MUMBAI: Ahmedabad-based dye-maker
Bodal Chemicals
has agreed to buy from
Mawana Sugars
the chlor-alkali plant in Punjab for Rs 137 crore. The transaction, expected to be completed before March 31, will help Bodal to diversify its existing portfolio by adding new chemical products.
Mawana Sugars is a part of the Siddharth Shriram Group, best known as the maker of Usha fans and sewing machines. Through this deal, Siddharth Shriram will exit the chlor-alkali business, which has a turnover of Rs 237 crore. The business contributed 20% to the turnover of Mawana Sugars, the company said.
Mawana Sugars decided to sell the chlor-alkali business to liquidate “huge cane arrears/term debt” affecting the fortunes of the entire company. The sale of the plant will ensure long-term financial stability, the company said. M&A specialist firm Singhi Advisors is advising Mawana Sugars on the sale.
Chlor-alkali products are used to make soaps & detergents, dyes, pulp & paper, and food additives. Siddharth Shriram’s first cousin Ajay Shriram (of
DCM Shriram
) is the second largest player in chlor-alkali after
Kumar Mangalam Birla’s Grasim. In 2019,
Grasim
bought KPR Industries’ chlor-alkali business for Rs 253 crore.
Reeba Zachariah is assistant corporate editor at The Times of Ind...
Read MoreReeba Zachariah is assistant corporate editor at The Times of India, Mumbai. She has been covering large Indian business houses such as the Tata Group. She also reports on a host of sectors like hospitality, retail, travel, liquor and consumer durables. She has been writing on mergers and acquisitions and private equity.
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