The 1.27-million-tonne-capacity plant, which was built with a total investment of Rs 3,437 crore, was Japan's biggest FDI in India
Purnendu Chatterjee, who was once financial manager of Gorge Soros and runs private equity firm The Chatterjee Group from New York, has acquired Mitsubishi Chemical Corp's petrochemical facility in India.
The Japanese conglomerate has been trying to exit the business in India and China.
Mitsubishi in 1997 had set up MCC PTA India Corp (MCPI) to manufacture Purified Terephthalic Acid (PTA) at Haldia in Bengal. PTA is used as a raw material to make polyester staple fibre, polyester filament yarns, PET bottles and industrial grade polyester resins.
The plant was built at a cost of Rs 1,475 crore for 3,50,000-tonne capacity, and with an additional investment of Rs 1,962 crore, the capacity was progressively expanded to 1.27 million tonne in 2009, becoming Japan's biggest FDI in India.
"Mitsubishi Chemical Holdings Corp, the holding company of Mitsubishi Chemical Corp in its Board meeting in Tokyo passed a resolution to transfer controlling equity interest of MCC's PTA manufacturing subsidiary in India.
In the said resolution transfer of equity interest in MCC's China PTA and Poly Tetramethylene Ether Glycol businesses being carried out by Ningbo Mitsubishi Chemical Co and MCC Advanced Polymers Ningbo Co to another company have also been authorised," MCC said in a release without disclosing the deal value.
West Bengal government, through a state investment entity, had been holding 5% stake in MCC PTA. But prior to the share transfer, MCC has expanded the equity base of Mitsubishi Chemical Holdings, thereby raising its stake to 99.4%. After the deal with Chatterjee, Mitsubishi would retain 9% stake in MMC PTA with 91% sold to the new owner, a detailed statement issued by MCC from Tokyo said.
With Purnendu in January wrestling majority control of Haldia Petrochemicals, another petrochemical business also located at Haldia, the NRI investor would now exploit synergy in the common feedstock, which is petroleum sourced either from Indian Oil's refinery also located there or imported through Haldia port, sources said.
Running the two businesses would be difficult for Chatterjee as both these plants are suffering severely because global slowdown and Chinese overcapacity, the primary reason why Mitsubishi is selling off.
MCC PTA, on a turnover base of Rs 474 crore has suffered a loss of Rs 290 crore for FY16, significantly up from Rs 86 crore in the previous year.
"Owing to severe market conditions MCPI became a sick unit in 2013 and has subsequently been referred to BIFR. The main reason for the prolonged slowdown in PTA business, as has been stated above, is the sudden build up of huge overcapacity in China since 2011 and resultant dumping in Indian market causing grave injury to domestic producers," the statement said.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Purnendu Chatterjee")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}