Ahmedabad-based Bodal Chemicals is in advance negotiations to buy Chlor-Alkali business of Mawana Sugars as the Delhi-based firm looks to sell non-core businesses to focus its core sugar business.
The transaction will value Mawana Sugars’ Alkali business between 250-350 crore, multiple sources close to the transaction told ET. “A definitive agreement to for the deal is likely soon and the transaction is expected to get announced as early as next week,” said one of the sources mentioned above.
Mawana Sugars, part of Siddharth Shriram Group, is a listed company with two key business divisions such as Sugar and Chlor-Alkali. MSL’s 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.
Mawana has two integrated Sugar plants located in Meerut, Uttar Pradesh, having an aggregate crushing capacity of 19,000 TCD, 30 MW Co-gen power plant and a 120 KLPD distillery to produce ethanol.
Singhi Advisors, a Mumbai based M&A specialist, acted as exclusive advisors to Mawana Sugars in the transaction.
Mails sent to both Bodal and Mawana remained unanswered till the publication of the report.
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 percent 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.
Source: Economic Times