Reliance Industries has completed the Rs 3,567-cr acquisition of India’s Sintex Industries, which had been agreed a year ago and approved by the National Company Law Tribunal (NCLT) in February. The move will provide a boost to public sector banks as it will result in a full write back, enhancing their bottom line. The money was transferred and distributed to banks completing the resolution of the sick company.
Sintex Group, formerly known as The Bharat Vijay Mills Ltd and Sintex Industries Ltd, was the world’s largest producer of plastic water tanks and Asia’s largest manufacturer of corduroy, besides shirting and other textile fabrics. Its huge investments in spinning capacities in the last few years did not work out too well inspite of the demerger of its textiles business from the plastics business.
In June 2019 Sintex Industries was downgraded by CARE Ratings to “issuer non-cooperating” and defaulted on non-convertible debentures from Punjab National Bank. Another default later that year precipitated a plea by Invesco Asset Management in December 2020 and Sintex Industries entered bankruptcy in April 2021.
