Bodal Chemicals in advance talks to buy chlor-alkali biz of Mawana Sugars

MUMBAI: Ahmedabad-based is prematurely negotiations to purchase Chlor-Alkali enterprise of because the Delhi-based agency appears to promote non-core companies to focus its core sugar enterprise.

The transaction will worth Mawana Sugars’

enterprise between 250-350 crore, a number of sources near the transaction advised ET. “A definitive settlement to for the deal is probably going quickly and the transaction is anticipated to get introduced as early as subsequent week,” mentioned one of many sources talked about above.

Mawana Sugars, a part of Siddharth Shriram Group, is a listed firm with two key enterprise divisions comparable to Sugar and Chlor-Alkali. MSL’s Chlor-Alkali unit is positioned in Rajpura, Punjab. The unit has caustic capability of 82,500 MTPA with a provision to transform 33,000 MTPA into flakes.

Mawana has two built-in Sugar crops positioned in Meerut, Uttar Pradesh, having an combination crushing capability of 19,000 TCD, 30 MW Co-gen energy plant and a 120 KLPD distillery to supply ethanol.

Singhi Advisors, a Mumbai based mostly M&A specialist, acted as unique advisors to Mawana Sugars within the transaction.

Mails despatched to each Bodal and Mawana remained unanswered until the publication of the report.

For Dyestuff producer, Bodal Chemical compounds the acquisition is a strategic match because it offers backward integration. The transaction can even allow it to enter the North India market. Presently, Bodal has 9 crops in Gujarat and 1 plant in UP.

Bodal has been aggressive in acquisitions during the last couple of years. In 2019, Bodal acquired 80 p.c stake in Turkey’s Sener Bova Kimya Tekstil, an organization concerned within the enterprise of dyestuff and different chemical compounds. In 2017, the Ahmedabad-based agency purchased Gujarat-based Trion Chemical compounds , a producer of specialty chemical compounds for water remedy.

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