Search the Internet          Tips  Sites: Finance, Investment

Reliance to double IPCL's Baroda plant capacity

Mahua Venkatesh in New Delhi

Reliance Industries Ltd is looking at the option of doubling the synthetic rubber manufacturing capacity of the Indian Petrochemical Corporation Limited at Baroda from 50,000 tonnes per annum over the next two years.

The expansion may cost the company about Rs 500 crore (Rs 5 billion).

"However there is no concrete plan as yet. Talks are at a nascent stage. A final decision will be taken once the integration procedure of the two companies is complete," a source said.

This apart, Reliance will soon step into the engineering plastic market. A pilot plant for manufacturing engineering plastic is likely to come up either in Hazira or Jamnagar.

"It will be a natural line of extension for the company and the markets for both are huge in India," a source said, adding that the market for both engineering plastic and synthetic rubber is large.

Also sources said the integration procedure after the acquisition of IPCL is going on "smoothly", unaffected by the demise of Dhirubhai Ambani. It will be completed by December.

Making compatible the cultures of IPCL and Reliance had not been a major problem since the two had been closely associated for a long time, analysts said.

Currently, IT initiatives are being taken and the various sites of the two integrated. It is learnt the reporting and managerial systems are also being worked out.

At the same time, Reliance is eyeing the international markets in a big way. It is hoping to expand its export business by at least 25 per cent during the current financial year.

Last year, the company's export turnover touched Rs 11,000 crore (Rs 110 billion). The company has already been using Dubai as its export hub.

Reliance has a turnover of Rs 65,000 crore (Rs 650 billion). The company is currently working out a strategy to go global by April 2004. The plan includes targeting international assets in oil exploration, plastics and even telecommunications.

The Southeast Asian market is likely to be a major target for the company for its expansion in the plastics and fibres business.

Powered by

ALSO READ:
Reliance bags 26% in IPCL
More Money Headlines