Reliance Industries Ltd, owned by billionaire Mukesh Ambani, announced in a stock exchange filing that it had paid Rs. 1,592 crore to purchase Shubhalakshmi Polyesters Ltd, a producer of polyester chips and yarn.
The company said Reliance Petroleum Retail Ltd., a wholly owned subsidiary, "executed definitive documents to acquire the polyester business of Shubhalakshmi Polyesters Ltd. and Shubhlaxmi Polytex Ltd. for cash consideration of Rs 1,522 crore and Rs 70 crore respectively, aggregating to Rs 1,592 crore by way of slump sale on a going concern basis."
The Competition Commission of India (CCI) and the respective lenders for SPL and SPTex must both approve the transaction.
The acquisition will bolster Reliance's textile manufacturing operations.
Through direct polymerization and extruder spinning with value-adding texturization, SPL creates polyester fibre, yarns, and textile-grade chips. 2,52,000 tonnes may be continuously polymerized there each year. The company has two production sites, one each in Silvassa and Dahej, both in Gujarat. SPTex runs a facility in Dahej that makes texturized yarn.
The company's aim to grow its downstream polyester business, according to Reliance, includes the acquisition.
In the fiscal years 2019, 2020, and 2021, SPL reported revenues of Rs. 2,702.50 crore, Rs. 2,249.08 crore, and Rs. 1,768.39 crore, respectively. SPTex generated revenues of Rs. 337.02, Rs. 338.00, and Rs. 267.40, respectively.