Grasim Industries Limited, a part of the Aditya Birla Group, signed a definitive agreement to acquire the Chlor-Alkali Business of K.P.R. Industries (India) Limited for INR253 crore in a cash deal. K.P.R. Industries’ Chlor-Alkali Business consists of an under-construction 200 TPD Chlor-Alkali project at Balabhadrapuram, Andhra Pradesh. Grasim said the transaction will be funded through internal accruals.
The transaction is subject to regulatory approvals.
“Caustic Soda is a critical input in the aluminium sector. Given the expansion plans for the aluminium businesses, it will serve as an excellent sourcing point for leading aluminium players. We look forward to an early completion of this project," Birla Carbon Business CEO Santrupt B Misra said.
Grasim said the acquisition is in line with its strategy to strengthen operations on the East Coast of India. Once operationalised, the project, along with other ongoing expansion projects, will enhance Grasim's caustic soda capacity to 1.22 MMTPA.
Caustic soda is used in the production of alumina. It is also used widely in a number of industries - Viscose Staple Fibre, water treatment, pharma, chemicals etc. The Business is strategically located in proximity of various aluminium manufacturing facilities, which offer significant growth opportunities, Grasim said.
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