RIL inches up after commissioning new Paraxylene plant at Jamnagar

Reliance Industries rose 0.36% to Rs 1,056 at 9:31 IST on BSE after the company announced the successful commissioning of the first phase of Para-xylene plant at Jamnagar, Gujarat.

The announcement was made after market hours yesterday, 28 December 2016.

Meanwhile, the S&P BSE Sensex was up 50.34 points or 0.19% at 26,261.02.

On the BSE, 5,601 shares were traded on the counter so far as against the average daily volumes of 3.13 lakh shares in the past one quarter. The stock had hit a high of Rs 1,056.85 and a low of Rs 1,050 so far during the day.

The stock had hit a 52-week high of Rs 1,128.90 on 26 September 2016 and a 52-week low of Rs 888.50 on 12 February 2016. It had outperformed the market over the past one month till 28 December 2016, advancing 6.67% compared with the Sensex's 0.53% fall. The scrip had also outperformed the market in past one quarter, sliding 3.44% as against the Sensex's 7.36% fall.

The large-cap company has equity capital of Rs 3243.59 crore. Face value per share is Rs 10.

The plant with capacity of 2.2 million metric tonnes per annum (MMTPA) is built with state-of-the-art crystallization technology from BP which is highly energy efficient and environment friendly. With the commissioning of this plant, RlL's Para-xylene (PX) capacity will more than double from 2 MMTPA to 4.2 MMTPA. On commissioning of entire PX capacity, RIL will be the world's second largest PX producer with 9% of global PX capacity and 11% share of global production.

The new PX capacity will add value to the output from refineries and improve the profitability of the Jamnagar complex. PX is the building block for the entire polyester chain. The new capacity will complete the integration within RIL's polyester value chain, leading to improved margins and also strengthen its position in polyester industry globally.

Mukesh D. Ambani, Chairman and Managing Director, RIL, said the commissioning of the new PX plant marks beginning of the culmination of a series of projects including the refinery off-gas cracker, ethane import project and petcoke gasification. These projects are part of the largest contemporary investment, in excess of Rs 1 lakh crore, in Refining and Petrochemicals sector anywhere in the world. RIL's projects are on schedule and at an advanced stage of mechanical completion. The new PX capacity takes RIL a step closer to being among the top 10 petrochemical players globally, Ambani said.

Reliance Industries' consolidated net profit fell 22.9% to Rs 7206 crore on 8.3% increase in net sales to Rs 76161 crore in Q2 September 2016 over Q2 September 2015.

RIL is a diversified firm having presence in oil exploration, petrochemicals, retail and telecom sectors.

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