April 25, 2024 04:07 (IST)
Follow us:
Reliance enters into joint venture for textile business
Mumbai, Dec 9 (IBNS): Reliance Industries Limited (RIL) India and Shandong Ruyi Science and Technology Group Co. Ltd, China have executed definitive agreements for a joint venture in textiles.
As per the definitive agreements, RIL will transfer its existing textile business into a newly incorporated company (‘JV’), for which RIL will receive cash consideration.
RIL will own a majority 51% in the proposed JV, with the balance 49% owned by Ruyi.
The proposed transaction is subject to obtaining requisite approvals.
RIL’s existing textile business is the founding business of RIL and operates under the well-known brand ‘Vimal’. It has a prominent presence in the Indian textile market, especially in the worsted and synthetic suiting fabric segments.
Ruyi, a leading textile company in China with revenues in excess of USD 3 Billion, has a global presence including in America, Europe, Japan, Australia, New Zealand and China. Ruyi has a portfolio of world renowned brands such as ‘Taylor & Lodge’, ‘Harris Tweed’, ‘Royal Ruyi China’, ‘Nogara Italy’ and ‘Indios Italy’.
The RuYi group includes Renown Inc (founded in 1902 and listed on the Tokyo Stock Exchange) which owns or operates several leading global brands such as ‘Aquascutum’, ‘Simple Life’, ‘Ensuite’, ‘Mano’, ‘addenda’, ‘CHARGE’, ‘next eye’, ‘D’urban’ and ‘Intermezzo’. Ruyi also operates in India under the ‘Georgia Gullini’ brand in the worsted suiting segment of the market. This business operation and activities would get realigned to strengthen the JV.
The JV will build on RIL’s existing textile business and wide distribution network in India as well as Ruyi’s state-of-the-art technology and its global reach. The JV will benefit from the strength of the ‘Vimal’ and ‘Georgia Gullini’ brands and plans to introduce some of the well-known global brands of Ruyi.
Nikhil R. Meswani, Executive Director, Reliance Industries Ltd., said: “Our joint venture with Ruyi Group will help Reliance reposition its textile business on a high growth path. Our partner’s deep commitment and global reach in textile business will enable this JV to harness the growth potential of the Indian market and emerge as a global textile player”.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
Support objective journalism for a small contribution.
Latest Headlines
Credit card spending grows 27% YoY to Rs 18.26 trillion in FY24: RBI Thu, Apr 25 2024
Mahindra Tractors crosses milestone by selling 40 lakh tractor units Thu, Apr 25 2024
DishTV India expects to touch 30 percent market share at the end of current financial year, says CEO Manoj Dobhal Thu, Apr 25 2024
DCB Bank Q4FY24: PAT grows YoY 9% to Rs 156 cr Wed, Apr 24 2024
NSE launches Derivatives on the Nifty Next 50 Index today Wed, Apr 24 2024
JPMorgan CEO praises PM Modi for doing 'unbelievable' job in India Wed, Apr 24 2024