Mumbai: Reliance Industries (RIL) will expand its fuel retail business in a joint venture with British energy major BP under the brand ‘Jio-BP’ to a network of 5,500 petrol pumps in the next five years from 1,400 at present, the Mukesh Ambani-led company said late on Monday.
RIL and BP signed a definitive agreement on Monday to form the new Indian fuels and mobility joint venture after an initial agreement in August, an RIL statement said. The JV, where RIL will hold 51% and BP the balance 49% stake, will take ownership of RIL’s existing Indian fuel retail network and access its aviation fuel business.
“The retail network will operate under the Jio-BP brand, signaling a new paradigm shift in fuels marketing and mobility solutions. It brings together Reliance’s extensive access and connection to consumers through its Jio digital platform and BP’s deep experience in fuel retailing around the world. The joint venture will seek to offer Indian consumers high-quality differentiated fuels, convenience and services,” RIL said.
The new venture will include an India-wide fuels retail service station network and aviation fuel marketing business.
“India is one of the world’s most important energy markets – its transport and aviation sectors are growing and evolving rapidly. We aim to meet the country’s growing demand for mobility solutions, high-quality fuels and services through this new venture. This major expansion of our business here reinforces our long-term commitment to India,” Bob Dudley, BP’s group chief executive, said.
The joint venture is expected to be formed during the first half of 2020, subject to regulatory and other customary approvals.
“We believe that together we will bring solutions that will benefit the fast-growing Indian market,” RIL chairman Mukesh Ambani said.
Castrol lubricants will also be available across the venture’s network.