Business

RIL set to acquire 2 polyester companies for Rs 1600 crore

MUMBAI: Reliance Industries (RIL) will acquire the business of Shubhalakshmi Polyester and Shubhlaxmi Polytex to review a total of Rs 1,592 crore, the company controlled by Mukesh Ambani announced on Saturday.
The acquisition, subject to a nod by India’s anti-trust regulator and by the two companies’ lenders, will expand RIL’s downstream polyester business. RIL executed the deal through its 100% subsidiary, Reliance Petroleum Retail, which is in the process of changing its name to Reliance Polyester Limited. Shubhalakshmi Polyesters has a turnover of Rs 1,768 crore in the financial year 2021, while Shubhlaxmi Polytex has a turnover of Rs 267 crore during that period. Earnings were down from FY 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 one decline sale facility. Slip-selling is a one-time transfer of a company’s business segments without assigning any value to each of the entity’s assets and liabilities.
Shubhalakshmi Polyesters produces textile grade polyester yarns, yarns and chips through direct polymerization as well as value-added extrusion spinning through texturing. It has two production facilities – one in Dahej and the other in Silvassa.
The total annual polymerization capacity of the units is 2.52 thousand tons. Shubhlaxmi Polytex has a structural yarn factory in Dahej, RIL said.

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