RIL forms JV with NOVA Chemicals

Reliance Industries Ltd has signed a letter of intent with NOVA Chemicals of Canada to form a joint venture in building and construction.
The two companies will collaborate in green building and construction technologies to design, engineer, fabricate and build a range of high-efficiency structures for the Indian subcontinent. RIL and NOVA Chemicals will have 51 per cent and 49 per cent shareholding, respectively, in the joint venture.
The LoI envisages providing turnkey facilities to build structures for RIL as per its requirements, and for other customers initially within the subcontinent. "India has a $60 billion construction market that is growing at about 20 per cent a year. The potential for energy efficient buildings in India is very exciting and these systems are an excellent fit for Reliance Retail's strategy," said Kamal Nanavaty, President, Reliance Industries Ltd.
Chris Pappas, President and COO, NOVA Chemicals, said: "This new venture will enable us to work with Reliance to build a large, profitable business based on our proprietary Performance Styrenics building and construction systems,"
These unique building and construction systems and component parts, based on expandable polystyrene, minimise resource consumption while decreasing ongoing energy demand by as much as a third. The components of the system include structural and non-structural roof, decking and wall panels.
The new venture is expected to be operational soon after finalisation of formal agreements. Initial steps necessary to fabricate components in India are under way. The first activity of the venture will be the construction of buildings for Reliance Retail in India.
Reliance Retail Ltd, a subsidiary of Reliance Industries Ltd, opened its first retail store in November 2006 and today operates over 600 stores in over 59 cities, spanning 13 states with over 3.5 million sq ft. RRL is a multi-format retailer that operates Reliance Fresh, a neighbourhood store, among several other concepts.
NOVA Chemicals, headquartered in Calgary, Alberta, Canada, develops and manufactures chemicals, plastic resins and end-products.