Reliance Petroleum Retail Limited (under name change to Reliance Polyester Limited) is set to acquire polyester business of Shubhalakshmi Polyesters Limited (SPL) and Shubhlaxmi Polytex Limited (SPTex) for cash consideration of Rs. 1,522 cr and Rs. 70 cr respectively, aggregating to Rs. 1,592 cr 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 SPTex. SPL has a continuous polymerisation capacity of around 2,52,000 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). SPTex has a texturised yarn manufacturing facility at Dahej.
The acquisitions are part of the company’s strategy to expand its downstream polyester business, Reliance said in a stock exchange filing. The turnover of SPL for FY19, FY20 and FY21 was Rs. 2,702.50 cr, Rs. 2,249.08 cr and Rs. 1,768.39 cr respectively and turnover of SPTex for FY19, FY20 and FY21 was Rs. 337.02 cr, Rs. 338 cr and Rs. 267.40 cr respectively.