidly to meet India’s growing energy and mobility needs. India is expected to be the fastest growing fuel market in the world over the next 20 years, and the number of passenger cars is expected to increase by almost six times over the period.
- RBML aims to expand its current retail fuel network from over 1,400 retail locations to 5,500 over the next five years. This rapid growth will require a fourfold increase in personnel employed at service stations, going from 20,000 to 80,000 during this period. The joint venture also aims to increase its presence from 30 to 45 airports in the coming years.
- Reflecting the companies’ clear net ambitions, the new joint venture aims to provide Indian consumers with advanced low-emission fuels, EV charging and other low-carbon solutions over time.
- RBML is also committed to decarbonising its own operations, as well as those of its wider ecosystem. RBML has received marketing authorization for transportation fuels, among other necessary regulatory and regulatory approvals.
- The joint venture will start selling Castrol fuels and lubricants with immediate effect from its existing outlets, which will be changed to “Jio-bp” in due course.
BP in India
- With its numerous investments in India and employing around 7,500 people in the oil, gas, lubricants and petrochemical sectors, BP is one of the largest international energy companies in India.
- In addition to its gas value chain, retail, aviation fuels and the mobility alliance with Reliance Industries Ltd, BP’s activities include Castrol lubricants; oil and gas trade; clean energy projects through investments in the BP light source; IT back-office activities; a new global business service center; staffing and training for the global BP maritime fleet; and the recruitment of qualified Indian employees for its global activities.
- India Gas Solutions Private Limited, a 50/50 joint venture to supply and market gas in India, is also part of the BP gas value chain alliance with RIL.
About Reliance Industries Limited (RIL)
- RIL is the largest private sector company in India, with consolidated revenue of INR 659,205 crores ($ 87.1 billion), cash profit of INR 71,446 crores ($ 9.4 billion) and net profit of 39.88 billion rupees ($ 5.3 billion) for the year ended March 31, 2020.
- RIL’s activities include the exploration and production of hydrocarbons, petroleum refining and marketing, petrochemicals, retail services and digital services.
- RIL is the highest ranked company in India, appearing on Fortune’s Global 500 list of “the world’s largest companies”, currently ranked 106th in terms of revenues and profits.
- The company is ranked 71 in the “Forbes Global 2000” ranking for 2019, the highest among Indian companies. It ranked 10th among LinkedIn’s “best companies to work for in India” (2019).