Reliance Industries Limited (RIL) and Shandong Ruyi Science and Technology Group Co Ltd, China (´Ruyi´) (through its wholly owned subsidiary), 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 per cent in the proposed JV, with the balance 49 per cent 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.