RIL is the
leading player in petrochemicals and man-made fibers in India. In
FY01, despite the devastating earthquake in the state of Gujarat,
where Reliance’s major
plants are located, company set new production records with total
production volume crossing at 10.4 million tons- an increase of
16% over the previous year.
Company announced a share buy-back programme under which the board has proposed a maximum share price of Rs. 303 per share with maximum limit of Rs. 11 bn for the buy-back programme.
The petrochemical industry is capital and technology intensive. The minimum economic size of an integrated plant is around 1 million TPA of end product, which entails an investment of Rs100bn. This leads to capacity additions in spurts. The inevitable demand supply mismatches in a capital intensive industry lead to wide price fluctuations. Fall in currencies of South East Asian countries, and overall recession has led to depressed demand in the Asian region. Historically, there have been 5-7 year cycles of price movements. The petrochemical cycle in right now at its lows. The key risk in the cycle is the length and severity of US slowdown, which could upset demand projections and operating rates.
In 70’s, state owned IPCL commissioned the first large-scale fully integrated plant in Vadodra (Gujarat). Till the early 90’s, petrochemical industry was state controlled and dominated by state owned IPCL. The only other integrated player, that too in the private sector, was NOCIL with a very small capacity. Most of the other players had small, uneconomic size plants, which were operated on molasses and alcohol.
With the liberalization process in the 90’s, gates of the petrochemical sector were opened out to private enterprises for building up new capacities. In the private sector, Reliance industries were quick enough to take advantage. It started expanding and building up existing and new capacities in a mega way. There has also been a gradual fall in import duties. As an occurrence of these events, companies with uneconomic and unintegrated plants have suffered heavily and the significance of these companies in the industry has become almost nil.
Hazira complex manufactures PVC, PP, HDPE, LLDPE, and MEG using ethylene as the key input.
Patalganga complex has integrated facilities for PSF/ PFY and LAB. Key input is naphtha. It has surplus capacity for PTA.
Naroda (near Ahmedabad) plant has spinning and weaving facilities. It uses PSF/ PFY along with cotton, wool, viscose from outside to produce fabric, yarn and textile products.
Jamnagar Complex has PX and PP facilities adjacent to 27 million TPA refinery.
RIL manufactures PP, PVC and PE (HDPE and LLDPE). It also manufactures ethylene oxide, which is an intermediate for manufacture of MEG, a key input for PSF/PFY. Reliance is the largest polymer manufacturer in the country, with the market share of 52%. It is the 6th largest producer of PP in the world with a capacity of nearly 1 million tons. It has 400,000 TPA of PE capacity and 300,000 TPA of PVC capacity. During FY01, RIL polymer business reported at increase of 18% in volumes to 1.54 million tons. Company produced 0.352mn ton of PE, 0.9 million tons of PP and 0.288 million tons of PVC.
RIL sources ethylene (major raw material) from its own cracker at Hazira having installed capacity of 750,000 TPA of ethylene. Company is also planning to set up an EDC (ethylene di-chloride) project, which has been the missing link in company’s backward integration for manufacturing PVC.
Reliance operates the world’s largest grass-root cracker at its Hazira petrochemical complex. During FY01 it manufactured 0.74 million tons of ethylene and 0.354 million tons of propylene. Other cracker products are Benzene, Toluene and Orthoxylene. Around 78% of cracker production is consumed captively and the rest is sold in the commercial market.
Polyester and fiber intermediates
RIL is the largest producer of PSF and PFY with integrated facilities and a market share of 51% in the country. RIL is now the 2nd largest producer of PSF and PFY in the world. Company produced 0.336mn ton and 0.317mn ton of PFY and PSF respectively in FY01. Besides, it also produced 72,000 tons of PET. Company’s production volumes in the polyester business increased by 10% to 724,000 tons in FY01.
RIL has decided to double its capacities of polyester in next three years, reaching a capacity of 1.2 million TPA, with focus on PFY. The company expects to achieve this target by way of creation and acquisition of capacities. During the year it overtook 2 major polyester manufacturing units- DCL polyester limited and JCT limited with a total capacity of 120,000 TPA
RIL is the only manufacturer of PTA in India. It is the world’s 3rd largest producer for PX and world’s 4th largest producer of PTA. Besides meeting captive requirement; it also supplies these intermediates to other PSF/PFY manufacturers. Reliance’s production volumes in the fiber intermediates business was up 29% to 2.38 million tons during FY01. PX production was 1.3 million tons, PTA 1.2 million tons and MEG 0.368 million tons.
Reliance textile complex at Naroda, near Ahmedabad is one of the largest and most modern textiles units in the country. Company has announced a plan for comprehensive restructuring of its textile operations. The first phase of restructuring was completed in FY01 and will lead to reduction of over 4600 people from the textile division’s total work force. The restructuring of the textiles business is aimed at strengthening the leadership of Vimal and Harmony brands by focussing on quality and higher margin products. Company also plans to thrust on high value added exports, expansion of retail showroom network via franchised outlets and commercial tie-ups with international players.
RIL manufactures LAB using kerosene as raw material. LAB is used for manufacture of synthetic detergents. Company produced over 110,000 tons of LAB in FY01. It also produced 123,000 tons of normal paraffin, accounting for 45% of domestic production.
Reliance Petroleum (RPL)
RIL has 64% stake in RPL and is expected to decrease its stake to 51% through secondary offerings. RPL is the first refinery to be set up by the private sector in India, pursuant to oil sector. RPL is the world’s largest grassroots refinery and the 7th largest refinery in the world at any single site with the capacity of 27 million tones per annum. Company has announced to increase the capacity further by 2-3 million tones per annum by de-bottlenecking of capacities. RPL achieved 95% of capacity utilization during FY01 and sales for the year were Rs. 309 bn, operating profit Rs 30 bn and net profit of Rs 14 bn. EPS for the year was Rs 3.08. RPL could be a big beneficiary of the expected de-control of oil products, which is due on April 1, 2002.
Oil and Gas
RIL’s own Oil and Gas business accounted for only 3% of its sales in FY01 but the percentage is expected to grow significantly in the future. In the oil business, Reliance holds a 30% interest in an unincorporated Joint Venture with Enron and ONGC, to develop proven oil and gas fields at Panna, Mukta and Tapti. Enron has a 30% share and ONGC the balance 40%.
During FY01, Reliance was awarded 12 new exploration blocks by Govt. of India, through a process of competitive bidding. These 12 blocks together with the earlier 2 blocks awarded to Reliance has made Reliance the country’s largest E&P player in the private sector with exploration area of 105,765 sq. kms. Company is also in talks for acquisition of 12,000 sq. kms of 5 exploration blocks from Tullow of UK. In NELP-II, the Reliance-Hardy Oil of UK combines bagged KK-DWN-2000/1 and KK-DWN-2000/3 deep-water blocks in Kerala-Konkan basin and AS-ONN-2000/1 onland block in Assam besides GS-OSN-2000/1 shallow offshore block in Gujarat-Saurashtra basin.
Business Day 2002/5/22 http://www.bday.co.za/bday/content/direct/1,3523,1088772-6078-0,00.html
buys Indian Petrochemicals Corp
India's largest private company Reliance Industries has tightened its hold on the domestic petrochemicals market after acquiring control of Indian Petrochemicals Corp. Ltd. (IPCL), analysts said Monday.
India's main Bombay Stock Exchange gave the thumbs up to the sale with IPCL shares rising as much as 10% on Monday to 145.95 rupees.
Reliance Industries Ltd. agreed on Saturday to pay the government 14.91 billion rupees ($304.3-million) for a 26 percent stake in the second-biggest chemicals maker.
India's biggest chemicals maker, will pay 231 rupees a share for IPCL stake, valuing the
company at 60 billion rupees, 82% more than its market value on
Friday of 33 billion rupees.
Reliance, which will take over management control of IPCL, will have two-thirds of India's three million tonne-a-year polymer market as a result of the deal. The group has also emerged as one of the largest producers in Asia of ethylene, a key petrochemical, with a capacity of 1.58 million tonnes a year.
In ethylene production, the Reliance-IPCL combined capacity is on par with Mitsubishi's 1.54 million tonnes a year and more than Sumitomo's 1.06 million tonnes. Reliance won the stake after missing out on its targets several times before.
It lost out to the Tata Group in the race to acquire state-owned international telecoms provider Videsh Sanchar Nigam Ltd, and to Indian Oil Corp. Ltd. for acquiring IBP Ltd, a fuel distribution company.
"The group got its act right this time," said Venkat Iyer, director at R.K Stock Broking.
"With the acquisition of IPCL, not only has it gained market dominance locally, but also emerged as one of the largest producers of some products in Asia." The acquisition of IPCL has increased Reliance's domestic market share in some of the products to almost 95%, analysts added.
"Reliance has got a ready customer in IPCL as the former produces naptha, which is a feedstock for IPCL," said Anil Ambani, managing director of Reliance Industries.
is also engaged in oil and gas exploration which could potentially lead to greater
feedstock integration between Reliance and IPCL," he added.
IPCL annually buys 10.0 billion rupees worth of naptha from Indian Oil, which it can now source from Reliance. Apart from sheer market dominance, Reliance also aims to gain greater access to research and development in petrochemicals as IPCL has a pilot research plant in the western state of Gujarat employing over 100 scientists.
"The sharing of research capabilities between Reliance and IPCL will lead to significant improvements in product development, processing and application of polymers," said Ambani.
Analysts pointed out that the Reliance-IPCL deal was equally beneficial to IPCL and the government. The government will keep 34% of IPCL. Reliance will now offer to buy a further 20% shares held by other IPCL investors at the same price.
Reliance beat two other bidders, Indian Oil Corp. and Nirma Ltd., which had offered 128 rupees a share and 110 rupees respectively. It is the biggest ever state asset sale for the government while the deal offers a good exit option for IPCL investors.
Analysts said the deal has also emerged as a new benchmark for state asset valuations, especially the sale of other blue chip firms such as Hindustan Petroleum Corp. and Bharat Petroleum Corp.
"It may be an overpriced bid, but Reliance has ensured other state-owned blue chips get better valuations depending on their core competencies," said an analyst with a foreign brokerage.
India Reliance mulls PVC plant expansion at ICPL's site
India's Reliance Industries is mulling a PVC plant expansion project at newly acquired Indian Petrochemicals Corp Ltd's PVC site at Gandhar, a source close to the company said Tuesday. IPCL currently operates a 150,000 mt/yr PVC plant at the Gandhar petrochemical complex in Dahej, Gujarat. The expansion plan would entail adding a further 150,000 mt/yr PVC capacity, either by debottlenecking or integrating a new plant to the existing one at the complex.
Reliance and DuPont Polyester Technologies sign agreement for R & D strategic alliance
Reliance Industries Ltd. (RIL) and DuPont Polyester Technologies (DPT) today announced they have entered into a strategic R&D alliance to jointly develop advanced polyester process and product technologies in India.
The alliance will
focus on developing innovative technologies for PET resin,
polyester filament, and polyester staple fiber.
As a global player, Reliance is already engaged in polyester R&D. Reliance is now building a new "state-of-the-art" Research and Technology Center (RTC) at Patalganga, near Mumbai. This world-class facility will incorporate the latest polyester research equipment as well as pilot lines for high speed POY, FDY, PSF and bicomponent spinning and several unique polymerization pilot plants including one featuring the revolutionary new NG-3 PET resin technology by DuPont. Downstream pilot facilities will include plants to simulate customers operations in bottle processing, yarn texturing, weaving and poly-cotton spinning.
DPT is the technology development and licensing arm of DuPont Textiles & Interiors (DTI). The strategic alliance will not only enable Reliance and DTI to explore jointly new areas of research opportunity, but also pursue many promising projects already in the DTI and Reliance research pipelines. The alliance will benefit polyester consumers worldwide, by accelerating the delivery of new polyester products and processes to the world marketplace in a very cost-effective manner, by employing both pilot scale and commercial scale manufacturing facilities at Patalganga and other Reliance polyester manufacturing sites.
The intellectual property from joint developments under the alliance will be available, on a royalty free basis, to both Reliance and DTI. This will bring a new dimension to DTI's worldwide polyester licensing activities and simultaneously assure that Reliance can rapidly bring a sustained stream of high quality, innovative new products to their customers.
Within the past year, Reliance and DTI have entered into several important alliances. Reliance is at present producing polyester filling products to supply DTI's global markets, and is also the exclusive agent to develop the market and distribute DuPont(superscript: TM) Lycra® stretch fibers within India. Later this year, Reliance will commission the world's first commercial PET resin plant using DTI's NG-3 process. This will expand the existing Relpet® polyester packaging resin (PET) capacity of 80,000 tones per year to 300,000 tones per year.
"We are very pleased to have reached this agreement with DuPont and are excited to leverage the R&D strengths of the two companies," said Subodh Sapra, president, Polyester Sector, RIL. "This strategic agreement is an important milestone for both companies and one based on convergence of business objectives. However, I believe the final consumer, both in India and the United States, will ultimately benefit as new products are brought to the marketplace, through world-class polyester R&D in India".
"As DuPont and Reliance have had a strong relationship for more than 20 years, Reliance was the natural partner for DTI to further our polyester knowledge base. We are sure that this will enable both DTI and Reliance to enhance their positions as world leaders in polyester," said Robert Graham, director, DuPont Polyester Technologies.
The Reliance Group founded by Dhirubhai H. Ambani (1932-2002) is India's largest business house with total revenues of Rs. 80,000 crore (US$ 16.8 billion), cash profit of over Rs. 9,800 crore (US$ 2.1 billion), net profit of over Rs. 4,700 crore (US$ 990 million) and exports of Rs. 11,900 crore (US$ 2.5 billion). The group's activities span exploration and production (E&P) of oil and gas, refining and marketing, petrochemicals (polyester, polymers, and intermediates), textiles, financial services and insurance, power, telecom and infocom initiatives. Reliance emerged as India's Most Admired Business House, for the second successive year in a TNS-Mode survey for 2002.
Reliance Industries Limited (RIL) is India's largest private sector company on all major financial parameters with gross turnover of Rs. 65,061 crore (US$ 13.7 billion), cash profit of Rs. 7,565 crore (US$ 1.6 billion), net profit of Rs. 4,104 crore (US$ 864 million), net worth of Rs. 30,327 crore (US$ 6.4 billion) and total assets of Rs. 63,737 crore (US$ 13.4 billion). RIL has emerged as India's first private sector company in the reckoning for a place in the Fortune Global 500 list of the world's largest corporations. RIL features in the Forbes Global list of world's 400 best big companies.
RIL was named in the World's Most Respected Companies list published by Financial Times based on a global survey and research conducted by PricewaterhouseCoopers. RIL also emerged as the most respected among Indian companies and amongst the 10 most respected energy and chemical companies in the world.
DuPont Textiles & Interiors (DTI), a wholly owned subsidiary of DuPont, is the largest integrated fiber business in the world, with 2002 revenues of $6.3 billion, operating in 50 countries. Headquartered in Wilmington, Del., it is comprised of three businesses: Apparel; Interiors and Industrial; and Intermediates. DTI is committed to its customers' growth through market insights and technology innovations combined with a powerful portfolio of the best-known global brands and trademarks in the industry including: Lycra®, Teflon®, Stainmaster®, Antron®, Coolmax®, Thermolite®, Cordura®, Supplex® and Tactel®.
June 10, 2003 Financial Times
Reliance aims to be world's largest polyester producer/ Ties up with DuPont for joint research
Reliance Industries Ltd has said it plans to become the largest polyester producer in the world. The company plans to spend $30 million on research at the Reliance Technology Centre set up here to develop new polyester technology.
"Reliance has signed an alliance with DuPont for joint research. Our ambition is to be the world number one in polyester research and replace DuPont as the number one research company," Mr Subodh Sapra, President, Reliance's Polyester Unit, told reporters here on Saturday.
Apart from the spend on research, Reliance is also setting up "the first largest" polyester plant with a 2,300,000 tonnes per annum capacity at Hazira, Mr Sapra said.
The company has already invested more than $15 million on setting up a research centre for polyester at its Patalganga facility near Mumbai.
Reliance plans to focus on developing polyester products for the construction, paper, home textiles and furnishings and packaging industry instead of the traditional apparel business, he said.
Mr Sapra said the company saw "huge opportunities to earn royalties" from licensing its research to other companies once it has exploited technology for its own use. "Worldwide, roughly 40 to 50 per cent polyester usage is in the non-apparel segment. India will have to produce four to five times more polyester to catch up with the world. We see tremendous potential in the business," he said.
The company has an agreement to conduct joint research with DuPont (which is exiting the polyester manufacturing business), in addition to independent research at the RTC.
There are 36 scientists working at the RTC and the number is expected to double next year. The centre already has more than 100 patents to its credit, Mr S.C. Basu, Senior Vice-President, Research Technology, said.
Reliance is also in the process of forming two new alliances for polyester resin processing and processing of fibres. Mr Sapra however declined to give details as the company is bound to confidentiality agreements, he said.
Reliance Associate signs MoU with NOCIL to take over Petrochemicals and Plastics Products divisions
Sunbright, a business associate
of Reliance, has signed a Memorandum of Understanding (MoU) with
National Organic Chemicals Industries Limited (NOCIL) to take
over its Petrochemicals and Plastics Products Divisions.
Under this proposal, the assets of NOCIL's Petrochemical Division, certain liabilities of the Company, and the business and undertaking of the Plastic Products Division as a going concern basis will be demerged from NOCIL and will be vested in Nocil Petrochemicals Limited (NPL), a wholly owned subsidiary of NOCIL. Sunbright will invest in equity of NPL after the process of demerger is completed.
The board of directors of NOCIL at its meeting held today has approved the restructuring proposal and the offer of Sunbright. NOCIL will be shortly filing a petition in the Bombay High Court under section 391 / 394 of the Companies Act, 1956, to give effect to this proposal after obtaining the necessary approval of the shareholders and creditors.
The proposed take over of NOCIL's petrochemical and plastics products division will provide significant synergies with existing petrochemicals businesses of Reliance Industries Ltd (RIL) and Indian Petrochemicals Corporation Ltd (IPCL).
NOCIL's petrochemicals complex has total petrochemicals capacity of 300,000 tonnes per annum (tpa), which include an ethylene cracker of 80,000 tpa, value added chemicals 90,000 tpa, and fibre intermediates 20,000 tpa. In addition, the complex has a polymer capacity of 80,000 tpa. The Plastics products division at Akola, Maharashtra has a capacity of about 10,000 tonnes per annum of processed polymer products.
NOCIL's petrochemicals division, which is currently not in operation, will immensely gain from Reliance group's technical and manufacturing expertise. Already an ethylene pipeline links NOCIL's Petrochemicals Division in Navi Mumbai to IPCL's Nagothane plant.
Reliance Industries Ltd. (RIL) is India's largest private sector company on all major financial parameters with gross turnover of Rs 65,061 crore (US$ 13.7 billion), cash profit of Rs 7,565 crore (US$ 1.6 billion), net profit of Rs 4,104 crore (US$ 864 million), net worth of Rs 30,327 crore (US$ 6.4 billion) and total assets of Rs 63,737 crore (US$ 13.4 billion). RIL features in the Forbes Global list of world's 400 best big companies and in FT Global 500 list of world's largest companies.
RIL has emerged as the 'Best Managed Company' in India in a study by Business Today and A.T. Kearney. RIL was named in the World's Most Respected Companies list published by Financial Times based on a global survey and research conducted by PricewaterhouseCoopers. RIL also emerged as the most respected among Indian companies and amongst the 10 most respected energy and chemical companies in the world.
The Reliance Group founded by Dhirubhai H. Ambani (1932-2002) is India's largest business house with total revenues of Rs 80,000 crore (US$ 16.8 billion), cash profit of over Rs 9,800 crore (US$ 2.1 billion), net profit of over Rs 4,700 crore (US$ 990 million) and exports of Rs 11,900 crore (US$ 2.5 billion). The group's activities span exploration and production (E&P) of oil and gas, refining and marketing, petrochemicals (polyester, polymers, and intermediates), textiles, financial services and insurance, power, telecom and infocom initiatives. Reliance has emerged as India's Most Admired Business House, for the third successive year in a TNS Mode survey for 2003.
Reliance Group Announces A Unique Value Creating Opportunity
Limited today announced that Reliance Petroleum Limited (RPL),
it's newly formed wholly owned subsidiary, would be entering the
capital market with its IPO sometime in the first half of
RPL is setting up an export oriented Refinery (27 MMTPA) and Polypropylene Plant (1 MMTPA) ('Project'), in a Special Economic Zone (SEZ) in Jamnagar, Gujarat at an estimated cost of USD6 billion. (approx. Rs27,000 crore).
The project is planned to be funded by Debt of USD 3.5 billion (approx. Rs16,000 crore) and equity of USD 2.5 billion (approx. Rs11,000 crore).
Reliance Petroleum Limited plans to raise USD 1.1billion to USD 1.3billion (Rs5,000 to 6,000 crore) through this issue. The proceeds of the issue would be utilized to part fund the cost of this Project.
The proposed IPO by RPL brings out the unique strategy of creating value for the new shareholders while at the same time unlocking value for existing shareholders of RIL.
This refinery will stand out as a hallmark of Reliance's impeccable execution strategy backed by its prudent financing structure which shall ensure superior returns over an extended period of time.
Reliance Industries Limited
Reliance Industries Limited (RIL) is India's largest private sector company on all major financial parameters with turnover of Rs73,164 crore (US$ 16.7 billion), cash profit of Rs12,087 crore (US$ 2.8 billion), net profit of Rs7,572 crore (US$ 1.7 billion), net worth of Rs40,403 crore (US$ 9.2 billion) and total assets of Rs80,586 crore (US$ 18.4 billion).
RIL is the first and only private sector company from India to feature in the 2004 Fortune Global 500 list of 'World's Largest Corporations' and ranks amongst the world's Top 200 companies in terms of profits. RIL emerged in the world's 10 most respected energy/chemicals companies and amongst the top 50 companies that create the most value for their shareholders in a global survey and research conducted by PricewaterhouseCoopers and Financial Times in 2004. RIL also features in the Forbes Global list of world's 400 best big companies and in FT Global 500 list of world's largest companies.
RIL emerged as the 'Best Managed Company' in India in a study by Business Today and A.T. Kearney in 2003. In 2004, the company emerged as 'India's biggest wealth creator' in the private sector over a 5-year period in a study by Business Today - Stern Stewart and as India's 'Most Admired Company' in a Business Barons ' TNS Mode Opinion Poll.
Reliance to acquire
To emerge as the Number One Global Polyester Fibre Producer
Reliance is to acquire Trevira, a leading producer of branded polyester fibres in Europe. An announcement to this effect was made by Mr. Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited, at the company's Annual General Meeting in Mumbai on June 24, 2004.
Trevira has a
manufacturing capacity of 130,000 tonnes per annum (polyester
staple fibres, filament yarns, chips) spread over four locations
in Europe namely Bobingen and Guben (Germany), Silkeborg
(Denmark) and Quevaucamps (Belgium). In addition, it has a
state-of-the-art research and development (R&D) facility at
Bobingen. The agreement to acquire Trevira is subject to certain
conditions, including the receipt of regulatory approval from the
European Union. This acquisition, when consummated, will be the
second international acquisition by Reliance and the first
international acquisition in polyester.
Commenting on this development Mr. Subodh Sapra, President, Polyester Sector, Reliance Industries Limited, said: "We are delighted that Trevira is our first overseas polyester acquisition. We expect that the strong commitment of Reliance to the growth of polyester and our integration into polyester raw materials, will help both Trevira and Reliance to serve all our customers in Europe and other world markets with superior polyester products and even better supply chain services".
Mr. Bernd Sassenrath, CEO Trevira, said: "The combination of Reliance and Trevira creates a global leader in polyester fibres and will significantly strengthen Trevira's competitive position going forward. We envisage that this transaction will enable Trevira not only to benefit from the access to new markets and raw materials sources but also to leverage the Trevira brand and contribute our marketing skills and technology in specialty polyester fibres".
Trevira is a highly specialized manufacturer of polyester products. The company has several valuable patents and technologies together with a strong R&D setup with substantial accumulated research knowledge. Trevira is the market leader in Europe in high value applications of polyester, especially in automotive and home textiles. Trevira is a widely known and well recognized brand both amongst customers and producers in synthetic fibres.
With the acquisition of Trevira and Reliance's expansion underway in India, the combined total polyester fibre and filament yarn capacity will exceed 1.8 mn tons, the largest polyester fibre and yarns capacity in the world. Reliance's strength in the integration and the management of large scale manufacturing facilities will provide operational advantage to Trevira. The Trevira brand and products will now have access through the established Reliance sales network to India, one of the fastest growing textiles markets in the world. Trevira will provide Reliance a strong footprint in Europe and place it in a position to cater to all market segments of polyester fibres and filament yarns worldwide. Trevira's knowledge base developed over a period of time will be complementary to Reliance's existing R&D facility, the Reliance Technology Centre. The synergy will provide comprehensive and innovative solutions for apparel and non-apparel applications of polyester to customers worldwide.
Trevira ( www.trevira.com) was founded in 1956 as a business unit of Hoechst AG. It was spun off in 1998 as Trevira GmbH & Co KG. With a turnover of Euro 316 mn in 2003, Trevira is one of the major European manufacturers of polyester fibres and filament yarns and enjoys leading positions in several attractive market segments. It has international certifications for quality and environment standards, i.e. DIN EN ISO 9001 and DIN EN ISO 14001.
About Reliance Group
The Reliance Group founded by Dhirubhai H. Ambani (1932-2002) is India's largest business house with total revenues of over Rs 99,000 crore (US$ 22.6 billion), cash profit of Rs 12,500 crore (US$ 2.8 billion), net profit of Rs 6,200 crore (US$ 1.4 billion) and exports of Rs 15,900 crore (US$ 3.6 billion).
The Group's activities span exploration and production (E&P) of oil and gas, refining and marketing, petrochemicals (polyester, polymers, and intermediates), textiles, financial services and insurance, power, telecom and infocom initiatives. The Group exports its products to more than 100 countries the world over. Reliance emerged as India's Most Admired Business House, for the third successive year in a TNS Mode survey for 2003.
Reliance Group revenue is equivalent to 3.5% of India's GDP. The Group contributes 10% of the country's indirect tax and 6% of India's exports. Reliance is trusted by an investor family of 3.1 million - India's largest.
About Reliance Industries Ltd.
Reliance Industries Limited (RIL) (www.ril.com) is India's largest private sector company on all major financial parameters with gross turnover of Rs 74,418 crore (US$ 17 billion), cash profit of Rs 9,197 crore (US$ 2.1 billion), net profit of Rs 5,160 crore (US$ 1.2 billion), net worth of Rs 34,452 crore (US$ 7.9 billion) and total assets of Rs 71,157 crore (US$ 16.3 billion).
RIL emerged as the only Indian company in the list of global companies that create most value for their shareholders, published by Financial Times based on a global survey and research conducted by PricewaterhouseCoopers in 2004. RIL features in the Forbes Global list of world's 400 best big companies and in FT Global 500 list of world's largest companies. RIL emerged as the 'Best Managed Company' in India in a study by Business Today and A.T. Kearney in 2003. The company emerged 'India's biggest wealth creator' in the private sector over a 5-year period in a study by Business Today - Stern Stewart in 2004.
2005/8/28 The Hindu
Reliance set to acquire BP's France, Belgium facilities
RELIANCE Industries Ltd is zeroing in on acquiring the refinery and petrochemicals facilities of BP Plc in France and Belgium.
Sources familiar with the development told Business Line that the due diligence exercise of BP, which had been on in Mumbai for the past few weeks, was now over.
"The BP refinery and petrochemicals facilities in France and Belgium have been evaluated. The deal could close any time," he said.
However, there is no official word as yet from the company on the development. Reliance officials had no comments to offer as the matter, they said, was speculative and even otherwise confidentiality clauses would not allow them to say anything till the deal was over.
The market talk is that the deal size could be in the region of Rs 30,000 crore.
Mr Mukesh Ambani, Chairman and Managing Director, RIL, had said at the August 3 AGM that the company has enough surpluses for new acquisitions and initiatives. RIL generates surplus cash to the tune of Rs 13,000 crore annually. With existing avenues for deploying cash drying up with the demerger of its energy and infocomm businesses, RIL has been trying to identify fresh avenues of growth for a while now.
The market has been rife with rumours for some time now that a mega deal involving RIL is in the making.
It was widely expected that RIL would make some announcement to this effect during its AGM earlier this month.
In March this year BP hived off its olefins and derivatives plastics business as a subsidiary under the label Innovene, a move widely believed to have been a precursor to a sell-off. Innovene, with a turnover in excess of $15 billion last year, is ranked the fourth largest petrochemicals firm in the world and is headquartered in Chicago.
April 12, 2006 Chevron
Agreements with Reliance to Purchase 5 Percent Stake in India
Refinery and Collaborate on Energy Projects
Chevron invests $300 million to acquire position in Jamnagar export refinery with rights to increase stake to 29 percent
Chevron Corporation today announced that it will spend approximately $300 million to purchase five percent of Reliance Petroleum Limited (RPL), a company formed by Reliance Industries Limited (Reliance) to own and operate a new export refinery being constructed in Jamnagar, India. RPL plans to commence an initial public offering (IPO) with the net offering to the public of 10 percent of the company from April 13, 2006 until April 20, 2006.
RPL plans to develop a 580,000 barrels per day crude capacity refinery, which is expected to begin operation in December 2008. Chevron has future rights to purchase additional shares to increase its equity ownership to 29 percent.
In addition, Chevron announced the signing of two Memoranda of Understanding with Reliance. These cover the principles by which Reliance and Chevron will seek to optimize the refinery crude supply and product marketing and set out the intent of both companies to pursue other collaboration opportunities in the energy value chain.
"We are very pleased to have forged this relationship with Reliance, one of India's leading companies, which has excelled in the execution of world class projects. This underscores the importance of Asia to Chevron generally, and India specifically. I look forward to working with Reliance in the development of the new refinery and jointly pursuing additional opportunities," said Chevron Chairman and CEO Dave O'Reilly.
Reliance currently operates a 650,000 barrels per day refinery in Jamnagar. The new refinery is designed to have a similar throughput capacity, but is expected to process heavier crude oil. The new refinery would be the world's sixth largest refinery on a single site, and the two together would constitute the largest refinery complex in the world, based on current capacities.
"It is our strategy to continue to increase our refining flexibility and scale to meet growing global demand and this new plant at Jamnagar will increase our ability to process a wide variety of hard-to-refine crudes. We intend to use our world-wide trading capability to source crude and place refined products for the new refinery," said Jeet Bindra, president, Chevron Global Refining.
Chevron Corporation is one of the world's leading energy companies. With more than 53,000 employees, Chevron subsidiaries conduct business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing, and distributing fuels and other energy products. Chevron is based in San Ramon, Calif. More information on Chevron is available at www.chevron.com.
Global Funds Tell Union Carbide To Settle Bhopal Gas Leak Claims
A group of international
investor funds which includes Trillium Asset Management, Domini
Social Investments and the Calvert Group (together managing a
combined asset value of $13 billion) have advised Union Carbide
to settle claims of economic, health and environmental
liabilities of over $500 million (Rs 2,500 crore)
stemming out of the Bhopal gas leak. The company risks losing
billions of dollars in market capitalisation if it fails to do
A letter has been sent jointly by a group of funds to the Dow Chemical Company, which took over Union Carbide in 2001 along with all its assets and liabilities. This advise has been delivered at the ongoing Saloman Smith Barney chemical conference in New York, the annual gathering of the chemical industry leaders.
The International Campaign for Justice in Bhopal (ICJB) run by non-governmental organisations (NGOs) including Greenpeace has accused Union Carbide of failing to check leakage of chemicals from its abandoned Bhopal factory. Contaminating the soil and poisoning the ground water, one of the side effects has been the presence of mercury, lead and organochlorines in the breast milk of nursing women. Many died, thousands continue to suffer due to the hundreds of tons of dangerous chemicals still lying at the closed plant site.
This will not be the first time Dow Chemical stands to lose in such a situation. Faced with another litigation against Union Carbide for asbestos related damages, Dow’s market capitalisation fell by over $7 billion due to investor fears of further damages.
Hitherto internal documents recently produced in a court hearing an ongoing class action in New York filed by Bhopal survivors have revealed that the management knew all along that such leakages were taking place over the years. Despite that, they neither took any corrective steps nor did they issue any warnings. NGOs have alleged that Union Carbide violated lease terms by handing back the land after taking only cosmetic steps to contain the contamination.
Madhya Pradesh chief minister Digvijay Singh recently announced that his government would petition the Supreme Court to order Dow to pay for the clean up of the site. Greenpeace has estimated this alone could cost over $500 million. Settling of individual liabilities could cost many times over this sum.
In a first sign of admission of a possible liability, Dow Chemical India accepted samples of contaminated soil and water for testing from the Bhopal gas affected survivors and their international supporters on the eve of the 18th anniversary of the disaster. Dow India director of finance Anand Vohra assured the ICJB delegation that he would personally recommend to “higher authorities” including Dow CEO Michael Parker that remediation measures be undertaken to alleviate the suffering of the gas-affected people.
“Dow is feeling the heat from growing international pressure on the company to act responsibly in regard to their liabilities in Bhopal. This announcement signifies the first time Dow’s management has responded constructively to the demands of the Bhopal people. Mr Parker should take Mr Vohra’s advice and initiate discussions on clean-up immediately,” said G Krishnaveni of the ICJB.
RIL board approves $3bn
cracker project in Jamnagar.
To set up largest integrated 2 MMTPA petrochemical complex
RIL Board approves 12 Crore Preferential Warrants to promoters
Dr. R A Mashelkar appointed Director on RIL Board
|The Board of Directors of the Company met today and took the following decisions:
|Confirm the decision taken on 9th November, 2006 to raise US $2 billion to finance the capital expenditure plan for oil and gas business through External Commercial Borrowings by way of debt.
|Raise further equity by way of preferential issue of 12 crore warrants exercisable into equal number of equity shares of Rs.10 each of the Company to the Promoters as per SEBI guidelines for Preferential Issues, subject to shareholders approval. An amount equivalent to 10% of the price would be paid on allotment of warrants and the remaining 90% would be paid at the time of subscription to equity shares on exercise of rights attached to the warrants within a period of 18 months. On exercise of such rights the paid up capital of the Company will increase from Rs 1393 crores to Rs 1513 crores.
|Build one of the largest integrated cracker and petrochemicals complex with a total capacity of 2 mmtpa in the SEZ at Jamnagar. This cracker will use refinery off gases and other byproducts as feedstock to manufacture ethylene, propylene and its downstream commodity and speciality derivatives. The proposed facility will be built at a capital cost of US $ 3 billion and is expected to go on stream by 2010 -11. This unique integration with the refinery will place the proposed cracker complex at par with the most efficient producers of olefins and derivatives in the world including those in the Middle East and will enable the Company to achieve one of the most competitive cost positions.
Dr. R.A. Mashelkar as an independent director on the
Company’s board, subject to
necessary Government approvals.
Dr. Mashelkar is an
eminent scientist and engineer and has an outstanding academic
record and has held several high positions in the field of
Science and Technology. Dr. Mashelkar is presently the President
of the Indian National Science Academy (INSA) and President of
Global Research Alliance, a network of publicly funded R&D
institute from Asia Pacific, Europe & U.S.A. with over 60,000
Dr. Mashelkar was awarded the Padmashri in Commenting on the above, Chairman, Mr. Mukesh Ambani said “The Board’s approval to enhance the equity capital of the Company by Preferential issue of warrants to promoters demonstrates our commitment to value creation at Reliance.The substantial enhancement of shareholders funds will take RIL to a higher growth platform by strengthening its capital structure.
I am really excited about accelerating our investments in all our key businesses ? oil & gas, refining, petrochemicals and retailing by both organic and inorganic growth initiatives.”
Reliance Industries Limited
Reliance Industries Limited (RIL) is India’s largest private sector company on all major financial parameters with turnover of Rs 89,124 crore (US$ 20 billion), cash profit of Rs 13,174 crore (US$ 3 billion), net profit of Rs 9,069 crore (US$ 2 billion), net worth of Rs 49,804 crore (US$ 11 billion) and total assets of Rs 93,095 crore (US$ 20.9 billion).
RIL is the first and only private sector company from India to feature since 2004 Fortune Global 500 list of ‘World’s Largest Corporations’ and ranks amongst the world’s Top 200 companies in terms of profits. RIL emerged in the world’s 10 most respected energy/chemicals companies and amongst the top 50 companies that create the most value for their shareholders in a global survey and research conducted by PricewaterhouseCoopers and Financial Times in 2004. RIL also features in the Forbes Global list of world’s 400 best big companies and in FT Global 500 list of world’s largest companies.
Reliance-IPCL merger in pipeline
Petrochemicals Corporation Ltd (IPCL) is finally being
amalgamated with Reliance Industries Ltd (RIL).
The merger will create a Rs 45,000-crore petrochemical and polymer powerhouse.
RIL today informed the stock exchanges that its board would consider the amalgamation of IPCL with itself on March 10.
There’s been a buzz of speculation ever
since 2005 that IPCL would merge with Reliance and it’s only now that it is finally
Reliance had acquired IPCL in 2002 by buying the 26 per cent government equity for Rs 1491 crore. It subsequently came out with an open offer to purchase an additional 20 per cent.
In June 2005, the three-year agreement of IPCL with the government expired and ever since talk of a merger has hung in the air.
Both Reliance and IPCL have similar products like polypropylene and polyethylene among others; the amalgamation is expected to lead to cost savings and create synergies. Sources said as capacities will be consolidated in a single company, the merged entity will have greater say on both raw material purchases and finished goods sales. The merged entity will also have a better presence in the country’s polyester space.
While IPCL manufactures polyesters like polyester yarn and polyester fibre, RIL is the world's largest producer of these commodities with a combined capacity of 2 million tonnes.
Reliance has a domestic market share of 56 per cent in polyester yarn and polyester fibre and it produced more than 11 lakh tonnes of polyester during the first nine months of this year, which was at least three times more than IPCL’s production of these items during the period.
“The feedstock or the raw materials
that they use in the polymer space are similar. This can lead to
some savings. Moreover, there is the benefit of selling the
products together instead of doing it separately,”
analyst at Edelweiss Securities said. Sources added that IPCL was
a standalone entity and had to contend with volatile feedstock
and energy costs that put pressure on its pricing and margins in
the value chain. This will be substantially reduced if there is a
merger with Reliance.
During the year ended March 31, 2006, IPCL had posted a turnover Rs 12,362 crore while the contribution of petrochemicals to RIL's balance sheet was put at Rs 32,802 crore.
In petrochemicals alone, the merged entity will have a topline of over Rs 45,000 crore.
Analysts estimate this will swell to over Rs 50,000 crore when the current fiscal ends.
During 2005-06, RIL’s turnover from refining stood at Rs 71,117 crore.
Based on such numbers, the net turnover for the combined entity is put at Rs 93,947 crore.
September 4, 2007
Reliance makes a strategic acquisition in East Africa
Towards global ambitions in the petroleum sector
Reliance has acquired a Majority stake and Management control of Gulf Africa Petroleum Corporation (GAPCO), a company which has a significant presence in East Africa in the petroleum downstream sector. The acquisition has been made through a wholly owned subsidiary, Reliance Industries Middle East, Dmcc (RIME), a company registered in United Arab Emirates.
GAPCO, an entity based in East and Central Africa with headquarters in Mauritius, owns and operates large storage terminalling facilities and a retail distribution network in several countries - including Tanzania, Uganda, Kenya. It also owns and operates large storage terminals in Dar Es Salaam (Tanzania), Mombassa (Kenya), Kampala (Uganda) and has other well spread depots in East & Central Africa. It also operates more than 250 Outlets covering retail and industrial segments.
Reliance considers its acquisition of GAPCO as strategic in nature. The East African countries, where GAPCO operates, have demonstrated rapid economic growth and have progressive government policies in place. The demand for petroleum products in these countries is rising steadily and has mirrored the rapid GDP growth. Import of petroleum products in these countries is also expected to rise in the near future. Further, these markets are easily accessible from India and in that sense provide a strategic fit for exports from India.
Reliance owns and operates the world’s largest greenfield refinery (660,000 barrels per day capacity) at Jamnagar on the west coast of India and is setting up another similar sized export-oriented refinery (580,000 barrels per day capacity) at the same location through Reliance Petroleum Limited (RPL). Post commissioning of this refinery by December 2008, Jamnagar will become the Refining hub of the world, processing approximately 1.2 million barrels of crude oil per day. This will be the largest refining complex at any single location in the world. Reliance is India’s largest exporter with its petroleum products being sold in over hundred countries covering Europe, Americas, Far East, and Africa in developed and emerging economies across various continents and geographies.
Acquisition of GAPCO by Reliance is a strategic step towards achieving its global vision in the petroleum downstream sector by integrating the entire value chain consisting of Refining, Shipping, Trading, Terminalling and Marketing through retail and wholesale segments. Integration of this entire global value chain presents Reliance an extremely attractive potential upside to gain further prominence in the global petroleum downstream arena. This will help Reliance establish a natural marketing sink for its refinery products and capture value up to the last mile in the global petroleum value chain.
Over the years, Reliance has acquired significant expertise in the petroleum downstream sector in India and has successfully demonstrated its various value propositions like Quality & Quantity, Automation, Fleet Management program and highway Hospitality targeted across various consumer segments. Reliance expects to leverage on this expertise and contribute significantly to the petroleum downstream sector in East Africa and play key role in the economic growth of the region.
The deal, which is one of the biggest mergers in recent years in the region, will see Reliance controlling a 51% majority stake in the Gapco Group, while the Kotak family will now remain with 49%.
Gapco Group is a regional multinational company which has heavily invested in Tanzania, Uganda, Rwanda, Burundi, Kenya, Zambia, Malawi and Sudan.
December 4, 2007 Reliance
GAIL - RIL Sign MoU To Set Up Petrochemical Plants globally
Limited (RIL) and GAIL (India) Limited today signed a Memorandum
of Understanding (MoU) for Joint Co-operation in Petrochemicals.
The MoU was signed in Mumbai by Shri A K Purwaha, Director
(Business Development), GAIL and Shri Nikhil Meswani, Executive
Director, RIL in the presence of Dr. U.D. Choubey, Chairman and
Managing Director, GAIL and Shri Mukesh D. Ambani, Chairman and
Managing Director, RIL. The Directors and senior officials from
both the companies were also present on the occasion.
Under the MoU, GAIL and RIL will explore opportunities for setting up petrochemical complexes outside of India in feedstock rich countries. Identified opportunities will be examined by a Working Group, consisting of representatives from both the companies. GAIL and RIL will set up a Special Purpose Vehicle (SPV) for setting up petrochemical complexes abroad.
The Working Group is examining such opportunities in Middle East, Russia and FSU (former Soviet Union) countries.
In addition, the two companies will also examine the possibilities of mutual co-operation in the domestic market.
This MoU signed today is the beginning in the area of petrochemical between GAIL and RIL. A Memorandum of Understanding (MoU) was also signed between the two companies on March 15, 2007 for co-operation in identified areas in the natural gas sector including Natural Gas pipeline, City Gas distribution, Coal Bed Methane, Exploration & Production and Operations & Maintenance services.
Describing the development as a major event, Dr. U D Choubey, CMD, GAIL said, “This is an important milestone for both the companies. It is also an extension of the concept of working together, which took shape with the signing of the co-operation MoU in the Natural Gas sector between GAIL and RIL earlier this year. The MoU signed today is the beginning of co-operation in the area of petrochemicals.”
Speaking on the occasion, Mr. Mukesh D. Ambani, Chairman and Managing Director, RIL echoed the feelings of GAIL CMD on the need to work together. He said, “GAIL and RIL are India’s leading companies in the energy and infrastructure sector. The decision will enable us to look for opportunities globally on a competitive scale for the petrochemical business which will further strengthen India’s position on the global map.”
GAIL (India) Limited
GAIL is a major gas processing, transmission, distribution and marketing company in India as well as has diversified its operations in other integrated energy and petrochemical activities, having India’s largest gas based petrochemical complex at Pata, U.P. GAIL, along with other partners, is also setting a petrochemical project in Assam as a majority Joint Venture partner. The petrochemicals business contributes around 35 percent to the Gross Margin of the Company.
Reliance Industries Limited
Reliance Industries Limited (RIL) is India’s largest private sector company on all major financial parameters with turnover of Rs1,18,354 crore (US$ 27.23 billion), cash profit of Rs17,678 crore (US$ 4.07 billion), net profit of Rs11,943 crore (US$ 2.75 billion) and net worth of Rs63, 967 crore (US$ 14.72 billion) as of March 31, 2007.
RIL is the first and only private sector company from India to feature in the Fortune Global 500 list of ‘World’s Largest Corporations’ and ranks amongst the world’s Top 200 companies in terms of profits. RIL is amongst the 25 fastest climbers ranked by Fortune. RIL also features in the Forbes Global list of world’s 400 best big companies and in FT Global 500 list of world’s largest companies.
Dec.17, 2007 economictimes.indiatimes.com
Reliance, GAIL identify 10 countries for petrochemical plant
Reliance Industries, India's most valued company, and state-run gas firm GAIL India have identified 10 countries including Qatar, Australia and Russia for setting up a multi-billion-dollar petrochemical plant.
An MoU signed by RIL and GAIL on December 4 lists Qatar, Abu Dhabi, Bahrain, Vietnam, Australia, South Africa, Angola, Mexico, Russia and Former Soviet Union countries as areas where the two would explore jointly establishing up to 2 million tons chemical plant.
"RIL and GAIL believe that there is a huge demand for petrochemical products worldwide. This would need new capacities and therefore, opportunity of setting up global size petrochemical complexes, preferably gas based, in gas- rich countries is being explored," a GAIL official said.
Back home, the two companies would also cooperate in areas of distribution and marketing of petrochemicals, including 'product-swapping'.
"Considering the geographical location of market centres for certain grades vis-a-vis the production centres and logistic advantages, the two companies shall consider product swapping for maximising realisation," the official said.
The two entities will float special purpose vehicle with equal stake to set up the overseas petrochemical plant. "Prior to the formation of SPV, each opportunity for cooperation would be examined by a Working Group comprising of representatives of both the companies," the official said.
Reliance and GAIL have set themselves a three year deadline for identifying and commencing work on the mega petrochemical complex.
Reliance-GAIL JV identifies 10 countries for petrochemical projects news
Reliance Industries and public sector gas firm GAIL India will together set up multi-billion-dollar global scale petrochemical plants in 10 countries, including Qatar, Australia and Russia.
The two companies would also co-operate in areas of distribution and marketing of petrochemicals, including 'product-swapping' in the domestic market as well, reports quoted a GAIL official as saying.
Reliance and GAIL would float a special purpose vehicle (SPV) with equal stake to set up petrochemical plants overseas.
The two companies have set up a working group to identify areas for cooperation prior to the formation of SPV.
Reliance and GAIL have set themselves a three-year deadline for identifying and commencing work on the mega petrochemical complex.
The two companies had signed a memorandum of understanding (MoU) on 4 December listing Qatar, Abu Dhabi, Bahrain, Vietnam, Australia, South Africa, Angola, Mexico, Russia and former Soviet block countries as possible countries for setting chemical projects of up to two million tonnes capacity.
"RIL and GAIL believe that there is a huge demand for petrochemical products worldwide. This would need new capacities and therefore, opportunity of setting up global size petrochemical complexes, preferably gas based, in gas-rich countries is being explored,'' the official said.
Depending on the geographical location of market centres for certain grades vis-a-vis the production centres and logistic advantages, the two companies would also consider product swapping for maximising realisation, the official said.
Jun 12, 2008 Thomson Financial via COMTEX
Reliance says to add 900,000 tonnes/yr polypropylene capacity at Jamnagar
Reliance Industries Ltd.
said the company will commission a 900,000 tonne per
annum polypropylene facility
this year at its flagship Jamnagar site in the western state of
Gujarat, making it the world's third-largest producer.
At the company's AGM on Thursday chairman Mukesh Ambani said it will also commission a 580,000 barrels per day oil refinery at Jamnagar "earlier than scheduled" this year. The company had previously set a December deadline.
Consequently, refining capacity at Jamnagar will rise to 1.24 million barrels per day from the current 0.66 million.
On the exploration front, Ambani said that the company has 41 oil & gas discoveries to date, with exploration success ratio of 63 percent.
The company expects two of its major deepwater fields to come on stream with a combined capacity of about 550,000 barrels of oil equivalent per day, about 44 percent of India's current indigenous production, chairman of India's most sought after company added.
He told the shareholders that the company remains committed to the long-term potential of its petroleum retail business and will seek to leverage it with its majority stake in Gulf Africa Petroleum.
Earlier this year Reliance announced plans to close down about 1,400 of its petrol stations, citing a lack of government subsidies to private petroleum sellers despite the rising price of oil. The company said it will focus on alternate energy like bio-fuels and solar energy in coming years.
In the retail sector, the company expects to generate in excess of half-a-million jobs directly over the next five years.
Reliance plans a 200 kt/yr PET plant for Kinston, NC by end 2009
Industries plans to build and have online a 200,000 mt/year
bottle resin PET plant in Kinston, North Carolina, by
the end of 2009, a source close to the company said Tuesday.
The plant is to be built on the Unifi Kinston LLC site that Reliance agreed to purchase per a Unifi SEC filing made June 17, 2008. The deal was expected to be concluded in about 6 weeks time, according to the source.
The site currently produces polyester yarn (POY) but Reliance plans on taking the spinning machines from Kinston back to India where the company would produce POY to sell in India's growing polyester market.
In place of the POY machines, Reliance is to build polymerization units to make PET resin. Feedstock purified terephthalic acid and monoethylene glycol for the plant would be sourced from North America, the source said. A 200,000 mt/year PET plant would require about 68,000 mt/year of MEG and 174,000 mt/year of PTA.
June 21, 2008 journalnow.com
Unifi Kinston LLC subsidiary sold to Reliance Industries
Unifi Inc. said in a regulatory filing that its Unifi Kinston LLC subsidiary has sold its polyester-manufacturing plant in Kinston for $12.2 million to Reliance Industries USA Inc.
Unifi said that the subsidiary would pay E.I. DuPont de Nemours about $3.7 million to satisfy certain demolition and removal obligations created by the sale of the assets.
Unifi said that it expects to record a gain of about $6.9 million when the sale closes in the first half of 2009.