Home / Knowledge / News / Textiles / NRI's TCG picks up majority stake in MCC's Haldia plant
NRI's TCG picks up majority stake in MCC's Haldia plant
30
Jul '16
The Chatterjee Group (TCG) owned by NRI entrepreneur Purnendu Chatterjee has picked up a majority stake in Japanese major Mitsubishi Chemical Corporation's (MCC) Indian unit in West Bengal for around Rs 322 crore ($48 million).

TCG will buy 5.8 billion shares (90 per cent stake) of MCC PTA India Corporation (MCPI) with Mitsubishi retaining 600 million shares in the Haldia-based unit, according to the share purchase agreement on the Tokyo-based company's website.

“The agreement includes two processes—conversion of the MCC loans to MCPI into common shares, and increase MCPI capital share with MCC as underwriter by the share transfer date, which is scheduled for the end of October this year. This will increase the percentage of the MCPI common shares held by MCC to a maximum of 99.4 per cent,” the company said in a statement.

The Japanese petrochemicals maker maintained that after completion of the above capital increase, MCC will transfer all the shares except for a shareholding ratio of 9 per cent to Chatterjee on the share transfer date.

As a result, MCPI will become a non-consolidated affiliate of MCC.

West Bengal Industrial Development Corporation (WBIDC) will also hold a small stake (at present 5 per cent).

The Indian unit of MCC currently has an installed capacity of 1.27 million tonnes with a turnover of around Rs 6,000 crore. It has a workforce of around 1,100 people.

Industry circles view it as a strategic decision by the Tokyo-based company to exit the commodity chemical business as the firm has also offloaded its PTA business in China, selling the plant to an oil refiner in Ningbo.

However, it has decided to retain the Thailand facility that supplies to group firms and another unit in South Korea.

Founded in 1989 by Chatterjee, TCG is a US-based private equity firm, with investments and operations spanning several continents and industries. It prefers to invest in petrochemicals, pharmaceuticals, biotech, financial services, real estate and technology sectors in the US, Europe and South Asia.

TCG, according to Mitsubishi Chemical's statement, has operating assets worth $900 million across the world. Early this year, TCG emerged as the single-largest shareholder in Haldia Petrochemicals Ltd by paying Rs 653 crore and buying out 26 crore shares from WBIDC. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Top 15 US fashion brands are collectively worth $70 bn

Fashion | On 22nd Jul 2018

Top 15 US fashion brands are collectively worth $70 bn

The top 15 American fashion brands are collectively worth close to...

Courtesy: Covestro

Textiles | On 22nd Jul 2018

Covestro's new products for waterproof textile coating

Covestro, which is among the largest polymer companies, has unveiled...

Evogene, IMAmt to work together in insect resistance

Textiles | On 22nd Jul 2018

Evogene, IMAmt to work together in insect resistance

Evogene, a leading biotechnology company developing novel products...

Interviews View All

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Carolin Russ

Weko, Weitmann & Konrad GmbH & Co KG, based in south Germany, is...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Harsh Shah

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

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

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


July 2018

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

news category


Related Categories:

Advanced Search