New Delhi: Reliance Industries, which started its corporate journey as a textile company, has announced a joint venture with China's Shandong Ruyi Science and Technology Group to “reposition its textile business on a high growth path”.
RIL will own a majority 51 per cent in the proposed JV, with the balance 49 per cent owned by Ruyi. The proposed transaction is subject to obtaining requisite approvals.
RIL has a presence in Indian textile market, especially in the worsted and synthetic suiting fabric segments, while the $3 billion-Ruyi, a leading textile company in China, has a presence in America, Europe, Japan, Australia, New Zealand and China.
The JV will leverage RIL's existing textile business and distribution network in India and Ruyi's state-ofthe-art technology and its global reach. It will expand the geography for the brand 'Vimal' besides introducing brands owned by Ruyi in India. Ruyi owns brands like 'Taylor & Lodge', 'Harris Tweed', 'Royal Ruyi China', 'Nogara Italy' and 'Indios Italy', among others. In India, Ruyi sells the 'Georgia Gullini' brand in the worsted suiting segment of the market, the company said in a press release.
As part of the deal, Mukesh Ambani-run RIL will transfer its existing textile business into a newly incorporated company, for which RIL will receive cash consideration.
RIL diversified from trading to manufacturing textiles, largely polyester yarn, in the 1960s. Reliance Textiles was incorporated in 1966 and it is this company which later became Reliance Industries Ltd (RIL) in 1985.
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