Reliance rejigs business, gears for Aramco deal | Editorji
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Reliance rejigs business, gears for Aramco deal

Feb 23, 2021 14:44 IST

Mukesh Ambani-led Reliance Industries has announced a business rejig as it hives off its Oil-to-Chemicals (O2C) into a subsidiary that will be managed 100% by RIL. The oil-to-chemicals segment contributed 60% to the company's revenue last fiscal.

The O2C company will be set up with a $25 billion loan from the parent and will house its refining, marketing, and petrochemical assets that amount close to $40 billion. RIL will retain New Energy and New Materials businesses.

Analysts believe hiving off this unit makes it easier for the proposed Aramco deal. Ambani in the annual report had said both RIL and Saudi Aramco were in talks of arriving at a deal that had been paused due to the pandemic.