Reliance to buy Shubhalakshmi's polyester business in slump sale
14 September 2022
Reliance Industries Ltd, through its subsidiary, has executed definitive agreements to buy the polyester business of Shubhalakshmi Polyesters Ltd (SPL) and Shubhlaxmi Polytex Ltd (SPTex) for Rs1,522 crore and Rs70 crore, respectively, in a slump sale on a going concern basis.
The acquisitions, involving a total consideration of Rs1,592 crore, are subject to approval of the competition watchdog as well as respective lenders of the target firms, Reliance Industries stated in a stock exchange filing.
SPL produces polyester fibre, yarns, and textile-grade chips through direct polymerisation as well as extruder spinning with value addition through texturising. It has a continuous polymerisation capacity of 2,52,000 tonnes per year. The firm has two production facilities, one each in Dahej (Gujarat) and Silvassa (Dadra and Nagar Haveli). At Dahej, SPTex operates a plant for the production of texturised yarn.
Reliance Petroleum Retail will be making the acquisitions as part of its objective to grow its downstream polyester business.
SPL reported turnover of Rs2,702.50 crore, Rs2,249.08 crore and Rs1,768.39 crore, respectively, for financial years 2019, 2020 and 2021, while SPTex’s turnover stood at Rs337.02 crore, Rs338.00 crore and Rs267.40 crore, respectively, for the three years.