SRF has commercial interests in more than 75 countries and has a global workforce of 6,500 people.
Specialty chemical manufacturing company SRF Ltd has reportedly settled on to selling its engineering plastics business to the Indian unit of Royal DSM for INR 320 crore ($45.6 million). The balance sheet of the company is expected to be strengthened by the sale. It will also allow the firm to focus its resources on developing newer technologies for chemical business, cited reliable sources.
Reportedly, the deal is expected to be concluded in six months, subjected to working capital adjustments.
According to reliable sources, the main operations of engineering plastic business of SRF is in Pantnagar, Uttarakhand. From 2017-18, the business earned a revenue of INR 209 crore, which represents 4.5 percent of SRF’s turnover.
Royal DSM reportedly stated that the deal will support the expansion of the production capacity of its unit in India. It will also help in sales of its specialty materials without making significant capital expenditure.
For the record, SRF Limited was founded in 1970 and has operations in South Africa, India and Thailand. The company reported total revenue of INR 1,647 crore for the quarter ended December 31, 2018. It has classified its business into 3 key verticals – chemicals and polymers, packaging films and technical textiles. SRF has commercial interests in more than 75 countries and has a global workforce of 6,500 people.
DSM India is a subsidiary of the Dutch Royal DSM. The group operates in animal and human nutrition, personal care and medical devices segments. For the first quarter of the year 2019, it has reported net sales worth €2.3 billion (around INR 18,075 crore at current exchange rates).
DSM has a workforce of about 550 people in India. The company is active in both materials and nutrition segments in the country. In the year 2018, the total sales revenue of DSM in India was raised to €250 million ($281 million), an increase of 17 percent compared to 2017.
Source credit: https://www.vccircle.com/srf-to-sell-engineering-plastics-business-to-dutch-firm-dsm