Reliance Industries, India’s largest private petrochemicals company controlled by billionaire Mukesh Ambani, formed a wholly owned subsidiary in the UAE for trading in oil, petroleum, petrochemical products and agricultural commodities.
The unit, Reliance International Limited, will be incorporated in the Abu Dhabi Global Market, the company said in an exchange filing to the Bombay Stock Exchange, where its shares are traded, on Saturday.
The Indian conglomerate invested 74.28 million rupees ($1m) in the new subsidiary, the filing showed.
The unit is yet to start its business operations, Reliance said.
“RINL is incorporated to undertake activities relating to, among others, trading of crude oil, petroleum products, petrochemicals and agricultural commodities,” it said.
No governmental or regulatory approvals were required for the investment, Reliance said in the filing.
The formation of the subsidiary follows an announcement in June that Reliance Industries will develop a major chemicals facility in partnership with Abu Dhabi National Oil Company at the new Ta’ziz Industrial Chemicals Zone in Ruwais.
The deal, the first for Mr Ambani’s Reliance Industries in the Middle East, was estimated to be worth $2 billion.
In June last year, Abu Dhabi’s strategic sovereign fund Mubadala Investment Company invested $1.2bn in India’s telecoms provider Jio Platforms owned by Reliance. Abu Dhabi Investment Authority also invested $753.4m for a 1.16 per cent equity stake in Jio in June last year.
India is a key importer of Middle East crude, particularly from the UAE, and has looked to strengthen its energy partnership over the past few years.
Reliance, Adnoc and Saudi Aramco have previously joined forces to develop a massive $70bn greenfield integrated refining and petrochemicals complex in Maharashtra state on India’s west coast.