Birla Chemicals (India) Acquired CA&P Division of Solaris Chemtech Industries
Aditya Birla Chemicals (India) on 31 May 2013 decided to acquire CA&P Division of Solaris Chemtech Industries for a total of 153 crore Rupees.
Aditya Birla Chemicals (India) on 31 May 2013 declared that the Board of Directors approved to acquire Chlor-Alkali & Phosphoric Acid Division (CA&P Division) of Solaris Chemtech Industries for a total of 153 crore Rupees.
The acquisition will help the Aditya Birla Chemicals in getting entry into Southern Indian market, while also adding phosphoric acid to the present product portfolio. The acquisition strengthens the position of in business of Chlor-Alkali. The acquisition will also encourage the supply of caustic soda, which is very crucial input for Aluminium and VSF businesses.
The cost of expenditure as well as the proposed capital expenditure will be financed through internal accruals and debt collectively.
Chlor-Alkali & Phosphoric Acid Division (CA&P Division) of Solaris Chemtech Industries has manufacturing facility of caustic soda with the installed capacity of 60000 tpa as well as phosphoric acid plant with the installed capacity of 24000 tpa. Both these manufacturing facilities are situated at Karwar in Karnataka. Another manufacturing facility is that of 3000 acres of salt which is situated in Gujarat.
Caustic soda plant has remained un-operational since 31 December 2012. This is because of the statutory requirement that compelled the company to shut down mercury based technology.
Aditya Birla Chemicals (India) now has plans to convert mercury plant into the membrane-based cell technology. CA&P Division of Solaris Chemtech Industries produced a total of 33747 tpa of Caustic along with 21379 tpa of phosphoric acid in 2012-13 financial year. It had a gross turnover of 244 crore Rupees.