Reliance and IPCL to merge?

08-Mar-07

Is Reliance Industries planning to merge subsidiary Indian Petrochemicals Corporation Ltd (IPCL) with itself? It is understood that Reliance is to finalise a plan to create an integrated petrochemical business and bring the petrochemical businesses under a single entity. The merger proposal is expected to be discussed at a meeting of the two boards on March 10 to consider interim dividends. IPCL has three crackers in Baroda, Gandhar and Nagothane. The proposed merger, which would create an integrated petrochemical business worth Rs 50,000 crore under Reliance Industries, was mainly aimed at leveraging the balance sheet to raise money for the acquisition of assets abroad. Reliance Industries has been scouting for petrochemical assets in places like the Middle East, North America and Europe.