Reliance to hive off O2C business, expects approvals by September quarter

The Mukesh Ambani-controlled company had initiated the process to hive off its oil-to-chemicals business at a time when the Covid-19 pandemic caused a slump in fuel demand

Mukesh Ambani-controlled Reliance Industries Ltd (RIL) expects to get the necessary approvals to hive off its oil-to-chemicals (O2C) business into a separate unit by the second quarter of the next financial year, according to the company's presentation to investors on Monday.

The company had initiated the process of spinning off the O2C business at a time when the Covid-19 pandemic caused a slump in fuel demand and weighed on the segment's recent results.

Reliance would retain full control of the business after restructuring, the company said in the presentation.

The Mumbai-headquartered conglomerate also announced its aim to work with the O2C business to reduce its carbon footprint and become "net carbon zero" by 2035.

Its vision includes investing in developing renewable energy systems to meet energy demand and to speed up the transition from traditional carbon-based fuels to hydrogen.

Click on the image below to read the full presentation.