NEW DELHI (AP) — Indian oil and petrochemical company Reliance Industries Ltd. said Monday it is buying Malaysia's leading polyester producer Hualon Corp., an acquisition that will help the Indian company retain its leadership in the world polyester market.
The acquisition will increase Reliance's polyester production capacity by 25 percent to 2.5 million tons per year, the company said in a statement. It will add about US$1 billion (€730 million) to the company's current annual revenue, it said. The statement did not disclose financial details of the transaction, which is subject to regulatory approvals.
Hualon is a leading polyester producer in Malaysia operating plants at two locations — Nilai and Malacca. It is one of Malaysia's largest exporters.
The buyout is the latest in a string of overseas acquisitions by Indian companies, which are seeking global visibility after thriving for decades in a protected home market.
''This is a good buy,'' said S. Tulsian, a Mumbai-based broker and investment adviser.
''It will also help the company get a foothold in the Southeast Asian market for exports. Through the buy, Reliance will also have a ready market for products from its refineries'' in India, he said.
Some of the raw materials used in the manufacturing of polyester staple fiber and polyester staple yarn come from oil refineries.