RIL to invest Rs250bn in polymers and retail links

30 January 2007 09:43  [Source: ICIS news]

NEW DELHI (ICIS news)--India’s Reliance Industries Limited (RIL) is hoping to invest Indian Rupees (Rs)250bn ($5.7bn) in developing links between its polymers business and emerging consumer retail business over the next few years.

 

The company has started developing links by getting plastic packaging products manufactured by polymer processors on conversion basis to meet the requirements of its retail subsidiary named Reliance Retail Limited (RRL).

 

A RIL official did not indicate whether the company would take a foray into the plastic products industry in order to add value to its polymer resins business.

 

RIL currently has a limited presence in the processing field. It operates a 80,000 tonnes/year high density polyethylene (HDPE) pipes plant that it set up several years ago to manage the requirements of the group’s telecom operations. RIL also produces polypropylene fittings for pipes.

 

A Reliance group company had acquired plastic products division (PPD) of National Organic Chemicals Industries Limited (NOCIL) along with its naphtha cracker in 2004. PPD produces HDPE and PVC pipes, packaging films and containers.

 

RRL is setting up a chain of hypermarkets, supermarkets, convenience and specialty stores in select cities and towns across the country. It launched its operations with food stores under the brand Reliance Fresh in November 2006.

 

Of the proposed investment of Rs250bn in RRL, RIL could make an equity contribution of Rs100bn, a company official said.

 

($1=Rs44)


By: Naresh Minocha
+65 6780 4359



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