Ambani, Adani join hands again, this time to challenge state-run fuel retailers
IOC, BPCL, and HPCL currently control over 90 per cent of India’s 97,366 petrol pumps and lead the city gas market as well
New Delhi: Mukesh Ambani and Gautam Adani have partnered to sell automotive fuels by leveraging each other’s fuel retail networks — marking the second business collaboration between the two billionaire industrialists.
Ambani’s fuel venture with UK’s BP, Jio-bp, will set up petrol and diesel dispensers at CNG retail outlets of Adani Total Gas Ltd (ATGL). Alongside, ATGL — the equal city gas joint venture of Adani Group and TotalEnergies of France — will put up CNG dispensing units at Jio-bp’s fuel pumps, according to a joint statement on Wednesday.
The partnership will cover both group’s existing as well as future outlets.
Jio-bp owns 1,972 petrol pumps across the country while ATGL operates a network of 650 CNG stations in 34 geographical areas. “Adani Total Gas Ltd (ATGL) and Jio-bp (operating brand of Reliance BP Mobility Ltd) today (Wednesday) announced the signing of an agreement to redefine the auto fuel retail experience for Indian consumers. 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,” the statement said.
This is the second time in recent months that the rival billionaires have come together. In March last year, the two had signed the pact for their first-ever collaboration for a power project in Madhya Pradesh.
Ambani’s firm Reliance had picked up a 26 per cent stake in Adani Power’s project in MP and signed to use the plants’ 500 MW of electricity for captive use. Adani and Ambani, both hailing from Gujarat, have often been pitted against each other in business. The two have also been jostling for the title of Asia’s richest person for the last few years.
With Ambani’s interests spanning oil and gas to retail and telecom and Adani’s focus on infrastructure spanning seaports to airports, coal and mining, they rarely crossed each other’s path except in the clean energy business where the two have announced multi-billion investments.
Adani is building mega renewable energy parks and has also ventured into solar modules and wind turbine manufacturing. Ambani’s Reliance, too, is building four gigafactories at Jamnagar in Gujarat — one each for solar panels, batteries, green hydrogen, and fuel cells. Reliance is also eyeing setting up renewable electricity capacity at Gujarat’s Kavada, the arid land bordering Pakistan where Adani is also building the world’s largest solar park with 30 gigawatts capacity.
The two had come face-to-face during an auction of the 5G spectrum airwaves. While Ambani bid for airwaves to sustain his telecom business, Adani’s entry had surprised many. Adani, however, ended up buying a small quantum of spectrum which he later traded with Bharti Airtel.
While Ambani has been in the media space since 2014 with news channels such as CNBC-TV18, CNN-News18, and entertainment channels like Colors, Adani only recently followed in his footsteps. Adani’s entry was facilitated when a close associate of Ambani sold out a firm to give him a controlling stake in NDTV.
Ambani and Adani are coming together to challenge the dominance of state-owned retailers in the fuel retailing space. State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) control over 90 per cent of 97,366 petrol pumps in the country. PSUs are also a dominant player in city gas.
The joint statement said ATGL is India’s leading city gas distribution (CGD) player, serving natural gas to households, industries, commercial customers, and motorists. ATGL also offers compressed biogas (CBG), EV charging, and LNG for the transportation segment.
Jio-bp, on the other hand, is a leading mobility solutions provider in India, with a strong presence in fuel retailing, low-carbon alternatives, and modern convenience stores.
“We are united by a shared vision to offer our customers a superior selection of high-quality fuels. Jio-bp has always been committed to delivering an exceptional customer experience, and this partnership allows us to leverage each other’s strengths to further enhance the value we provide to India,” Jio-bp Chairman Sarthak Behuria said.
“It is our shared vision to provide a complete range of high-quality fuels at our outlets. This partnership will enable us to leverage each other’s infrastructure, thus enhancing customer experience and offerings,” ATGL Executive Director and Chief Executive Officer Suresh P Manglani said.
The agreement covers both existing and future outlets of both partners, the statement said. “This strategic alliance marks a significant milestone in the journey of both companies toward sustainable growth and innovation.”
