Warburg officials confirmed that they had received "good response" for the strategic sale in IPCL, although they declined to give details. Merchant banking and industry sources confirmed the participation of Reliance and Exxon-Mobil in the IPCL divestment process.

The priced battle for the stake in IPCL will in all probability be fought between these two players as other expected suitors like Dow Chemicals and BP Amoco have made it clear that they are not interested in the deal. Both Dow and BP Amoco did not submit their letters of interest tothe global advisor.

BP Amoco and Dow Chemicals ruled out any plans of bidding for IPCL's stake in a recent article in the reputed trade magazine Asian Chemicals News. The spokesperson for BP Amoco has been quoted as saying in the article that the the UK major is only interested in supplying technology to IPCL, which it will continue to do. The technology for IPCL's polyethylene plant was supplied by BP Amoco.

Likewise, the managing director of Dow Chemicals has categorically stated that IPCL's present technology and the downstream product mix would not fit into the American major's scheme of things.

Saudi Arabia's biggest player Sabic, touted as one of the suitors, has also opted out of the race by saying that the multi-locational nature of IPCL's plants is a major hindrance as the company is used to function from huge integrated complexes.

Petrochemical companies world-wide are facing a tough time due to a depressed market scenario. This is probably the reason why some of the expected suitors forIPCL backed out at the last moment, feel industry sources.

A strategic stake in IPCL would mean a unique opportunity for Exxon-Mobil to increase its presence in India. The American major has a presence in the Indian polymer sector through the supply of polymer products worth 5,000 tonnes a month.

A strategic stake in IPCL helps Reliance to gain complete control over the polymer market in the country. Though India has players like Shell, Finolex, and Gail in the polymer industry, the integration of IPCL's operations with Reliance will lead to a virtual monopoly, said industry sources.