Reliance-Industries can become a holding company like Tata Sons: There will be major stake in listed and non-listed companies, oil to chemical business will be separate.
The country’s largest private company Reliance Industries can become a holding company in the next five years. It will have a major stake in the independent listed and non-listed companies of the group. Just like Tata Sons controls all the companies of the group.
According to international rating agency Fitch’s firm CreditSights, meanwhile, the leadership of the corporate group is likely to be gradually transferred to Mukesh Ambani’s children – Akash, Isha and Anant Ambani. The rating agency views the succession plan of Reliance Group from a positive perspective.
Company brought big investors like Qatar Investment Authority
According to the agency, Reliance’s intention to become a holding company is indicated by the fact that the management has promised to list the retail and telecom businesses separately.
Reliance Retail recently brought in big investors like Qatar Investment Authority, which has invested Rs 8,278 crore.
All these steps, along with the recent listing of Jio Financial Services, can be seen as a strategy to unlock the value of the 65-year-old corporate group.
Plan to separate oil and chemical failed, now new strategy
Reliance was earlier planning to spin off the O2C (Oil to Chemical) business into a separate unit. Saudi Aramco was to take a 20% stake in the new unit.
The report said that due to lack of discussion on valuation, this plan got shelved in November 2021. We believe that Reliance is now again working on the new holding company structure.