SRF is the market leader in refrigerant gases and a supplier of other fluorochemical products, fluorospecialities and polyester films.The Thai-based company has an annual production capacity of 12,000 tonne of dipped nylon tyre cord fabric with annual sales of around $50 million.
The acquisition cost includes purchase of fixed assets and other
transaction costs. In addition, SRF will finance the working capital of the company as will be required on the date of the completion of the transaction. The actual transfer of management control is however expected to take a few months being subject to the approval of the rehabilitation process by the Thailand Court.
Ashish Bharat Ram, managing director, SRF said, "Post the financial restructuring and subsequent take over of the management of TBIL, we are confident that we will be able to turn the company around in a very short time-frame."
"ASEAN is a fast growing region and with our new capacities in polyesterindustrial yarn (PIY) expected towards the end of the financial year, our ability to leverage the TBIL location is substantial, he further said."
With four existing production units in India and one wholly owned subsidiary unit in Dubai, the combined annual production capacity of SRF for tyre cord following this acquisition will increase to 65,000 tonne.
This will help SRF emerge as the third largest tyre cord fabric manufacturer in Asia and fifth largest in the world.
Shares of SRF closed at 118.95 per share on the Bombay Stock Exchange (BSE), down 0.75 per cent as compared to the company's yesterday's close of Rs 119.85 per share.
