Nagarjuna Fertilisers and Chemicals (NFCL) is all set to make a foray into the European market through acquisition. It is in the process of acquiring a German company, which is primarily into the feedstock and fuel segment, with a proposed investment of 5 million euro over the next two years.
NFCL is into two areas of businesses, which include nutrient business and feed and fuel stock. “The proposed acquisition is in the fuel and feedstock area, as there is a lot of growth opportunity in this segment due to abundant natural resources. With this, we would be entering the renewable energy segment,” RS Nanda, director and COO, said.
“We would be picking up a 50% stake in the German company, thus gaining a management control. Other investors would include innovators of the research work and a few financial companies as well,” he said. The acquisition is likely to be made through its wholly owned subsidiary, Nagarjuna Mauritius Pvt Ltd, Mauritius.
According to Nanda, the company would be entering into manufacture of silica-based specialty chemicals. ?These specialty chemicals would be used to manufacture solar panels for semiconductor companies,? he said. While refusing to spell out the German firm?s name, Nanda said that the company has already taken the board approval and is awaiting shareholders? nod for the same. The commercial plant is expected to be ready in the next 18 months, he said.