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

Courtesy: Trinity Kubassek from Pexels

Textiles | On 19th Aug 2018

Australian wool production to fall 5.7% in 2018-19

Shorn wool production in Australia is likely to fall by 5.7 per cent...

Courtesy: Next Level Apparel

Apparel/Garments | On 19th Aug 2018

Blue Point Capital recapitalises Next Level Apparel

Blue Point Capital Partners has recapitalised Next Level Apparel, a...

Retailers approaching 100% inventory accuracy: Study

Apparel/Garments | On 19th Aug 2018

Retailers approaching 100% inventory accuracy: Study

With computer vision use cases maturing, Artificial Intelligence (AI) ...

Interviews View All

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Siddhachakra Weaving (Badiya Fashion)

Ahmedabad-based Siddhachakra Weaving Pvt Ltd was established in 2011 under ...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Chunyi Zhi
City University of Hong Kong

<div><b>Chunyi Zhi</b>, associate professor in the Department of Materials ...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Pierre Wiertz
EDANA

EDANA, the international association serving the nonwovens and related...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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


August 2018

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

news category


Related Categories:

Advanced Search