India’s Bodal Chemicals is in advance negotiations to buy Chlor-Alkali business of Mawana Sugars as the Delhi-based firm looks to focus on its core sugar business, according to a report by ET.
The transaction will value Mawana Sugars’ Alkali business between Rs 2.5-3.5 billion, multiple sources close to the transaction told ET.
Mawana Sugars, part of Siddharth Shriram Group, is a listed company with two key business divisions such as Sugar and Chlor-Alkali.
Mawana Sugars’ Chlor-Alkali unit is located in Rajpura, Punjab. The unit has caustic capacity of 82,500 MTPA with a provision to convert 33,000 MTPA into flakes.
Singhi Advisors, a Mumbai based M&A specialist, acted as exclusive advisors to Mawana Sugars in the transaction.
For Dyestuff manufacturer, Bodal Chemicals the acquisition is a strategic fit as it provides backward integration. The transaction will also enable it to enter the North India market.
Currently, Bodal has 9 plants in Gujarat and 1 plant in UP.
Bodal has been aggressive in acquisitions over the last couple of years. In 2019, Bodal acquired 80% stake in Turkey’s Sener Bova Kimya Tekstil, a company involved in the business of dyestuff and other chemicals. In 2017, the Ahmedabad-based firm bought Gujarat-based Trion Chemicals, a producer of specialty chemicals for water treatment.