The European Union (EU) has imposed new sanctions targeting Russia's oil revenues, impacting the Nayara Energy refinery in India, while Reliance Retail has acquired the Kelvinator brand to bolster its consumer durables business.
The EU's latest sanctions package, aimed at increasing pressure on Russia over the war in Ukraine, includes measures targeting the oil and energy sector. A key element of this package is the designation of the Nayara Energy refinery, located in Gujarat, India, due to Russian energy firm Rosneft's 49.13% stake in the company. This marks the first time the EU has sanctioned a Rosneft refinery in India. The sanctions mean that Nayara Energy will be restricted from exporting fuel, such as petrol and diesel, to European countries. Additionally, the EU has lowered the oil price cap, which may force Russia to sell its crude oil at reduced rates to countries like India, which is the second-largest purchaser of Russian oil. Currently, Russian crude accounts for approximately 40% of India's total oil imports. Minister of Petroleum Hardeep Singh Puri stated that India is confident it can meet its oil needs from alternative sources if Russian supplies are affected by the sanctions.
In a separate development, Reliance Retail has announced the acquisition of the Kelvinator brand, aiming to strengthen its position in India's rapidly growing consumer durables market. The company did not disclose the exact value of the deal. Kelvinator, an American company founded in 1914, gained popularity in India in the 1970s and 1980s with its tagline "The Coolest One". In 2019, Reliance Retail entered into an exclusive long-term agreement with Electrolux (the owner of the Kelvinator brand) for brand licensing, manufacturing, marketing, and distribution, which enabled Reliance to relaunch Kelvinator appliances in India. Now, Reliance has fully acquired the brand.
Reliance Retail plans to integrate Kelvinator's legacy with its retail network to offer a wide range of modern home appliances. This includes refrigerators, washing machines, air conditioners, microwaves, and smart home devices. Isha M. Ambani, Executive Director of Reliance Retail Ventures Limited (RRVL), stated that the acquisition aligns with Reliance Retail's vision of "democratizing aspirational living" by offering trusted global innovations to Indian consumers. The company aims to leverage its scale, service capabilities, and distribution network to expand Kelvinator's reach across India. This acquisition follows Reliance's earlier successful relaunch of the Campa Cola brand, indicating a strategy of reviving well-liked legacy brands and integrating them with modern technology.
