RIL eyes M&A to enter life science sector

"We will look at all opportunities available to foray into this sector. Mergers and acquisitions are definitely on the cards," he said.

Besides foraying into the life sciences segment, the company is also considering expansion of its existing petrochemical business.

Speaking about the emergence of life sciences in his vision statement on "Future of the Chemical and Petrochemical Sectors in the New Millennium." Ambani said, "If the chemical industry adapted physics in the 20th century, it will embrace biology in the 21st century." According to him, the most exciting opportunity for the chemical industry is in life science – biotechnology, molecular and material sciences.

Traditionally, chemical companies have been organised along commodity and speciality chemical lines with some hybrid companies in between, he said. The emergence of life science is creating new business opportunities and many chemical companies are reinventing themselves as life science companies. Calling for a change in "our cottage industry mindset" and building of global size companies, he said "We will take all the advantages of the changed scenario."

Inaugurating India Chem 2000, Krishan Kant, Vice President of India, cautioned that the chemical industry and related sectors are often faulted for creating environmental concerns. He added the adoption of environment-friendly technologies is critical to the evolution and the growth of chemical industry."

The Vice-President also said that the chemical, petrochemical and pharmaceutical industries need to be supported by strong Research andDevelopment (R&D) efforts.

Ambani said the petrochemical sector in India was poised to grow and there would be mergers and acquisitions in the sector. Speaking about acquisitions, Ambani said Reliance would acquire companies. He said "we have plans to move ahead and we will will explore such possibilities."

However, Ambani refused to comment if Reliance would participate in IPCL sell-off and the group’s takeover and merger plans. As far as IPCL was concerned, he said "We are waiting for the government decision. We will take a decision after that."

Reliance industries is one of the parties interested in acquiring stake in the state-owned Indian Petrochemicals Corporation Ltd (IPCL), which comes under the government’s divestment programme. Any company which would eventually get government’s 25 per cent stake will also enjoy management control in IPCL.

Ambani said the group had initiated the process of coming up with its next mega project Reliance info, a broadband network in 115 cities. The Rs 15,000 crore information technology and telecommunication project spread over the next year and a half was slated to be a world-class all optic protocol-based network and would be through greenfield projects rather than through acquisitions and takeovers.