The Hindu : Business : Reliance eyeing $300 m acquisition in Pakistan

Online edition of India's National Newspaper
Tuesday, May 10, 2005

Business

Business

Reliance eyeing $300 m acquisition in Pakistan

NEW DELHI: The Reliance group is eyeing the acquisition of the plastics business of a well-known company in Pakistan for about $300 million, industry sources said on Monday.

A market leader in the polyester business in India, Reliance is said to be keen on acquiring the plastics business of ICI Pakistan Ltd., which also manufactures soda ash, paints, chemicals and life science products

When contacted, Reliance officials in Mumbai declined to comment on the issue.

According to available information the Pakistan arm of ICI is a profit making entity having netted $47.8 million in 2004.

Reliance had acquired the ICI polyster fibre business in the early 1990s, sources said. The U.K. based multinational was instrumental in producing polyester fibre for the first time in India by setting up a plant at Thane in Maharashtra.

In Pakistan, ICI is one of the largest quoted companies with a paid up share capital of $23.38 million.

With a turnover of over $357 million, the company had reported capital reserves of $7.83 million in 2004, according to the company's annual report.

In 1995, ICI Pakistan started a $490 million PTA manufacturing facility at Port Qasim and the project was commissioned in 1998, company's website said. The business was demerged in 2001 to form Pakistan PTA Ltd.

PTI

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