Reliance Industries Ltd (RIL) has dropped its plans to sell its textile unit, including the iconic brand Vimal, for the time being, a person with direct knowledge of the matter said.

Mukesh Ambani-led RIL had hired the services of British advisory firm NM Rothschild to find a purchaser for the textile unit. But, challenging business environment for textile companies deterred potential buyers from placing desirable, forcing the India conglomerate to roll back the sale process.

It is believed that RIL moved to consider sale of its textile business because of harsh economic conditions, labour problems and cyclical nature of the business.

The Vimal brand, which became a household name in the 1980s, was launched in 1966, named after the company's founder Dhirubhai Ambani's nephew. Vimal was the first to use international cricketers, such as Vivian Richards, as brand ambassadors to promote the product.

The textile unit contributes just $370 million to the company's huge revenues of $67 billion currently.

The $100-billion Tata Group, whose first major industrial project was also a textile project, has moved out of the textile space several years ago. The Indian textile sector has not seen any major merger or acquisition action in recent years.