R&D to help Reliance save Rs 75 cr annually

The country's largest private company Reliance Industries Limited (RIL) will be able to save over Rs 75 crore annually, thanks to its research and development initiatives, that have helped it improve and develop newer grades of existing petroleum-based products and launch new products, according to technology analysts.

The initiatives taken in 2004-05 would not only improve RIL's bottomline but also benefit R&D synergies between RIL, its subsidiary Indian Petrochemicals Corporation Ltd (IPCL) and Trevira-the European polyester company RIL acquired last year.

The Frankfurt-based Trevira has got intellectual property rights in the polyesters in particular and synthetic fibres in general.

A RIL executive said the Reliance group, having attained global leadership in several segments of petrochemical sector, has significant stake in R&D and technological innovations. "It is crucial to retaining and consolidating our global position and ranking," he added.

RIL intends to develop tri-blend fabrics with spandex polyurethane filament yarn along with stain-repellent finishes. An official said all-weather tentage fabric holds tremendous promise and will be marketed as a replacement for cotton.

The company has also developed power teflon double-defence mechanism blended fabrics that are stain-proof, to target childwear segment.

RIL has set up Reliance Fibre Application Centre (RFAC) at its petrochemical complex at Patalganga in Maharashtra. It has joined hands with Swiss textile spinning machinery company to develop variants of polyester-based textiles.

RIL sources said in a quota-free regime, the troika of Reliance Technology Centre (RTC), Reliance Testing Centre and Reliance Fibre Application Centre would significantly cut down on time taken from conceptualisation of a product to its launch.

RTC is the hub of polyester R&D for the Reliance group in India. In May 2003, RIL had entered into an R&D alliance with DuPont Polyester Technologies to develop advanced polyester process and product technologies, including ones for development of polyethylene terephthalate (PET)-a polymer used to make mineral water bottles.

RIL has also commercialised technology for production of a specialty chemical named para-diethyl benzene (PDEB). PDEB is used as catalyst for production of paraxylene, a key element in the production of polyester.

This is an import substitution product that would add Rs 4-5 crore to RIL's bottomline in a year. The company has started producing PDEB at its petrochemicals complex in Hazira.

IPCL has developed the process for production of PDEB and holds an American patent for this technology. PDEB catalyst is closely-held technology available to select companies. The American oil, gas, and chemical processes major UOP markets this product under the brand D-1000 Desorbent.

IPCL has developed and commercialised a process for removal of fluride from an effluent plant, facilitating recycling of water. Last year it developed import-substituting grades of packaging film named biaxially oriented polypropylene (BOPP).

The R&D roadmap drawn by IPCL envisages development of value-added chemicals from by-product streams at its petrochemical complexes, new generation catalysts for wide range of plastics and synthetic rubber and biodegradable plastics.