Reliance acquires Shubhalakshmi Polyesters, SPTex | The Financial Express

Reliance acquires Shubhalakshmi Polyesters, SPTex

On its part, SPTex has a texturised yarn manufacturing facility at Dahej, it said.

Reliance acquires Shubhalakshmi Polyesters, SPTex
RIL, which is also the leader in recycling of polyesters and plastics, also intends to more than double PET recycling capacity to 5 billion bottles a year.

Reliance Petroleum Retail, a wholly-owned subsidiary of Reliance Industries (RIL), has acquired polyester chips and yarn manufacturers Shubhalakshmi Polyesters (SPL) and Shubhlaxmi Polytex (SPTex) for a total consideration of Rs 1,592 crore.

The company has acquired SPL for a cash consideration of Rs 1,522 crore and SPTex for Rs 70 crore in a slump sale on a going concern basis. The deals are subject to approvals from the Competition Commission of India and lenders of SPL and SPTex, RIL said in a regulatory update. The acquisitions are part of the strategy of Reliance Petroleum Retail, which is under name change to Reliance Polyester, to expand its downstream polyester business. “In the polyester value chain, we will build one of the worlds’ largest single-train purified terephthalic acid (PTA) plant of 3 million metric tonne per annum (MMTPA) capacity at Dahej. We will also invest in a 1 MMTPA polyethylene terephthalate (PET) plant at Dahej. Both PTA and PET will be targeted for completion by 2026,” RIL chairman and managing director Mukesh Ambani had told shareholders at the company’s AGM in August. “We will also reinvest in polyester filament yarn (PFY) and polyester staple fibre.

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Polyester expansion with capacity of over 1 MMTPA will be completed in phases by 2026,” he had said.

RIL, which is also the leader in recycling of polyesters and plastics, also intends to more than double PET recycling capacity to 5 billion bottles a year. These were part of the company’s plans to invest Rs 75,000 crore over the next five years to expand capacities in existing and new value chains. SPL, which is a producer of polyester fibre, yarns and textile-grade chips through direct polymerisation and extruder spinning, has a continuous polymerisation capacity of 2.52 lakh tonne per annum. The firm has two manufacturing facilities at Dahej (Gujarat) and Silvassa (Dadra and Nagar Haveli).

On its part, SPTex has a texturised yarn manufacturing facility at Dahej, it said.

SPL had posted a turnover of Rs 2,702.50 crore for FY19, Rs 2,249.08 crore for FY20 and Rs 1,768.39 crore for FY21. SPTex had recorded a turnover of Rs 337.02 crore for FY19, Rs 338 crore for FY20 and Rs 267.40 crore for FY21. In May 2000, RIL acquired a 25% stake in DCL Polyesters through Synergy Synthetics, an associate company, for an undisclosed sum and later the polyester business of JCT. Prior to this in 1999, RIL acquired Raymond Synthetics in a Rs 22.33-crore deal, a move that helped it raise its PFY production by 30%.

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