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RIL-RPL Merger Overview and Impact

RIL merged with RPL on three separate occasions, with the first merger occurring in 1992 and combining Reliance Petrochemicals Limited with Reliance Industries Limited. This vertical merger allowed RIL to gain RPL's assets and businesses. The second and third mergers retrospectively combined Reliance Petroleum Limited with RIL in 2002 and 2008, respectively, giving RIL profits and reserves each time. The mergers allowed RIL to expand its petroleum and refining operations through acquiring RPL's facilities.

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Saman Naqvi
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278 views6 pages

RIL-RPL Merger Overview and Impact

RIL merged with RPL on three separate occasions, with the first merger occurring in 1992 and combining Reliance Petrochemicals Limited with Reliance Industries Limited. This vertical merger allowed RIL to gain RPL's assets and businesses. The second and third mergers retrospectively combined Reliance Petroleum Limited with RIL in 2002 and 2008, respectively, giving RIL profits and reserves each time. The mergers allowed RIL to expand its petroleum and refining operations through acquiring RPL's facilities.

Uploaded by

Saman Naqvi
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

RIL RPL Merger

By: Saman (30) Taruna (35) Aarti (37) Mrinalini (54)

Introduction
Merger is primarily a strategy of inorganic growth It involves combination of all the assets, liabilities, loans and businesses of two or more companies such that one of them survives. The merger of RIL RPL was a vertical merger

History
In May 1973, Mynylon Limited was incorporated in Karnataka to manufacture synthetic yearns, fabrics and color picture television tubes, etc In Feb 1975, Reliance Textile Industries Limited was incorporated in Mahashtra On 1 July, 1975, RTIL merged with Mynylon to form Reliance Textiles Industries Limited. In Oct 1977 28.2 lakh equity shares were offered for sale for Rs10 and the company was listed on BSE in January 1978 In June 1985 the name of company was changed to Reliance Industries Limited (RIL)

History
In 1987, Reliance group had incorporated a company named Reliance Petrochemicals Limited to develop first phase of its Hazira Complex Reliance Petrochemicals Limited (RPL) was merged with Reliance Industries Limited (RIL) on 1 March, 1992 In March 2002, RIL announced a retrospective merger with Reliance Petroleum Limited, i.e. from April 1, 2001 Reliance Petroleum Limited had a huge green field refinery at Jamnagar, Gujarat.

History
On 2 March 2009, RIL announced another retrospective merger with Reliance Petroleum Limited with effect from 1 April 2008. This is the third Reliance Group company with the same name RPL In all three mergers, RIL had a huge profit and gained a lot as reserves In 2007, RIL short sold the shares of RPL in futures market and later in spot market to prevent a slump in stock prices RIL has moved to CIC and stopped any information from going public under the RTI Act.

Similar Examples
Merck Medco merger was a similar merger to have happened in the USA PepsiCos merger with Pizza Hut, Taco Bell and KFC.

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