Adani Wilmar to buy 67% stake in Omkar Chemicals, aims to expand footprint | Company News
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In a move aimed at expanding its footprint in the speciality chemical industry, Adani Wilmar Limited (AWL) on Thursday announced the acquisition of a 67 per cent stake in Omkar Chemicals Industries Private Limited (OCIPL), a Gujarat-based speciality chemicals firm.
Adani Wilmar has signed a share purchase agreement with OCIPL for an enterprise value of Rs 56.25 crore to be paid in cash, the company said in a stock exchange filing.
OCIPL operates a manufacturing plant in Panoli, Gujarat, with an annual capacity of around 20,000 MT of surfactants, and is planning to scale up its capacity, Adani Wilmar said.
AWL expects to close the deal in three to four months and it doesn’t need government or regulatory approvals, it said in its filing.
In FY24, OCIPL reported a turnover of Rs 13.95 crore. Its plant commenced operations in FY24 and its capacity utilisation was below 10 per cent.
The specialty chemicals market presents a significant opportunity across diverse sectors such as home and personal care products, food additives, plastics and polymers, agrochemicals, and lubricants and petrochemicals. AWL currently operates in this sector through third-party manufacturing and by importing from Wilmar’s plants,” it said.
“We are pleased to add that these specialty chemicals, which represents further downstream derivatization of our product portfolio. Through this acquisition, AWL will immediately establish a production footprint and capabilities that will allow us to better meet customer requirements,” Saumin Sheth, chief operating officer of AWL, said.
Sheth added that the downstream derivatization of its basic oleochemicals in select areas is a strategic focus for the company, in line with the focus of its co-promoter Wilmar International, which is the world’s largest oleochemical manufacturer.
First Published: Jul 11 2024 | 9:39 PM IST
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