Bodal Chemicals Acquire SPS Processors
Bodal Chemicals Limited (BCL) to invest Rs 41 million in S P S Processors Private Limited, a company engaged in manufacturing of dye intermediates, for 70% equity stake. BCL's manufacturing capacities of dye intermediates to increase by 25%.
About S P S Processors Pvt. Ltd.:
1. Engaged in manufacturing of dye intermediates
2. Manufacturing plant located at Kosi, Uttar Pradesh, India
3. "ZERO DISCHARGE" unit fully compliant with environmental regulations
4. Presently has 250 tons per month (TPM) operational capacity to manufacture H-Acid, a key dye, intermediate
5. Basic infrastructure in place for future expansion
6. All necessary permissions in place to manufacture Vinyl Sulphone (VS-another key dye intermediate) as well as Dyestuff.
7. Planning to build a 350-TPM VS plant at the cost of about Rs 100 million; To be operational by Second Quarter of FY 2018
8. Achieved revenue of Rs. 740 Million till 28th February, 2017
1. BCL to invest Rs 41 million in S P S Processors Pvt. Ltd. for 70% equity stake
2. BCL to provide unsecured loan about Rs 450 Million to S P S Processors Pvt. Ltd. to make it debt free Company by retiring its existing total debt and also for expansion of its manufacturing capacity for VS plant
3. BCL to fund this transaction entirely through internal accruals
Mr. Suresh Patel, Chairman & Managing Director, Bodal Chemicals Limited, said, "With this investment, Bodal Chemicals will able to consolidate its position in the local & global markets of dyestuff and dyes intermediates. Stricter environmental regulations in China resulting into supply restrictions coupled with India's improved competitiveness have presented substantial global opportunities. Bodal Chemicals, one of the largest and most integrated players in this industry, is poised take advantage of these opportunities backed by its long established local & global customer relationships."