Home / Knowledge / News / Textiles / LANXESS underpins BRIC strategy with two acquisitions in Asia
LANXESS underpins BRIC strategy with two acquisitions in Asia
09
Jun '09
The subsidiary of specialty chemicals group LANXESS AG, LANXESS India Private Ltd., will acquire the chemical businesses and assets of stock-market-listed Indian company Gwalior Chemical Industries Ltd. for EUR 82.4 million, including debt. A corresponding agreement was reached with the company. The transaction is subject to formal approval by Gwalior's shareholders and clearance by the relevant antitrust authorities. Closing is expected at the end of the third quarter of 2009.

“This is our first acquisition in India and a further milestone in our company's long-term growth strategy in BRIC countries,” said Axel C. Heitmann, Chairman of LANXESS' Board of Management. “Gwalior's business complements the portfolio of the Basic Chemicals business unit and will strengthen our production base in the exciting Indian market.”

Founded in 1978, Gwalior's headquarter is based in Mumbai and employs about 400 permanent staff. In the first nine months of its business year 2008/2009 (end March 31), Gwalior achieved sales of approximately EUR 45.7 million and an above-peer EBITDA margin of approximately 18%.

“We are delighted to have reached this landmark transaction. We are convinced that the business as well as employees will go from strength to strength under the new management of LANXESS,” said Ashwin Kothari, Chairman of Gwalior Chemical Industries Ltd.

Gwalior is one of the largest Indian producers of benzyl products and one of the leading global producers of sulphur chlorides for the agrochemicals, pharmaceutical as well as flavor and fragrance industries. Its production sites are in Nagda, Madhya Pradesh state, and in Ankleshwar, Gujarat state. In the future, production will be concentrated at the modern Nagda site, which is currently expanding capacities.

In addition to the acquisition of Gwalior, LANXESS announced the takeover of the business and production assets of Jiangsu Polyols Chemical Co. Ltd. Both parties have agreed not to disclose the purchase price. Closing is expected in the third quarter of 2009. Jiangsu Polyols achieved sales of about EUR 10 million in 2008 and currently employs some 170 staff at a facility with competitive technology.

The Chinese medium-sized company mainly produces trimethylolpropane (TMP) that is used in lubricants, paints and coatings. LANXESS' business unit Basic Chemicals is already a major supplier of TMP in China and will integrate Jiangsu into its global operations.

With some 1,000 employees worldwide, the LANXESS Basic Chemicals business unit is one of the leading manufacturers of raw materials for agrochemicals, polymers, surface coatings and pigments. It operates several production sites in Germany, China and the United States. The Basic Chemicals business unit belongs to the Advanced Intermediates segment, which achieved total sales in 2008 of EUR 1.3 billion. The segment has proven to be one of LANXESS' more stable businesses in the economic crisis due to its exposure to the agrochemical industry.


Must ReadView All

Courtesy: Stone Island

Apparel/Garments | On 25th Jun 2018

Stone Island has mastered ingredient branding: Braind

Italian high-end men's apparel brand Stone Island tops the list of...

Courtesy: Tecnorama

Textiles | On 25th Jun 2018

'Tecnorama automatic dyeing system offers efficiency'

Italy based Tecnorama’s fully-automatic machinery for dispensing...

Courtesy: Lenzing

Textiles | On 25th Jun 2018

Lenzing launches Veocel nonwoven speciality brand

Leading fibre company, the Lenzing Group has unveiled Veocel, the new ...

Interviews View All

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Karan Behal

Karan Behal, founder and chief executive of top-selling brand...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search