Reliance Industries and Russian petrochemicals giant SIBUR have entered into a joint venture for production of Butyl rubber in India..Reliance will own 74.9 percent of the joint venture company with SIBUR accounting for the rest. The JV will invest $450 million (approximately Rs. 2200 crore) to construct the facility, which is expected to be commissioned by mid-2014..Khaitan & Co. acted as the Indian Legal advisors to SIBUR with a team led by Corporate Partner Aakash Choubey along with Executive Director Daksha Baxi, who advised on the Direct tax aspects of the transaction..Herbert Smith acted as the International legal advisors to SIBUR. Partner Nicholas Moore led the Herbert Smith team..Reliance was advised by its in-house legal team..According to VCCircle, it would be the first manufacturer of butyl rubber in India and the world’s fourth largest supplier. The JV would cater to the demand for synthetic rubber from the Indian automotive industry, which amounts to over 75,000 tonnes a year and is currently fed through imports..The two partners have also signed a technology licence agreement, facilitating the use of the Russian company’s proprietary butyl rubber production technology at the new plant. SIBUR would develop the basic engineering design for the facility and also train the JV staff at its plant in Russia..SIBUR is the largest petrochemicals company in Russia and Eastern Europe, and also counts itself among the top two European synthetic rubber producers.
Reliance Industries and Russian petrochemicals giant SIBUR have entered into a joint venture for production of Butyl rubber in India..Reliance will own 74.9 percent of the joint venture company with SIBUR accounting for the rest. The JV will invest $450 million (approximately Rs. 2200 crore) to construct the facility, which is expected to be commissioned by mid-2014..Khaitan & Co. acted as the Indian Legal advisors to SIBUR with a team led by Corporate Partner Aakash Choubey along with Executive Director Daksha Baxi, who advised on the Direct tax aspects of the transaction..Herbert Smith acted as the International legal advisors to SIBUR. Partner Nicholas Moore led the Herbert Smith team..Reliance was advised by its in-house legal team..According to VCCircle, it would be the first manufacturer of butyl rubber in India and the world’s fourth largest supplier. The JV would cater to the demand for synthetic rubber from the Indian automotive industry, which amounts to over 75,000 tonnes a year and is currently fed through imports..The two partners have also signed a technology licence agreement, facilitating the use of the Russian company’s proprietary butyl rubber production technology at the new plant. SIBUR would develop the basic engineering design for the facility and also train the JV staff at its plant in Russia..SIBUR is the largest petrochemicals company in Russia and Eastern Europe, and also counts itself among the top two European synthetic rubber producers.
