Mukesh Ambani-led Reliance Industries (RIL) on 9 December 2014 announced to sell 49 percent stake in the textiles business to Chinese textile firm Shandong Ruyi Science and Technology Group for an undisclosed sum.
RIL will hive off its textiles business into a new joint venture, in which it will have a 51 percent stake and the rest will be held by the Ruyi Group.
RIL operates its existing textile business under the brand Vimal. The business was started by RIL founder Dhirubhai Ambani about five decades ago in 1966 under the name of
Reliance Textiles, the company which later became Reliance Industries Ltd (RIL) in 1985.
The textile business is located at Naroda near Ahmedabad. But it now contributes 300-350 million US Dollar, or less than 1%, to the overall 65-billion US dollar annual revenues of RIL.
In 2012, RIL had appointed bankers to sell its textile business but the sale was called off due to a tepid market and lack of buyers.
About Shandong Ruyi Science and Technology Group
Ruyi is a leading textile company in China. It has a global presence, including in America, Europe, Japan, Australia, New Zealand and China.
It has a portfolio of world-renowned brands such as Taylor & Lodge, Harris Tweed, Royal Ruyi China, Nogara Italy and Indios Italy.
Ruyi also operates in India under the Georgia Gullini brand in the suiting segment of the market. This business operation and its other activities would get realigned to strengthen the JV.
When: 9 December 2014