Reliance Industries Ltd has acquired polyester chips and yarn manufacturer Shubhalakshmi Polyesters Ltd for Rs 1,592 crore, billionaire Mukesh Ambani-owned firm said in a stock exchange filing on Friday.
“Reliance Petroleum Retail Limited (under name change to ‘Reliance Polyester Limited’), a wholly owned subsidiary of the Company, executed definitive documents to acquire polyester business of Shubhalakshmi Polyesters Limited (SPL) and Shubhlaxmi Polytex Limited (SPTex) for cash consideration of Rs 1,522 crore and Rs 70 crore respectively, aggregating to Rs 1,592 crore by way of slump sale on a going concern basis,” RIL said in the statement.
The acquisitions are subject to approval of the Competition Commission of India (“CCI”) and the respective lenders of SPL and SPTex, the company added
Shubhalakshmi Polyesters has a continuous polymerisation capacity of 2,52,000 MT/Annum and manufactures polyester fibre, yarns and textile grade chips through direct polymerisation route as well as extruder spinning with value addition through texturising. It has two manufacturing facilities situated at Dahej (Gujarat) and Silvassa (Dadra and Nagar Haveli). SPTex has a texturised yarn manufacturing facility at Dahej.
The acquisitions are part of the Company’s strategy to expand its downstream polyester business.
Reliance Industries said the above transactions do not fall within the related party transactions and none of the Company’s promoter / promoter group / group companies have any interest in the above entities.
The turnover of SPL for FY 2019, FY 2020 and FY 2021 was Rs 2,702.50 crore, Rs 2,249.08 crore and Rs 1,768.39 crore respectively and turnover of SPTex for FY 2019, FY 2020 and FY 2021 was Rs 337.02 crore, Rs 338.00 crore and Rs 267.40 crore respectively.