Reliance Industries (RIL), controlled by Mukesh Ambani, has finalised the acquisition of nine-decade-old Sintex Industries Ltd. by investing Rs. 1,500 crore in the Ahmedabad-based yarn and fabric maker, which is best known in the country for producing black plastic water tanks.

RIL's investment is part of a resolution plan made jointly by the conglomerate and Assets Care & Reconstruction Enterprise Ltd (ACRE) after Sintex was hauled to insolvency court in 2020 for failing to make loan repayments.

Sintex stated in an exchange filing that it has given shares worth 600 crore and optionally fully convertible debentures worth 900 crore to RIL, while about 599.2 million Sintex shares issued previous to the resolution plan's approval have been cancelled.

After the completion of the transaction, RIL now owns 70% of SIL, which will be administered equally by RIL and Assets Care & Reconstruction Enterprise (ACRE). RIL's textile business portfolio will benefit from the purchase.

Sintex Industries, founded in 1931, had a revenue of Rs. 3,127 crore in FY2022, up from Rs. 1,689 crore in FY2021.

Sintex Group, originally The Bharat Vijay Mills Ltd and Sintex Industries Ltd, is the world's largest maker of plastic water tanks and Asia's largest producer of corduroy textiles. Sintex has operations across Europe, America, Africa, and Asia, with a focus on France, Germany, and the United States.

The firm reported a consolidated total income of Rs. 804.5 crore for the nine months ended 31 December 2022, up from Rs. 665.37 crore in the previous year's equivalent period.

Previously, Sintex Plastic Technologies Ltd., the holding company, had failed to pay RBL Bank dues on its borrowings as of March 31, 2020. According to regulatory filings in February 2023, the default is still valued Rs. 142.36 crore as of 31 December 2022.