subject: Ril Enters In A Joint Venture With Russias Sibur [print this page] Indias largest private sector company Reliance Industries Limited (RIL) and the leading Russian petrochemical company SIBUR announced on Tuesday a joint venture for the production of butyl rubber in India with investments worth $450 million, with RIL holding a majority stake in the venture. The agreement was signed yesterday as a part of the Russian President Dmitry Medvedevs visit to India meant to establish collateral deals in the field of military and energy.
Joining in the latest Indo-Russian co-operation season, this decision by both parties will lead to establishment of a new joint manufacturing facility with an initial production capacity of 100,000 tonnes of butyl rubber at RIL's integrated refining-cum-petrochemical site in Jamnagar, Gujarat, set to function from 2013. SIBUR will provide its proprietary technology for butyl rubber polymerization and finishing whereas RIL will supply monomers along with world-class infrastructure and utilities. Initial stages will see production of regular butyl rubber but as the facility is developed, newer variants will also be considered for manufacturing.
This joint venture is being seen as a significant step by Reliance towards catering to Indias ever-expanding automotive industry. By bringing in Russian technical fineness coined together with Reliances infrastructural excellence, a long standing demand of the Indian tyre and rubber industry will be fulfilled. SIBUR has unique technologies for the production of synthetic rubber and due to this venture not, only will it facilitate improvement in Indian rubber industry but also facilitate Reliances venerable vision to make India a significant player in global synthetic rubber industry.
Headed by Mukesh Ambani, Reliances efforts to develop and bring in technology that will enhance and pro-create improved utilities has for long been a noble prospect. Through this deal Indian rubber industry will see a global acceptance in terms of quality and technical advancement. For Indian rubber products companies, this deal will be equally fruitful with respect to introduction of Russian technical expertise in development of high-quality rubber.
After this deal, Indo-Russian season is definitely on a roll for some more collateral enterprising.
