Reliance (under name change to Reliance Polyester Limited), a wholly-owned subsidiary of the company, recently executed definitive documents to acquire the polyester business of Shubhalakshmi Polyesters Limited (SPL) and Shubhlaxmi Polytex Limited (SPT) 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 approval of the Competition Commission of India (CCI) and the respective lenders of SPL and SPT.
SPL has a continuous polymerisation capacity of ~252,000 MT per 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). SPT 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 promoters, promoter groups or group companies have any interest in the above entities. 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 the turnover of SPT for FY 2019, FY 2020 and FY 2021 was Rs 337.02 crore, Rs 338.00 crore and Rs 267.40 crore, respectively.