As we all know, the buyout of Shubhalaxmi Polyester comes after it acquired the Alok Industries and Sintex industries. Reliance is enhancing its presence in its textile business. Now, analysts are seeing an opportunity in forwarding integration. The acquisition of the polyester business of the shubhalakshmi polyester and shubhlaxmi poly tex for Rs 1,522 crore and Rs 70 crore has made a significant move.
The constant buyout shows that it is a strategy used by the company to expand its downstream polyester business. The statement outlined that the SPL produces polyester fiber yarn and textile grade chips through direct polymerization, which brings spinning with value addition.
The company has a continuous polymerization capacity of about 2,52,000 mt per year and it is spread across the production facilities, one is Dahej and the other is Silvassa. According to Deven Choksey, MD, KR Choksey Securities, the textile business will bring more specialty-driven clothes. He says that “ one sees a higher level of focus on inputs as we see conventional textiles existing with the growing strength of environmental textiles and industrial textiles.”
RIL does not make its first buyout in the textile industry. Let us tell you that in 2019, they and their partner acquired JM Financial ARC and also insolvent Alok Industries for Rs 5000 crore, and Alok has a loan of Rs 30,000 crore, which is owed to 27 banks.
- Which company was acquired by RIL in 2019?
Ans. JM Financial ARC
- Who is the MD of K R Choksey Securities?
Ans. Deven Choksey
- What is the full form of RIL?
Ans. Reliance Industries Limited