Financial Daily from THE HINDU group of publications
Friday, Jun 25, 2004
Corporate - Mergers & Acquisitions
Reliance to acquire German firm Trevira for Rs 440 crore
Mumbai , June 24
RELIANCE Industries Ltd on Thursday announced it would acquire German polyester producer, Trevira GmbH, for 80 million euros (roughly Rs 440 crore). The acquisition will make RIL the world's largest polyester fibre and yarn producer.
Trevira, former division of multinational Hoechst, which operates polyester plants in Germany, Belgium and Denmark, will add 1.3 lakh tonnes to RIL's existing polyester capacity. This will take RIL's polyester capacity, combined with its expansion plans in India, to 1.8 million tonnes - the largest in the world.
"This European acquisition will transfer the entire intellectual property portfolio of Hoechst to India," Mr Mukesh Ambani, RIL's Chairman and Managing Director, told reporters, on the sidelines of RIL's annual general meeting, here today.
This is the second overseas acquisition of RIL after it acquired the US-based Flag Telecom last year.
According to RIL, Trevira is a highly specialised polyester producer with several valuable patents and technologies and strong R&D.
The company has been adding polyester capacity through major acquisitions since 2002 when it acquired IPCL followed by the acquisition of the NOCIL petrochemicals division earlier this year. Over the next three years, RIL intends to hike its total petrochemical capacity to 15 million tonnes from the present 12.4 million tonnes.
Responding to queries, Mr Ambani said Reliance Industries' plans to retail transport fuels have been delayed. However, the company will be adding 300 to 400 new retail outlets every quarter, starting from the second quarter this fiscal.
"We are in the 75-outlets zone at the moment," Mr Ambani told reporters. He said the company would put up its planned 5,800 retail outlets over the coming three to five years. Of these, five to 10 per cent would be set up in the rural areas. The company will also focus on setting up highway outlets.
RIL stock today closed at Rs 422.80, up Rs 11.75 on BSE today. Around 56 lakh shares changed hands.
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