Reliance Industries subsidiary to acquire polyester business for Rs 15.92bn
Reliance Industries said that its fully-owned subsidiary — Reliance Petroleum Retail Limited (under name change to ‘Reliance Polyester Limited’) has agreed to acquire the polyester businesses of Shubhalakshmi Polyesters Limited (SPL) and Shubhlaxmi Polytex Limited (SPTex) for a total of INR 1,592 crores.
Reliance Polyester will pay INR 1,522 crores to Shubhalakshmi Polyesters. The latter is said to have a continuous polymerization capacity of around 2,52,000 MT/Annum.
Shubhalakshmi Polyesters is engaged in manufacturing polyester fiber, textile grade chips, and yarns using a direct polymerization route along with extruder spinning with value addition via texturizing. The company has two manufacturing facilities located at Dahej in Gujarat and Silvassa in Dadra and Nagar Haveli.
Shubhlaxmi Polytex, which will be paid INR 70 crores for the sale of its polyester business operates a texturized yarn manufacturing plant in Dahej.
Reliance Industries stated: “The acquisitions are part of the Company’s strategy to expand its downstream polyester business.”