Reliance Industries Ltd (RIL), India's most valuable company, has acquired Hualon Corporation (M) Sdn Bhd of Malaysia, the world's largest integrated polyester manufacturer, for an undisclosed sum.
One of the top Malaysian textile exporters employing over 6,000 people, Hualon has the capacity to produce over 500,000 tonnes of polyester and blended yarns, 30,000 tonnes of nylon, 150,000 tonnes of polyethylene terephthalate and 400-500 million yards of fabric annually.
The acquisition will help RIL consolidate its position as the world’s largest polyester manufacturer with a capacity of 2.5 million tonnes, 25 per cent more than its current capacity.
It will raise the company's share in the global polyester fibre and yarn business from 5 per cent to 7 per cent. The buyout will add Rs 4,000 crore to RIL's revenue next year.
The RIL stock closed 1.32 per cent higher at Rs 1,987.20 on the BSE. "This will be the largest foreign direct investment in Malaysia after the Asian currency crisis. Hualon is one of the top five exporters of Malaysia and has extensive tie-ups for fabric and yarn supply in the global markets. With our large manufacturing capacities in India, we can meet large orders, which will be an added advantage for us," an RIL spokesperson said.
(Source: Business Standard)
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