German firm plans specialty intermediaries unit in Gujarat

May tie up with Ahmedabad's Karnavati Rasayan for the proposed plant.

Germany-based CABB GmbH is planning to set up a speciality intermediaries unit in India. The company may also collaborate with Ahmedabad-based Karnavati Rasayan Ltd for the proposed plant.

The company on Thursday announced that it would acquire a majority stake in Karnavati Rasayan. Theo Geeroms, chief financial officer of CABB Gmbh, said there was a possibility that the plant would be set up in Gujarat since most of the players the company was talking to for picking up majority stake were from the state. These speciality intermediaries from chlorine are used in personal care, pharma and cosmetics.

However, Karnavati's existing shareholders would continue with their responsibilities and retain their shares in the company.

Karnavati is a manufacturer and seller of monochloro acetic acid (MCAA) and sodium mono chloro acetate (SMCA). CABB GmbH has been a portfolio company of AXA Private Equity since January 2007.

Headquartered at Sulzbach, CABB produces, among others, MCAA and a range of specialty intermediates that find application in PVC, pharmaceutical, agrochemical and personal care industries.

The company is one of the world's largest producers of MCAA and is leading producer of sulphur-based and chlorine-based specialty intermediates with a strong presence in Europe, North America and South America with a consolidated sales of euro 300 million (Rs 1,887 crore) of which specialty intermediates account for over 40 per cent.