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Reliance Petroleum Retail, a subsidiary of Reliance Industries, has signed a definitive agreement to acquire polyester business of Shubhalakshmi Polyesters and Shubhlaxmi Polytex for cash consideration of ₹1,522 crore and ₹70 crore, respectively, in a slump sale on a going concern basis.
The acquisitions are subject to approval of the Competition Commission of India and the respective lenders of SPL and SPTex.
SPL has a continuous polymerisation capacity of 2.52 lakh tonne per annum and manufactures polyester fibre, yarns and textile grade chips through direct polymerisation route and extruder spinning with value addition through texturising.
It has two manufacturing facilities at Dahej (Gujarat) and Silvassa (Dadra and Nagar Haveli). SPTex has a texturised yarn manufacturing facility at Dahej.
Reliance Petroleum Retail said the acquisitions are part of its strategy to expand downstream polyester business.
The turnover of SPL was ₹2,702 crore, ₹2,249 crore and ₹1,768 crore in FY19, FY20 and FY21, respectively, while that of SPTex was ₹337 crore, ₹338 crore and ₹267 crore in the same period.
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