Reliance aims at $5 bn exports in 2004-05

14% of its annual exports are to China.

In order to expand its global footprint, Reliance Industries is targeting China in a major way. Around 14 per cent of its annual exports are to China, and it already operates one office in Shanghai, with three warehouses and three branch offices in mainland China.

Nikhil Meswani, executive director, Reliance Industries, said the company expected to push exports of $5 billion by the end of 2004-05. Of this, $700 million will be to China alone.

Reliance Industries feeds polypropylene, polyethylenes and mono-ethylene glycol to the Chinese market. "Reliance Industries works closely with two Chinese government-owned petrochemical companies," he said

The Chinese market is seasonal, with demand peaking soon after the New Year holidays. "We expect good demand in the three-month period between January and March 2005," he said.

The petrochemical price cycle has been on the uptrend. "The momentum will be maintained due to exceedingly good demand and because no new capacities are being added across the globe for the next few years," he said, adding that China would be a net importer of fibres, polyethylene and glycol till 2007.

India exports around 1 million tonnes of polymers and this is expected to touch 12 million tonnes by 2012. "This is a commendable performance by the country, which only five years ago was a net importer of polymers," Meswani said.

On the company's global acquisitions, Meswani said Trevira in Germany had increased its market share from 9 per cent to 11 per cent within four months of its acquisition.