Reliance to pursue aggressive acquisition strategy

Reliance to pursue aggressive acquisition strategy

Dubai: Reliance Industries will aggressively pursue acquisitions as part of a new strategy to grow the business of country’s largest company by market value.

Making the statement, Mukesh Ambani, chairman, Reliance Industries, said: “Reliance is changing several of its strategies. The first is from an organic growth model to a mix of organic and aggressive acquisitions-led mode of growth."

Reliance wants to tap growing demand for chemicals in Asia, especially China and India, Ambani said. "The centre of economic growth is shifting to Asia boosting demand for goods and services," he said.

Chemicals projects are getting larger as the cost of feedstock -- linked to oil prices -- rises, demanding economies of scale, Ambani said.

Chemical firms will have to develop "supersites" at a cost of between $4 billion (Rs15,740 crore) and $5 billion that also integrate with oil refineries, he said.

"Energy and feedstock costs for our industry will continue to move in an upwards direction," Ambani said.