The company announce, “We wish to inform you that Reliance Polyester Limited (formerly known as Reliance Petroleum Retail Limited), a wholly owned subsidiary of the Company, has on March 8, 2023, after receipt of the necessary approvals, completed the acquisition of the polyester business of Shubhalakshmi Polyesters Limited and Shubhlaxmi Polytex Limited.”
Last year, Reliance Petroleum Retail paid Rs 1,522 crore and Rs 70 crore in cash for Shubhalakshmi Polyesters (SPL) and Shubhlaxmi Polytex (SPTex), respectively.
The Competition Commission has approved Reliance Polyester Ltd’s acquisition of Shubhalakshmi Polyesters Ltd and Shubhlaxmi Polytex Ltd on October 20, 2022.
SPL and SPTex are largely involved in the production and distribution of polyester products, whilst RPL is primarily involved in the production and distribution of specific petrochemical products and polyester yarns.
Shubhalakshmi Polyesters and Shubhlaxmi Polytex are polyester product manufacturers and distributors. Shubhalakshmi Polyesters used direct polymerization to create polyester fiber, yarns, and textile-grade chips, as well as extruder spinning with value addition by texturizing. Shubhalakshmi Polyesters has two manufacturing plants, one in Dahej, Gujarat, and the other in Silvassa, India (Dadra and Nagar Haveli). Furthermore, Shubhlaxmi Polytex has a texturized yarn manufacturing factory in Dahej.
According to Reliance, the acquisitions are part of the company’s goal to expand its downstream polyester sector.
Reliance had indicated that the polymerization capacity of Shubhalakshmi Polyesters was 2,52,000 mt per year.
RIL alerted investors of its acquisition through a stock exchange filing.