Due to unforeseen circumstances and COVID-19, the deal with Saudi Aramco has not progressed as per the earlier timeline, said Mukesh Ambani at Reliance Industries 43rd Annual General Meeting.
"Nevertheless, we at Reliance value our over two-decade-long relationship with Saudi Aramco and are committed to a long-term partnership," Ambani said. "We will approach NCLT with our proposal to spin off our O2C business into a separate subsidiary to facilitate this partnership opportunity. We expect to complete this process by early 2021."
Ambani said that RIL's O2C business has outperformed the sector and delivered an EBITDA of Rs 55,394 crore despite the COVID-19 led uncertainty.
"Globally this year, business and consumer activity had come to a halt leading to unprecedented demand destruction and dislocation of margins. Despite that, I am glad to report that all our manufacturing facilities continued to operate at over 90 percent capacity utilisation," Ambani said adding that the company was able to enhance its petrochemical and fuel exports by over 2.5 times in just two weeks during the lockdown.
"I am proud to share with you that in April 2020, our O2C business accounted for nearly 50 percent of India's exports. Our O2C business has competitive feedstock streams that are the building blocks for specialty and new value chains of Acetyls, Acrylates, Phenols and Polyurethanes."
Speaking on entering strategic partnership in O2C business, Ambani said that RIL has been approached by some global companies, the partnership with who will help RIL "build competitive manufacturing capacity at our existing sites to serve the deficit Indian market that still depends on large-scale imports of chemicals. "