Industrial conglomerate Reliance Industries has joined forces with Shandong Ruyi Science and Technology Group Co. to form a joint venture in textiles.

Through the deal, Reliance will transfer its existing textile business into a newly incorporated company, for which it will receive a cash consideration. It will own a 51% majority in the joint venture, with the balance owned by Shandong.

Reliance Industries' existing textile business is its founding business and operates under the Vimal brand. It has a prominent presence in the Indian textile market, especially in the worsted and synthetic suiting fabric segments.

Chinese textile firm Ruyi has revenues in excess of US$3bn, and a global presence through its brands including Taylor & Lodge, Harris Tweed, Royal Ruyi China, and Nogara Italy.

Ruyi said its business operation and activities would get realigned to strengthen the joint venture.

Shandong Ruyi chairman Qiu Yafu, said: "With closer economic relations between China
and India and Shandong Ruyi Group's expanding global presence in the textile sector, we see our joint venture with Reliance as a significant event for the group. To enter the Indian market with Reliance we truly believe in the bright future of this joint venture business".

Reliance Industries executive director Nikhil Meswani, added that the joint venture will help Reliance reposition its textile business on a "high growth path".

He added: "Our partner's deep commitment and global reach in textile business will enable this JV to harness the growth potential of the Indian market and emerge as a global textile player."