Reliance Industries Limited has completed spin-off of the company’s oil-to-chemical business into a new unit that will help it pursue growth opportunities with strategic partnerships, the company has said.

Reliance’s new oil-to-chemical business unit will hold its oil refinery and petrochemical assets and retail fuel business but not upstream oil and gas producing fields such as KG-D6 and textiles business, the firm said detailing hiving-off plans.

Reliance for the first time reported integrated earnings of the oil-to-chemical business in its third-quarter financial results. Previously, refining and petrochemical businesses were reported separately while fuel retailing revenue was part of the firm's overall retail business.

In the October-December 2020 earnings statement, refining and petrochemical as well as fuel retailing businesses earnings were reported as one. As a result, it did not give refining margins - the most sought after number to assess the firm's oil refining business.

"Reorganising refining and petrochemicals as oil-to-chemicals oil-to-chemical reflects new strategy as well as management matrix," the company said in a post earning investor presentation. This, it said, will "facilitate holistic and agile decision making" as well as "pursue attractive opportunities for growth with strategic partnerships".

Reliance started work on hiving off the oil-to-chemical business into a separate unit last year for a possible stake sale to companies such as Saudi Aramco.

It values the oil-to-chemical business at USD 75 billion and has been in talks with Saudi Arabian Oil Co (Aramco) for sale of a 20 pc interest. The company, however, did not mention discussions with Aramco, which are said to have hit a valuation roadblock.

The reorganization would "drive the move towards further downstream and closer to customers" and "provide sustainable and affordable energy and materials solutions to meet India's growing needs," the firm said in the presentation.

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