Reliance Industries has joined hands with Nova Chemicals for jointly designing and constructing energy-efficient buildings in India, starting with those to be used for the Indian conglomerate’s retail venture.
“Initial steps necessary to manufacture components in India are underway. The first activity of the venture will be construction of buildings for Reliance Retail in India,” Nova said in a statement to the New York Stock Exchange.
The New York Stock Exchange-listed Nova said that it has signed a letter of intent with RIL for a joint venture, which is expected to be operational by the third quarter of 2008, after finalising the formal agreements.
“India has a 60 billion dollars construction market that is growing at about 20 per cent per year. The potential for energy-efficient buildings in India is very exciting and these systems are considerable fit for Reliance Retail’s strategy,” Chris Pappas, president and chief operating officer of Nova, said in the statement.
These unique building and construction systems and component parts, based on expandable polystyrene, will minimise resource consumption while decreasing on-going energy demand by as much as a third. The components of the system include structural and non-structural roof, decking and wall panels.
Shares of Nova Chemicals rose 3.8 per cent to 26.17 dollars at the NYSE, while that of RIL is 1.3 per cent up at Rs 2,649 at the Bombay Stock Exchange.