Specialty chemicals maker Clariant Chemicals India Ltd will acquire masterbatch business of Gujarat-based Plastichemix Industries for Rs 135 crore ($22 million), it disclosed on Monday.
The Indian arm of Swiss specialty chemical giant Clariant AG said the transaction is scheduled to be closed in the first quarter of 2014. The deal would make it the biggest player in the masterbatch space in India.
Plastichemix has production facilities at Rania, Kalol and Nandesari in Gujarat and is a top supplier of black, white, additive, filler & colour masterbatches, flushed pigments & mono-concentrates and engineering plastics compounds.
Deepak Parikh, vice-chairman and managing director, Clariant Chemicals (India) Ltd. said, “Clariant continues to reshape its portfolio and maintain profitability in its core businesses by exploring organic and inorganic business opportunities. This acquisition reinforces our
Long-term growth strategy in India and will further elevate our market position. Clariant sees a bright future for the masterbatches business in India and we are happy to forecast double-digit growth in the near future creating value for all our stakeholders.”
Plastichemix’ director Devang Sheth said the company is looking to double the business volume in five years and is planning to foray into new businesses.
“We are planning to double our business volume in five years… We have also plans for news markets going forward,” Sheth told VCCircle, without disclosing the details.
“I am not in a position to comment what new markets or business we will be entering in, but yes we are looking to foray into new markets,” he said.
Founded in 1977 by Samir Sheth in Vadodara, Plastichemix is one of the oldest masterbatch producers in India, serving all the segments within the plastic processing industry. It markets its products under the brands Spectramix, Polyadd and Polyfill.
The company has a production capacity of 24,000 million tonnes per annum and employs over 250 people. Plastichemix also exports its products to Asia-Pacific, the Middle-East, Europe and the US.
Simultaneously, Clariant’s board has also approved the plan to sell out its entire leather service business to Stahl Holdings BV, which is a member of France-based Wendel Group, for Rs 150 crore ($24 million).
This business contributed around 16 per cent of net sales of the company in 2012. Clariant Chemicals (India) posted net sales of Rs 1,100 crore last year.
This deal is part of a global divesture of leather services business by the Swiss specialty chemicals group. The global stock cum cash deal would involve Clariant receiving around $96 million besides 23 per cent of the shares of Stahl.
Clariant Chemicals had earlier divested its textile chemicals, paper specialties and emulsions businesses to US-based firm SK Capital.
(Edited by Joby Puthuparampil Johnson)