Reliance Acquires Assets of Kemrock Industries, Enters New Material Business
Mukesh Ambani led Reliance Industries has acquired Gujarat-based Kemrock Industries & Exports Limited on Wednesday, marking its foray into new material business- Composite and carbon fibre.
The company participated in the online e-auction conducted by a consortium of 11 banks to sell off Kemrock Industries after it defaulted on loan repayments under the Sarfaesi (The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) Act. The consortium was led by Allahabad Bank.
Kemrock manufactured fibre-reinforced composites that were used for the aerospace industry. In 2015, the company was registered as a sick unit with the Board of Industrial and Financial Reconstruction and in 2016, Kalpesh Patel, Chairman and Managing Director, Kemrock was on the banking industry’s wilful defaulters list.
With the acquisition, Reliance would be able to get a foothold in the composites and carbon fibre business. Composites are used in a variety of applications and industries such as renewable energy, mass transportation, infrastructure and a host of other industrial products.
“The assets will pave the way for Reliance to foray into new materials (Composites and Carbon Fibre) and further strengthen its petrochemicals business portfolio. The Company is in the process of complying with the necessary formalities for the acquisition of assets”, RIL said in the statement.
