Archive for December, 2014

Reliance gets into an Agreement with MOL for Ethane Import Project

December 26, 2014

Reliance Industries has signed a long-term deal with one of the leading global shipping companies, MITSUI O.S.K. LINES, LTD. (MOL). Under this deal, the two companies will together facilitate transportation of Liquefied Ethane from the United States to India.

This deal will make MOL the first-ever shipping company dedicated towards continuous Liquefied Ethane transportation by Very Large Ethane Carriers (VLEC). Ethane will be transported from North America to India through six VLECs.

Construction of the VLECs

Samsung Heavy Industries Co. Ltd. will work to build the VLECs. These are expected to be delivered by the last quarter of 2016 and will be operational for the service thereafter. The vessels are carefully designed to adhere to the latest environmental regulations. The superior design parameters will offer great safety. MOL will be supervising the construction of six VLECs at the yard. After the VLECs are constructed and delivered, MOL will operate and manage the vessels, during the charter period for Reliance. These vessels were ordered by Reliance Industries, four months back.

Role of MOL

MOL is a Japanese transport company headquartered in Tokyo, Japan. Founded in 1964, the company’s main area of operations is international shipping.

MOL earlier announced in New Midterm Management Plan, “STEER FOR 2020.” This is a direction to allocate management resources.MOL expects a high growth and stable long-term profits in their business. Taking advantage of the Shale Revolution, this strategic association with Reliance has been concluded in line with this direction.

VLECs are a hybrid of LNG carrier and LPG carrier. It requires expertise in both LNG carriers and LPG carriers. MOL has a rich experience for both types of carriers. The Japanese company is in better position to leverage on its existing capabilities and tap this new opportunity.With the rising demands for energy transportation, MOL will carry on its efforts to provide with safe and stable sea transportation services. It also assured high standard of safety in the transportation system.

The impact on Reliance Industries

Shipping ethane to India is part of RIL’s plans to attain long term feedstock competitiveness. Reliance Industries invested heavily in shale gas in North America plans to import ethane that has become the dominant feedstock for crackers, replacing liquids.

The transportation will double RIL’s ethylene production capacity to 3.3 mt a year. Reliance Industries is looking to source about 1.5 mt per year of ethane from US. It entered into agreements to long haul US-produced ethane to feed its cracker at the Jamnagar refining plant in Gujarat.

Reliance, with this strategic tie-up with MOL, has achieved a key milestone for the successful implementation of Ethane import project to feed crackers in India. The Mukesh Ambani flagship is also building a world-scale receiving and storage facility in India for liquefied ethane and pipeline to deliver ethane to its crackers.

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Reliance offers Discounts on Petrol and Diesel

December 19, 2014

Reliance Industries Limited (RIL) is offering discounts to its customers at its retail outlets for fuel. The decision came within two months of diesel prices being market-linked.

Benefits

The retailers and dealers have said that RIL is offering a discount of Rs. 5 for petrol worth Rs. 300 and Rs. 10 for diesel worth Rs. 1000. An RIL executive has confirmed that for diesel worth Rs. 12,000, the discount extends upto Rs. 225. A senior RIL executive has confirmed this development.

Bulk buyers and transporters who facilitate transporting of fuel to remote locations will find these discounts attractive and beneficial.

These discounts will widen the customers’ base for the dealers. An RIL dealer from Gujarat said, “Post deregulation, our business has picked up pace, but we need to provide discounts for attracting more customers.”

RIL’s re-opening of outlets

In May 2008, RIL had shut its fuel pumps due to losses. It was selling fuel at rates much higher than the subsidised prices of state-owned oil companies.

RIL has 1,400 outlets and operates 300 outlets. RIL has re-opened a few of its outlets post the diesel de-regulation on October 18th.RIL dealers said that, “Some have agreed to re-open their outlets, while others are still demanding an increase in dealer commission.”

A few of RIL dealers who are demanding higher commission from the company have refused to re-open their outlets.

An RIL dealer informed, “Some dealers are claiming losses for non-operation of their retail outlets since four years. They do not plan to re-open the outlets till they are reimbursed. However, others have softened their stand and plan to begin operations at their outlets.”

A few company-owned pumps have already begun selling fuel. Around 150 dealer-owned, dealer-operated; or company-owned, dealer-operated outlets are expected to re-open soon.

At company-owned, dealer-operated outlets, RIL looks at the cost on account of services.

What the dealers say?

Dealers saythey have invested between Rs. 2 crores and Rs. 4 crores in each outlet. The cost of land is between Rs. 1.5 crores and Rs. 3 crores, depending on the location. Further, they additionally have to shell out Rs. 30 lakhs to Rs. 1 crore for maintaining services at the outlets.

According to dealers, RIL has communicated to them that it will revise their commissions after the retail outlets are re-opened. Dealers are looking out for a bank cash credit facility, under which RIL would provide loans to the dealers at reduced rate of interest than market rates.

“Earlier, this cash credit facility was in place which has now been discontinued. We are demanding that RIL begin this facility again so that we can spruce up our outlets. Till a few years ago, banks provided us with cash credit for their products which they were to repay in 15 days or less,” said a dealer.

RIL has one of the largest networks with state-of-the-art infrastructure, among private players. Dealers also informed that Essar Oil has no plans to offer discounts in the near future.

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Reliance Industries and Russia’s SIBUR to set up a Rubber Plant in Gujarat

December 9, 2014

Reliance Industries (RIL) will sign an agreement with the Russian petrochemical company, SIBUR to set up a butyl rubber manufacturing plant in Gujarat. The deal will be signed during the upcoming visit of the Russian President, Vladimir Putin, to India. He is scheduled to land in the country tomorrow.
Evgeny Griva, the CEO of SIBUR Petrochemical India, said, “For the petrochemicals sector, bilateral cooperation between Russia and India will be very beneficial. India’s petrochemical industry is already fast growing, but there is increased scope for further growth as oil and gas processing companies look at monetising by-products of oil and gas production. This is exemplified by SIBUR and Reliance’s construction of a butyl rubber manufacturing plant in Jamnagar. The model in this will be of strategic cooperation wherein Reliance’s oil refinery will provide the raw materials for production and SIBUR will give the technology.”

Reliance’s Vadodara Plant
Reliance Industries has a manufacturing plant in Vadodara, Gujarat. It has 15 downstream plants for the manufacture of polymers, fibres and other chemicals. It has a polybutadiene rubber (PBR) plant I set up in 1979 and plant II started in 1996. These plants produce 80,000 tonnes of PBR every year.
India’s PBR demand is around 160,000 tonnes, every year. Of this, only half is met by the only PBR plant in the country. With the new deal, the Mukesh Ambani firm wants to reach a target of producing 120,000 tonnes of PBR in the same state and lessen the burden of imports. The demand of PBR in India is also predicted to grow at a rate of 6.4% every year.
Reliance Industries and SIBUR

Reliance Industries is India’s largest private sector company and SIBUR is the largest gas processing industry in Russia and a leader in petrochemicals business. The two companies had earlier signed a Memorandum of Understanding (MoU) in 2010 and formed a joint venture in February, 2012 aimed to produce 100,000 tonnes of butyl rubber at Jamnagar. The construction of the same began in February, 2013. The joint venture is known as Reliance SIBUR Elastomers Private Limited (RSEPL). Reliance owns 74.9% of the joint venture while SIBUR owns the remaining 25.1%.
India’s scenario

India ranks fourth among the largest consumers of elastomers, which is a type of polymer. The largest consumer is China, followed by the United States of America and then Japan. The demand of elastomers has remained more or less constant in America. But it is growing rapidly in developing countries like India and China. After thorough research, the market analysts have said that in India, the demand for synthetic rubber has increased more than double over the last few years.

Due to the growing demand, India is witnessing innumerable tenders for new petrochemical processing technology. This is held by major public sector units like ONGC (Oil and Natural Gas Corporation Limited) and GAIL (Gas Authority of India Limited). Griva added, “Demand for products is growing as the industry is developing, and India will soon need to increase its imports.”

Summary

<a href=”http://www.reliance-news.com/&#8221; title=”Reliance Industries”>Reliance Industries</a>
is all set to join hands with Russia’s petrochemical company SIBUR to set up a rubber plant in Gujarat and meet India’s growing PRB demands.

Reliance Foundation’s Jr. NBA Program extends its Reach to 7.5 Lakhs Youngsters

December 4, 2014

The Reliance Foundation’s Jr. NBA program, initiated last year, has reached 7.5 lakhsyoungsters across 1,000 schools in India. This program is aimed to transform the landscape of basketball in India.

The Jr.NBA program

The Jr. NBA program runs across the globe to give basketball training to students and teachers of various schools. It is a comprehensive school-based youth program. It follows a pattern of three-phase player development. It trains students of classes 4-10 through weekly elite training camps. A boy and a girl from each school and each group (under 10, under 13 and under 16) are selected on the basis of their progress. 80 students in each city then attend regional elite camps and later 120 youngsters from the country are selected for the national elite camp.

The ‘Train the Trainer’ program under this, offers basketball training to coaches and P.E. teachers.Participating schools get basketball equipments like basketballs, whistles, coaching guides, nets, air pumps, etc.

In India, it was launched in 2013 in 3 cities and later expanded to 8 cities with the support of Reliance Foundation. The Foundation envisions the sport to become a means to promote health and fitness and inculcate strong values like discipline, teamwork, focus and sportsmanshipin youth.

Progress

The Jr. NBA program has witnessed remarkable progress in its very first year. NBA Commissioner, Adam Silver,expressed his delight and thanked Reliance Foundation for its support. Hesaid, “Our goal is to give the children of India, the opportunity to play, learn and enjoy the game of basketball.”The Jr.NBA program aims to train 1 million youth and 2,000 coaches of India by 2016.

The Chairperson of Reliance Foundation, Nita M. Ambani,also expressed her joy over the success of this program. She said, “Reliance Foundation has always dedicated itself in developing various sports at the grassroots level. Through Jr. NBA program, we want to give the students an opportunity to grow and explore the fun and skills of basketball.”

The owner of the NBA team, Sacramento King, Vivek Ranadive also shared his views on the program by saying, “Looking at the progress of the Jr. NBA program, it is certain that an Indian boy or girl will soon play in NBA or WNBA respectively.”