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Mukesh Ambani sets his eyes on bankrupt textile firm, Sintex Industries

Mukesh Ambani, Reliance Industries boss

Among the richest men in Asia, Mukesh Ambani, who is looking to diversify his business, is now eyeing to buy the bankrupt textile firm Sintex Industries. Reliance Industries Ltd along with Assets Care & Reconstruction Enterprise Ltd has already placed its bid to takeover the firm.

Besides, RIL, Easygo Textiles Pvt., GHCL Ltd., and Himatsingka Ventures Pvt., in collaboration with Shrikant Himatsingka and Dinesh Kumar Himatsingka have also placed their bids to take over the beleaguered textile firm.

These will be evaluated before being placed before the Committee of Creditors.

According to Business Standard, Sintex was set up in the 1930s as Bharat Vijay Mills (BVM), a composite textile mill in Kalol, Gujarat. It was rechristened Sintex Industries in the 1970s, a cotton yarn and fabric maker. The company has been providing raw material to global brands such as Armani, Diesel and Hugo Boss.

Also read: Reliance Industries says Mukesh Ambani, family have no plans to relocate to London

After the textile company failed to pay Rs 7,000 crore to the Punjab National Bank led creditors, this year in May the Ahmedabad bench of the National Company Law Tribunal (NCLT) admitted an insolvency petition against Sintex.

According to the Economic Times, Sintex is the largest debtor taken to the NCLT since the one year moratorium on filing fresh cases ended in March. Lenders tried to complete a one time settlement with Mumbai based Welspun Group in order to avoid going to NCLT.

However, the newspaper quoted sources said that the Welspun offer involved as much as a 74 per cent haircut and a long payback period that discouraged lenders from taking the offer.