India's largest private sector company Reliance Industries Ltd (RIL) is in talks for picking up equity in Pakistan PTA, the neighboring country's only chief producer of purified terephthalic acid (PTA). A delegation of senior executives from RIL is already in Pakistan for consultation on appraisal. Subodh Sapra, President, head the company's PTA business.
It will be the biggest investment by an Indian company in Pakistan, if the treaty goes through. Company executives said talks were at the beginning phase. The PTA plant is very near to Port Qasim, about 50 km from Karachi.
The Indian firm's Jamnagar port in Gujarat is just about 10 hours from Port Qasim and this makes things logistically trouble free for Reliance. The Pakistan project would add muscle to Reliance's polyester business.
It also guarantees RIL one more stable resource of raw material after the growth of its polyester amenities. RIL's polyester capability of 2 million tones per annum is the sixth largest in the world.
The company is a major manufacturer of polyester fibre and yarn in the globe.
The company is stirring towards high-end applications like industrial usage of PTA from mere textiles. Purified terephthalic acid is the essential raw material in polyester.
RIL is the world's fourth largest producer of PTA and the major producer of polyester fibre and yarn.
With a turnover of nearly Rs 2,200 crore previous year, Pakistan PTA produces 72,000 tones of PTA and sells 4,78,000 tones.
marketing@alchempro.com
