Speciality chemicals and intermediates manufacturer Deepak Nitrite has acquired the di-amino stilbene disulphate acid business (DASDA) of Hyderabad-based Vasant Chemicals for a consideration of Rs 55 crore.The acquisition is a part of steps the company is contemplating to expand its exports capabilities, Deepak Mehta, MD of Deepak Nitrite, said on Friday. "With Vasant Chemicals' DASDA business coming to us, we see a major rise in our export earnings and for a full year of operations our earnings may become higher than the earnings from home sales," Mehta said. The company's turnover of Rs 347.29 crore in FY06 included export revenue of Rs 170.28 crore. Post acquisition, Vasant Chemicals business will be renamed Hyderabad Specialities Division of Deepak Nitrite.DASDA is used in manufacture of optical brightning agents(OBAs) used by paper, textiles and detergents busineses. The global market for OBAs, Mehta said, is worth approximately Rs 450 crore. The Rs 100 crore Vasant Chemicals is the world's largest DASDA producer with about 24% share in this market, he elaborated.Mehta said the market for OBAs in India and China is growing fast and the company sees significant opportunities to benefit from it. The move will also give Deepak Nitrite a foothold in the Hyderabad which is a city focused on specialities...Another advantage will be an opportunity to build on the relationships with multinationals which Vasant has developed, Mehta said.Mehta said the acquisition has been made on "going concern basis" and the entire land, plant and machinery as well as about 200 staff of Vasant Chemicals will come to Deepak Nitrite. The acquisition was funded from the resourses of Rs 83 crore raised by the company earlier through a rights issue.
