Kilburn Chemicals’ board has approved the sale and transfer of its chemical division to S Vaikundarajan of partnership firm V V Mineral for an estimated Rs 110 crore, the company disclosed in a statement to Bombay Stock Exchange.
The chemical division is involved in manufacturing and marketing of the Anatase grade Titanium Dioxide.
Titanium Dioxide is a vital ingredient for diverse industrial applications and is one of the most commonly-used white pigment in the world. It is used for a variety of applications like manufacturing of paint, rubber, paper, detergents, cosmetics, printing inks, textiles, plastics among other products.
At mid-day trade, shares of Kilburn Chemicals traded at Rs 54.45, down 11.75 per cent.
Kilburn Chemicals is into production and exports of Anatase Grade Titanium Dioxide in India. It also manufactures and exports the by-product Ferrous Sulphate.
The company that commenced operations in November 1994, has a manufacturing plant based at the Sipcot Industrial Complex in Tuticorin (Tamil Nadu).
For the year ended March 2011, it had revenues of Rs 119 crore with net profit of Rs 5.7 crore.
V V Minerals established in 1989, is based out of Tirunelveli, in Tamil Nadu and is one of the country’s largest miner, manufacturer and exporter of Garnet & Ilmenite. The firm has huge export market catering to customers in places such as Europe, Middle East, East Asia, Australia and USA.