Mukesh Ambani-led Reliance Industries
on Wednesday announced it has won the bid to acquire Gujarat-based Kemrock Industries' assets in an online e-bidding process for an undisclosed amount.
Ltd participated in an online e-bidding process held recently by Allahabad Bank being the leader of the consortium of 11 Banks to sell/dispose off assets of Kemrock Industries
& Exports Limited of Vadodara (Gujarat) and has been declared as the winner in the said bid," the company said in its statement.
Elaborating on its rationale to bid for this company, RIL
said, it helps foray into new materials like composites and fibre. "This participation is a part of Reliance's efforts to enter the Composites business and establish a leadership position in this large and growing market in India. Composites are used in a variety of applications and industries such as renewable energy, mass transportation, infrastructure and a host of other industrial products," RIL
said in its press statement. The assets will pave the way for Reliance to foray into new materials (composites and carbon fiber) and further strengthen its petrochemicals business portfolio, RIL
Analysts, however, see it as a smart move to gain technology access in the Fiber Reinforced Plastic (FRP) segment. "Kemrock allows access to technologies, which are not available with most companies, making it a good buy. In addition, with RIL's existing presence in Vadodara, it is a good expansion," said an analyst with a domestic brokerage firm who did not wish to be identified.
As of March 20, 2017, Kemrock had a market capitalisation of Rs 17.75 crore.
The company was filed with Board for Industrial and Financial Reconstruction (BIFR) in November 2015. It is a fully integrated manufacturer of Fibre Reinforced Composite Materials.
Based on the latest data available, Kemrock as of September 2013 had a total debt of Rs 712.03 crore.
is in the process of complying with the necessary formalities for the acquisition of assets, it said in the press statement.