Reliance Industries has acquired the assets of the glycol division of SM Dyechem from Industrial Development Bank of India (IDBI) for a consideration of about Rs 100 crore.SM's glycol division has a capacity of 80,000 TPA of mono ethylene glycol (MEG) and is located at Kurkumbh near Pune, according to a statement released by Reliance today.IDBI had earlier decided to sell the assets of the glycol division of SM Dyechem under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act, 2002 after the company failed to pay its dues to secured creditors, the release added. The plant has been shut since 1996.Reliance's MEG capacity, including that of IPCL, is slated to increase from 7,52,000 metric tonne to 8,32,000 metric tonne per annum at sixlocations across Gujarat and Maharashtra. This would take it's global ranking to the fifth largest producer of MEG, it said.With the acquisition, Reliance would be venturing into MEG production from alchohol while all other existing facilities produce MEG from naphtha/natural gas.
