India’s richest man, Mukesh Ambani, announced a monster of a business deal today (Aug. 12).
Saudi Arabia’s state energy group, Saudi Aramco, is set to acquire a 20% stake in his Reliance Industries’ (RIL) oil-to-chemical business for an enterprise value of $75 billion, Ambani said.
“This is the biggest foreign investment in the history of Reliance and one of the largest investments for India,” said the RIL Chairman and Managing Director at the company’s 42nd annual general meeting. “Saudi Aramco will supply 500,000 barrels of crude oil every day to Reliance Jamnagar refinery, after taking a stake.”
RIL’s Jamnagar refining complex in Gujarat has a capacity to process 1.4 million barrels per day (BPD) and the company plans to expand its capacity to two million BPD by 2030, Ambani announced.
“The future of India—and also the future of Reliance—has never looked brighter to me than now. As India is getting transformed into a new India, Reliance will also transform itself into new Reliance,” Ambani said.
He also emphasised the fact that RIL is the only diversified Indian firm that has “three major growth engines in one single corporate entity—oil-to-chemicals division, Jio, and retail.”