MUMBAI: Reliance Industries (RIL) will acquire the business of Shubhalakshmi Polyesters and Shubhlaxmi Polytex for a total consideration of Rs 1,592 crore, the Mukesh Ambani-controlled company announced Saturday.
The acquisitions, subject to the nod of India’s anti-trust agency and of the two companies’ lenders, will expand RIL’s downstream polyester business. RIL has executed the deal through its 100% subsidiary, Reliance Petroleum Retail, which is in the midst of changing its name to Reliance Polyester Limited. Shubhalakshmi Polyesters had a turnover of Rs 1,768 crore in fiscal 2021, while Shubhlaxmi Polytex had a turnover of Rs 267 crore during that period. The incomes had reduced compared tothe fiscal 2020 figures of Rs 2,703 crore and Rs 338 crore. Shubhalakshmi Polyesters and Shubhlaxmi Polytex will transfer the business to Reliance Petroleum Retail on a slump sale basis. Slump sale means the transfer of a business unit of a company for a lump sum without assigning any values to individual assets and liabilities of the entity.
Shubhalakshmi Polyesters 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—one at Dahej and another in Silvassa.
The total annual polymerisation capacity of the units is 2. 52 lakh metric tonnes. Shubhlaxmi Polytex has a texturised yarn manufacturing at Dahej,RIL said.
