Mumbai, Jan. 13: Reliance Industries has acquired the assets of glycol division of SM Dyechem Ltd from IDBI for a consideration of little over Rs 100 crore.

IDBI had decided to sell the assets of this division under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act, 2002, after the company failed to pay its dues to secured creditors. The SM Dyechem plant was shut since 1996.

The acquisition is expected to increase the mono ethylene glycol (MEG) capacity of Reliance and Indian Petrochemicals to 8.32 lakh tonnes from 7.52 lakh tonnes. Consequently, Reliance would be the fifth largest producer of MEG in the world. SM Dyechem?s glycol unit has a capacity of 80,000 tonnes of MEG and is located at Kurkumbh near Pune.

With this acquisition, Reliance will venture into the production of MEG from alcohol. Other facilities of Reliance produce MEG from naphtha/natural gas. While the plant is in the sugar belt of Maharashtra, there is adequate availability of alcohol from neighbouring areas.

Reliance will utilise SM Dyechem?s MEG capacities for internal use at its polyester units at Patalganga and also meet customer requirements.