Agro-chemical firm Bayer CropScience Ltd, has signed an asset transfer agreement with group firm Bayer MaterialScience Pvt Ltd to sell the asset related to the Gujarat-based poly-isocyanate unit for Rs 22.9 crore ($3.6 million), as per a stock market disclosure. The transaction is subject to getting several approvals.
The poly-isocyanate unit was started in 2011 at Ankleshwar in Gujarat to grow the company's business in the country and strengthen its global position in the supply of polyurethane raw materials. It produces products based on aliphatic hexamethylene diisocyanate (HDI) and aromatic toluene diisocyanate (TDI) for the range of Bayer’s Desmodur polyisocyanates.
It was being operated on a job work basis for supply to Bayer MaterialScience. Founded in 1995, Mumbai-based Bayer MaterialScience manufactures polymers and plastics. Its products include coatings, adhesives, insulating materials, sealants, polycarbonates and polyurethanes.
The deal is in continuation with Bayer CropScience’s decision to sell the larger unit in Ankleshwar to Deccan Fine Chemicals (India) Pvt Ltd for Rs 127 crore. This in turn follows a board decision taken on July 30, 2013 to sell either whole or in part the manufacturing unit and facilities of the Gujarat unit.
Bayer CropScience, part of Germany’s Bayer AG, operates three business segments—crop protection, bioscience and environmental science—in India. It is a public-listed firm.
Bayer AG also owns separate subsidiaries in the country, including Bayer MaterialScience.
Bayer CropScience shares were quoting at Rs 1,538.50 per share, up 0.09 per cent in mid-day trades on the BSE in a strong Mumbai market on Tuesday.
(Edited by Joby Puthuparampil Johnson)