Reliance Industries today announced a joint venture with China’s USD-three billion Shandong Ruyi Science and Technology Group to reposition its textile business.
As per the agreements, RIL will transfer its existing textile business into the newly incorporated JV for which it will receive cash consideration. However, the companies did not disclose the financial details of the deal.
Ruyi Group operates in India under the ‘Georgia Gullini’ brand in the worsted suiting segment of the market.
The new 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, a statement said.
“The JV will benefit from the strength of ‘Vimal’ and ‘Georgia Gullini’ brands and plans to introduce some of the well-known global brands,” it added.
“Reliance Industries and Shandong Ruyi Science and Technology Group Co Ltd, China have executed definite agreements for a joint venture (JV) in textiles,” Reliance sources said.
Commenting on the deal, RIL executive director, Mr. Nikhil R Meswani said: “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 the JV to harness the growth potential of the Indian market and emerge as a global textile player.” Ruyi group has partnerships with global players like Itochu, Japan, owns or operates a portfolio of world renowned brands such as Taylor & Lodge, Harris Tweed, Nogara and Aquascutum.