Reliance to convert oil retail stations to malls

Reliance Industries Ltd. (RIL), India’s biggest firm by market capitalization, is drawing up plans to convert its fuel retail outlets, which were recently closed owing to unviable operations, into malls and multiplexes. The company, which is promoted by Mukesh Ambani, has also approached its fuel dealers with offers to buy out the properties they own, said sources familiar with the developments. The dealers, who were incurring losses due to suspension of the retail business, have approached the company to sell their properties, company sources said. The company recently closed 1,432 petrol pumps after it incurred a Rs800 crore (US$188.2 million) loss in its petroleum retail business in 2007-2008 on account of a growing gap between low, government-mandated prices of petrol and diesel and rising crude oil prices. (May 12, 2008)