United Phosphorus circling Gharda Chem

Gharda Chemicals, the Rs 1,000 crore agro-chemical firm, is
in takeover talks with around half-a-dozen peers, including Raju Shroff’s United Phosphorus (UPL).

According to market sources, UPL is the most likely candidate to win, thanks to its aggressive takeovers in the recent past and track record of integrating acquired firms.

Gharda Chemicals chairman Keki H Gharda did not rule out the possibility of an acquisition by UPL, but refused to confirm whether talks where on.

“Various parties have approached us offering to buy our stake over the years. Now we are getting back to them to explore a little further,” Gharda said. “If a sale doesn’t happen in three months, then we are looking at it only next year.”

Sources said besides UPL, the Tata-owned Rallis India, Godrej Industries and two multinationals are also interested in the privately held firm.

“Raju and Sandra Shroff re close personal friends. have gone to their homes and had lunch. At this point, that s all I can say,” Gharda told DNA.

The talks have revived after minority shareholders in Gharda Chemicals, backed by Godrej Industries, lost their case in the Bombay High Court in which they had alleged that minority rights were being violated.

Though Godrej Industries has won a court injunction two months ago against the creation of ‘third party’ interests in the minority shareholding, Gharda said he is free to sell his portion of the company.

Gharda also confirmed talks were on with “several interested parties”, but did not reveal any names.

He said he not looking for the highest bidder, but the one with a working culture most similar to that of the firm he has built up. “It is like marrying off a daughter. You have to see who she will be most likely to be happy with,” he said, adding that some of the talks have been ended due to a “culture conflict.”

Gharda Chemicals manufactures industrial and agricultural chemicals and is one of the fastest growing and most decorated Indian companies in this sector. Gharda said the sale of all or most of his 62% shareholding is likely to be complete in three months. “If it doesn’t happen in three months, then we are looking at the next year,” he said. 

United Phos circling Gharda Chem Gharda, a chemical engineer who leads the in-house R&D effort, said he expects the 1,500 strong company to do better under a more “business oriented” leadership.

“We have always grown because of innovation. Out of the total of 1500 employees, 180 are in R&D. But now, we have reached a good scale. We have brought it to a level where good business people can easily make it grow 15-20% every year,” he said.