Mumbai, Nov. 6: Reliance Industries has formed a strategic alliance with Bongaigaon Refinery & Petrochemicals Ltd (BRPL), a subsidiary company of Indian Oil Corporation, to restart the latter’s polyester synthetic fibre (PSF) plant.
The deal was signed today in the presence of BRPL chairman B.K. Gogoi and RIL executive director Nikhil R. Meswani.
The alliance covers the petrochemicals facilities of BRPL at Dhaligaon in Assam which has a PSF capacity of 34,200 MT per annum and can produce 45,000 MT of dimethyl terephthalate (DMT) — feedstock for PSF production — annually.
Under this alliance, Reliance will provide technical and manufacturing support for achieving both full capacity utilisation and in maintaining quality.
In addition, Reliance will be responsible for marketing the entire output. This strategic alliance will help BRPL to turn around its petrochemical businesses, which have been closed for the last two years.
BRPL will also get instant access to the state-of-the-art technological and manufacturing skills developed by Reliance. Reliance now sells 450,000 MT per annum of PSF to a vast customer base, both in India and in the overseas markets. It is already the world’s second largest polyester fibre and yarn producer.
The Ambani flagship added that the alliance will help the group garner additional volumes from the new tie-up and will strengthen its position.