Mumbai: Reliance Industries (RIL). will acquire the business of Shubhalakshmi Polyester And Shubhalakshmi Polytex for a total consideration of Rs 1,592 crore, the Mukesh Ambani-controlled company announced on Saturday.
The acquisition, subject to the approval of the Anti-Trust Agency of India and the lenders of the two companies, will expand RIL’s downstream polyester business. RIL has executed the deal through its 100% subsidiary Reliance Petroleum Retail, which is changing its name to Reliance Polyester Limited, Shubhalakshmi Polytex’s turnover in FY21 was Rs 1,768 crore, while that of Shubhalakshmi Polytex was Rs 267 crore during that period. There was a decrease in income as compared to the figures of Rs 2,703 crore and Rs 338 crore for FY20. Shubhalakshmi Polyesters and Shubhalakshmi Polytex will transfer the business to Reliance Petroleum Retail recession sales basis. A slump sale means an outright transfer of a business unit of a company, without assigning any value to the personal assets and liabilities of the entity.
Shubhalakshmi Polyesters manufactures Polyester Fibers, Yarns and Textile Grade Chips through Direct Polymerization Route as well as Texturizing through Extruder Spinning with Value Addition. It has two manufacturing facilities – one at Dahej and the other at Silvassa.
The total annual polymerization capacity of the units is 2.52 lakh metric tonnes. RIL said that Shubhalakshmi Polytex is manufacturing texturized yarn in Dahej.
The acquisition, subject to the approval of the Anti-Trust Agency of India and the lenders of the two companies, will expand RIL’s downstream polyester business. RIL has executed the deal through its 100% subsidiary Reliance Petroleum Retail, which is changing its name to Reliance Polyester Limited, Shubhalakshmi Polytex’s turnover in FY21 was Rs 1,768 crore, while that of Shubhalakshmi Polytex was Rs 267 crore during that period. There was a decrease in income as compared to the figures of Rs 2,703 crore and Rs 338 crore for FY20. Shubhalakshmi Polyesters and Shubhalakshmi Polytex will transfer the business to Reliance Petroleum Retail recession sales basis. A slump sale means an outright transfer of a business unit of a company, without assigning any value to the personal assets and liabilities of the entity.
Shubhalakshmi Polyesters manufactures Polyester Fibers, Yarns and Textile Grade Chips through Direct Polymerization Route as well as Texturizing through Extruder Spinning with Value Addition. It has two manufacturing facilities – one at Dahej and the other at Silvassa.
The total annual polymerization capacity of the units is 2.52 lakh metric tonnes. RIL said that Shubhalakshmi Polytex is manufacturing texturized yarn in Dahej.