New Delhi, Sep 10 (PTI) Billionaire Mukesh Ambani's Reliance Industries Ltd has acquired polyester chips and yarn manufacturer Shubhalakshmi Polyesters Ltd for ₹1,592 crore, the company said in a stock exchange filing.
"Reliance Petroleum Retail Ltd (under name change to 'Reliance Polyester Ltd'), a wholly owned subsidiary of the company, today executed definitive documents to acquire polyester business of Shubhalakshmi Polyesters Ltd and Shubhlaxmi Polytex Ltd for cash consideration of ₹1,522 crore and ₹70 crore respectively, aggregating to ₹1,592 crore by way of slump sale on a going concern basis," the firm said.
The deal is subject to approval of the Competition Commission of India (CCI) and the respective lenders of SPL and SPTex.
The acquisition will strengthen the textile manufacturing business of Reliance.
SPL produces polyester fibre, yarns and textile-grade chips through direct polymerisation as well as extruder spinning with value addition through texturising. It has a continuous polymerisation capacity of 2,52,000 tonnes per year. The firm has two production facilities, one each in Dahej in Gujarat and Silvassa in Dadra and Nagar Haveli. At Dahej, SPTex operates a plant for the production of texturised yarn.
"The acquisitions are part of the company's strategy to expand its downstream polyester business," Reliance said.
SPL registered turnovers of ₹2,702.50 crore, ₹2,249.08 crore and ₹1,768.39 crore in financial years 2019, 2020 and 2021, respectively. SPTex had turnovers of ₹337.02 crore, ₹338.00 crore and ₹267.40 crore, respectively.