Reliance enters auto industry via JV with SIBUR

Indian auto industry is the second fastest growing auto market globally is tempting global auto biggies to invest in the domestic auto market. But now the mamoth in the Indian economy, Reliance Industries Ltd (RIL), will make its entry into the auto sector. The Indian business house Reliance in partnership with the Russain company will supply rubber to the tyre inustry.

As per a popular tabolid's reports, Reliance has joined hands with the gigantic petrochemical company SIBUR in Russia, has invested Rs 2,040 crore ($ 450 million) to start 100,000 tonne butyl rubber unit. It is also being reported that, the Indian partner RIL will enjoy major share in the partnership. The reports also states that, the partnership was stamped at the sucessful visit of the Russain President Dmitry Medvedev to India. The facility will supply the rubber in the Indian tyre sector, the plant will start by 2013 will be placed near by Reliance's refining cum petrochemical site in Jamnagar, Gujarat. The new facility will initally manufacture butyl rubber and later will make advancement in the same, as per the company source. The Russain counterpart will help with its proprietary technology for butyl rubber polymerisation and finishing and on the other hand, Reliance will help with monomers and will help the venture to be successful and has sophiscated utilities and infrastructure.

As per the report, N R Meswani, the executive director in RIL, said that, it is an importnat step from Reliance, as it is an inititative towards the company's promise of its contribution in the acclerating auto sector by introduicing and highly complexed technology which is exclusively avaible with few industries across globe. With the new plant producing the butyl rubber will suffix the demand of the tyre and rubber industry of India. He further added that, the investment is Reliance's aim of playing a vital role in the synthetic rubber industry globally.

Dmitry Konv, the President of SIBUR, said that, the company is happy with the partnership and is expecting to start the construction soon. The Russain counterpart has the right technology for the manufacturing of the synthetic rubber. He added that, with the partnnership, SIBUR is quite confident to capture the growing needs of the growing domestic tyre industry with quality.

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