New Delhi (India), 31st March 2023: Reliance Industries (RIL), which is owned by Mukesh Ambani, has finished buying the nine-decade-old Sintex Industries Ltd. by investing 1,500 crore in the Ahmedabad-based yarn and fabric maker, which is better known throughout the nation for producing black plastic water tanks.
Reliance Industries and Assets Care & Reconstruction Enterprise Limited (ACRE) jointly filed a resolution plan, after Sintex was brought before the insolvency court for failing to make loan repayments in 2020.
SIL granted RIL 900 crore in optional completely convertible debentures to RIL and 600 crore in shares on Tuesday. RIL stated in a regulatory update that shares distributed prior to the resolution plan’s approval, totalling about 60 crore, were cancelled.
RIL said that after the purchase, it will own 70% of Sintex Industries. RIL and Assets Care & Reconstruction Enterprise (ACRE) will run the business together. RIL also said that the acquisition will help it diversify into new markets especially for its textile products.
RIL has now acquired three businesses through bankruptcy and insolvency proceedings. 2020 saw the purchase of Alok Industries, a second struggling textile business, in collaboration with JM Financial Asset Reconstruction Co. Reliance Jio Infocomm concluded the Rs 3,720 crore acquisition of the tower and fibre assets from Reliance Communications in December 2022.
