Specialty chemicals major Clariant Chemicals is set to acquire Plastichemix Industries’s masterbatch production business for a consideration of Rs135 crore. The acquisition, company officials said, will help Clariant become the largest producer of specialty masterbatches in India while also doubling its business in the next five years.
Deepak Parikh, vice-chairman and managing director, Clariant Chemicals (I) Ltd, said the company continues to reshape its portfolio and maintain profitability in its core business by exploring both organic and inorganic business opportunities.
“We see huge potential in the masterbatches business in India and forecast double digit growth in the near future creating value for all our stakeholders,” Parikh said in a statement.
Clariant’s masterbatches business unit is a global leader in colour and additive concentrates and performance solutions for plastics.
Sandeep Puri, VP – BU Masterbatches, Clairant Chemicals, said the company also plans to introduce an upgraded technical service laboratory to support modernisation of its manufacturing practices thus leading to creation of customised products. “The new facility also offers additional infrastructural capabilities that will help rapid business growth,” said Puri.
With production facilities in Rania, Kalol and Nandesari in Gujarat, Plastichemix produces black, white, additive, filler and colour masterbatches; flushed pigments and mono-concretes; and engineering plastic compounds. Clariant said the deal is expected to close January-March 2014.
In another development, Clariant said the company is selling its leather services business for a net consideration of Rs156 crore as part of its plans to exit non-core business.
The company owns a huge land parcel of over 80 acre in Thane near Mumbai which also houses its manufacturing facility. Clariant is planning to shift manufacturing to a different location (possibly in Gujarat) and is looking to monetise the land parcel.
Earlier reports had said leading real estate companies such as Kalpataru, Oberoi Realty, Runwal Group and Lodha Developers were in the race to acquire the said land parcel. Clariant was expected to raise between Rs1,500 crore and Rs1,600 crore from the sale.
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