Cars population to grow six-fold
BP’s latest US$1 billion investment in a partnership comes as an endorsement for the strong energy growth and innovations in digital technology.
BP has paid US$1 billion to Reliance Industries Limited (RIL) for a 49% stake in the joint venture which aims to become a leading player in India’s fuels and mobility markets with the number of passenger cars estimated to grow almost six-fold over 20 years.
Commenting on the investment and long-term commitment to the Indian market, bp chief executive officer 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.
India is expected to be 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, both BP and RIL said jointly on 9 July 2020.
RIL holds 51% in the venture, Reliance BP Mobility Limited (RBML), which will operate under “Jio-bp” brand that will leverage Reliance’s presence across 21 states and its millions of consumers through the Jio digital platform, said the two companies in a statement on 9 July 2020.
BP will bring its extensive global experience in high-quality differentiated fuels, lubricants, retail and advanced low carbon mobility solutions.
BP and RIL expect the venture to grow rapidly to help meet India’s fast-growing demands for energy and mobility.
RBML aims 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 rapid growth will require a four-fold increase in staff employed in service stations – 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.
RIL Chairman and Managing Director Mukesh Ambani said, “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”.
“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.”
Reflecting on the companies’ net zero ambitions, the new joint venture aspires to provide Indian 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.
RBML has received the marketing authorization for transportation fuels, amongst other necessary regulatory and statutory approvals.
The joint venture will begin selling fuels and Castrol lubricants with immediate effect from its existing retail outlets, which will be rebranded to “Jio-bp” in due course. #fuel #opec #lubricants #technologies #innovations #bp #ril /fiinews.com
