29 March 2011 00:03 [Source: ICIS news]
SAN ANTONIO, Texas (ICIS)--India’s Reliance Industries intends to lever its base chemicals expertise downstream into retail and other sectors through newly created speciality chemicals businesses, the president of the company’s business development and M&A units said on Monday.
Speaking on the sidelines of the International Petrochemical Conference (IPC), Harish Davey said that Reliance was looking at specialty chemical products that feed into such segments as packaging, personal care and personal hygiene.
“You need at least $1bn [€710m] to create a super-specialties platform,” he added.
“We have all the molecules,” he said that could be used in products sold directly to the public through its retail segment.
Reliance Retail is all about integrating the chain from the farmer to the end consumer, Reliance says. The chemical specialties plans fit neatly with that integration concept.
Reliance is looking top down and bottom up at products that might produce relatively high operating earnings and connect beneficially with its existing chemicals and retail businesses, Davety said. The strategy is to serve the India market for performance products and those used in health and personal care products, he added.
Reliance has been looking at this sort of business transformation for the past year, Davey said, using “market insight managers” to develop new business ideas.
Hosted by the National Petrochemical & Refiners Association (NPRA), the IPC continues through Tuesday.
($1 = €0.71)
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