Reliance Industries Ltd (RIL) entered into the textile business in a small way in 1970s, and since then grown to be a Fortune Global 500 company through backward vertical integration. Reliance on Tuesday, announced its joint venture with China’s Shandong Ruyi Science and Technology Group (Ruyi) that will help Reliance reposition its textile business on a high growth path.

RIL will hold a 51% stake in the new joint venture thus formed while the Chinese partner will hold the balance. The proposed transaction is subject to requisite approvals.

The textile business of RIL operates under the brand Vimal, which was popularised by the ‘Only Vimal’ campaign. This business has a prominent presence in the domestic worsted and synthetic suiting fabric segments. Ruyi, China’s leading textile company with revenues of $3 billion, has a global presence with a portfolio of world-renowned brands. It operates in India under the Georgia Gullini brand in the worsted suiting segment. This business operation would be realigned with the joint venture.

RIL Executive Director Nikhil Meswani said that their partner’s deep commitment and global reach in textile business will enable this joint venture to harness the growth potential of the Indian market and emerge as a global textile player.

While Shandong Ruyi group Chairman Qiu Yafu said that they see their joint venture with Reliance as a significant event for the group. To enter the Indian market with Reliance, they truly believe in the bright future of this joint venture business.

The joint venture will build on RIL’s textile business and distribution network as well as Ruyi’s technology and global reach. The new venture will help expand the geography for the brand 'Vimal' and will also introduce some of Ruyi’s global brands later in India.

RIL has a presence in Indian textile market, especially in the worsted and synthetic suiting fabric segments, while the $3 billion-Ruyi, a leading textile company in China, has a presence in America, Europe, Japan, Australia, New Zealand and China.

Ruyi owns brands like 'Taylor & Lodge', 'Harris Tweed', 'Royal Ruyi China', 'Nogara Italy' and 'Indios Italy', among others. In India, Ruyi sells the 'Georgia Gullini' brand in the worsted suiting segment of the market. This business operation and activities would get realigned to strengthen the JV.

India has been among the top three textile and apparel exporting nations in the world for the last three years but much of the potential is yet to be tapped.