Reliance Industries Ltd said on Wednesday that it would take over the petrochemical and plastic products division of National Organic Chemicals Industries Ltd.

Sunbright, a business associate of Reliance, has signed a memorandum of understanding with NOCIL to this effect, a Reliance press release said in Mumbai on Wednesday.

Under the proposal, assets of NOCIL's petrochemical division, certain liabilities of the company, and business and undertaking of plastic products division as a going concern basis would be demerged from NOCIL and be vested in wholly owned subsidiary Nocil Petrochemicals Ltd, it said.

Sunbright would invest in equity of NPL after the process of demerger was completed, it added. The company did not give financial details of the takeover.

Reliance said the proposed take over of NOCIL's petrochemical and plastics products division would provide significant synergies with the existing petrochemicals businesses of RIL and Indian Petrochemicals Corporation Ltd.

NOCIL board on Wednesday approved the restructuring proposal and the order of Sunbright.

NOCIL would be shortly filing a petition in the Bombay high court to give effect to the proposal after obtaining the necessary approval of the shareholders and creditors.