Reliance Industries said that its wholly owned subsidiary Reliance Petroleum Retail has executed definitive documents to acquire polyester business of Shubhalakshmi Polyesters (SPL) and Shubhlaxmi Polytex (SPTex).
Reliance Petroleum Retail (under name change to 'Reliance Polyester') will be acquiring polyester business of SPL and 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.
SPL has a continuous polymerisation capacity of approximately 2,52,000 MT per annum and manufactures polyester fibre, yarns and textile grade chips through direct polymerisation route as well as extruder spinning with value addition through texturising. It has two manufacturing facilities situated at Dahej (Gujarat) and Silvassa (Dadra and Nagar Haveli).
SPTex has a texturised yarn manufacturing facility at Dahej.
The turnover of SPL for FY 2021 was Rs 1,768.39 crore and turnover of SPTex for FY 2021 was Rs 267.40 crore.
Reliance informed that the acquisitions are part of the company's strategy to expand its downstream polyester business.
"The acquisitions are subject to approval of the Competition Commission of India (CCI) and the respective lenders of SPL and SPTex, RIL said in a statement.
Seperately, RIL announced its plans to undertake shutdown of one crude distillation unit (CDU) and fluidized catalytic cracker (FCC) of its SEZ refinery at Jamnagar for routine maintenance and inspection activities. The duration of shutdown is expected to be about 3 to 4 weeks for CDU starting from 18 September 2022 and 4 to 5 weeks for FCC starting from 10 September 2022.
The other CDU and secondary processing units are expected to operate normally during this period, RIL added.
Reliance Industries (RIL) is India's largest private sector company. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.
The conglomerate reported 40.8% increase in consolidated net profit to Rs 19,443 crore on 56.7% increase in net sales to Rs 2,19,304 crore in Q1 June 2022 over Q1 June 2021.
Shares of RIL shed 0.64% to end at Rs 2568.60 on the BSE on Friday.
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