 "Bodal Chemicals buys 70% stake in dye intermediates maker SPS Processors")
Bodal Chemicals Ltd (BCL) to invest Rs 4.1 crore in SPS Processors Pvt Ltd, a company engaged in manufacturing of dye intermediates, for acquiring 70 percent stake. SPS has achieved revenue of Rs 74 crore till February 28, 2017.
SPS Processors’ manufacturing plant, located at Kosi (Uttar Pradesh), is zero discharge unit fully compliant with environmental regulations. At present, it has 250 tonnes per month (TPM) operational capacity to manufacture H-acid, a key dye intermediate. SPS has all necessary permissions in place to manufacture vinyl sulphone (another dye intermediate) as well as dyestuff.
SPS is planning to invest about Rs 10 crore for setting up a 350-TPM vinyl sulphone plant, which is expected to be operational by second quarter of FY 2018.
As part of the deal, BCL to provide unsecured loan about Rs 45 crore to SPS Processors Pvt Ltd to make it debt free company by retiring its existing total debt and also for expansion of its manufacturing capacity of vinyl sulphone plant.
“With this investment, Bodal Chemicals will able to consolidate its position in the local and 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, of the largest and most integrated players in this industry, is poised to take advantage of these opportunities backed by its long established local and global customer relationships,” said Suresh Patel, chairman and managing director, Bodal Chemicals Ltd.
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