Mukesh Ambani’s Reliance Industries Ltd., along with a partner Assets Care and Reconstruction Enterprises Ltd (ACREL), are among those bidding to take over bankrupt Indian textile company Sintex Industries. Other bidders are Easygo Textiles, GHCL, and Himatsingka Ventures, which is working with Shrikant Himatsingka and Dinesh Kumar Himatsingka.
Sintex was founded in the 1930s as Bharat Vijay Mills, a composite textile mill in Kalol, Gujarat. Forty years later, it was rebranded as Sintex Industries, a cotton yarn and fabric maker.
The bankrupt company’s customers included top luxury names such as Hugo Boss AG, Diesel and Burberry, which have now also forged alliances with RIL’s retail arm.
In 2017, Sintex demerged its plastic business into Sintex Plastics Technology to focus on its yarn business.
But by then, the textile industry saw many companies add spinning capacity, which impacted sales. The covid-19 pandemic dealt another blow to its business.
In April 2021, the Ahmedabad bench of National Company Law Tribunal (NCLT) admitted an insolvency process plea filed by Invesco Asset Management (India).