Kanoria Chemicals & Industries has informed that the transaction of sale of the company's chloro chemicals division to Aditya Birla Chemicals (India) has been closed and completed on May 23, 2011 and the company has received consideration of Rs 830 crore.
Consequent to the closing of the sale, the company's chloro chemicals division stands transferred to ABCIL.
Recently, Kanoria Chemicals & Industries announced the divestment of its Chloro Chemicals Division (CCD) situated at Renukoot to ABCIL for a cash consideration of Rs 830 crore. Both the parties executed the business transfer agreement and the transaction will be done by way of a slump sale and is expected to be completed by the end May 2011. The company’s board of directors, in the meeting held on April 16, 2011, approved the divestment of Chloro Chemicals Division (CCD) to ABCIL.
Kanoria Chemicals is engaged in the manufacture and sale of chemical intermediates in India. It offers chlor-alkalis, chlorine derivatives, and water treatment chemicals, as well as alcohol-based intermediates.
CCD is a state of art facility located at Renukoot, Uttar Pradesh, manufacturing Chlor-Alkalis, Chlorine derivatives and water treatment chemicals. The current annual capacity of caustic soda at the facility is 115,000 tpa.
ABCIL, part of Aditya birla Group and a subsidiary of Hindalco Industries have got experience in running similar business as well as integrated business they acquired.
