Aditya Birla Chemicals today said it will acquire the chlor-alkali division of Jayshree Chemicals Ltd (JCL) for a cash consideration of Rs 212 crore.
JCL's chlor-alkali divisionhas capacity of 57,000 tonnes per annum located at Ganjam in Odisha. It also has about 1,600 acres of salt works in Andhra Pradesh.
JCL's revenue for the year ended 31st March 2014 stood at Rs 136 crore. With this acquisition, the total caustic soda capacity of Aditya Birla Chemicals (India) Ltd (ABCIL) will increase to about 3,55,000 tonnes per annum.
Speaking on the acquisition, Aditya Birla Group Chairman Kumar Mangalam Birla in a statement said, "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, Birla added.
Aditya Birla Group, Sector Head for Chemicals, Lalit Naik 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."
The transaction is subject to statutory and regulatory approvals, the statement added.'
Aditya Birla Chemicals is leading Chlor Alkali company established in 1984. For effective utilisation of chlorine, the company is a one of the manufacturers various chlorine derivatives as value added products.