Clariant Chemicals (India) lost 1.98% to Rs 632 at 14:32 IST on BSE after the company today, 16 December 2013 announced its intent to acquire Plastichemix Industries, a pioneer in the masterbatches business in India.
The announcement was made during trading hours today, 16 December 2013.
Meanwhile, the S&P BSE Sensex was down 15.42 points or 0.07% at 20,700.16.
On BSE, so far 68,000 shares were traded in the counter as against average daily volume of 31,000 shares in the past two weeks.
The stock was volatile. The stock lost as much as 3.25% at the day's low of Rs 623.75 so far during the day. The stock rose as much as 3.14% at the day's high of Rs 665 so far during the day.
Clariant Chemicals (India) during trading hours today, 16 December 2013 announced its intent to acquire Plastichemix Industries, a pioneer in the masterbatches business in India, with production facilities at Rania, Kalol and Nandesari in Gujarat. Plastichemix Industries is a leading supplier of black, white, additive, filler & colour masterbatches, flushed pigments & mono-concentrates and engineering plastics compounds. The consideration for the acquisition is Rs 135 crore. The deal closure is planned for Q1 2014, Clariant said. Post the acquisition, Clariant Chemicals (India) would be the largest specialty masterbatches business producer in India and aims to double its business in the next five years, the company said in a statement.
Dr. Deepak Parikh, Vice-Chairman & MD, Clariant Chemicals (India) said, "Clariant continues to reshape its portfolio and maintain profitability in its core businesses by exploring organic and inorganic business opportunities. This acquisition reinforces our long term growth strategy in India and will further elevate our market position. Clariant sees a bright future for masterbatches business in India and we are happy to forecast double digit growth in the near future creating value for all our stakeholders".
Mr. Sandeep Puri, Vice President - BU Masterbatches, Clariant Chemicals (India) said, "It is a proud moment for Clariant, who after this acquisition will be the largest player in the specialty masterbatches business in India. With a stronger product portfolio and enhanced customer base, we would be able to service an extensive network. We will also introduce an upgraded Technical Service Laboratory that will support modernization of our manufacturing practices, leading to the creation of customized products. The new facility also offers additional infrastructural capabilities that will help rapid business growth".
Samir Seth, MD, Plastichemix Industries said, "Since inception, the Sheth family have built a robust business, offering high quality products to customers. Mayur Sheth, Partner & Technical Director, Plastichemix Industries said, Clariant will bring in global expertise that will offer highly innovative and customized product offerings. With this, Clariant looks forward to taking the masterbatch business in India to the next level".
Meanwhile, Clariant Chemicals (India) also said that its board of directors at a meeting held today, 16 December 2013, considered the proposal for sale of the business of leather services, for a net consideration of Rs 156 crore, subject to necessary adjustment as on the effective date. The notice of postal ballot, as approved by the Board, will be sent to the shareholders for their approval in accordance with provisions section 192A(2) of the Companies Act, 1956, the company said.
Clariant Chemicals (India)'s net profit spurted 640.2% to Rs 123.99 crore on 29.8% growth in net sales to Rs 346.74 crore in Q3 September 2013 over Q3 September 2012.
Clariant Chemicals (India) is a specialty chemicals company.
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