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Gharda Chemicals promoters to sell stake in next few months

20 Jul 2009 Evaluate

Gharda Chemicals, the second-largest domestic agro-chemical company, is likely to be sold within a few months. Discussions are on with private equity funds and some of the largest Indian agro chemical companies to sell the promoter stake of 63 per cent in the Rs 950-crore turnover company. Gharda said he would not reveal the names of the players in the acquisition race, as discussions are still at a primary stage.

 

According to sources, private equity funds like Carlyle, Kotak and Blackstone were in discussions with Gharda for a takeover. Agrochemical majors United Phosphorous and Tata Chemicals were also interested, but now the Tata group is not pursuing the acquisition. International player Dupont, which tried to acquire Gharda in early 2000s, had then valued the company at over Rs 1,200 crore. Considering the current asset base, the valuation of the privately held company could be in the range of Rs 2,000-3,000 crore.

 

 

Research and development driven, Gharda is mainly into supply of agro chemicals, dyes and intermediates and industrial polymers. It has four plants, at Dombivli and Chiplun in Maharashtra and Panoli and Ankleswar in Gujarat. The company employs over 1,200 people. Over half the production is exported and in several products it has global leadership position behind innovator multinational companies such as Bayer, BASF, Solvay and Dupont.crackcrack

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