Reliance Industries overtakes BP Plc to become world's 6th largest oil company

Mukesh Ambani-led Reliance Industries has overtaken BP Plc to become the sixth-largest energy company in the world. The conglomerate is now valued at $138 billion. It overtook the British energy giant's $132 billion at the close of trading on Tuesday.

Reliance Industries' shares have increased at thrice the pace of India's benchmark index following an announcement by Ambani to cut the company's net debt to zero in 18 months. He said stake sale in the oil-to-chemicals business to Saudi Aramco would be one of the measures to this end.

The surge in shares pushed Mukesh Ambani's net worth to $56 billion, making him the richest person in Asia, ahead of Alibaba Group's Jack Ma, as per the Bloomberg Billionaires Index. The rally has also boosted Reliance Industries on its path to a market value of Rs 10 lakh crore.

Also read: Reliance Industries inches closer to Rs 10 lakh crore market cap after stock hits fresh 52-week high

Reliance Industries, that first overtook BP Plc briefly last month, is now closing in on PetroChina Co, Asia largest oil firm by value, as mentioned in a report by Bloomberg. The sixth largest oil company in the world is ranked behind Exxon Mobil that's on top of the list with a market value of $290 billion. However, Saudi Aramco's plans of initial public offering with a valuation target of between $1.6 trillion and $1.7 trillion, could topple Exxon as the largest oil company.

While the bulk of its revenue comes from the energy business, Reliance Industries also made wide strides in the telecom and digital service industries with Reliance Jio. Reliance Industries is also expanding its retail business to take on Amazon and Walmart.   

Also read: Reliance Industries' deal with Aramco: Mukesh Ambani wants chemicals to dominate Jamnagar refinery output

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