Mumbai: Reliance Industries (RIL) has incorporated wholly-owned subsidiaries in London and Singapore – two major energy trading hubs - to secure trading and storage facilities ahead of commissioning its 5,80,000 barrel per day (bpd) export-oriented refinery in Jamnagar.
RIL has also roped in two experienced hands to head these subsidiaries. Peter Ward, former president of Shell Trading's gas and power division, will head Reliance Global Energy Services in London while Michael Ng, former president of Fair Energy and a former senior trader at Royal Dutch Shell, will take over as head of Reliance Global Energy Services Singapore, the company said in a statement.
The RIL move comes amidst reports that the government may levy an export tax or even ban petroleum product exports from Reliance's export oriented refineries in Jamnagar – the 33 million tonne existing unit and the soon to be commissioned 27 million tonne Reliance Petroleum refinery.
The PMO is reported to have sought comments from the commerce ministry, the finance ministry and the petroleum ministry on ulitilising revenue from export tax for compensating state-run oil marketing companies.
Stripping of the export oriented status will harm RIL of its huge profits, as it may have to compete with government oil firms, which sell petrol and diesel at below market prices.
Exports accounted for 66 per cent of Reliance's revenues in the last quarter.
Reliance Industries is India's largest private sector company on all major financial parameters with a turnover of Rs1,39,269 crore ($ 34.7 billion), cash profit of Rs25,205 crore ($ 6.3 billion), net profit (excluding exceptional income) of Rs15,261 crore ($ 3.8 billion) and net worth of Rs81,449 crore ($20.3 billion) as of March 31 2008.
RIL is the first private sector company from India to feature in the Fortune Global 500 list of 'World's Largest Corporations' and ranks 103rd amongst the world's Top 200 companies in terms of profits. RIL is amongst the 30 fastest climbers ranked by Fortune.
RIL also features in the Forbes Global list of the world's 400 best big companies and in the FT Global 500 list of the world's largest companies. RIL ranks amongst the 'Worlds 25 Most Innovative Companies' as per a list compiled by the US financial publication – Business Week in collaboration with the Boston Consulting Group.