New Delhi: Aditya Birla Group firm Grasim Industries on Monday said it has inked a pact to acquire chlor-alkali business of KPR Industries by way of a slump sale for a cash consideration of Rs 253 crore.
The company, which has inked a definitive agreement to acquire the business, said the transaction will be funded through internal accruals.
KPR Industries' chlor-alkali business comprises an under-construction 200 TPD project at Balabhadrapuram, Andhra Pradesh.
As part of the deal, Grasim would take over the assets and identified liabilities associated with the business. KPR Industries on the other hand will utilise the capital towards a full and final settlement of the lenders' dues.
"This acquisition is a strategic fit, and further strengthens our group's leadership in the chlor-alkali sector. Caustic soda is a critical input in the aluminium sector. Given the expansion plans for the aluminium businesses, it will serve as an excellent sourcing point for leading aluminium players," Birla Carbon Business CEO Santrupt B Misra said in a statement.
The acquisition is in line with Grasim's strategy to strengthen operations on the East Coast of the country, the company said.
"Further, the purchase of a partially-completed project vis-a-vis a greenfield project will translate into a shorter time-to-market," it added.
Once operationalised, the project, along with other ongoing expansion projects, will enhance Grasim's caustic soda capacity to 1.22 MMTPA.
Caustic soda is one of the essential inputs for the manufacture of alumina. It is also used widely in various other industries — viscose staple fibre, water treatment, pharma, chemicals etc.
The chlor-alkali division of Grasim is already operating seven chlor-alkali plants across India.
Shares of Grasim India on Monday settled 0.9 percent down at Rs 700.20 per scrip on BSE.
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Updated Date: Feb 19, 2019 12:34:28 IST