12 October 2007 10:05 [Source: ICIS news]
MUMBAI (ICIS news)--India’s Reliance Industries Limited (RIL) hopes to pursue organic and inorganic growth opportunities of significant scale and size in the future, chairman Mukesh Ambani said on Friday.
"Marketable securities with Reliance, including investments in Reliance Petroleum Limited (RPL), have a value at current market prices of approximately Indian rupees (Rs) 1,100bn ($28bn)," he added.
This gives Reliance the ability to pursue organic and inorganic growth opportunities in the future, he said.
The company’s acquisitions-led strategy is already in place, with the recent buys in Malaysia and Africa part of this, he said.
"In essence, the petrochemicals business follows the path to global leadership set by the polyester business," Ambani said.
"Today we are engaged with taking the polyester platform globally," he added.
Reliance recently signed agreements to acquire the Malaysian assets of Hualon Corp in order to increase its global presence in the polyester business.
"This will add another 500,000 tonnes/year of polyester capacity, apart from bringing a global textile play," Ambani said.
Reliance said that it enjoys a 7% global market share in the textile polyester business, while India, China and southEast Asia have nearly 80% of global textile polyester capacity, along with presence in downstream textiles.
"The current market situation in this region provides opportunities for consolidation in the industry. Having a presence in these countries will add a new dimension to the polyester portfolio," Ambani said.
"Global leadership in polyester extends to fibre intermediates as well. Reliance commissioned a 730,000 tonnes/year PTA [purified terephthalic acid] plant at Hazira," he added.
This makes Reliance the fourth largest producer of PTA in the world, he said.
Reliance also announced the expansion of its paraxylene capacity from 1.9m tonnes/year to 4.5m tonnes/year, which will give the firm 15% of the global share.
"Reliance will continue to organically build the polyester business in India. Concurrently, it will leverage the India-based strength to pursue inorganic growth opportunities in Asia for textiles and in Europe and North America for polyethylene terephthalate (PET), Ambani said.
($1 = Rs39.31)
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