Reliance May Set Up 4 New Subsidiaries

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(LiveMint)

Reliance Industries Ltd (RIL) is planning to create four new units for its various businesses, two people in the know said. The subsidiaries could be in refining and marketing; exploration and production (E&P); petrochemicals; textiles; hydrocarbons and real estate. “The new subsidiaries would have an authorized share-capital of Rs1,000 crore each,” one of the two people said, requesting anonymity.

The company plans to apply to the corporate affairs ministry shortly to obtain requisite approvals required for incorporating the companies. For the six segments RIL operates in—refining and marketing; petrochemicals; oil and gas exploration; retail; telecom/digital services and media and entertainment—the firm has 99 subsidiaries, joint ventures and associate firms, according to its 2016-17 annual report.

“The company is engaged in multiple businesses which inter alia include E&P, refining, petchem, retail, telecom and media. Reliance has a wide corporate holding structure (having multiple subsidiaries/associates) due to reasons like regulatory requirements, joint ventures, strategic investments and past acquisitions,” a RIL spokesperson said in an emailed response. “The company continuously endeavors to have efficient holding structure, so that it can maximize shareholder value on sustainable basis.”

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