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Godrej Inds gains after chemicals arm inks BTA to acquire Ethoxylation Unit II

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Last Updated : Jul 08 2024 | 4:04 PM IST

Godrej Industries rose 1.31% to Rs 904.25 after the company's chemicals business has signed a business transfer agreement (BTA) with Shree Vallabh Chemicals Unit II located at Kheda, Gujarat to acquire its Ethoxylation Unit II.

Shree Vallabh's Ethoxylation Unit II is located at Kheda, Gujarat and it has a manufacturing capacity of 24,000 MTPA of finished products.

The estimated cost of the acquisition is approximately Rs 45 crore. As a leading player in Oleochemicals, Surfactants, Specialities and Biotech, this transaction will help the company expand its product offerings by adding the Ethoxylation technology to its portfolio of process and batch technologies.

Vishal Sharma, executive director and chief executive officer, Godrej Industries (Chemicals) said, Aligned with our commitment to growth and innovation, the proposed acquisition of the unit will aid us in expanding our offerings and also cater to new applications for our customers. By enabling us to accelerate the investment timeline, we are confident that it will also provide us with various cost synergies.

Godrej Industries, a Godrej Group Company, is a conglomerate with a significant presence in home and personal care, animal feeds, dairy and agri-products, poultry, oil palm plantation and real estate.

The diversified company reported consolidated net loss of Rs 311.81 crore in Q4 FY24 as compared to net profit of Rs 300.08 crore recorded in Q4 FY23. Revenue from operations declined 5.87% year on year (YoY) to Rs 4,567.27 crore during the quarter ended 31 March 2024.

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First Published: Jul 08 2024 | 3:22 PM IST

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