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Aditya Birla Chemicals, a Aditya Birla group company, said it will acquire the Chlor-Alkali division (CAD) of Jayshree Chemicals for Rs 212 crore in cash. Kumar Mangalam Birla, Chairman of the Aditya Birla Group, said the acquisition is strategic and further strengthens the company's position in the chlor-alkali business.
"It will take our Chlor-Alkali business on a higher growth trajectory. The acquisition solidifies the group's position as the country's largest producer of Chlor alkali and bolsters caustic soda supply which is a critical input for the aluminium business. The business has potential for future growth," he said.
CAD is an environment friendly and energy efficient membrane cell facility located at Ganjam, Odisha and also has about 1,600 acres of salt works in Andhra Pradesh. The current capacity of the facility is about 57,000 tonnes a year. CAD is cost competitive, driven by strengths of the latest state of the art technology.
JCL's revenue for the year ended 31st March 2014 stood at Rs 136 crore. With this acquisition, the total caustic soda capacity of ABCIL will increase to about 355,000 tonnes per annum, a statement by the group said.
