Reliance eyes more M&As in petrochem sector

Reliance Industries (RIL) is eyeing more acquisitions in the petrochem sector to emerge as a global hydrocarbon major and help the country secure its energy needs.

"RIL will continue to evaluate opportunities for acquisition in the petrochem sector," chairman Mukesh Ambani told shareholders at the annual general meeting today.

RIL, which ranks 183 among global companies in terms of profits, has grown through acqusitions of companies like IPCL and Nocil, he said.

Justifying the acquisition of IPCL, he said the erstwhile PSU had increased its profits seven-fold to Rs 786 crore after a "single-minded focus" on optimum use of capital and labour.

With global-scale refinery facility and gas findings, Ambani said RIL intends to become a "global hydrocarbon major" while meeting India's energy security needs.

Elaborating on the expansion plan, Ambani said RIL would pursue acquisition of overseas oil blocks.

He said the company would set up a purified terephthalic acid (PTA) plant in Hazira with a capacity of 6.3 million tonne per annum (MTPA). The capacity for polypropylene would be doubled from the existing 1.43 MTPA to 2.8 MTPA.

The company would also increase the refinery throughput to 1.2 million barrel a day, he added.