Specialty chemicals maker SRF Ltd has agreed to promote its engineering plastics commercial enterprise to the Indian unit of Dutch multinational Royal DSM for Rs 320 crore ($45.6 million).
The sale will beef up the enterprise’s balance sheet and permit it to focus its sources on growing more moderen technologies for the chemical compounds business, SRF said in a stock-exchange filing.
The sale to DSM India Pvt. Ltd is in all likelihood to be concluded with six months, SRF said. The final transaction price is a problem to operating capital adjustments, it added.
The engineering plastics department’s primary operations are primarily based in Pantnagar, Uttarakhand. The commercial enterprise earned sales of Rs 209 crore for 2017-18, representing 4.Five% of SRF’s turnover, the filing said.
SRF turned into founded in 1970 and has operations in India, Thailand, and South Africa. It posted total revenue of Rs 1,647.60 crore for the region that ended December 31, 2018.
The enterprise classifies enterprise into three essential verticals – technical textiles, chemical compounds and polymers, and packaging movies. It says it has business pastimes in over seventy-five countries, with an international staff of 6,500 people.
DSM India is a subsidiary of the Netherlands-based totally Royal DSM, or Koninklijke DSM NV. According to its website, the organization operates in the human and animal vitamins, medical devices, and personal care segments. It said net sales of €2.Three billion (approximately Rs 18, half crore at current alternate rates) for the primary sector of 2019.
In a separate assertion, Royal DSM stated the deal would assist the India unit make bigger production and sales of its specialty materials without having to make a substantial capital expenditure.