The Hindu Business Line : Reliance to relocate Kurkumbh unit

Mumbai, Aug. 14 Reliance Industries Ltd will shut down its polyester intermediate mono-ethylene glycol (MEG) manufacturing unit in Kurkumbh, 70 km from Pune, and relocate the entire unit to another location.

“We will relocate the small standalone unit to a place with better linkage to raw material,” said a company official, adding that availability of better economies of scale was the prime objective for the company to relocate. The official refused to comment on where and when the relocation will happen.

The 150-acre unit manufactured MEG from industrial alcohol. It has 90 employees on its rolls and 250 contract labourers.

The facility was originally promoted by S.M. Dyechem Ltd and RIL acquired it from IDBI in January 2005. RIL had justified the acquisition citing proximity to Maharashtra’s sugar belt that ensured sufficient alcohol availability.

It had an MEG capacity of 80,000 tonnes per annum and utilised the capacities for internal consumption at its polyester units at Patalganga and for meeting the needs of its customers in the Western region.

There were reports that Reliance plans to convert the facility to create a storage unit with advanced cold chain management systems for the perishable goods sold in its retail outlets. Reliance officials were not available for comment.

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