scorecardresearch
Mukesh Ambani expects to seal RIL-Aramco deal this year

Mukesh Ambani expects to seal RIL-Aramco deal this year

"Continued engagement and resolve from both sides, even during this pandemic, is a testimony of strong relationship between Saudi Aramco and Reliance," said Mukesh Ambani

Reliance AGM: Aramco deal to happen this year Reliance AGM: Aramco deal to happen this year

Reliance Industries Chairman Mukesh Ambani said that he expects to formalise the oil-to-chemical (O2C) deal with Saudi Aramco this year. He said that the conglomerate's O2C business faced unprecedented challenges during the pandemic but that both RIL and Aramco still have a strong relationship.

"Our O2C biz faced unprecedented challenges by severe economic contraction at the beginning of the year. Yet we were probably the only company globally that operated at near full capacity and was profitable in every quarter," he said, further adding, "Continued engagement and resolve from both sides, even during this pandemic, is a testimony of strong relationship between Saudi Aramco and Reliance. I expect our partnership to be formalised in an expeditious manner this year."

"As an important part of this vision of achieving accelerated growth, we look forward to welcoming Saudi Aramco as a strategic partner in our O2C business," said Ambani.

Mukesh Ambani also announced that Saudi Aramco chief Yasir Al-Rumayyan will join the board as an independent director. He said that Al-Rumayyan presence in the Reliance board is the beginning of 'internalisation of Reliance'.

The deal was originally expected to be sealed by March 2020 but had gotten delayed for unexplained reasons. However, talks revived this year.

Mukesh Ambani during the speech also announced his next big disruption -- solar energy. He said that Jamnagar was the cradle of their old energy business and Jamnagar will be the cradle of their new energy business. He said that they are planning to build four giga factories to manufacture and integrate all critical components of new energy ecosystem -- solar photovoltaic module factory, energy storage battery factory, electrolyser factory, fuel cell factory. "We have started work on developing the Dhirubhai Ambani Green Energy Giga Complex on 5,000 acres in Jamnagar. It will be amongst the largest such integrated renewable energy manufacturing facilities in the world," he added.