Shubhalakshmi Polyesters and Shubhlaxmi Polytex's polyester businesses will be acquired by Reliance Arm in a slump sale.
In a slump sale on a continuing concern basis, a subsidiary of Reliance Industries Ltd. has signed definitive agreements to purchase the polyester businesses of Shubhalakshmi Polyesters Ltd (SPL) and Shubhlaxmi Polytex Ltd (SPTex) for Rs. 1,522 crore and Rs. 70 crore, respectively.
According to an exchange filing by Reliance Industries, the Rs 1,592 crore in acquisitions will be made by Reliance Petroleum Retail Ltd and are pending permission from the competition commission and the relevant SPL and SPTex lenders.
Through direct polymerization and extruder spinning with value-adding texturization, SPL creates polyester fibre, yarns, and textile-grade chips. 2,52,000 mt of continuous polymerization may be done there each year. The company has two production sites, one each in Silvassa and Dahej (Gujarat) (Dadra and Nagar Haveli). SPTex runs a facility in Dahej that makes texturized yarn.
The acquisitions will be made by Reliance Petroleum Retail as part of its plan to expand its downstream polyester business.
SPL's revenue for the fiscal years 2019, 2020, and 2021 was Rs 2,702.50 billion, Rs 2,249.08 billion, and Rs 1,768.39 billion, respectively, whereas SPTex's was Rs 337.02 billion, Rs 338.00 billion, and Rs 267.40 billion.