It
seems that the Reliance Group never fails to surprise the
market. This time it is in the news for the gargantuan merger
announcement between two of its group companies, RIL and RPL.
The proposed entity is all set to redefine the rules of
business as far as India is concerned.
India's
Reliance Group is always in the news for one thing or the
other. This time it is for the mega merger the group's two
giants, RIL and RPL, are going for. With the amalgamation of
its leading companies, the group will be creating India's
first fully integrated energy company. The merger of Reliance
Industries Ltd. (RIL), India's biggest petrochemicals firm,
with Reliance Petroleum, the largest private sector oil
refinery, will create India's second largest company; only
Hindustan Lever will be more valuable. The duo, in terms of
revenue, would be second only to Indian Oil Corporation Ltd.
The
merger creates a Rs. 58,000 crore giant with end-to-end
operations along the entire petrochemical chain. The combined
entity will also be bigger than both the Tata Group and the
Birla Group companies put together. The merger creates India's
only world-scale, fully integrated energy company with
operations in oil and gas exploration and production, refining
and marketing, petrochemicals, and textiles. In fact, this is
not the first time that the group has gone in for mergers. In
the past, they have done with Reliance Petrochemicals,
Reliance Polypropylene and Reliance Polyethylene.
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