Reliance Industries Limited to invest US$ 9 Billion to expand polyester and petrochemicals business


Reliance Industries Limited (RIL) Chairman, Mukesh Amabani Friday announced the company intends to invest US$9 billion to enable it expand its polyester and petrochemicals business. According to him, RIL has a five year investment plan that would see its total investment in all new polyester and petrochemical manufacturing facilities become the largest investment in the sector. He further said the investments would be carried out anywhere in the world and at any given time; Ambani was addressing RIL’s shareholders during the company’s AGM. 

 

At its Jamnagar facility, the company is currently executing a 1.4 million tonnes of paraxylene capacity and is constructing another integrated 2.3 million tones of purified terephthalic acid (PTA), 5,40,000 tonnes of polyethylene terephthalate complex at Gandhar and 3,60,000 tonnes of polyester filament yarn plant located in Silvassa. Ever since its inception, this investment is by far the single largest capacity addition in polyester the company has ever undertaken and expects the expansion to reinforce India’s place as a leading textile and fibre manufacturer in the world.

 

Ambani said the polyester business investment would contribute considerably to its growth and profitability and enable the company maintain its worldwide leadership, citing the next phase of planned large scale investments coupled with the value added products.

 

Recently, the petrochemical business has experienced a consolidation phase, a sequel to the mega capacity additions in Jamnagar and integration of manufacturing facilities of the erstwhile IPCL, Ambani said. Further, RIL said it was committed to creating competitive capacity in petrochemicals to meet demand in the next decade of growth in India and the Asian continent. Its refinery offers the company very competitive feedstock and it will leverage its superior technical and project execution skills in the construction of further global scale operations capacities.

 

According to Ambani, the current continuing economic crisis has seen capacity building in the sector remain at a low, in turn, this offers Reliance a unique opportunity to build world-scale capacity at competitive capital costs, enabling the company to grow rapidly and enhance the profitability of its petrochemical business.

 

Reliance is speeding up the implementation of an off-gas cracker at Jamnagar with more than 1.5 million tonnes yearly of olefins capacity with equivalent downstream capacities and is expected to become the biggest facilities globally. MEG from cracker will add to Reliance’s leadership position in the polyester business, enhancing its status as the biggest firm in the synthetic rubber business in India.

 

 June 20, 2010.