Mukesh Ambani and Gautam Adani Forge Second Business Alliance in Fuel Marketing
Reliance, Ambani’s company, agreed to use the 500 MW of power produced by the facilities for captive purposes after purchasing a 26% share in Adani Power’s project in MP.
In their second business partnership, billionaire businessman Mukesh Ambani and Gautam Adani have joined up to sell vehicle fuels by utilising each other’s fuel retail networks.
Ambani’s fuel partnership with BP of the United Kingdom, Jio-bp, will install fuel and diesel dispensers at Adani Total Gas Ltd.’s (ATGL) CNG retail locations. According to a joint statement released on Wednesday, ATGL, the equal city gas joint venture between the Adani Group and TotalEnergies of France, would also install CNG dispensing devices at Jio-bp’s gasoline pumps.
Both groups’ current and upcoming outlets will be covered under the cooperation.
Whereas ATGL has a network of 650 CNG stations in 34 regions, Jio-BP controls 1,972 fuel pumps nationwide.
“Today (Wednesday), Adani Total Gas Ltd (ATGL) and Jio-bp, the operating brand of Reliance BP Mobility Ltd, announced the signing of an agreement to reimagine the retail experience for Indian consumers purchasing motor gasoline.
“Under this partnership, select ATGL fuel outlets will offer Jio-bp’s high-performance liquid fuels (petrol and diesel), while select Jio-bp fuel outlets will integrate ATGL’s CNG dispensing units, within ATGL’s authorised geographical areas (GA), thus enhancing the supply of high-quality fuels to transport consumers,” said the statement.
The competing billionaires have gathered for the second time in recent months. The two had signed the agreement for their first-ever partnership on a Madhya Pradesh power plant in March of last year.
Reliance, Ambani’s company, agreed to use the 500 MW of power produced by the facilities for captive purposes and acquired a 26% share in Adani Power’s project in MP.
Gujarati natives Adani and Ambani have frequently been paired against one another in business. For the past few years, the two have also been competing for the title of richest person in Asia.
With Adani’s emphasis on infrastructure ranging from sea ports to airports, coal, and mining, and Ambani’s interests ranging from oil and gas to retail and telecom, the two rarely crossed paths outside of the renewable energy sector, where they have made multibillion-dollar investments.
In addition to constructing massive renewable energy plants, Adani has entered the solar module and wind turbine manufacturing industries. In Jamnagar, Gujarat, Ambani’s Reliance is also constructing four gigafactories: one for fuel cells, batteries, solar panels, and green hydrogen.
In Gujarat’s Kavada, the desert region that borders Pakistan, where Adani is constructing the largest solar park in the world with a capacity of 30 gigawatts, Reliance is also considering installing renewable electricity capacity.
It was at a 5G spectrum auction that the two had met in person. In order to maintain his telecom business, Ambani bid for airwaves, but many were taken aback by Adani’s arrival. However, Adani ultimately purchased a limited amount of spectrum, which he then exchanged with Bharti Airtel.
Adani only recently joined Ambani’s media empire, which began in 2014 with news networks like CNBC-TV18, CNN-News18, and entertainment channels like Colours. When a close friend of Ambani sold up a company to give him a majority ownership in NDTV, Adani’s entry was made easier.
Ambani and Adani are joining forces to fight state-owned merchants’ hegemony in the petroleum retailing market. Over 90% of the nation’s 97,366 petrol stations are held by the state-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL). In the city gas market, PSUs are also a major force.
According to the joint statement released on Wednesday, ATGL is the top city gas distribution (CGD) company in India, providing natural gas to homes, businesses, and drivers.
For the transportation market, ATGL also provides LNG, EV charging, and compressed biogas (CBG). In contrast, Jio-bp is a prominent provider of mobility solutions in India, with a significant presence in contemporary convenience shops, low-carbon alternatives, and petrol retailing.
“Our common goal of providing our clients with an exceptional range of premium fuels unites us. Jio-bp Chairman Sarthak Behuria stated, “Jio-bp has always been dedicated to providing an outstanding customer experience, and this partnership allows us to leverage each other’s strengths to further enhance the value we provide to India.”
“Offering a full selection of premium fuels at our stores is our common goal. Through this agreement, we will be able to take advantage of each other’s infrastructure, which will improve our services and customer experience,” stated Suresh P. Manglani, the CEO and Executive Director of ATGL.
According to the announcement, the deal includes both partners’ current and upcoming outlets. “This strategic alliance marks a significant milestone in the journey of both companies towards sustainable growth and innovation.”
