Reliance Industries Arm to Acquire Polyester Business of Shubhalakshmi Polyesters at Rs 1592 Crore

Reliance Petroleum Retail Limited, a wholly owned subsidiary of Reliance Industries Limited, has executed definitive agreements to buy the polyester business of Shubhalakshmi Polyesters Ltd (SPL) and Shubhlaxmi Polytex Ltd (SPTex), RIL has said in an exchange filing. The deal has been executed at a cash consideration of Rs 1,522 crore and Rs 70 crore respectively in a slump sale on a going concern basis, the company said.

The acquisitions, which total to a gross amount of Rs 1,592 crore, will be made by Reliance Petroleum Retail Ltd and are subject to approval of the Competition Commission of India (“CCI”) and the respective lenders of SPL and SPTex, Reliance Industries said in the exchange filing.

“Reliance Petroleum Retail Limited (under name change to ‘Reliance Polyester Limited’), a wholly owned subsidiary of the Company, today executed definitive documents to acquire 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,” said the filing made with BSE and NSE.

Reliance Petroleum Retail Limited will execute the acquisitions as part of its  strategy to expand its downstream polyester business.

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. On the other hand, 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, as per the filing.

SPL has a continuous polymerisation capacity of 2,52,000 MT/Annum. The company manufactures polyester fibre, yarns and textile grade chips through direct polymerisation route as well as extruder spinning with value addition through texturising.

Shubhlaxmi Polytex Ltd has two manufacturing facilities situated at Dahej (Gujarat) and Silvassa (Dadra and Nagar Haveli). SPTex has a texturised yarn manufacturing facility at Dahej.

“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,” noted RIL in the exchange filing.

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