The government's recent decision of raising the import duty on polymer products will help Reliance Industries Ltd's (RIL's) the petrochemicals business a lot, Goldman Sachs said.

The government on Friday declared that it was raising import duty on polymer products from 5 per cent to 7.5 per cent.

According to Goldman Sachs, the increase in import duty on the polymer product will result in an increase in the import-parity price of these products, which will help revenues of the local producers.

Commenting on the development, the UBS report by analyst Ashish Jagnani said, "We expect RIL to benefit from increased domestic realization based on its dominant 62% polymer production share."

Polymers, which are used in diverse sectors ranging from automobiles to steel, contribute nearly 44 per cent to RIL's total petrochemicals revenue. RIM generates 24 per cent of its revenue from the petrochemicals business.

The increase in import duty would have a positive impact of around 3.2 per cent on RIL's earnings per share (EPS).

The domestic demand for polymers is expected to grow by 10 per cent and RIL is expected to further increase its share of the market owing to its Rs 43,840 crore petrochemicals capacity expansion plan, which is expected to complete by the year 2015-16.