Reliance Industries Ltd. (RIL) and SIBUR, the largest petrochemical company in Russian and Eastern Europe, have formed a joint venture called Reliance Sibur Elastomers Private Ltd. The JV will be the first manufacturer of butyl rubber in India and, with its targeted production of 100,000 tonnes of butyl rubber per annum, it will be the fourth largest producer at the global level.
The JV will cater to the demand for synthetic rubber from the Indian automotive industry, which currently exceeds 75,000 tonnes per year and is being met through imports.
Investment in the JV is in line with RIL’s vision of emerging as a significant player in the global synthetic rubber market. RIL’s share in the venture is 74.9 per cent while SIBUR accounts for the balance. The JV will invest $450 million in setting up its facility, which is expected to be commissioned in 2014.