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.