10 SEPTEMBER 2014AlCircle.com
Aditya Birla Chemical at new high, buys Jayshree Chem's CAD
Edited by : AL CIRCLE
1 min read
Aditya Birla Chemicals India (ABCIL) shares became very popular with the investors on Tuesday when the company took the decision of buying the chlor-alkali division (CAD) of Jayshree Chemicals. The shares gained 7.5% to a record high of INR 313 on BSE.
The new acquisition will expand the companies caustic soda capacity to around 3,55,000 tons per annum. The current capacity of the newly acquired facility is 57,000 tons per annum.
The CAD division was bought at a cash consideration of INR 212 crore after the board of directors of ABCIL gave their nod of approval.
Since the CAD’s manufacturing facility is conveniently placed in Odisha, which is close to many aluminium manufacturing facilities and caustic soda plays a key role in the manufacturing process, the company has significant growth opportunities with the acquisition.
The facility also has about 1600 hectares of salt works in the state of Andhra Pradesh.
"We expect significant operational synergies on account of cost savings. The acquisition cost and proposed capital expenditure will be funded through a mix of internal accruals and debt," said Lalit Naik, sector head for chemicals, Aditya Birla Group.
The new acquisition will expand the companies caustic soda capacity to around 3,55,000 tons per annum. The current capacity of the newly acquired facility is 57,000 tons per annum.
The CAD division was bought at a cash consideration of INR 212 crore after the board of directors of ABCIL gave their nod of approval.
Since the CAD’s manufacturing facility is conveniently placed in Odisha, which is close to many aluminium manufacturing facilities and caustic soda plays a key role in the manufacturing process, the company has significant growth opportunities with the acquisition.
The facility also has about 1600 hectares of salt works in the state of Andhra Pradesh.
"We expect significant operational synergies on account of cost savings. The acquisition cost and proposed capital expenditure will be funded through a mix of internal accruals and debt," said Lalit Naik, sector head for chemicals, Aditya Birla Group.
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