SM Dyechem Ltd.'s Glycol Division with a capacity of 80,000 tpa of Mono Ethylene Glycol (MEG), located near Pune, has been shut since 1996. After the company failed to pay its dues to secured creditors, IDBI decided to sell the assets of the Glycol Division of SMDL under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.
Reliance Industries Ltd. has acquired assets of Glycol Division of SM Dyechem Ltd. from Industrial Development Bank of India (IDBI) for approx Rs 100 crore. With this acquisition RIL would utilise SMDL's MEG capacities for internal consumption at its Polyester units at Patalganga and for meeting the needs of its customers in the Western region.
With this acquisition, RIL would be venturing into the MEG production from alchohol. This plant is located in the sugar belt of Maharashtra and alcohol is available there from nearby sources. All other existing facilities of RIL produce MEG from naphtha/natural gas. Reliance's MEG capacity, at six locations across Gujarat and Maharashtra, including IPCL, is slated to increase from 752,000 m tpa to 832,000 M tpa. This would take it's global ranking to fifth largest producer of MEG.