Global energy major BP and India–based Reliance Industries (RIL) have announced the start of their fuel retailing joint venture.
The new joint venture (JV), called as Reliance BP Mobility Limited (RBML), is 51% owned by RIL and 49% by BP.
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BP paid $1bn to acquire a 49% stake in the JV.
In December last year, BP and RIL signed a definitive agreement regarding the formation of the new Indian fuels and mobility joint venture.
Reliance Industries Limited chairman and managing director Mukesh Ambani said: “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.”
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By GlobalDataOperating under the ‘Jio-bp’ brand, the JV aims to take advantage of the growing fuels and mobility markets in India.
The JV is expected to benefit from Reliance’s presence across 21 states of India through the Jio digital platform, as well as BP’s global experience in differentiated fuels, lubricants, retail, and advanced low carbon mobility solution.
It is estimated that India will be the fastest-growing fuels market in the world over the next two decades, with passenger cars expected to grow almost six-fold during this period.
RBML intends to bolster its current fuel retailing network of more than 1,400 retail sites to up to 5,500 in the coming five years.
Given the quick growth, there is expected to be a four-fold increase in staff employed in service stations during this period, rising from 20,000 to 80,000.
The joint venture also aims to increase its presence from 30 to 45 airports in the coming years.
BP CEO Bernard Looney said: “India has been leading the way with innovations in digital technology, value engineering and new energy solutions. It is a country that will require more energy for its economic growth and, as it prospers, its needs for mobility and convenience will accelerate.
“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.”
According to RIL, the JV will start selling fuels and Castrol lubricants from its existing retail outlets with immediate effect.
These outlets are soon expected to be rebranded as ‘Jio-bp’.
