Reliance Petroleum Retail Ltd, one of the Reliance Industries, will buy the Polyester business of Subhalakshmi and the Polytex business of Shubhlaxmi for Rs 1,592 crores. The acquisitions are under the subject of approval by the Competition Commission of India.
A subsidiary of Reliance Industries Limited — Reliance Petroleum Retail Limited, is going to make a large purchase of Indian Polyester businesses. The gross amount to be spent is Rs 1,592 crores on two businesses of Shubhalakshmi Polyesters Ltd (SPL) and Shubhlaxmi Polytex Limited (SPTex). The total of Rs 1,522 crores is going for the buying of Shubhalakshmi Polyesters Ltd Business and Rs 70 crores for Shubhlaxmi Polytex Ltd Business making it into a total huge sum of Rs 1,592 crores.
The acquisitions are currently under the supervision of the Competition Commission of India (CCI) and the respective lenders for the subject of approval. They’ve said that the execution of this acquisition will be a part of their “strategy to expand their downstream polyester business.”
Statements Issued by Reliance Industries
The exchange filling made with BSE and NSE clearly stated,
“Reliance Petroleum Retail Limited (under name change to ‘Reliance Polyester Limited’), a WHOLLY-OWNED subsidiary of the Company, today executed definitive documents to acquire THE polyester business of Shubhalakshmi Polyesters Limited (“SPL”) and Shubhlaxmi Polytex Limited (“SPTex”) 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 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 added in the exchange filing.
The Polyester Businesses
Shubhalakshmi Polyesters Ltd (SPL) is a renowned manufacturer and exporter of a wide range of Polyester Yarn, Monofilament Yarn, Textured Yarn, Twisted Yarn, and Fully Drawn Yarn. It chips through a direct polymerization route as well as extruder spinning with value addition through texturizing.
The company is in Surat, Gujarat situated, and came into existence in 1976. It has an approximate annual turnover of Rs 500 Crores to Rs 1000 crores.
Shubhlaxmi Polytex Ltd (SPTex), on the other hand, is situated in Dahej (Gujarat) and Silvassa (Dadra and Nagar Haveli) with two manufacturing facilities. It also facilitates texturized yarn manufacturers at its Dahej location.
The business was publicly incorporated in 1991. It is a non-government company registered at the Registrar of Companies, Ahmedabad.
