RIL to strengthen plastics business with new cracker: Mukesh Ambani

Reliance Industries Ltd (RIL) plans to invest Rs 1.8 lakh crore ($30 billion) across businesses - petrochemicals, refining, retail and telecom - in this current three years’ investment cycle, said Mukesh Ambani, Chairman and Managing Director, RIL, while addressing the shareholders at the company’s 40^th AGM in Mumbai. Stressing that petrochemicals business will benefit from the highest allocation of capital among its three energy businesses, Ambani said that will strengthen its plastics business by building a new integrated cracker capacity, which would rank among the most competitive being built anywhere in the world this decade.
 
Through feedstock integration and operating efficiencies, Reliance Industries aims to compete effectively with new capacities in both North America and the Middle East. “We will also add to the aromatics chain by upgrading refinery light-ends into new paraxylene facility and alongside commission downstream PTA and polyester capacity. We are also building a new business in rubbers capitalising on feedstock integration and rapidly growing domestic markets,” Ambani added.
 
The investment in petrochemical business will be targeted at adding value to the refinery streams and feedstock and will be focussed on the growth potential of the Indian market.
 
He added, “As we complete our petrochemical investments within the next two to three years, we would have added high-margin speciality products and improved cost positions in each key sector. The ultimate products of this business improve the quality of life for each of the individual consumers and touch the lives of millions of fellow Indians.”
 
Reliance Industries has already brought on-stream the polyester filament yarn facility of 395,000 MT capacity at Silvassa, which will further strengthen India's position as a textile major, Ambani stated. The company’s polyester business, which is over 30 years old, services large number of small enterprises.
 
In its bid to build a strong synthetic rubbers portfolio, RIL has commissioned a new world-scale facility of poly-butadiene rubber (PBR) of 40,000 MT capacity at Hazira taking the company’s total capacity to 1,15,000 MT. “We are also making rapid progress on India's first butyl rubber joint venture project of 100,000 MT capacity at Jamnagar,” said Ambani.
 
He added, “Our investments in petrochemicals are already bearing fruit with return cash flows from our completed projects. We are also on schedule to complete all the new projects in the next 24 months. Through our additional investments in creating newer capacities and operational excellence, Reliance is confident of maintaining its leadership position in Asia and global rankings.”