Shubhalakshmi Polyesters is purchased by Reliance Industries for Rs. 1,592 cr
The acquisitions totalling Rs 1,592 crore will be made by Reliance Petroleum Retail Ltd and are subject to approval of the competition watchdog as well as respective lenders of the targets
Reliance Petroleum Retail, a wholly owned subsidiary of Reliance Industries, on Saturday bought the businesses of Shubhalakshmi Polyesters (SPL) and Shubhalakshmi Polytex (SPTXPolyester) in cash for Rs 1,522 crore and Rs 70 crore, respectively.
SPL produces polyester fibre, yarns, and textile grade chips by direct polymerization as well as extruder spinning with value addition through texturizing. It has a continuous polymerization capacity of around 2,52,000 MT/annum. It has two production plants, one each in Silvassa and Dahej (Gujarat) (Dadra and Nagar Haveli). In Dahej, SPTex has a plant for the production of texturized yarn.
SPL’s revenue for the fiscal years 2019, 2020, and 2021 was Rs 2,702.50 billion, Rs 2,249.08 billion, and Rs 1,768.39 billion, respectively, whereas SPTex’s was Rs 337.02 billion, Rs 338.00 billion, and Rs 267.40 billion.
The company’s purchases are a part of its plan to grow its polyester downstream sector.
RIL recently withdrew from the competition to buy JBF Industries’ petrochemicals division, which is going through bankruptcy procedures. RIL didn’t offer any explanations for its departure.