Mumbai (Maharashtra) [India], February 23 (ANI): Reliance Industries Ltd (RIL) has initiated the process to move its oil-to-chemicals (O2C) business into an independent subsidiary and will retain 100 per cent management control.

All of refining, marketing and petrochemical assets will be transferred to the O2C subsidiary, it said in regulatory filings at stock exchanges late on Monday.

The promoter group will continue to hold a 49.14 per cent stake in the O2C business and the process will result in no change in shareholding of the company.

"The existing O2C operating team will move to the newly-created subsidiary with the transfer of business, but there will be no dilution of earnings or any restriction on the cash flows," said RIL.

RIL and its O2C subsidiary will work together to move towards the net carbon zero targets by 2035. The O2C business will invest in the next-generation carbon capture and storage technologies to convert carbon dioxide into useful products and chemicals.

It will also accelerate the transition from traditional carbon-based fuels to a hydrogen economy, RIL said adding the development will have no impact on its consolidated financial position, cost of capital, borrowings, investment-grade international and domestic AAA credit ratings.

The move will facilitate value creation through strategic partnerships, including the deal with Saudi Aramco, and attract dedicated pools of investor capital.

The company said that talks with Aramco -- the world's largest crude oil exporter -- to acquire 20 per cent stake in RIL's O2C business are still on.

Various approvals for the reorganisation to be in place by the second quarter of FY22. Following the reorganisation, RIL's stake in Reliance Retail Ventures will be 85.1 per cent and in Jio Platforms 67.3 per cent. (ANI)