After the initial agreements in 2019, BP paid RIL $1 billion for a 49 per cent stake in the joint venture, with RIL holding 51 per cent.
The JV will operate under the “Jio-BP” brand and aims to become a leading player in India’s fuels and mobility markets. The venture will leverage RIL’s presence across 21 states and its millions of consumers through the Jio digital platform, while BP will bring its extensive global experience in high-quality differentiated fuels, lubricants, retail and advanced low carbon mobility solutions.
RIL said the JV has received the marketing authorization for transportation fuels, among other necessary regulatory and statutory approvals, and will 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.
The two companies expect the venture to grow rapidly to help meet India’s fast-growing demands for energy and mobility.
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, and this will require a four-fold increase in staff employed in service stations – growing from 20,000 to 80,000 in this period.
The JV also aims to increase its presence from 30 to 45 airports in the coming years, RIL said.
“Reflecting the companies’ net zero ambitions, the new joint venture aspires to provide Indian consumers with advanced fuels with lower emissions, electric vehicle charging and other low carbon solutions over time,” RIL said in a release.
Source: ET Markets