Reliance Industries forms commodities trading arm in Abu Dhabi
said it has made an initial investment of Rs 7.43 crore in the subsidiary incorporated in Abu Dhabi. RINL has yet to commence its business operations, the statement said.
RIL has committed to invest in Abu Dhabi to set up a chemical manufacturing unit to produce ethylene dichloride, a key raw material for the production of polyvinyl chloride (PVC) in India. PVC is used in housing, infrastructure and consumer goods.
In June, the company said it has entered an agreement with Abu Dhabi National Oil Company for a new chemicals production facility at TA’ZIZ in Ruwais, Abu Dhabi.
“The investment in RINL does not fall within related-party transaction and the promoter/ promoter group/ group companies do not have any interest in RINL. No governmental or regulatory approvals were required for the said investment,” RIL said on Saturday.
RIL, which runs India’s largest oil refining complex in Jamnagar, is looking at leveraging its business interest in the Middle East.
At the company’s annual general meeting in June, Ambani announced that Yasir Al-Rumayyan, chairman of Saudi Aramco and the governor of the Public Investment Fund, would join the board of RIL as an independent director. He called this the “beginning of internationalisation of Reliance”, adding that the company would be announcing more initiatives in the international market soon. RIL is also in talks with Saudi Aramco to sell a stake in its oil-to-chemicals business.