Wadia Group buys Belgium-based Solvay's 25% stake in National Peroxide

Solvay holds 25.1 percent in National Peroxide, which it acquired indirectly through the acquisition of Interox Coordination more than 20 years ago. It also had a technology tie-up with NPL in the past which has since been fully absorbed and discontinued.

NPL was jointly promoted in 1956 by the flagship company of Wadia Group -Bombay Burma Trading Corporations Ltd (BBTCL) and Laporte Industries, UK. Subsequently, Solvay joined hands with Laporte in 1970 and formed a joint venture company - Interox Coordination, which it acquired in 1972 and thus inherited 25.1 percent stake owned by Laporte Industries in NPL.

NPL, presently, under management control of the Wadia Group, is the largest domestic producer of hydrogen peroxide, with current capacity of 95,000 MTPA, against the aggregate domestic manufacturing capacity of 2,19,500 MTPA and current demand of about 285,000 MTPA. The other major player in the industry is Gujarat Alkalis & Chemicals Ltd (GACL) with about 85,000 MTPA capacity. The hydrogen peroxide market is experiencing a growth rate of 7-8 percent annually and the demand gap is met through imports. Hydrogen peroxide - a clear, colourless liquid – is a highly versatile chemical used in major industries like textile bleaching, chemical synthesis, paper & pulp and metal extractions etc.

The Mumbai based global M&A advisory firm Singhi Advisors was advisor to Solvay SA in the transaction. Incidentally, in the past too, Singhi Advisors were the sole advisors for the divestment of polymer business of agrochemical major PI Industries Ltd to Solvay (then Rhodia) and divestment of Sunmica laminate business of Wadia group (Bombay Burma) to Aica Kogyo of Japan.