Clariant Chemicals (India) today said it will acquire the masterbatch business of Gujarat-based Plastichemix Industries for Rs 135 crore and the deal is expected to be completed latest by March.
Clariant Chemicals (India) Ltd also announced it plans to sell its leather services business for Rs 156 crore.
These two proposals were considered and approved at the company's Board meeting held today, Clariant Chemicals said in a BSE filing.
The Board "approved the proposal for acquisition of masterbatch business from Vadodara-based Plastichemix Industries for a consideration of Rs 135 crore," said Clariant Chemicals (India), which is part of Swiss specialty chemical giant Clariant AG.
The acquisition of the Plastichemix' manufacturing units located at Rania, Nandesari and Kalol in Gujarat would be subject to terms and conditions set out in the draft agreement, it said.
The deal is scheduled to be completed by the first quarter of 2014, it added.
Plastichemix Industries, founded in 1977, serves all sectors of the plastic processing industry. The product range is marketed under the brand names 'Spectramix' 'Polyadd' and 'Polyfill'.
Post the acquisition, Clariant Chemicals said, it will be the largest specialty masterbatches business producer in India and aims to double its business in the next five years.
Clariant Chemicals (India) Vice Chairman and Managing Director Deepak Parikh said: "This acquisition reinforces our long-term growth strategy in India and will further elevate our market position."
Clariant sees bright future for masterbatches business in India and forecast double digit growth in near future, he said in a separate statement.
On proposed sale of one of its businesses, Clariant Chemicals said its Board "considered the proposal for sale of the business of leather services for a net consideration of Rs 156 crore" subject to the approval of shareholders and to necessary adjustment as on the effective date.
The notice of postal ballot will be sent to shareholders for their approval, the company said.
Clariant Chemicals (India) has production facilities for manufacturing textile chemicals, paper specialties and emulsion products at its Roha (Maharashtra) plant.
Besides these three, the company is also into leather services, industrial and consumer specialties, additives and pigments.
The company's scrip closed at