In August 2019, both the companies had announced their plan to create a new joint venture company, where 51 per cent will be held by RIL and the remainder by BP. BP will acquire 49 per cent stake in RIL’s existing petrol pumps and aviation turbine fuel network by investing about Rs 7,000 crore (US$ 993.05 million).
"Operating under the Jio-BP brand, the joint venture aims to become a leading player in India's fuels and mobility markets," said BP in a press statement adding that it will leverage Reliance’s presence across 21 states and its millions of consumers through the Jio digital platform.
BP will add its extensive global experience in high-quality differentiated fuels, lubricants, retail, and advanced low carbon mobility solutions.
The marketing authorization for transportation fuels, amongst other necessary regulatory and statutory approvals has been received by RMBL. It will start selling fuels and Castrol lubricants with immediate effect from its existing retail outlets, which will be rebranded to “Jio-bp" in due course.
It is expected that India will become the fastest-growing fuels market in the world over the next 20 years, with the number of passenger cars in the country estimated to grow almost six-fold over the period.
The company targets to expand from its current fuel retailing network of over 1,400 retail sites to up to 5,500 over the next five years. This is expected to increase the staff employed in service stations by four-fold, growing from 20,000 to 80,000 in this period. The joint venture also aims to increase its presence from 30 to 45 airports in the coming years
“Reliance is expanding on its strong and valued partnership with bp, to establish a pan-Indian presence in retail and aviation fuels. RBML will aim to be a leader in mobility and low carbon solutions, bringing cleaner and affordable options for Indian consumers with digital and technology being our key enablers," said Mr Mukesh Ambani, Chairman and Managing Director, RIL.
It aims to provide consumers with advanced fuels with lower emissions, electric vehicle charging and other low carbon solutions over time. RBML is also committed to the decarbonization of its own operations as well as that of its wider ecosystem.
Mr Bernard Looney, BP chief executive officer, said, "This new venture is a unique opportunity to build a leading, fast-growing business that can help meet India’s demands and create exciting new digital and low-carbon options for the future."
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