India’s Reliance Industries Ltd (RIL) is acquiring two local companies for a total consideration of Rs 15.92 billion ($200 million) to expand its polyester business.
According to a stock exchange filing on September 9, Reliance’s wholly owned subsidiary Reliance Petroleum Retail Ltd will acquire polyester chip and yarn manufacturers Shubhalakshmi Polyesters (SPL) for Rs 15.2 billion and Shubhlaxmi Polytex (SPTex) for Rs 700 million.
SPL has a total capacity of 252,000 tonnes per year for continuous polymerisation and produces polyester fibre, yarns, and textile grade chips at two locations: Dahej in western Gujarat and Silvassa in the union territory of Dadra and Nagar Haveli.
At Dahej, SPTex operates a plant for the production of texturised yarn.
“The acquisitions are part of the company’s strategy to expand its downstream polyester business,” Reliance said.
“The acquisitions are subject to approval of the Competition Commission of India (CCI) and the respective lenders of SPL and SPTex,” Reliance stated.
Reliance currently has the largest polyester fibre and yarn manufacturing capacity in the world, with a total annual capacity of 2.5 million tonnes.