Basf To Divest Stake In Dr Beck

The $30-billion BASF group of Germany, which holds 51 per cent in Dr Beck & Co, has decided to divest from the company.

For this, the BASF group is scouting for a buyer who will take over its two manufacturing units in IndiaAnkleshwar (Gujarat) and Pimpri (Maharashtra)alongwith its three other foreign subsidiaries which operate under Dr Beck.

The German parent has sought the assistance of investment bank Goldman Sachs to undertake the sale of Dr Becks entire worldwide operations.

This is part of BASFs global strategy to sell off its electrical insulation systems business worldwide and focus on its core businessesautomotive OEM coatings, automotive refinishing paints, industrial coatings and container coatings.

 

As part of this move, BASF will divest its investments in Sao Paulo (Brazil), Slinfold (UK) and Guadalajara (Spain) too.

BASF is looking for one single buyer to take over the entire global operations of Dr Beck, M Tandon, managing director of Dr Beck & Co (India) told Business Standard.

As the paints division of Dr Beck contributes only 7 per cent of the overall turnover in the Indian operations, Tandon said the sell-off will have no major impact on the company here.

Though the German parent is yet to begin negotiations with any party for the sale of Dr Becks global operations, sources said the company is looking out for a multinational company which will have synergy in Dr Becks electrical insulation business.

Officials in the company are hopeful that the sale will be completed in the current calendar year.

The total global electrical insulation business of Dr Beck is to the tune of DM 110.

The BASF group had entered the electrical insulation business in 1967 by acquiring the Dr Beck group, a company which was founded in 1904.

In fiscal 1995-96, Dr Beck (India) recorded sales of Rs 68.25 crore and a net profit of Rs 4.04 crore.