RIL signs JV with Chinese textile major Ruyi
Moneylife Digital Team 09 December 2014

Reliance Industries' latest JV promises to shake up a staid textile sector, in the first significant Indo-China industry co-operation since PM Modi's visit

 

In a statement today, Reliance Industries Limited said that it was entering into a joint venture with Shandong Ruyi Science and Technology Group Co. Ltd, China, known as Ruyi. RIL said that it would transfer its existing textile business, which is the founding business of RIL and operates under the well-known brand ‘Vimal’, into a newly incorporated company under the JV. 
 
The statement said that, “RIL will own a majority 51% in the proposed JV, with the balance 49% owned by Ruyi. The proposed transaction is subject to obtaining requisite approvals.”
 
Ruyi operates in India under the ‘Georgia Gullini’ brand in the worsted suiting segment of the market. This business operation and activities would get realigned to strengthen the JV. The statement said that Ruyi owns numerous brands that it sells worldwide.
 
Ruyi, said the statement, had revenues of around $3 billion, with a presence in America, Europe, Japan, Australia, New Zealand and China. 
 
“The 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. The JV will benefit from the strength of the ‘Vimal’ and ‘Georgia Gullini’ brands and plans to introduce some of the well-known global brands of Ruyi,” RIL's statement said.
 
Nikhil R. Meswani, Executive Director, Reliance Industries Ltd., was quoted by the release as saying, “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 this JV to harness the growth potential of the Indian market and emerge as a global textile player.”
 
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