Reliance Industries Ltd., controlled by billionaire Mukesh Ambani, said it formed a wholly owned subsidiary in United Arab Emirates for trading in oil, petroleum and petrochemical products as well as agricultural commodities, it said in a stock exchange filing on Saturday.
The plans follows an announcement in June that the Indian conglomerate will invest in projects of Abu Dhabi National Oil Co. to produce chemicals that can be used for infrastructure and consumer goods.
Reliance has invested $1 million in the new subsidiary, called Reliance International Ltd., according to the Saturday filing. The unit has yet to start business operations.
The investment in the new company can’t be categorized as a ‘related party transaction’ and no regulatory approvals were required, Reliance said. The company operates the world’s largest oil refining complex in the western Indian state of Gujarat.