US-based chemical producer Axiall LLC has acquired 50 per cent stake in Shriram Vinyl Polytech Pvt Ltd (SVPPL), a wholly-owned subsidiary of DCM Shriram Ltd, for Rs 34.65 crore ($5.7 million), as per a stock market disclosure.
Post-acquisition, SVPPL has become a 50:50 joint venture between Axiall and DCM Shriram and this will enable SVPPL to launch new-generation polymer compounds in India, offering more cost effective polymer solutions for different applications in the domestic market.
DCM Shriram (earlier known as DCM Shriram Consolidated Ltd) operates through three segments—agri-rural business, chlor-vinyl business and value-added business. Its agri-rural business includes manufacturing and selling of urea, sugar, farm solutions and hybrid seeds.
Axiall LLC, a subsidiary of Axiall Corporation, is a manufacturer of two integrated chemical product lines—chlorovinyls and aromatics—with annual pro forma revenues of around $5 billion. Under the Royal Building Products and Exterior Portfolio brands, Axiall manufactures a line of custom and other vinyl-based building and home improvement products.
Shares of DCM Shriram were trading at Rs 90 each, up 4.17 per cent on BSE in a strong Mumbai market on Thursday.
(Edited by Joby Puthuparampil Johnson)