RIL fell 0.14% to Rs 937.95 at 9:32 IST on BSE after the company and Shandong Ruyi Science and Technology Group Co., China (Ruyi) have executed definitive agreements for a joint venture in textiles.
The announcement was made after market hours yesterday, 9 December 2014.
Meanwhile, the BSE Sensex was down 23.44 points, or 0.08%, to 27,773.57.
On BSE, so far 19,404 shares were traded in the counter, compared with an average volume of 3.15 lakh shares in the past one quarter.
The stock hit a high of Rs 940 and a low of Rs 932 so far during the day. The stock hit a 52-week high of Rs 1142.50 on 16 May 2014. The stock hit a 52-week low of Rs 794 on 28 February 2014.
Reliance Industries (RIL) and Shandong Ruyi Science and Technology Group Co., China (Ruyi) (through its wholly owned subsidiary), have executed definitive agreements for a joint venture in textiles. As per the definitive agreements, RIL will transfer its existing textile business into a newly incorporated company (JV), for which RIL will receive cash consideration. RIL will own a majority 51% in the proposed JV, with the balance 49% owned by Ruyi. The proposed transaction is subject to obtaining requisite approvals. This business operation and activities would get realigned to strengthen the JV. The 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. The JV will benefit from the strength of the 'Vimal' and 'Georgia Gullini' brands and plans to introduce some of the well-known global brands of Ruyi, RIL said.
Nikhil R. Meswani, Executive Director, RIL, 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 this JV to harness the growth potential of the Indian market and emerge as a global textile player.
RIL after market hours yesterday, 9 December 2014 in a clarification with regard to news item titled "RIL in fray to buy SevenHills Healthcare" said that Reliance foundation was promoted by the company in 2009 to address social development imperatives of India, specially quality, formal and vocational education, affordable high-quality health care, meaningful rural development and urban renewal and protection and promotion of India's priceless heritage of arts and culture. As part of its ongoing endeavours, Reliance Foundation does evaluate several opportunities for partnership or alliance. Reliance Foundation will make appropriate announcements, if any such initiatives are finalised, RIL said.
RIL's consolidated net profit rose 1.7% to Rs 5972 crore on 5.1% decline in total income to Rs 111806 crore in Q2 September 2014 over Q2 September 2013.
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