RIL to demerge subsidiary RPPMSL's EPC business, combine it with its own

The demerged undertaking, together with the existing EPC team of RIL, will create a focused EPC undertaking to cater to the needs of the group

The board of Reliance Industries on Friday approved a plan to demerge the engineering, procurement and construction (EPC) and infrastructure undertaking of its subsidiary Reliance Projects and Property Management Services (RPPMSL).

After the demerger, this undertaking, together with the existing EPC team of RIL, would create a focused EPC undertaking to cater to the needs of the group, the company said.

As of now, EPC resources of RIL are spread across different operating entities. RIL has a team of 4,000 engineers with expertise across engineering, procurement, project management and construction, while RPPMSL also has a team of 20,000 professionals.

The focused EPC undertaking will aggregate and synergise engineering capabilities and expertise of the group and play “a pivotal role in implementing RIL’s large projects across O2C, new energy and 5G rollout”, the company said. It added that the implementation of these mega projects would require significant mobilisation of global technology and EPC resources.

Increasing infrastructure spend across geographies in oil & gas, chemicals, telecom and renewable energy sectors could drive significant demand for EPC resources. The new undertaking would facilitate internationalisation by setting up centres of excellence at strategic offshore locations. It will also align with existing subsidiaries of RIL in the US and Dubai and incorporate new subsidiaries in Singapore and the UK.