RIL JV to set up rubber plant in Jamnagar

Reliance Industries (RIL) is giving further push to the government’s 'Make in India' initiative by setting up a rubber plant. The production by the company will substitute imports and reduce outflow of valuable foreign exchange from India.
 
Reliance Industries plans to set up South Asia's first halogenated butyl rubber unit at Jamnagar through a joint venture (JV) Reliance Sibur Elastomers (RSEPL), of which RIL owns 74.9 per cent and Sibur holds 25.1 per cent stake. The company’s newly formed unit will produce 60,000 MT of halogenated butyl rubber every year.

Apart from the planned halogenation unit, the JV owns a 1.22 lakh MT per annum butyl rubber plant, currently under construction at the same venue, which will provide the necessary butyl rubber feed to the halogenation unit. RIL’s butyl rubber plant construction is in full swing at Jamnagar and its commissioning targeted for 2018.

The share price of RIL increased 0.66 per cent on the bourses in early trades and is trading at Rs 1,042 on an intra-day basis.

Going forward, RIL’s management is confident that its halogenated butyl rubber plant will cater to future demand. The company is expecting halogenated butyl rubber demand to grow at a rapid pace of 8-10 per cent CAGR over the next few years, driven by increasing customer preference for tubeless tyres in India and the neighbouring countries.