Acquistions Aditya Birla Acquires Chlor-Alkali and Phosphoric Acid Division of Solaris
The Board of Directors of Aditya Birla Chemicals (ABCIL), a company of the Aditya Birla Group, today approved the acquisition of the chlor-alkali and Phosphoric Acid Division (CA&P Division) of Solaris Chemtech Industries (SCIL) for a cash consideration of US $ 27 million.
Mumbai – “This strategic acquisition further strengthens our position in the chlor-alkali business. It will take our chlor-alkali business on a higher growth trajectory and marks our entry into a new market segment of phosphoric acid. The acquisition bolsters caustic soda supply, which is a critical input for both our aluminium and Viscose Staple Fibre (VSF) businesses,” stated Kumar Mangalam Birla, Chairman of the Aditya Birla Group. The transaction will enable ABCIL’s entry into the southern Indian market as well as the addition of phosphoric acid to its current product portfolio.
Business Head for Chemicals, Aditya Birla Group, LalitNaik averred, “This is a strategic acquisition in the southern region, which provides growth opportunities in the caustic business as well as a leadership position in phosphoric acid. The acquisition cost and proposed capital expenditure will be funded through a mix of internal accruals and debt.”
CA&P Division has a caustic soda manufacturing facility with an installed capacity of approximately 60,000 tpa and phosphoric acid plant with an installed capacity of approximately 24,000 tpa, both located in Karwar, Karnataka and 3,000 acres of salt works in Gujarat. The caustic soda plant has not been operational since 31 December 2012 because the mercury-based technology had to be shut down as per the statutory requirement. ABCIL proposes to convert the mercury plant into membrane-based cell technology. CA&P Division produced 33,747 tpa of caustic and 21,379 tpa of phosphoric acid in FY 2012-13 and had a gross turnover of US $ 43 million. The transaction is subject to statutory and regulatory approvals.