The Mukesh Ambani-controlled Reliance group plans to merge a handful of its polyester fibre companies with its petrochemicals firm, Indian Petrochemicals Corporation Ltd.
Sources close to the development said the move was aimed at integrating the operations of IPCL.
"The finished products of IPCL will be used as raw materials for these companies. The move will ensure better functioning, and, in turn, return for all related to these firms," they said.
They added that the companies that would be brought under the fold of IPCL included India Polyfibres, Silvassa Polyfibres and Recron Synthetics. An announcement of the same was likely in beginning of next week, they pointed out.
The IPCL board will meet on April 25 to consider the unaudited financial results of the company for the fourth quarter as well as the financial year.
The Reliance group acquired IPCL four years ago through the Centre's divestment programme. The merger will be IPCL's first major exercise involving group companies. The Reliance group holds a 46 per cent stake in IPCL.
It acquired Indian Polyfibres from RPG Enterprises while it bought Recron Synthetics from Raymond.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
