Incorporated as Reliance Refineries Pvt Ltd in Sep.'91, Reliance Petroleum (RPL) got its name in Apr.'93. It was promoted by Reliance Industries (RIL), belonging to the Ambani group. RIL holds 64% equity stake in RPL. The company came out with a Rs 861.6-cr public issue of triple-option convertible debentures in Sep.'93, to part-finance a Rs 5142-cr grassroot refinery at Jamnagar, Gujarat. RPL enjoys the support of 2 million international, domestic, institutional and retail shareholders. This is the second largest investor base in the indian corporate sector next only to RIL.
The originally envisaged capacity was substantially enhanced while implementing the project and it commissioned its 27 mmtpa refinery (540,000 barrels per day) within a very short period of less then 36 months at a project cost of Rs 14,250 crores (US$ 3.4 bn). RPL is the world's largest grassroots refinery and the seventh largest refinery in the world at any single site. The refinery has been set up at 30%-50% lower per tonne capital costs, as compared to other refineries recently set up in Asia, by leading international oil companies, establishing new benchmark for capital productivity. It also has a remarkable ability to use almost any kind of crude oil RPL's products have been exported to a large number of destinations in the Far East, Europe, and the US, including to Japan, Singapore, Indonesia, Malaysia, Thailand, China, Greece and Italy. This reflects the fact that RPL's products meet the most stringent international environment and quality specifications. In line with the government's oil sector policies, RPL is currently selling the five controlled products, namely, LPG, Gasoline, Aviation Fuel, Kerosene and Diesel, to the public sector oil companies, IOC, HPCL and BPCL to the extent required by the Government. The Oil Coordination Committee determines the price realisation for RPL's controlled products, based on the principle of import parity RPL has already applied for marketing rights for the controlled products, as it meets all the criteria specified in this regard by the Government, as per the Gazette Notification of November 1997. As soon as the marketing of controlled products is decontrolled, RPL will make appropriate arrangements for the same. RPL is also making investments in pipeline projects, to facilitate distribution of petroleum products across the country, in a seamless and cost-efficient manner. RPL holds a 13% stake in Petronet V.K. Ltd., which owns the 113-km. long Vadinar-Kandla pipeline. This pipeline links RPL's refinery to the Kandla-Bhatinda pipeline, providing access to the high growth north and north-west markets.
The setting up of the central India pipeline project, which envisages setting up a 1,615-km pipeline to serve the landlocked markets in central India, has been approved by the government. RPL will hold a 26% stake in the joint venture implementing this project. RPL will also hold a 10% stake in Petronet India Limited, the holding company set up for the creation of pipeline infrastructure for evacuation of petroleum products all over India.
The company has passed a resolution to sponsor a depository receipt programme enabling shareholders of the company (Reliance Industries) to partially disinvest their equity shareholding in the company at an appropriate time in the course of an international offering in one or more tranches to strategic investors, financial investors and any other investor in the form of depository receipts and/or any other financial instruments subject to necessary approvals.
In October 2002, the company amalgamated with Reliance Industries Ltd (RIL). As per the Scheme of Amalgamation one equity share of RIL will be allotted for every eleven equity shares of the company held.