SRF plans alignment with Du Pont

Arun Bharat Ram group company SRF wants to consolidate its position as a major manufacturer of nylon tyre cord in the country. The company is in talks with its multinational competitor Du Pont to either acquire the latter''s Chennai plant or to float a joint venture with equity participation of up to 50 per cent.

Du Pont Fibres produces nylon 6,6, a raw material used in tyre cord manufacture.

Both Du Pont and SRF have confirmed that they are in talks with several players. Du Pont says it wants to enhance its business in India and for this purpose, it is talking to various companies, both Indian and foreign, to explore opportunities to work together. SRF has confirmed that it is also negotiating with a number of parties, including Du Pont.

Du Pont Fibres Ltd, formerly Thapar-Du Pont Ltd, is now a wholly-owned subsidiary of the Delaware, USA, based Du Pont, after the joint venture with the Thapar group broke up, and Du Pont acquired the Thapars'' 50 per cent stake in the venture. It has a 6,000-tonne per annum capacity plant near Chennai to manufacture nylon 6,6, which is a direct substitute for the nylon variety produced by SRF.

Industry sources say Century Enka and Tabachis of Turkey too have approached Du Pont for a joint venture. Du Pont has collaborative ventures with both these companies in Europe and South America.

SRF is a major manufacturer of nylon cord material in India with a total capacity of 40,000 tonnes per annum and has a market share of 45 per cent. It recently acquired a plant from tyre maker Ceat of the RPG group. The company hopes to emerge as a predominant player in the nylon market with the proposed arrangement with Du Pont.