Mumbai: Reliance Industries Ltd (RIL) has entered into a licence agreement with Germany’s Resysta International GmbH which will provide RIL with exclusive rights to produce and market RelWood, a natural fiber polymer composite, in India.

This compound will be the raw material in the production of sheets and various profiles used in a wide range of wood and plywood replacement applications.

“Through this strategic partnership with Resysta, RIL is looking forward to producing the RelWood compound exclusively in order to meet the fast-growing demand of real alternative to tropical wood," said Vipul Shah, COO, petchem, RIL, in a statement.

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RIL said RelWood will be well poised to take advantage of government spending of Rs5 trillion earmarked for developing 100 smart cities. The investment in the construction sector will also be driven by the Reserve Bank of India’s recent permission to allow 100% FDI in the construction sector.