RIL shares tumble on plant closure reports

Shares of Reliance Industries slipped after newspaper reports stated that the company had shut five of its seven polyester and petrochemicals units at Patalganga near Mumbai. The move was aimed at improving profit margin amid falling demand for polyester products worldwide. As per an agreement reached with the employees' union, the company had given exit offer to almost 800 non-supervisory employees at Patalganga, reports said. But, Reliance Industries clarified that the news of it shutting down five Polyester units in Patalganga was factually incorrect. There are no plans currently to shift any plants from Patalganga to Nagothane, the company said. The PTA and LAB facilities are currently operating at full capacity in Patalganga, RIL said in a statement. Some of the polyester plants are shut for routine maintenance and enhancing product capabilities, it added. The company expects to restart from this month, RIL said.