Rain Commodities buys 20% in US company

Pays Rs 460 crore for the stake in GLC Carbon.

Hyderabad-based Rain Commodities acquired 20.22 per cent stake in GLC Carbon, the world's largest producer of calcined petroleum coke, for Canadian $132 million (approximately Rs 460 crore) in cash.

Rain Commodities is an investment company of the Rain group and one of the original investors in Rain Calcining, a company engaged in the business of calcined petroleum coke.

The Hyderabad-based company made the acquisition through its US subsidiary Rain Commodities Inc, which bought out the stake in GLC Carbon USA Inc from American Industrial Partners Capital Fund II, LP (AIP).

Pursuant to the agreement, Rain Commodities will have the right to designate two members on the GLC board, and also appoint its chairman.

With production units in Laplata, Argentina, Louisiana, Oklahoma and Texas, GLC, which started its first plant in 1936, is a pioneer in the field of CPC.

The GLC plants operate a total of 14 rotary kilns having combined installed capacity of 2,450,000 tonne, which is equivalent to 23 per cent of the global market. It manufactures anode grade calcined petroleum coke (for aluminum) and industrial grade calcined petroleum coke (for steel and titanium dioxide).

Rain Commodities holds 100 per cent stake in Rain Industries, a producer of ordinary portland and blended cement with two facilities in Andhra Pradesh and combined capacity of 1.5 million tonne.

Rain Calcining has signed a joint venture to set up a manufacturing company in Kuwait with 3,50,000 tonne-a-year capacity. Kuwait-based Alsagar will pick up 76 per cent stake in the venture.

Rain Calcining and US firm Oxbow will each pick up a 12 per cent stake in the venture. Rain Calcining will contribute $5.5 million towards the equity of the joint venture.