AB Chemicals buys Jayshree Chemicals' unit to strengthen chlor-alkali biz
With the acquisition of Jayshree Chemicals' chlor-alkali division for Rs 212 crore, the total caustic soda capacity of Aditya Birla Chemicals will increase to about 3,55,000 TPA
BS B2B Bureau B2B Connect | Mumbai
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Kumar Mangalam Birla, Chairman, Aditya Birla Group, commented, “The acquisition is strategic and further strengthens our 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.”
This is AB Group second major acquisition in chlor-alkali business in the last three year in India. In May 2011, Aditya Birla Chemicals had acquired its major competitor unit in the eastern region, the chloro chemicals division of Kanoria Chemicals based in Renukoot. The acquired unit was renamed as Renukoot Chemical Division.
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Lalit Naik, Sector Head for Chemicals, Aditya Birla Group, said, “We expect significant operational synergies on account of cost savings. The acquisition cost and proposed capital expenditure will be funded through a mix of internal accruals and debt.”
Caustic soda is one of the essential inputs for the manufacture of alumina. It is also used widely in various other industries. CAD’s manufacturing facility is strategically situated in the state of Odisha and is in proximity to various aluminium manufacturing facilities, which provides significant growth opportunities.
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First Published: Sep 11 2014 | 2:42 PM IST