Aditya Birla group company,Aditya Birla Chemicals (India),today said that it will acquire the chloro chemicals division of Kanoria Chemicals & Industries Limited (KCIL) for Rs 830 crore. The Board of Directors of Aditya Birla Chemicals (India) Limited (ABCIL),a company of the Aditya Birla Group,today approved the acquisition of the Chloro Chemicals Division (CCD) of Kanoria Chemicals & Industries Limited (KCIL) for a cash consideration of Rs 830 crore, the company said in a release issued here. With this acquisition,the total caustic soda capacity of ABCIL will increase from 1,05,000 tonnes per annum (tpa) to 2,20,000 tpa. ABCIL is a chlor alkali producer with its plant located at Rehla in Jharkhand and this transaction takes ABCIL to a higher growth trajectory,the release said. The transaction will be undertaken on a slump sale (valued at a lumpsum amount without individual valuations) basis and is subject to customary corporate and other approvals,and is expected to be completed towards end-May 2011, it said. The chloro chemicals division (CCD) of Kanoria Chemicals & Industries Limited is located at Renukoot in Uttar Pradesh and manufactures chlor-alkalis,chlorine derivatives and water treatment chemicals. The current annual capacity of caustic soda at the facility is 1,15,000-tonnes per annum. CCD is highly cost-competitive,driven by strengths of the latest manufacturing technology,captive power plants with coal linkage and forward integration into value-adding chlorine derivatives, the release said. CCDs revenues for the year ended March 31,2010,stood at Rs 303-crore. Aditya Birla Groups Chairman,Kumar Mangalam Birla,said a compelling strategic fit,this acquisition further strengthens our groups standing in the chlor alkali/caustic soda sector. This acquisition solidifies the groups position as the countrys largest producer of chlor alkali.
