RIL enters in retail sector, to set new petro project
24 Jan '06
2 min read
Diversified manufacturing firm Reliance Industries Ltd announced that its foray into retail business with an investment of over Rs 33,75 crore and decided to go public for its petroleum subsidiary to execute a Rs 28,000 crore refinery and chemical project in Gujarat.
The decisions were taken at the meeting of the RIL Board of Directors, headed by Mukesh, the first meeting after effecting the demerger earlier this month.
In a communication to stock exchanges, RIL said: "The Board has given its consent to pursue retail business through a subsidiary of the company".
"The Board has approved the initial phase of setting up of hyper-market/super-market/convenience stores/speciality stores in select cities and towns covering all the geographical regions of the country at an estimated cost of $750 mn ."
The company further said that the directors also approved the raising of equity capital by the newly incorporated Reliance Petroleum Ltd, a wholly owned subsidiary of the company.
It will implement the 27 mn tonnes refinery and one million tonne poly-propelene projects at the Special Economic Zone in Jamnagar, Gujarat at an estimated cost of $6 bn.
The new entity would raise equity capital, either through placement of equity shares with private equity investors or through initial public offering.
"Reliance Petroleum would continue to be a subsidiary of the company, even after the completion of raising of equity," RIL said.
RIL is busy into handling polymers, chemicals, fiber intermediates, petroleum, textiles and procurement business.
marketing@alchempro.com
