Reliance Total Production Set To Touch 9.27 Mt

Reliance Industries total capacity is set to jump from 6.15 million tonnes currently to 9.27 million tonnes after the completion of the Rs 5,000 crore Jamnagar petrochemical complex.

The company is set to increase capacities in polyster, fibre intermediates and chemicals in the new phase of expansion at Jamnagar.

While fibre intermediates capacity will increase from 1.4 million tonnes currently to 2.8 million tonnes, capacity of chemicals will nearly treble from five lakh tonnes to 1.8 million tonnes.

Reliance revealed this information to analysts at its briefing on Wednesday in Mumbai.

The company had announced last year that it is putting up a 1.2 million tonne paraxylene plant at Jamnagar close to the refinery.

 

A four lakh tonne polypropylene plant is also coming up at the site. The total cost is estimated at Rs 5,000 crore and the complex will go on stream in 1999.

The company has projected strong demand growth for all its products in the coming years.

In polyesters, against a world average of 7.3 per cent, Indian growth is estimated at 26.3 per cent.

The low per capita consumption of 2.1 per kg gives tremendous growth potential.

The current overcapacity is temporary, the company stated.

Similarly, the company has projected a strong demand growth in polymers with Indian market estimated to grow between 11 to 18 per cent against a world average of 7.5 to 11 per cent and an Asia-Pacific rate of 10-14 per cent.

Though prices are currently low and there is looming overcapacity, Reliance points out that it is only a temporary phenomenon.

Total deficit in polymers is expected to be 1.6 million tonnes by 2001-2002, which is expected to grow to 4.7 million tonnes by 2006-2007.

Three new global sized plants are required every year till 2006-2007, say company sources.

Compounded annual growth in demand in polyethylene by 2001-2002 is expected to be 17 per cent, 20 per cent in polypropylene and 13 per cent in polyvinyl chloride (PVC). By 2006-7, the growth is likely to drop in each of these products.

Reliance is already one of the worlds largest producers of polymers.

It recently commissioned its 7.5 lakh tonne ethylene cracker, the largest in Asia.