Germany-based chemicals producer BASF SE’s India unit has signed a pact to sell its business of optical brighteners that are added in detergents to the local arm of Switzerland-based Archroma Group, a maker of colour and speciality chemicals.
BASF India Ltd will sell the business to Archroma India Pvt. Ltd for Rs 33.5 crore (about $5 million at current exchange rate).
The sale is expected to be completed during the fourth quarter of this year, BASF India said in a filing with stock exchanges.
The deal with Archroma India consists of BASF’s optical brightening agents and manufacturing unit in Gujarat’s Ankleshwar.
The optical brightening agents’ business had generated sales of around Rs 220 crore for the financial year ended March 2019, BASF India said in the filing.
Shares of BASF India closed the day down 3.75% at Rs 1,241 apiece.
Four years ago, VCCircle reported that BASF India had received its board's approval to sell the textile chemicals business to Archroma as part of a larger global deal, for about Rs 64 crore (about $10 million then).
Archroma is a dyes and speciality chemicals provider servicing sectors such as branded and performance textiles, packaging and paper, coatings and adhesives and sealants. According to its website, the group delivers its products to over 100 countries. It also employs over 3,000 people in at least 35 countries with 25 production sites.
Founded in 1943, BASF India manufactures chemicals and its products include expandable polystyrene, tanning agents, leather chemicals and auxiliaries including specialised metal complex dyes, leather dyes, and textile chemicals.