SRF Ltd, a chemical manufacturing company, has signed an agreement to sell its engineering plastics business to DSM India Pvt Ltd for 320 crores.
DSM India is a wholly-owned subsidiary of Netherlands-based engineering plastics manufacturer Royal DSM. The deal is expected to close in six months, subject to relevant conditions, SRF said in a statement.
“While the engineering plastics business has been a profitable and niche business for us, we felt that scaling it into a large business would have taken significant time. In that sense passing it on to a credible player would be logical for everyone involved,” said SRF Managing Director Ashish Bharat Ram.
Mumbai-based investment banking firm Singhi Advisors was the financial advisor to SRF. SRF’s engineering plastics business recorded sales of 209 crores, with a net worth of 92 crores, in FY19.
SRF Ltd, a chemical company with operations in India, Thailand and South Africa and commercial interests in more than 75 countries, manufactures industrial and specialty intermediates. Its portfolio includes technical textiles, fluorochemicals, specialty chemicals, packaging films, and engineering plastics.