New Delhi (The Hawk): The EPC and Infrastructure Undertaking of Reliance Projects and Property Management Services Limited (RPPMSL), a fully owned subsidiary of RIL, is planned to be demerged into RIL under a scheme of arrangement that was approved by the board of Reliance Industries Limited (RIL) on Friday.
According to a RIL announcement, this demerger along with the company's current EPC team creates a targeted EPC enterprise in RIL to serve the needs of the group.
Currently, the group's EPC (engineering, procurement, and construction) resources are dispersed among several operating organisations.
According to the press release, RIL has a solid staff of around 4,000 engineers with experience in engineering, purchasing, project management, and construction. A team of over 20,000 experts work for RPPMSL.
The group's engineering resources and knowledge will be gathered and combined through the focused EPC project.
According to the press announcement, the EPC Undertaking will be essential to putting RIL's significant projects for the roll-out of 5G, New Energy, and O2C into action.
"These massive projects will necessitate a huge mobilisation of EPC and global technology resources. EPC resources are anticipated to be in high demand as infrastructure spending rises globally in the oil and gas, chemical, telecom, and renewable energy sectors "The announcement stated.
By establishing EPC Centers of Excellence in key offshore locations, the new EPC Undertaking will assist internationalisation.
It will coordinate with RIL's current subsidiaries in the USA and Dubai. Additionally, it will include additional subsidiaries in Singapore and the UK. These subsidiaries will make it possible to mobilise top personnel and EPC resources more quickly in a context where global EPC is becoming more restricted.
"By utilising global resources and supply chains, the realigned EPC resources will enhance RIL's EPC delivery capabilities. Working across time zones will lower expenses and timelines while ensuring high-quality output, which will also increase productivity "The announcement stated.
There has been no change in RIL's shareholding structure as a result of this merging of a division of a wholly-owned subsidiary with a parent, according to the statement.
The release stated that "under the arrangement, no cash consideration is being given; it is a related party transaction and at arm's length."
For the fiscal year ended March 31, 2022, RIL and the EPC and Infrastructure Undertaking of RPPMSL had respective revenue of Rs. 445,375 crore and Rs. 43,071 crore.
(Inputs from Agencies)