Reliance Petroleum retail Acquires wholly acquired Shub Lakshmi polyesters & Shub Lakshmi polytex in 1522 Crores & 70 crores fully in cash.
Reliance Petroleum Retail (under name change to ‘Reliance Polyester’), a wholly-owned subsidiary of Reliance Industries, on Saturday acquired the polyester business of Shubhalakshmi Polyesters (SPL) and Shubhlaxmi Polytex (SPTex) for Rs 1,522 crore and Rs 70 crore, respectively, in cash.
The acquisitions are subject to approval by the Competition Commission of India (CCI) and the respective lenders of SPL and SPTex.
SPL has a continuous polymerization capacity of around 2,52,000 MT/annum and manufactures polyester fiber, yarns, and textile grade chips through direct polymerisation route as well as extruder spinning with value addition through texturizing. It has two manufacturing facilities located in Dahej (Gujarat) and Silvassa (Dadra and Nagar Haveli). SPTex has a texturized yarn manufacturing facility in Dahej.
The acquisitions are part of the company’s strategy to expand its downstream polyester business.
Recently, RIL backed out from the race to acquire the petrochemicals unit of JBF Industries which is undergoing bankruptcy proceedings. RIL did not give any reasons for its exit.
SPL has a continuous polymerization capacity of ~2,52,000 MT/annum and manufactures polyester fiber, yarns, and textile grade chips through direct polymerization route as well as extruder spinning with value addition through texturizing. It has two manufacturing facilities situated at Dahej (Gujarat) and Silvassa (Dadra and Nagar Haveli). SPTex has a texturized yarn manufacturing facility at Dahej.
The turnover of SPL for FY 2019, FY 2020, and FY 2021 was Rs. 2,702.50 crores, Rs. 2,249.08 crore, and Rs. 1,768.39 crores respectively and the turnover of SPTex for FY 2019, FY 2020, and FY 2021 was Rs. 337.02 crores, Rs. 338.00 crore and Rs. 267.40 crores respectively
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