Aditya Birla group buys Swedish pulp maker for $340 mn

Diversified business conglomerate Aditya Birla Group today said it has acquired Swedish pulp maker Domsjo Fibre for a total consideration of $415 million (over Rs 1,800 crore).

"The enterprise value is $340 million. There has been an ongoing capex plan of $75 million, which will take our total investment to $415 million," Aditya Birla Group Business Director (Pulp and Fibre Business) K K Maheshwari told reporters here.

The production capacity of the foreign firm, which clocked a revenue of $390 million last year, will be increased to 2.55 lakh tonnes by June 2012 from 2.1 lakh tonnes at present, he added.

"We have some ambitious growth plans for out VSF (Viscose Staple Fibre) business... We will expand our capacities to over a million tonnes by June 2013 from 7,50,000 at present," Maheshwari said.

Commenting on the deal, Aditya Birla Group Chairman Kumar Mangalam Birla said: "The acquisition further enhances our position in the global pulp and fibre business."

Last week, Aditya Birla Chemicals acquired the Chloro Chemicals Division of Kanoria Chemicals & Industries Ltd for a cash consideration of Rs 830 crore.