Aditya Birla Chemicals (India) Ltd (ABCIL) is to acquire Jayshree Chemicals’ Chlor-Alkali division for Rs 212 crore in cash. With this acquisition, the total caustic soda capacity of ABCIL will increase to about 3.55 lakh tonne per annum.
The division is an environment-friendly and energy efficient membrane cell facility located at Ganjam, Odisha and also has about 1600 acre of salt works in Andhra Pradesh, the Aditya Birla group said in a statement.
“The acquisition is strategic and further strengthens our position in the Chlor-Alkali business. It will take our Chlor-Alkali business on a higher growth trajectory. The acquisition solidifies the Group’s position as the country’s largest producer of Chlor alkali and bolsters caustic soda supply which is a critical input for the Aluminium business. The business has potential for future growth,” said Kumar Mangalam Birla, Chairman of the Aditya Birla Group.
The current capacity of the facility is about 57,000 tonne per annum. CAD is cost competitive, driven by strengths of the latest state of the art technology. JCL’s revenue for the year ended March 31, 2014, stood at Rs 136 crore.
Caustic soda is one of the essential inputs for the manufacture of alumina. It is also used widely in various other industries. The transaction is subject to statutory and regulatory approvals.
rajesh.kurup@thehindu.co.in