Fuels to be available at select Reliance, Adani companies' outlets

MUMBAI/NEW DELHI: Adani Total Gas and Reliance BP Mobility have formed an alliance to offer their respective fuels at each other's retail outlets, marking another collaborative venture between two of India’s prominent conglomerates, Adani and Reliance. Previously, Reliance Industries (RIL) acquired a 26% stake in Adani Power’s subsidiary, Mahan Energy, for Rs 50 crore.

The latest collaboration enables Adani Total Gas to sell Reliance BP's petrol and diesel at their stations, while Reliance BP will distribute Adani's CNG at their outlets. The deal plugs gaps in both companies’ fuel distribution networks.

PSU oil companies follow a similar practice in various cities, particularly Delhi, where CNG retailers have installed dispensing units at petrol pumps. This arrangement facilitates increased CNG accessibility for consumers while addressing land availability constraints.

Adani Total manages 650 CNG stations nationwide, while also offering compressed biogas, electric vehicle (EV) charging facilities, and LNG for transportation. Reliance BP has a larger network of 2,000 retail outlets dispensing liquid fuel, complemented by EV charging services at select locations, and convenience stores.

A joint statement said they would make their respective fuels available at “select outlets”. Adani Total will install CNG dispensing units at Reliance BP outlets, while Reliance BP will “integrate Adani Total’s CNG dispensing units, within Adani Total’s authorised geographical areas”. This means that Adani Total will set up CNG dispensing units at Reliance BP stations in areas where the former has the license to sell CNG fuel. Reliance BP’s outlets are under the Jio-BP brand. The agreement covers current and future outlets of both companies.

Last year, RIL acquired a minority stake in Mahan to align with electricity rules that mandate a 26% ownership for captive users. The deal secured a 20-year power supply from Mahan for RIL.

Reliance, owned by Mukesh Ambani, operates in oil and gas, retail, telecom, and financial services sectors. Adani, controlled by Gautam Adani, has interests in airports, seaports, and cement. Their business paths have intersected recently in media, clean energy, data centres, and petrochemicals.

In 2022, a firm with connections to Ambani sold interests in news broadcaster NDTV to Adani, marking the latter’s first big play in the media sector, and creating competition with Ambani’s Network 18 enterprise.

While RIL dominates petrochemicals, Adani Petrochemicals is building a large petrochemical facility in Mundra, Gujarat.

Ambani has a net worth of $111 billion, ranking 16th globally on Forbes’ rich list. Adani, who began as a commodities trader, has a net worth of $65 billion, placing him 25th on Forbes’ global ranking.

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