Reliance Industries Ltd (RIL) plans to reorganise oil-to-chemicals (O2C) business and make it a separate entity which will be 100 per cent owned by RIL. In a presentation to investors, the Mukesh Ambani-led company stated it is looking at completing the process by FY 2022.
The presentation stated, “Consent process to be completed by Q1FY22, NCLT approval expected by Q2FY22.” The company expects to receive orders from NCLT Mumbai and NCLT Ahmedabad by second quarter FY 2022, after meeting with creditors and shareholders in first quarter FY 2022. The O2C scheme has been filed with NCLT on February 3, 2021.
While RIL and O2C business will become two different entities, the company ensures that both will have "close interplay”.
RIL will focus on new energy and new materials business “towards its vision of clean and green energy development”. The company also plans to develop or introduce new technologies to reduce carbon footprint for O2C business. RIL stated in its presentation that RIL and O2C will work together to achieve net carbon zero by 2035.
O2C business will focus on carbon capture by investing in next generation carbon capture and storage technologies to convert CO2 into useful products and chemicals; and accelerate the transition from traditional carbon based fuels to a hydrogen economy.
The company is expected to retain its investment grade international, and domestic AAA credit ratings, even after hive off.
In the proposed restructuring, RIL will own O2C subsidiary which will be into refining and marketing / petrochemicals. Entities like Reliance BP Mobility, Reliance Global Energy Services Singapore (Pte) Ltd, Reliance Global Energy Services Ltd. (UK), Reliance Ethane Pipeline Ltd, and Reliance Sibur Elastomers Pvt. Ltd, will come under O2C business.
source https://www.freepressjournal.in/business/reliance-industries-to-spin-off-o2c-biz-expects-approvals-for-100-subsidiary-by-second-quarter-of-fy-2022
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