Reliance Industries Chairman Mukesh Ambani has said that the company will use the polymer futures platform to hedge its risk because of price volatility in oil.
Ambani was participating in a webcast at the launch of polymer futures on the National Commodity and Derivatives Exchange Ltd.
He said the demand-supply cycle for petrochemicals in India has not reached a peak.
"The demand-supply cycle has not yet peaked even though a sharp increase in prices over the last several months," Ambani said.
"Every year, we hear that the cycle will peak. But it has not happened yet, and we hope that it will not happen this year," Ambani said.
The Reliance Chairman pointed out that he expects 'robust' demand for petrochemicals during the current financial year.
He added that he expects polymer demand to come from the agricultural and consumer products sectors.
Polymer futures is expected provide a platform for Rs 26,000-crore (Rs 260-billion) domestic industry dominated by Reliance Industries, IPCL, Haldia Petrochemicals and Gail India Ltd.
Futures trading will also provide price risk hedging mechanism to 16,000 odd small scale units in the polymenr and plastic sector.
