Ending months of speculation, Reliance Industries (RIL) said today that it is considering merging its group firm, Indian Petrochemicals Corporation (IPCL) with itself.
The boards of both the companies will meet on March 10 to consider the plan, RIL said in a statement to the Bombay Stock Exchange after the markets closed for the day
Analysts say Reliance was supplying raw materials to IPCL, which was then making the final products for the end-user industries like rubber. "Post-merger, RIL would offer end-to-end product solutions which would give it a pan-Indian and perhaps Asian dominance," said an analyst.
Analysts also said the merger may help RIL to increase its revenue from chemicals by as much as 4% to 48% of the total. IPCL uses naphtha made at the parent's refinery as feedstock to make chemicals.
Read more inThe Business Standard article.
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