Xpro India Ltd, part of the SK Birla Group, has sold its thermosets division to the US-based SI Group, a developer and manufacturer of chemical intermediates. The deal involves Xpro selling its unit (manufacturing thermoset moulding powders and synthetic resins) for Rs 74.5 crore on a going concern and slump sale basis to SI Group-India Ltd.
As a part of this deal, Si Group will buy Xpro’s manufacturing facility located in an industrial park at Ranjangaon, Maharashtra. The modern 48,000 sq. mt. manufacturing site was built in 2006. The current resins product portfolio of the company consists of abrasives, friction, refractory, rubber and foundry resins.
Xpro India is a producer of thermoplastic co-extruded sheets, specialty films, BOPP films and thermoformed components. The share price of Xpro closed at Rs 49.5 per unit on Friday, down 3.32 per cent.
SI Group, a family-owned company headquartered in New York, is a developer and manufacturer of phenolic resins, alkylphenolic resins, alkylated phenols and other chemical intermediates, with 20 facilities in 12 countries around the world.
“This acquisition is fully aligned with our global strategy and provides a complementary fit to tackifiers, adhesives and coatings resins which are already being manufactured in India at our Loté site. Xpro’s industrial resins will add to our range of products and strengthen our competitive position in this global market segment. We look forward to unlocking the synergies we discovered and accelerating the profitable growth of our expanded resins business,” said B. Rajagopal, managing director of SI Group-India.
“The thermosets business has been a consistently profitable activity for us, passionately developed since it merged with our thermoplastic businesses in the 1990s. This transaction arises from strategic considerations of developing our core thermoplastic business further and our desire to deal with an acquirer who mirrors our passion for further development of the thermosets division,” said C. Bhaskar, managing director of Xpro India.