 "Reliance Industries")
The Board of Reliance Industries Limited (RIL) on Friday approved a scheme of arrangement under which the EPC and Infrastructure Undertaking of Reliance Projects and Property Management Services Limited (RPPMSL), a wholly owned subsidiary of RIL is proposed to be demerged into RIL.
This demerger, together with the existing EPC team in RIL, creates a focused EPC undertaking in RIL to cater to the needs of the group, a RIL release said.
The current EPC (engineering, procurement, construction) resources of the group are spread across different operating entities.
The release said RIL has a strong team of about 4,000 engineers with proven expertise across engineering, procurement, project management and construction. RPPMSL also has a team of about 20,000 professionals.
The focused EPC undertaking will aggregate and synergize the engineering capabilities and expertise of the group.
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The release said the EPC Undertaking will play a pivotal role in implementing RIL's large projects across O2C, New Energy and 5G roll-out.
"The implementation of these mega projects will require significant mobilization of global technology and EPC resources. Increasing infrastructure spend across geographies in oil and gas, chemicals, telecom and renewable energy sectors is expected to drive significant demand for EPC resources," the release said.
The new EPC Undertaking will facilitate internationalization by setting up EPC Centres of Excellence at strategic offshore locations.
It will align with existing subsidiaries of RIL in USA and Dubai. It will also incorporate new subsidiaries in Singapore and UK. These subsidiaries will enable faster mobilisation of high-quality talent and EPC resources in an increasingly constrained global EPC environment.
"The realigned EPC resources will further strengthen RIL's EPC delivery capabilities by tapping global resources and supply chains. It will also enhance productivity as working across time zones will reduce costs and schedules while ensuring high-quality output," the release said.
It said this being a merger of a division of a wholly-owned subsidiary into a parent, no shares are being issued by RIL and hence there is no change in the shareholding pattern of RIL.
"No cash consideration is being paid under the scheme; it is a related party transaction and at arm's length," the release said.
The turnover of RIL and the EPC and Infrastructure Undertaking of RPPMSL for the financial year ending March 31, 2022 is Rs. 445,375 crore and Rs. 43,071 crore respectively.
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