Tata Chemicals Ltd. has signed an agreement with Allied Silica Ltd. to acquire the latter's precipitated silica business for Rs 123 crore on a slump sale basis, the company said in a statement.
The deal is expected to close within three months, and includes acquisition of an existing manufacturing site in Tamil Nadu, which will produce highly dispersible silica.
This acquisition is another step in our journey to build technologically enabled, differentiated businesses, with greater customer centricity, by leveraging our core strengths.R Mukundan, Managing Director, Tata Chemicals
This acquisition is part of the company's Rs 295 crore investment plan approved in February 2017 towards specialty businesses, the statement said.
The acquisition is in line with the company's focus to grow the specialty chemical business, and adds value to Tata Chemicals' soda ash business, it said.
Precipitated silica is used in many industries including rubber, oral care, coatings and agro-chemicals.
The technology for manufacturing highly dispersible silica, for which eight patents have already been filed, has been developed at Tata Chemicals' innovation centre in Pune, the statement said.
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