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Reliance Petroleum Retail Limited (under name change to ‘Reliance Polyester Limited’), a wholly owned subsidiary of Reliance Industries Limited (RIL), on Saturday executed definitive documents to acquire polyester business of Shubhalakshmi Polyesters Limited and Shubhlaxmi Polytex (SPTex) for Rs 1,522 crore and Rs 70 crore, respectively, in cash.
The RIL arm will also buy polyester business of Shubhlaxmi Polytex Limited for Rs 70 crore. The aggregate value of the two acquisitions is Rs 1,592 crore by way of slump sale on a going concern basis, RIL said in a regulatory filing to the stock exchanges.
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The acquisitions are subject to the approval of the Competition Commission of India and the respective lenders of Shubhalakshmi Polyesters Limited (SPL) and SPTex (Shubhlaxmi Polytex Limited).
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SPL has a continuous polymerisation capacity of 2,52,000 MT/Annum and 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 situated at Dahej (Gujarat) and Silvassa (Dadra and Nagar Haveli). SPTex has a texturised yarn manufacturing facility at Dahej.
The acquisitions are part of the Company’s strategy to expand its downstream polyester business. The above transactions do not fall within the related party transactions and none of the Company’s promoter / promoter group / group companies have any interest in the above entities, RIL said in the statement.
The turnover of SPL for FY 2019, FY 2020, and FY 2021 was Rs 2,702.50 crore, Rs 2,249.08 crore and Rs 1,768.39 crore respectively and the turnover of SPTex for FY 2019, FY 2020 and FY 2021 was Rs 337.02 crore, Rs 338.00 crore, and Rs 267.40 crore respectively.
(with inputs from ANI)
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