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Chennai-based petrochemical company Manali Petrochemicals said on Monday it has acquired UK-based System House Notedome Ltd for about Rs 120 crore ($18mn).

The acquisition will help the company upgrade its technologies, strengthen its specialty and value-added products portfolio, and expand its global customer base, Manali Petrochemicals said in a statement.

"This acquisition will give access to Manali Petrochemicals' products in the UK and the wider European market while extending our product offering in the domestic market. Thus we will expand our global customer and product base,” said Muthukrishnan Ravi, managing director, Manali Petrochemicals.

The company, which was founded in 1986, made the acquisition through its UK subsidiary, AMCHEM Speciality Chemicals UK Ltd. The acquisition was funded through internal resources and funding from international banks. 

Notedome, which was established in 1979 and has presence in 45 countries, is a System House. It manufactures neuthane polyurethane cast elastomers, which are used in a range of industries including automotive and agriculture sectors. 

Manali Petrochemicals develops products that find application in a variety of industries such as appliances, automotive, bedding, food & fragrances, furniture, footwear, paints and coatings, and pharmaceuticals. 

The Indian company launched an application centre in Chennai a few months back, which focuses on developing and bettering systems for polyurethane applications. 

It plans to set up new application centres in Singapore in the next 8-12 months, the statement said. Centres in Doha and Europe in the near future are also expected. 

Early in September, the company said its board has approved an additional investment up to $15 million in AMCHEM Speciality Chemicals Pvt Ltd, Singapore, the wholly-owned subsidiary of the company for potential acquisition of an overseas System House.

Shares of Manali Petrochemicals were trading at Rs 38.05 a piece, up 17.26% on the BSE in a strong Mumbai market.

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