Reliance Petroleum Retail Limited (under name change to ‘Reliance Polyester Limited’), a wholly-owned subsidiary of the Company, today executed definitive documents to acquire polyester business of Shubhalakshmi Polyesters Limited (“SPL”) and Shubhlaxmi Polytex Limited (“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.
The acquisitions are subject to the approval of the Competition Commission of India (“CCI”) and the respective lenders of SPL and SPTex.
SPL has a continuous polymerisation capacity of ~2,52,000 MT/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 acquisitions are part of the company’s strategy to expand its downstream polyester business. The above transactions do not fall within the related party transactions and none of the Company’s promoter/promoter group/group companies have any interest in the above entities,” Reliance said in a regulatory filing.
The turnover of SPL for FY 2019, FY 2020 and FY 2021 was Rs. 2,702.50 crore, Rs. 2,249.08 crore and Rs. 1,768.39 crore respectively and turnover of SPTex for FY 2019, FY 2020 and FY 2021 was Rs. 337.02 crore, Rs. 338.00 crore and Rs. 267.40 crore respectively.
