RIL To Form JV With Chinese Textile Company, Strengthens Position In The Indian Market

To strengthen its position in the textile market, Mukesh Ambani’s Reliance Industries Limited (RIL) has entered into a strategic partnership with the Chinese company, Shandong Ruyi Science and Technology Group Co Ltd (Ruyi). The companies will form a new joint venture, in which RIL will be the majority stakeholder with 51% equity while Ruyi will have the remaining 49% stake. The company made the announcement in a disclosure to the National Stock Exchange (NSE).

“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”, said Nikhil R Meswani, executive director of RIL.

Sharing a similar sentiment, Qiu Yafu, chairman of Ruyi Group added, “With closer economic relations between China and India and Shandong Ruyi Group’s expanding global presence in the textile sector, we see our joint venture with Reliance as a significant event for the group. To enter the Indian market with Reliance, we truly believe in the bright future of this joint venture business.”

Under the agreement, RIL will transfer its existing textile business to the new company. The new company will use the existing distribution network of RIL in the textile industry while the Chinese promoter will contribute technology and its global reach to the JV.

It should be noted that currently RIL is present in the market under the brand Vimal, while Ruyi Group has a global presence in markets such as the US, Europe, Australia and Japan apart from its domestic market. The Chinese textile giant has been partnering with players in overseas market in a bid to gain a larger foothold in the international textile market.

Image Credit: Official website of Vimal