The acquisition will cost SRF approximately Rs. 100 crore for the 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.
Giving a rationale for the acquisition, Mr. Ashish Bharat Ram, Managing Director, SRF Limited commented, "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." He further explained, "We take pride in our operational practices and are extremely confident of doing the same at TBIL. We have always aspired to become a Global leader in our business space and this acquisition is a significant step in that direction. ASEAN is a fast growing region and with our new capacities in Polyester Industrial Yarn (PIY) expected towards the end of the financial year, our ability to leverage the TBIL location is substantial."
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 rise to the level of 65,000 tonnes. This in turn will enable SRF to emerge as the third largest tyre cord fabric manufacturer in Asia and fifth largest in the world.
About SRF Limited
SRF Ltd, a leading industrial group, manufactures Technical Textiles, Fluorochemicals, Packaging Films and Fluoro Specialities. Commencing operations in 1974, SRF today operates from eight plant locations in India and abroad and has attained market leadership position in Nylon Tyre Cord Fabric (3rd largest manufacturer of Nylon6 tyre cord in the world & approx 36 per cent market share in India), Belting Fabrics (3rd largest in the world & approx 60 per cent market share in India), Refrigerant Gases (approx 40 per cent market share in India) and Chloromethane. Currently, SRF's products cater to industrial customers in more than 60 countries globally. SRF's relentless focus on TQM techniques has resulted in the company winning the prestigious Deming Application Prize in 2004 for the erstwhile Industrial Synthetics Business of SRF (now integrated with Technical Textiles business), the first nylon tyre cord company outside Japan to be awarded this prize.
