Chemplast back in PVC pipe biz, buys two firms

 According to a release issued by Chemplast to the BSE today, the manufacturing facilities of the acquired companies, located near Chennai, have a capacity to produce around 25,000 tonne per annum. "The products of Polytrusion and Vinplex are well-known in the market under the brand name Truebore," the release added.

 Chemplast was among the first to introduce PVC pipes in India in the 60s, but exited the business in the mid- 80s for strategic reasons. "With this acquisition, and subsequent investments, the company plans to establish itself as one of the major manufacturers in a few years," the release added.

 Chemplast, which has a turnover of Rs 650 crore, is engaged in the manufacture of PVC resins, caustic soda, chlorinated solvents, refrigerant gases and silicon wafers. The company is in the process of setting up a greenfield PVC project to produce 1,70,000 tonne per annum of suspension PVC.

P S Jayaraman, managing director of Chemplast Sanmar, said: "The acquisition was done as a move towards forward intergration since the company already manufactures poly vinyl chloride (PVC) resins, which is the raw material used to manufacture pipes." 

Jayaraman declined to mention figures when asked about the value of the acquisition. "The acquisition will reflect in the company growing its turnover, profits, and, in the end, prove to be a good value addition," he added.