Aditya Birla group company,
Aditya Birla Chemicals (India), on Saturday said that it will acquire the chloro chemicals division of Kanoria Chemicals & Industries Limited (KCIL) for Rs 830-crore.
"The Board of Directors of Aditya Birla Chemicals (India) Limited (ABCIL), a company of the Aditya Birla Group, today approved the acquisition of the Chloro Chemicals Division (CCD) of Kanoria Chemicals & Industries Limited (KCIL) for a cash consideration of Rs 830-crore," the company said in a release issued.
With this acquisition, the total caustic soda capacity of ABCIL will increase from 1,05,000 tonnes per annum (tpa) to 2,20,000 tpa.
ABCIL is a chlor alkali producer with its plant located at Rehla in Jharkhand and this transaction takes ABCIL to a higher growth trajectory, the release said.
The transaction will be undertaken on a slump sale (valued at a lumpsum amount without individual valuations) basis and is subject to customary corporate and other approvals, and is expected to be completed towards end-May 2011, it said.
The chloro chemicals division (CCD) of Kanoria Chemicals & Industries Limited is located at Renukoot in Uttar Pradesh and manufactures chlor-alkalis, chlorine derivatives and water treatment chemicals.
The current annual capacity of caustic soda at the facility is 1,15,000-tonnes per annum.
"CCD is highly cost-competitive, driven by strengths of the latest manufacturing technology, captive power plants with coal linkage and forward integration into value-adding chlorine derivatives," the release said.
CCD's revenues for the year ended March 31, 2010, stood at Rs 303-crore.
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