ABCIL completes acquisition of Jayshree Chemicals' chlor-alkali division

Aditya Birla Chemicals India (ABCIL) completed its acquisition chlor-alkali division of Jayshree Chemicals (JCL) on September 21, 2015. In September last year, the company had said it will acquire the chlor-alkali division of JCL for a cash consideration of Rs 212 crore. The share price of the company on BSE increased by 1.65 per cent and is trading at Rs 210 on intraday basis.

The chlor-alkali division of Jayshree chemicals comprises caustic soda manufacturing unit at Ganjam in Odisha and the salt manufacturing facility at Pundi in Andhra Pradesh. After the acquisition, the division is part and unit of the ABCIL and the unit at Ganjam has been named as Aditya Birla Chemicals (India) Ltd - Ganjam Chemical Division. JCL's chlor-alkali division has capacity of 57000 tonnes per annum located at Ganjam in Odisha. It also has around 1600 acres of salt works in Andhra Pradesh.

ABCIL would be benefited from the acquisition deal as it is in the manufacturing of various chlorine derivatives as value added products. The acquisition will help to the company to make stronger its position as the country’s largest producer of Chlor-Alkali and bolsters caustic soda supply. The caustic soda is a critical input for the Aluminium Business. Chlor-alkali division’s manufacturing facility is strategically situated in the state of Odisha and is in proximity to various aluminium manufacturing facilities, which provides significant growth opportunities.

JCL’s revenue for the year ending 31 March 2015 stood at Rs 120.29 crore. With this acquisition, the total caustic soda capacity of ABCIL will increase to about 3.55 lakh tonnes per annum.

JCL is engaged in the manufacturing of Caustic soda, Liquid Chlorine and Hydrochloric Acid (HCL) and Sodium hypo chlorite based on Energy efficient Latest Membrane Cell Technology at Ganjam District, East Coast of Orissa having an installed capacity of 53200 million tonnes per annum (MPTA), 35000 MTPA, 37000 MPTA AND 6500 MPTA of Caustic Soda, Liquid Chlorine and Hydrochloric Acid (HCL) and Sodium hypo chlorite respectively. JCL is the only unit which is manufacturing Caustic Soda, in the State of Orissa, since 1967.

ABCIL manufacturers of bulk and specialty chemicals and viscose filament yarn. The Company’s product portfolio includes chlor-alkali, chlorine derivatives, epoxy resins, phosphates and phosphoric acid, sulphites, peroxides, fluorine chemicals and viscose filament yarn. Its brands portfolio includes Aryafin, Kanpac, Ray one, Aquacura-IWT, Lion, RGS, Combimate 35, Multi-5, Shaktiman, Corino, Multi-100 (poultry), TetraMate 35, Delice, Multi-100 (seafood), Vikram, Epotec, Oxywhite, Vikram PAC, Gusto, Oxywhite remelt, Vintage, Kanofin and Pearl.