New Delhi: To reposition its textile business and expand globally, Reliance Industries has announced a joint venture with China's USD-three billion Shandong Ruyi Science and Technology Group.
The JV firm, where Reliance Industries will own 51 per cent stake and Shandong Ruyi will have 49 per cent, also plans to bring some global brands to India while benefiting from the strength of RIL's Vimal brand. Textile happens to be founding business of USD 75-billion RIL group, which has since emerged as a major player in energy and retail businesses and is now expanding big time into telecom arena as well, among others.
As per the definitive agreements, RIL will transfer its existing textile business into the newly incorporated JV for which it will receive cash consideration. However, the companies did not disclose the financial details of the deal. Ruyi Group operates in India under the 'Georgia Gullini' brand in the worsted suiting segment of the market. The new 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, a statement said.
"The JV will benefit from the strength of 'Vimal' and 'Georgia Gullini' brands and plans to introduce some of the well known global brands," it added. The proposed transaction is subject to regulatory approvals. "Reliance Industries and Shandong Ruyi Science and Technology Group Co Ltd, China have executed definite agreements for a joint venture (JV) in textiles," Reliance Industries said.
Commenting on the deal, RIL Executive Director Nikhil R Meswani 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 the JV to harness the growth potential of the Indian market and emerge as a global textile player." Shandong Ruyi with USD 3 billion revenue has presence in America, Europe, Japan, Australia, New Zealand and China.
It has partnerships with global players such as Itochu, Japan, owns or operates a portfolio of world renowned brands such as Taylor & Lodge, Harris Tweed, Nogara and Aquascutum.
