RIL Buys Malaysian Based Polyester Firm

Mukesh Ambani is on global tour after acquiring GAPCO in Africa last week. The company has now stopped in Malaysia for polyester shopping.

Reliance has acquired Malaysian polyester firm Hualon for an undisclosed amount. Reliance expects to add $1 billion in polyester revenues from this acquisition.

The company expects to add additional 25 per cent polyester capacity with seven per cent share in the global market. Post this acquisition Reliance strengthens its No 1 position in the global polyester market.

Hualon is Reliance''s second polyester acquisition after Trevira in 2004. Reliance expects to strengthen its position in textile value chain. Through this acquisition RIL sees smother access to western markets and plans to launch innovative, high value premium products.

Dalal Street has also given thumbs up to this acquisition. The stock was one of the biggest gainers in the markets Monday. Last year Reliance generated cash profits worth $3.6 billion. Analysts say it is best for Reliance to deploy such reserves into business expansion.