RIL partners China’s Ruyi for textile JV

Reliance Industries (RIL) and China-based Shandong Ruyi Science and Technology Group (Ruyi) have entered into a definitive agreement for setting up a joint venture (JV) in textiles. As per the agreements, RIL will transfer its existing textile business into a newly incorporated joint venture company, for which RIL will receive cash consideration.

After the final approval, RIL will own a majority 51 percent in the proposed JV, with the balance 49 percent owned by Ruyi. RIL commenced operations with its existing textile business 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. On the other hand, Ruyi is a leading textile company in China with revenues in excess of 3 billion dollars (over Rs 18,500 crores). It has a global presence in America, Europe, Japan, Australia, New Zealand and China.

Ruyi has a portfolio of world renowned brands such as Taylor & Lodge, Harris Tweed, Royal Ruyi China, Nogara Italy and Indios Italy. The Ruyi group includes Renown founded in 1902, which owns or operates several leading global brands such as Aquascutum, Simple Life, Ensuite, Mano, addenda, CHARGE, ‘next eye’, ‘D’urban’ and ‘Intermezzo’. Ruyi also operates in India under the Georgia Gullini brand in the worsted suiting segment.